Office Building with Call Center
For Sale
Contact for pricing
5929 S Mogen Ave, Sioux Falls, SD 57108
Multi-level office/call center facility configured for office use with conversion potential to multi-tenant occupancy.
Property Size17,930 SF
Price / SF$172.89
Days on Market1018
Property Features for 5929 S Mogen Ave
General Information
Standard status
Active
Size
17,930 SF
Class
B
Total Parking Spaces
125
Property subtype
Office, Land
Lease Type
NNN
Additional Details
Furnished
No
Building Details
Year Built
1997
Buildings
1
Tenancy
Multi
Listing Agency:
NAI Sioux Falls
Listed By:
Dennis Breske · License #SD 4409
(605) 357-7100
Source:
Crexi
Added: Dec 4, 2023
Changed: Sep 10
Last Checked: Sep 16 at 1:15PM
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.
This office building includes a main level of 14,400 SF and a lower level of 3,530 SF, for a total of 17,930 SF. The property is currently configured for office/call center use and offers the ability to convert into a multi-tenant building. Existing systems furniture will be removed.
The current lease expires 1-31-2024. In addition, the offering includes additional 60,000 SF of land for expansion, future development, or equity development for the buyer.
With its current layout and available acreage, the property provides a functional office base with options to reimagine the space for multiple tenants, depending on how you plan to use the building and the included land.
The current lease expires 1-31-2024. In addition, the offering includes additional 60,000 SF of land for expansion, future development, or equity development for the buyer.
With its current layout and available acreage, the property provides a functional office base with options to reimagine the space for multiple tenants, depending on how you plan to use the building and the included land.
Key Highlights
- 14,400 SF main level office/call center configuration
- 3,530 SF lower level for additional office/call center space
- Total building size: 17,930 SF
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
$240,038
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
7.74%
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%
$4,800,760
$4.8M
Cap Rate 7%
$3,429,114
$3.4M
Cap Rate 9%
$2,667,089
$2.7M
Market Conditions
NOI Build-Up for 17,930 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
$376.5K $21.00/SF
− Vacancy
−$56.5K −$3.15/SF
EGI
$320.1K $17.85/SF
− OpEx
−$80.0K −$4.46/SF
NOI
$240.0K $13.39/SF
Area
Sioux Falls, SD
Vacancy
15.00%
Lease Rate
$21.00 /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%
$4,800,760
Cap Rate 7%
$3,429,114
Cap Rate 9%
$2,667,089
Alternative Uses
Best Use
Office B
$3.43M
$3.00M – $4.00M
NOI $240,038 @ 7.0% cap · market cap 7.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.87M
$4.26M – $5.68M
NOI $340,813 @ 7.0% cap · market cap 10.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,006
Businesses Nearby
Explore this area
Business Placement
Demographics for 57108, SD
31,953
Population
13,933
Households
2.3
Avg Household Size
36
Median Age
54%
College-Educated
97%
High-School Grad
30.4 sq mi
ZIP Area
1,051
Density / Sq Mi
$96,184
Median Household Income
$51,749
Median Earnings
$1,292
Median Rent
$401,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Multi-level office/call center facility configured for office use with conversion potential to multi-tenant occupancy.
Where is this office building located?
The property is located at 5929 S Mogen Ave Sioux Falls, SD.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: 14,400 SF main level office/call center configuration; 3,530 SF lower level for additional office/call center space; Total building size: 17,930 SF
