Listing Agency: NAI | Sioux Falls Show Phone

Listed By: Troy Fawcett, CCIM, SIOR Show Phone

Source: Moodyscre

Added: Dec 15, 2025 Changed: Sep 12 Last Checked: Sep 15 at 8:36AM

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Investment Insights

Based on property information with market context.

This flex warehouse property offers approximately 9,000 SF of shop space along with a 1,875 SF modern office. The building includes four roll-up doors, 16' side walls, and floor drains tied to a leach field. The office is supported by a septic tank, and air lines are installed throughout the building.

Additional operational improvements include three Reznor heaters and one bay radiant tube heat. The property is located at 26071 Brower Cir in Hartford, SD 57033.

With a dedicated office component and multiple overhead doors, the layout supports day-to-day work and on-site administration in the same facility.

Key Highlights

• 9,000 SF shop plus 1,875 SF modern office space in a flex warehouse layout
• Four roll‑up doors provide loading and access for shop space
• 16' side walls in the shop area for taller storage/operations

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

$95,590

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

7.35%

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%

$1,911,800 $1.9M

Cap Rate 7%

$1,365,571 $1.4M

Cap Rate 9%

$1,062,111 $1.1M

Market Conditions

NOI Build-Up for 10,875 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

$117.5K $10.80/SF

− Vacancy

−$5.0K −$0.46/SF

EGI

$112.5K $10.34/SF

− OpEx

−$16.9K −$1.55/SF

NOI

$95.6K $8.79/SF

Area

Minnehaha County, SD

Vacancy

4.25%

Lease Rate

$10.80 /SF/Yr

Expense Ratio

15.00%

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%

$1,911,800

Cap Rate 7%

$1,365,571

Cap Rate 9%

$1,062,111

Alternative Uses

Best Use

Warehouse

$1.37M

$1.19M – $1.59M (±1% cap)

NOI $95,590 @ 7.0% cap · market cap 7.35%

Second Best

Industrial

$1.06M

$929.3K – $1.24M (±1% cap)

NOI $74,347 @ 7.0% cap · market cap 5.72%

Theoretical Best

Office A

$2.93M

$2.57M – $3.42M (±1% cap)

NOI $205,209 @ 7.0% cap · market cap 15.79%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Blackburn Foundation Repair ... Construction Company

Suggested Use

Top Pick Dental Office Grocery & Convenience Store Butcher Cafe & Coffee Shop Computer & Electronic Repair Florist

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

16 ft

Clear height

Location Intelligence

Trade Area within ½ mile

85

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 57033, SD

5,654

Population

2,326

Households

2.4

Avg Household Size

37

Median Age

35%

College-Educated

97%

High-School Grad

120.5 sq mi

ZIP Area

47

Density / Sq Mi

$98,156

Median Household Income

$49,525

Median Earnings

$949

Median Rent

$280,500

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Flex warehouse includes 9,000 SF shop, 1,875 SF modern office, and four roll-up doors.

Where is this flex space located?

The property is located at 26071 Brower Cir Hartford, SD.

What is the asking price?

The asking price for this property is $1,300,000.

What are key features of this property?

This property features: 9,000 SF shop plus 1,875 SF modern office space in a flex warehouse layout; Four roll‑up doors provide loading and access for shop space; 16' side walls in the shop area for taller storage/operations