Office Building with Walkout Lower
New
For Sale
$1,150,000
1737 S Cleveland Ave, Sioux Falls, SD 57103
COMMERCIAL, Sioux Falls, SD
Property Size6,284 SF
Lot Size0.53 Acres
Price / SF$183
Days on Market2
Property Features for 1737 S Cleveland Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CHAPTER 160: ZONING Zone
Subdivision
Greenfield Subd
Directions
From I-229, E 26th St, North to Cleveland Ave, left into parking lot.
Standard status
Active
APN
67447
Size
6,284 SF
Lot size
0.53 Acres
Taxes and HOA fees
Tax Description
N64 S84 W68 E325 Tr 1 Greenfield Subd 6 Riverview Addn To City Of Sioux Falls
Tax Annual Amount
14149
Legal Description
N64 S84 W68 E325 Tr 1 Greenfield Subd 6 Riverview Addn To City Of Sioux Falls
Utilities
Heating system
Central
Cooling system
Central Air
Building Details
Year built
1998
Flooring type
Carpet, Vinyl, Laminate
Roof type
Composition
Listing Agency:
Keller Williams Realty Sioux Falls
Listed By:
Angela Lucid
(605) 275-0555
Added: Sep 25
Changed: Sep 26
Last Checked: Sep 26 at 5:06AM
MLS# 22607480
Copyright © 2026 Realtor Association of the Sioux Empire MLS. 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 6,284-square-foot office building, constructed in 1998, has a main floor and a walkout basement. The upper level pairs private offices with open areas, a kitchenette, a water fountain, four sinks and three restrooms. The lower level has its own outside entrance, interior stair access, private offices, a large shared-use area and two bathrooms, including one with a shower and another with a washer and dryer hookup. Laminate, carpet and vinyl flooring are present; the building has central heating and air conditioning.
The property occupies 0.5345 acres at the corner of S Cleveland Ave and 26th St. Access to Interstate 229, 26th St and Southeastern Ave is noted, and on-site parking is provided in two lots, including one reached from the walkout level.
The property occupies 0.5345 acres at the corner of S Cleveland Ave and 26th St. Access to Interstate 229, 26th St and Southeastern Ave is noted, and on-site parking is provided in two lots, including one reached from the walkout level.
Key Highlights
- 6,284‑square‑foot office building on 0.5345 acres
- Built in 1998, with a main level and walkout basement
- Main floor includes private offices, open areas, kitchenette and three restrooms
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
$84,127
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
7.32%
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%
$1,682,540
$1.7M
Cap Rate 7%
$1,201,814
$1.2M
Cap Rate 9%
$934,744
$934.7K
Market Conditions
NOI Build-Up for 6,284 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
$132.0K $21.00/SF
− Vacancy
−$19.8K −$3.15/SF
EGI
$112.2K $17.85/SF
− OpEx
−$28.0K −$4.46/SF
NOI
$84.1K $13.39/SF
Area
Sioux Falls, SD
Vacancy
15.00%
Lease Rate
$21.00 /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%
$1,682,540
Cap Rate 7%
$1,201,814
Cap Rate 9%
$934,744
Alternative Uses
Best Use
Office B
$1.20M
$1.05M – $1.40M
NOI $84,127 @ 7.0% cap · market cap 7.32%
Second Best
Healthcare Medical
$1.15M
$1.01M – $1.34M
NOI $80,536 @ 7.0% cap · market cap 7.00%
Theoretical Best
Office A
$1.71M
$1.49M – $1.99M
NOI $119,446 @ 7.0% cap · market cap 10.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
296
Businesses Nearby
Explore this area
Business Placement
Demographics for 57103, SD
36,069
Population
15,326
Households
2.4
Avg Household Size
37
Median Age
33%
College-Educated
91%
High-School Grad
9.5 sq mi
ZIP Area
3,797
Density / Sq Mi
$73,945
Median Household Income
$43,661
Median Earnings
$938
Median Rent
$244,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two levels offer private offices, open work areas, support facilities and independent exterior access to the lower floor.
Where is this office building located?
The property is located at 1737 S Cleveland Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: 6,284‑square‑foot office building on 0.5345 acres; Built in 1998, with a main level and walkout basement; Main floor includes private offices, open areas, kitchenette and three restrooms
