Flex Space with Overhead
For Sale
$1,200,000
502 Herman St, Rapid City, SD 57701
Existing office area, secured outdoor space, and adaptable industrial functionality support a range of commercial operations.
Property Size8,960 SF
Price / SF$133.93
Days on Market61
Property Features for 502 Herman St
General Information
Standard status
Active
Size
8,960 SF
Additional Details
Fenced Yard
Yes
Amenities
designated office area
Building Details
Buildings
1
Listing Agency:
RE/MAX RESULTS
(605) 381-4300
Listed By:
KAREN SODERQUIST · License #2829
(605) 381-4300
Source:
Exprealty
Added: Jul 1
Changed: Aug 30
Last Checked: Aug 5 at 6:50PM
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 RE/MAX RESULTS
Investment Insights
Based on property information with market context.
This flex-space property contains 8,960 square feet with a dedicated office area and eight overhead doors. The two largest doors measure 12 by 12 feet, providing defined access points for vehicle or equipment-oriented operations. The building is being offered in its current as-is condition and is presently used as a body shop.
A fenced area occupies the east side of the building, adding secured exterior space to the improvements. The property is located at 502 Herman in Rapid City, South Dakota, approximately one-half block from E North Street.
A fenced area occupies the east side of the building, adding secured exterior space to the improvements. The property is located at 502 Herman in Rapid City, South Dakota, approximately one-half block from E North Street.
Key Highlights
- 8,960‑square‑foot flex‑space property
- Eight overhead doors, including two measuring 12x12
- Dedicated office area within the building
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
$103,864
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
8.66%
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%
$2,077,280
$2.1M
Cap Rate 7%
$1,483,771
$1.5M
Cap Rate 9%
$1,154,044
$1.2M
Market Conditions
NOI Build-Up for 8,960 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
$161.3K $18.00/SF
− Vacancy
−$12.9K −$1.44/SF
EGI
$148.4K $16.56/SF
− OpEx
−$44.5K −$4.97/SF
NOI
$103.9K $11.59/SF
Area
Pennington County, SD
Vacancy
8.00%
Lease Rate
$18.00 /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%
$2,077,280
Cap Rate 7%
$1,483,771
Cap Rate 9%
$1,154,044
Alternative Uses
Best Use
Retail
$1.48M
$1.30M – $1.73M
NOI $103,864 @ 7.0% cap · market cap 8.66%
Second Best
Flex RnD
$1.12M
$982.8K – $1.31M
NOI $78,624 @ 7.0% cap · market cap 6.55%
Theoretical Best
Specialty Retail
$1.62M
$1.42M – $1.90M
NOI $113,702 @ 7.0% cap · market cap 9.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
763
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 57701, SD
46,258
Population
20,526
Households
2.3
Avg Household Size
36
Median Age
28%
College-Educated
93%
High-School Grad
52.2 sq mi
ZIP Area
886
Density / Sq Mi
$52,733
Median Household Income
$34,971
Median Earnings
$892
Median Rent
$229,900
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Existing office area, secured outdoor space, and adaptable industrial functionality support a range of commercial operations.
Where is this flex space located?
The property is located at 502 Herman St Rapid City, SD.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 8,960‑square‑foot flex‑space property; Eight overhead doors, including two measuring 12x12; Dedicated office area within the building
