Flex Space with Cold
For Sale
$960,000
2821 8th Avenue, Aberdeen, SD 57401
COMMERCIAL - Aberdeen, SD
Property Size10,700 SF
Price / SF$89.72
Days on Market38
Property Features for 2821 8th Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Aberdeen - City
Standard status
Active
Size
10,700 SF
Taxes and HOA fees
Tax Year
2025
Tax Description
LT 4 Nordstrom-Pierson ADD SW 8-123-63 (Nordstrom 1st SD Cutler OL)
Tax Annual Amount
7565
Legal Description
LT 4 Nordstrom-Pierson ADD SW 8-123-63 (Nordstrom 1st SD Cutler OL)
Building Details
Year built
1978
Listing Agency:
Dakota Plains Real Estate & Development
(605) 225-1800
Listed By:
Sterling Jones
(605) 225-1800
Added: Jul 13
Changed: Aug 18
Last Checked: Aug 19 at 12:06AM
MLS# 26-280
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 10,700-square-foot flex property includes two buildings on 2.6 acres at 2821 8th Avenue in Aberdeen. Built in 1978, the main building brings together office space, a heated shop, warehouse area, and cold storage. The storage-shop building includes two double shops and one single shop, with in-floor boiler heat supporting the spaces.
The property is located in Aberdeen, SD 57401, in Brown County. Its mix of office, shop, warehouse, and cold-storage areas provides a varied commercial configuration within a single site.
The property is located in Aberdeen, SD 57401, in Brown County. Its mix of office, shop, warehouse, and cold-storage areas provides a varied commercial configuration within a single site.
Key Highlights
- 10,700 SF across 2 buildings on 2.6 acres
- Main building includes office, heated shop, warehouse, and cold storage
- Storage‑shop building has 2 double shops and 1 single shop
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
$82,625
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
8.61%
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%
$1,652,500
$1.7M
Cap Rate 7%
$1,180,357
$1.2M
Cap Rate 9%
$918,056
$918.1K
Market Conditions
NOI Build-Up for 10,700 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
$141.2K $13.20/SF
− Vacancy
−$14.1K −$1.32/SF
EGI
$127.1K $11.88/SF
− OpEx
−$44.5K −$4.16/SF
NOI
$82.6K $7.72/SF
Area
Brown County, SD
Vacancy
10.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
35.00%
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%
$1,652,500
Cap Rate 7%
$1,180,357
Cap Rate 9%
$918,056
Alternative Uses
Best Use
Flex RnD
$1.18M
$1.03M – $1.38M
NOI $82,625 @ 7.0% cap · market cap 8.61%
Second Best
Warehouse
$421.0K
$368.4K – $491.1K
NOI $29,468 @ 7.0% cap · market cap 3.07%
Theoretical Best
Healthcare Medical
$1.87M
$1.63M – $2.18M
NOI $130,775 @ 7.0% cap · market cap 13.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
82
Businesses Nearby
Well-served
Demand for This Use
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 Industrial 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?
Flex space - Two-building commercial property combines office, heated shop, warehouse, and cold-storage areas.
Where is this flex space located?
The property is located at 2821 8th Avenue Aberdeen, SD.
What is the asking price?
The asking price for this property is $960,000.
What are key features of this property?
This property features: 10,700 SF across 2 buildings on 2.6 acres; Main building includes office, heated shop, warehouse, and cold storage; Storage‑shop building has 2 double shops and 1 single shop
