Office Building on
For Sale
$1,500,000
1601 NE Milwaukee Avenue, Aberdeen, SD 57401
COMMERCIAL - Aberdeen, SD
Property Size11,460 SF
Price / SF$130.89
Days on Market215
Property Features for 1601 NE Milwaukee Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Aberdeen - City
Standard status
Active
Size
11,460 SF
Taxes and HOA fees
Tax Description
OL 2 BK F EX LT 1 BETHLEHEM EVANGELICAL LUTHERAN CHURCH ADD SE 18-123-63
Legal Description
OL 2 BK F EX LT 1 BETHLEHEM EVANGELICAL LUTHERAN CHURCH ADD SE 18-123-63
Building Details
Year built
1994
Listing Agency:
Dakota Plains Real Estate & Development
(605) 225-1800
Listed By:
Robin (Rob) K Johnson · License #15391
(605) 225-1800
Added: Jan 16
Changed: Aug 18
Last Checked: Aug 19 at 12:06AM
MLS# 25-750
Copyright © 2026 Aberdeen Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This office property includes an 11,460-square-foot building constructed in 1994 and situated on 5.9 acres. The building is described as multi-use, providing a flexible configuration for a range of office-oriented requirements.
The property is located at 1601 NE Milwaukee Avenue in Aberdeen, South Dakota, within Brown County and ZIP Code 57401. A minimum of 24 hours’ notice is requested before appointments.
The property is located at 1601 NE Milwaukee Avenue in Aberdeen, South Dakota, within Brown County and ZIP Code 57401. A minimum of 24 hours’ notice is requested before appointments.
Key Highlights
- 11,460‑square‑foot office building
- 5.9‑acre property
- Constructed in 1994
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
$103,140
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
6.88%
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%
$2,062,800
$2.1M
Cap Rate 7%
$1,473,429
$1.5M
Cap Rate 9%
$1,146,000
$1.1M
Market Conditions
NOI Build-Up for 11,460 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
$171.9K $15.00/SF
− Vacancy
−$34.4K −$3.00/SF
EGI
$137.5K $12.00/SF
− OpEx
−$34.4K −$3.00/SF
NOI
$103.1K $9.00/SF
Area
Brown County, SD
Vacancy
20.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
25.00%
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%
$2,062,800
Cap Rate 7%
$1,473,429
Cap Rate 9%
$1,146,000
Alternative Uses
Best Use
Office B
$1.47M
$1.29M – $1.72M
NOI $103,140 @ 7.0% cap · market cap 6.88%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$2.00M
$1.75M – $2.33M
NOI $140,064 @ 7.0% cap · market cap 9.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
435
Businesses Nearby
Explore this area
Business Placement
Demographics for 57401, SD
32,275
Population
15,016
Households
2.1
Avg Household Size
37
Median Age
35%
College-Educated
93%
High-School Grad
278.8 sq mi
ZIP Area
116
Density / Sq Mi
$68,183
Median Household Income
$40,562
Median Earnings
$787
Median Rent
$216,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Flexible office property offering a substantial building footprint and multi-use configuration.
Where is this office building located?
The property is located at 1601 NE Milwaukee Avenue Aberdeen, SD.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 11,460‑square‑foot office building; 5.9‑acre property; Constructed in 1994
