Building Details

Year Built 1964

Year Renovated 2021

Buildings 1

Stories 1

Construction frame

Listing Agency: Priority Real Estate Show Phone

Listed By: Christa Helma · License #SD 15141

Source: Crexi

Added: Mar 3 Changed: Aug 30 Last Checked: Aug 30 at 1:17PM

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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 Priority Real Estate

Investment Insights

Based on property information with market context.

This vacant office unit provides 990 square feet of commercial space within a 1964 frame-construction building. Interior features include vinyl flooring, while a composition roof and central heating supplied by natural gas serve the property. The light industrial zoning supports the property’s commercial and operational positioning.

On-site parking accommodates 6-10 vehicles for staff and visitors. The property has connections to city water, sanitation sewer, and natural gas services. Located at 340 Hollister Ave in Salem, the site offers access to US Hwy 81 and frontage along Hollister Ave for convenient customer and employee arrival.

Key Highlights

• 990 square feet of office space in a 1964 frame‑construction building
• Light Industrial zoning
• Vacant commercial space with vinyl flooring and a composition roof

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

$6,768

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

7.12%

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%

$135,360 $135.4K

Cap Rate 7%

$96,686 $96.7K

Cap Rate 9%

$75,200 $75.2K

Market Conditions

NOI Build-Up for 990 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

$10.1K $10.20/SF

− Vacancy

−$429 −$0.43/SF

EGI

$9.7K $9.77/SF

− OpEx

−$2.9K −$2.93/SF

NOI

$6.8K $6.84/SF

Area

McCook County, SD

Vacancy

4.25%

Lease Rate

$10.20 /SF/Yr

Expense Ratio

30.00%

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%

$135,360

Cap Rate 7%

$96,686

Cap Rate 9%

$75,200

Alternative Uses

Best Use

Office B

$189.3K

$165.7K – $220.9K (±1% cap)

NOI $13,254 @ 7.0% cap · market cap 13.95%

Second Best

Flex RnD

$145.2K

$127.0K – $169.4K (±1% cap)

NOI $10,162 @ 7.0% cap · market cap 10.70%

Theoretical Best

Office A

$268.8K

$235.2K – $313.6K (±1% cap)

NOI $18,818 @ 7.0% cap · market cap 19.81%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

OPTIMIZE ELECTRIC, INC. Electrical Service

Suggested Use

Top Pick Electrical Service Real Estate Agency Dental Office Garden Center Furniture & Home Goods Grocery & Convenience Store

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

Yes

Highway access

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

179

Businesses Nearby

Explore this area Business Placement

Demographics for 57058, SD

2,011

Population

829

Households

2.4

Avg Household Size

42

Median Age

25%

College-Educated

92%

High-School Grad

159.1 sq mi

ZIP Area

13

Density / Sq Mi

$79,119

Median Household Income

$44,630

Median Earnings

$866

Median Rent

$199,700

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Office units - Vacant office unit with light industrial zoning, on-site parking, and natural gas heating.

Where is this office units located?

The property is located at 340 Hollister Ave Salem, SD.

What is the asking price?

The asking price for this property is $95,000.

What are key features of this property?

This property features: 990 square feet of office space in a 1964 frame‑construction building; Light Industrial zoning; Vacant commercial space with vinyl flooring and a composition roof