Three-Story Office
For Sale
Contact for pricing
1800 S Summit Ave, Sioux Falls, SD 57105
Three-level office building with 2,190 SF per floor, multiple private offices, and a lower-level suite with private parking entrance.
Property Size6,570 SF
Lot Size0.50 Acres
Price / SF$228.31
Days on Market295
Property Features for 1800 S Summit Ave
General Information
Standard status
Active
Size
6,570 SF
Total Parking Spaces
29
Lot size
0.50 Acres
Property subtype
OFFICE
Amenities
conference room
break room with kitchenette
common area vestibule
operable chair lift
building signage opportunities
private entrance from parking lot
Building Details
Year Built
1951
Year Renovated
2022
Stories
3
Construction
mid-century
Listing Agency:
Lloyd Companies - Corporate
(605) 323-2820
Listed By:
Kristen Zueger, SIOR
(605) 376-1903
Source:
Moodyscre
Added: Nov 25, 2025
Changed: Sep 15
Last Checked: Sep 15 at 10:29AM
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 Lloyd Companies - Corporate
Investment Insights
Based on property information with market context.
This three-level office building offers approximately 2,190 SF +/- per floor. The second level includes a large open work area, two private offices, a conference room, a break room with built-in shelving and kitchenette, and a restroom. The main level features a reception/lobby area, six private offices, and restrooms. The lower level provides a large open area and a private entrance from the parking lot. There is also a common area vestibule.
The property has no elevators; an operable chair lift connects the main and lower levels. As a former medical building, it includes ample plumbing throughout. The building was constructed in 1951 and renovated in 2022. Building signage opportunities are available.
The half-acre lot includes 29 surface parking stalls. The building is delivered vacant and is available now, with potential on-site additions such as a garage or storage.
The property has no elevators; an operable chair lift connects the main and lower levels. As a former medical building, it includes ample plumbing throughout. The building was constructed in 1951 and renovated in 2022. Building signage opportunities are available.
The half-acre lot includes 29 surface parking stalls. The building is delivered vacant and is available now, with potential on-site additions such as a garage or storage.
Key Highlights
- Three‑level office building with approximately 2,190 SF per floor
- Main level includes reception/lobby, 6 private offices, and restrooms
- Second level offers a large open work area, 2 private offices, conference room, break room with built‑in shelving & kitchenette, and restroom
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
$87,956
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
5.86%
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%
$1,759,120
$1.8M
Cap Rate 7%
$1,256,514
$1.3M
Cap Rate 9%
$977,289
$977.3K
Market Conditions
NOI Build-Up for 6,570 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
$138.0K $21.00/SF
− Vacancy
−$20.7K −$3.15/SF
EGI
$117.3K $17.85/SF
− OpEx
−$29.3K −$4.46/SF
NOI
$88.0K $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%
$1,759,120
Cap Rate 7%
$1,256,514
Cap Rate 9%
$977,289
Alternative Uses
Best Use
Office B
$1.26M
$1.10M – $1.47M
NOI $87,956 @ 7.0% cap · market cap 5.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.78M
$1.56M – $2.08M
NOI $124,883 @ 7.0% cap · market cap 8.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
2,152
Businesses Nearby
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Business Placement
Demographics for 57105, SD
22,635
Population
10,550
Households
2.1
Avg Household Size
36
Median Age
44%
College-Educated
97%
High-School Grad
7.5 sq mi
ZIP Area
3,018
Density / Sq Mi
$74,066
Median Household Income
$43,271
Median Earnings
$956
Median Rent
$247,900
Median Home Value
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Three-level office building with 2,190 SF per floor, multiple private offices, and a lower-level suite with private parking entrance.
Where is this office building located?
The property is located at 1800 S Summit Ave Sioux Falls, 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: Three‑level office building with approximately 2,190 SF per floor; Main level includes reception/lobby, 6 private offices, and restrooms; Second level offers a large open work area, 2 private offices, conference room, break room with built‑in shelving & kitchenette, and restroom
