Sioux Falls Industrial
For Sale
Contact for pricing
1501 N Industrial Ave, Sioux Falls, SD 57104
159,670 SF industrial property available for sale.
Property Size159,670 SF
Price / SF$84.55
Days on Market177
Property Features for 1501 N Industrial Ave
General Information
Standard status
Active
Size
159,670 SF
Property subtype
Industrial
Zoning
I-1 Light Industrial
Lease Type
NNN
Investment Type
Sale/Leaseback
Net Operating Income
$860,028
Building Details
Year Built
1960
Year Renovated
1972
Buildings
4
Units
4
Tenancy
Multi
Listing Agency:
Bender Commercial
(605) 496-2966
Listed By:
Rob Fagnan · License #12988
Source:
Crexi
Added: Feb 24
Changed: Aug 15
Last Checked: Aug 20 at 8:51AM
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 commercial real estate offering features a 159,670 square foot industrial property. The property is located in Sioux Falls, South Dakota.
Key Highlights
- 159,670 SF industrial property
- Available for sale
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
$1,091,592
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
8.09%
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%
$21,831,840
$21.8M
Cap Rate 7%
$15,594,171
$15.6M
Cap Rate 9%
$12,128,800
$12.1M
Market Conditions
NOI Build-Up for 159,670 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
$1.63M $10.20/SF
− Vacancy
−$69.2K −$0.43/SF
EGI
$1.56M $9.77/SF
− OpEx
−$467.8K −$2.93/SF
NOI
$1.09M $6.84/SF
Area
Sioux Falls, SD
Vacancy
4.25%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
30.00%
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%
$21,831,840
Cap Rate 7%
$15,594,171
Cap Rate 9%
$12,128,800
Alternative Uses
Best Use
Warehouse
$20.05M
$17.54M – $23.39M
NOI $1,403,475 @ 7.0% cap · market cap 10.40%
Second Best
Industrial
$15.59M
$13.64M – $18.19M
NOI $1,091,592 @ 7.0% cap · market cap 8.09%
Theoretical Best
Office A
$43.36M
$37.94M – $50.58M
NOI $3,035,007 @ 7.0% cap · market cap 22.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
389
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- CBY Self Storage — 2108 W Burnside St Ste 1, Sioux Falls, SD 57104
- Arena Storage — 1605 W 2nd St, Sioux Falls, SD 57104
- Runnings Sioux Falls Warehouse — 1526 N Industrial Ave, Sioux Falls, SD 57104
Frequently Asked Questions
What type of property is this?
Warehouse - 159,670 SF industrial property available for sale.
Where is this warehouse located?
The property is located at 1501 N Industrial Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $13,500,000.
What are key features of this property?
This property features: 159,670 SF industrial property; Available for sale
