Multi-Tenant Flex Business
For Sale
$3,249,000
5626 FARGO LN, Rapid City, SD 57701
Conventional construction, heated zero-entry entrances, rear access, and separate utility metering support practical commercial operations.
Property Size17,400 SF
Price / SF$186.72
Days on Market41
Property Features for 5626 FARGO LN
General Information
Standard status
Active
Size
17,400 SF
Property subtype
Commercial
Occupancy
100%
Site & Location
Road Access
Yes
Utilities to Site
Yes
Additional Details
Office Units
10
Amenities
security cameras
landscaped drip system
heated zero entry entrances
Building Details
Buildings
1
Building Size
17,400 SF
Tenancy
Multi
Listed By:
Bill Phillips
(605) 347-9300
Source:
Sturgisrealestatecenter.idxbroker
Added: Jul 30
Changed: Sep 8
Last Checked: Sep 7 at 12:52PM
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 Bill Phillips
Investment Insights
Based on property information with market context.
This 17,400-square-foot flex property is configured as a 10-unit Business Park with 100% occupancy. Each unit includes heated concrete zero-entry front entrances, 14-foot ceilings, a 12-foot overhead door, an additional rear entrance, and front and rear off-street parking. The property was constructed conventionally with 2x8 walls and is described as well insulated and energy efficient. Gas and electric services are metered separately, and the landscaped areas include a drip irrigation system.
The property is located near the medical facilities around Monument Health Hospital, in the area known as the “Medical Mile,” and is approximately 1/2 mile from the Stumer Rd. Walmart. Six of the 10 tenants are medical-related businesses, and 15 security cameras cover the exterior. The configuration supports continued multi-tenant occupancy or partial rental income for an owner occupant.
The property is located near the medical facilities around Monument Health Hospital, in the area known as the “Medical Mile,” and is approximately 1/2 mile from the Stumer Rd. Walmart. Six of the 10 tenants are medical-related businesses, and 15 security cameras cover the exterior. The configuration supports continued multi-tenant occupancy or partial rental income for an owner occupant.
Key Highlights
- 17,400 SF flex property configured as a 10‑unit Business Park
- 100% occupancy with six medical‑related businesses among the 10 tenants
- 14‑foot ceilings, 12‑foot overhead doors, and additional rear entrances
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
$166,388
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
5.12%
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%
$3,327,760
$3.3M
Cap Rate 7%
$2,376,971
$2.4M
Cap Rate 9%
$1,848,756
$1.8M
Market Conditions
NOI Build-Up for 17,400 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
$261.0K $15.00/SF
− Vacancy
−$39.2K −$2.25/SF
EGI
$221.9K $12.75/SF
− OpEx
−$55.5K −$3.19/SF
NOI
$166.4K $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%
$3,327,760
Cap Rate 7%
$2,376,971
Cap Rate 9%
$1,848,756
Alternative Uses
Best Use
Office B
$2.38M
$2.08M – $2.77M
NOI $166,388 @ 7.0% cap · market cap 5.12%
Second Best
Flex RnD
$2.18M
$1.91M – $2.54M
NOI $152,685 @ 7.0% cap · market cap 4.70%
Theoretical Best
Specialty Retail
$3.15M
$2.76M – $3.68M
NOI $220,806 @ 7.0% cap · market cap 6.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10
Office units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
230
Businesses Nearby
Well-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 Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Conventional construction, heated zero-entry entrances, rear access, and separate utility metering support practical commercial operations.
Where is this flex space located?
The property is located at 5626 FARGO LN Rapid City, SD.
What is the asking price?
The asking price for this property is $3,249,000.
What are key features of this property?
This property features: 17,400 SF flex property configured as a 10‑unit Business Park; 100% occupancy with six medical‑related businesses among the 10 tenants; 14‑foot ceilings, 12‑foot overhead doors, and additional rear entrances
