Warehouse and Flex Space
For Sale
Contact for pricing
1401 E Benson Rd, Sioux Falls, SD 57104
Warehouse and flex space with excess land near I-229.
Property Size35,168 SF
Price / SF$120.85
Days on Market183
Property Features for 1401 E Benson Rd
General Information
Standard status
Active
Size
35,168 SF
Property subtype
Industrial
Investment Type
Owner/User
Building Details
Buildings
1
Stories
1
Listing Agency:
Bender Commercial
(605) 579-0189
Listed By:
Bradyn Neises · License #SD 16240
Source:
Crexi
Added: Feb 9
Changed: Aug 8
Last Checked: Jul 16 at 4:32AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Bender Commercial
Investment Insights
Based on property information with market context.
This property offers an opportunity for owner-occupied warehouse and flex space, featuring excess land. The main building encompasses 32,368 square feet and includes an office area with a reception, private offices, and a restroom. The warehouse portion contains a parts room, breakroom, and storage space. The north section of the warehouse is equipped with a floor drain, while the south section features a mezzanine office area. Additionally, there is a 2,800 square foot cold storage building with two 14-foot overhead doors, constructed with insulation and a steel frame. The property is situated along Benson Road near Cliff Avenue, less than a mile from I-229. Nearby businesses include Zomer Truck & Trailer Sales, Transwest Trucks, Custom Truck Equipment, Windwalker Transportation, Mead Lumber, and Hancock Concrete.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$360,992
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.49%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,219,840
$7.2M
Cap Rate 7%
$5,157,029
$5.2M
Cap Rate 9%
$4,011,022
$4.0M
Market Conditions
NOI Build-Up for 35,168 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$590.8K $16.80/SF
− Vacancy
−$35.4K −$1.01/SF
EGI
$555.4K $15.79/SF
− OpEx
−$194.4K −$5.53/SF
NOI
$361.0K $10.26/SF
Area
Sioux Falls, SD
Vacancy
6.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
35.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,219,840
Cap Rate 7%
$5,157,029
Cap Rate 9%
$4,011,022
Alternative Uses
Best Use
Flex RnD
$5.16M
$4.51M – $6.02M
NOI $360,992 @ 7.0% cap · market cap 8.49%
Second Best
Warehouse
$4.42M
$3.86M – $5.15M
NOI $309,121 @ 7.0% cap · market cap 7.27%
Theoretical Best
Office A
$9.55M
$8.36M – $11.14M
NOI $668,473 @ 7.0% cap · market cap 15.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
373
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 57104, SD
26,998
Population
13,952
Households
1.9
Avg Household Size
37
Median Age
25%
College-Educated
90%
High-School Grad
30.4 sq mi
ZIP Area
888
Density / Sq Mi
$59,161
Median Household Income
$39,101
Median Earnings
$849
Median Rent
$183,700
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Warehouse and flex space with excess land near I-229.
Where is this flex space located?
The property is located at 1401 E Benson Rd Sioux Falls, SD.
What is the asking price?
The asking price for this property is $4,250,000.
