Building Details

Building Size 8,000 SF

Year Built 1978

Listing Agency: NAI Sioux Falls

Listed By: Marcus Mahlen, CCIM, SIOR Show Phone

Source: Naiglobal

Added: Sep 18 Last Checked: Sep 24 at 8:52AM

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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 NAI Sioux Falls

Investment Insights

Based on property information with market context.

Built in 1978, this warehouse property provides 8,000 SF of building area across 12 acres. Approximately 3,000 SF is heated and insulated, while the remaining 5,000 SF is unheated. The building includes two offices, a breakroom, two bathrooms, a mezzanine, and substantial storage. Additional features include 16' sidewalls, a floor drain, gas furnace, and single phase electric service. The property previously operated as a bus garage.

Outdoor improvements include a fenced area of over 1.5 AC, a secure gate, and cameras. Located at 412 South Pine Street in Lennox, SD, the property combines warehouse space with secured exterior area and on-site support rooms.

Key Highlights

• 8,000 SF warehouse situated on 12 acres
• 3,000 SF heated and insulated; 5,000 SF unheated
• Fenced outdoor area of over 1.5 AC with secure gate and cameras

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

$55,080

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

6.48%

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%

$1,101,600 $1.1M

Cap Rate 7%

$786,857 $786.9K

Cap Rate 9%

$612,000 $612.0K

Market Conditions

NOI Build-Up for 8,000 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

$72.0K $9.00/SF

− Vacancy

−$7.2K −$0.90/SF

EGI

$64.8K $8.10/SF

− OpEx

−$9.7K −$1.21/SF

NOI

$55.1K $6.89/SF

Area

Lincoln County, SD

Vacancy

10.00%

Lease Rate

$9.00 /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%

$1,101,600

Cap Rate 7%

$786,857

Cap Rate 9%

$612,000

Alternative Uses

Best Use

Warehouse

$786.9K

$688.5K – $918.0K (±1% cap)

NOI $55,080 @ 7.0% cap · market cap 6.48%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.78M

$1.55M – $2.07M (±1% cap)

NOI $124,320 @ 7.0% cap · market cap 14.63%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Warehouses

Suggested Use

Top Pick Building Supply Restaurant Pharmacy Law Firm (Bike/Boat/Book/etc) Store Auto Parts 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

16 ft

Clear height

Yes

Fenced yard

Location Intelligence

Trade Area within ½ mile

173

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 57039, SD

3,717

Population

1,554

Households

2.4

Avg Household Size

40

Median Age

23%

College-Educated

92%

High-School Grad

91.9 sq mi

ZIP Area

40

Density / Sq Mi

$79,209

Median Household Income

$46,947

Median Earnings

$925

Median Rent

$242,700

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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Frequently Asked Questions

What type of property is this?

Warehouse - Warehouse facility with offices, employee areas, storage, and a secured outdoor yard.

Where is this warehouse located?

The property is located at 412 South Pine Street Lennox, SD.

What is the asking price?

The asking price for this property is $850,000.

What are key features of this property?

This property features: 8,000 SF warehouse situated on 12 acres; 3,000 SF heated and insulated; 5,000 SF unheated; Fenced outdoor area of over 1.5 AC with secure gate and cameras