Office Building with
For Sale
$1,700,000
550 N 5th Street, Rapid City, SD 57701
Office building offers 58 suites, 2 conference rooms, and 60 onsite parking spaces, with monitored security and alarms.
Property Size13,232 SF
Price / SF$128.48
Days on Market90
Property Features for 550 N 5th Street
General Information
Standard status
Active
Size
13,232 SF
Total Parking Spaces
60
Occupancy
90%
Additional Details
Sprinkler System
Yes
Office Units
58
Amenities
Forced Air, Natural Gas
Full
Building Details
Building Size
13,232 SF
Year Built
2005
Stories
3
Tenancy
Multi
Listing Agency:
ROBERTS REAL ESTATE INC
(352) 816-7026
Listed By:
John Roberts · License #15921
Source:
Evrealestate
Added: May 27
Changed: Aug 24
Last Checked: Aug 23 at 5:07AM
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 ROBERTS REAL ESTATE INC
Investment Insights
Based on property information with market context.
This office building includes 58 office suites and two conference rooms, with six bathrooms. The property is equipped with a digital reader board, an internal and external motion-detected camera system, and an outside monitored burglar alarm. A fire alarm/sprinkler system is also in place. The offering includes the equipment and fixtures.
The property is located just north of the civic center. Onsite parking totals 60 spaces.
The building is currently 90% occupied, with four units occupied by the current owner. Additional financial information is available upon signing an NDA.
The property is located just north of the civic center. Onsite parking totals 60 spaces.
The building is currently 90% occupied, with four units occupied by the current owner. Additional financial information is available upon signing an NDA.
Key Highlights
- Built in 2005, office building with 58 office suites and 2 conference rooms
- Currently 90% occupied with 4 units occupied by the current owner
- On‑site parking for 60 vehicles
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
$126,531
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
7.44%
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%
$2,530,620
$2.5M
Cap Rate 7%
$1,807,586
$1.8M
Cap Rate 9%
$1,405,900
$1.4M
Market Conditions
NOI Build-Up for 13,232 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
$198.5K $15.00/SF
− Vacancy
−$29.8K −$2.25/SF
EGI
$168.7K $12.75/SF
− OpEx
−$42.2K −$3.19/SF
NOI
$126.5K $9.56/SF
Area
Pennington County, SD
Vacancy
15.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
25.00%
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%
$2,530,620
Cap Rate 7%
$1,807,586
Cap Rate 9%
$1,405,900
Alternative Uses
Best Use
Office B
$1.81M
$1.58M – $2.11M
NOI $126,531 @ 7.0% cap · market cap 7.44%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.40M
$2.10M – $2.80M
NOI $167,914 @ 7.0% cap · market cap 9.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
58
Office units
90%
Occupancy
Multi-tenant
Tenancy
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
1,161
Businesses Nearby
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 Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building offers 58 suites, 2 conference rooms, and 60 onsite parking spaces, with monitored security and alarms.
Where is this office building located?
The property is located at 550 N 5th Street Rapid City, SD.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: Built in 2005, office building with 58 office suites and 2 conference rooms; Currently 90% occupied with 4 units occupied by the current owner; On‑site parking for 60 vehicles
