New Flex Facility with Shop
New
For Sale
$1,850,000
617 N Production Street, Aberdeen, SD 57401
I-2 Unrestricted Industrial zoning supports industrial and commercial uses with fenced outdoor storage and expansion land.
Property Size11,144 SF
Lot Size4.38 Acres
Price / SF$165.18
Days on Market3
Property Features for 617 N Production Street
General Information
Standard status
Active
Size
11,144 SF
Lot size
4.38 Acres
Property subtype
Industrial
Zoning
I-2
Site & Location
Fenced Yard
Yes
Outdoor Storage
Yes
Warehouse & Industrial
Warehouse Space
7,900 SF
Office Build-Out
3,300 SF
Building Details
Building Size
11,144 SF
Year Built
2024
Buildings
1
Listed By:
Gregg Brown, MBA, SIOR
(605) 906-0394
Source:
Naiglobal
Added: Sep 1
Last Checked: Sep 2 at 4:08PM
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 Gregg Brown, MBA, SIOR
Investment Insights
Based on property information with market context.
Built in 2024, this flex facility combines approximately 3,300 SF of office area with 7,900 SF of shop space across 4.38 acres. The shop includes four roll-up doors, maintenance bays, a wash bay, a dedicated shop office, and restrooms. Fenced outdoor storage adds secured yard functionality for industrial operations.
The property includes approximately 2 acres of excess land that can accommodate expansion, additional yard area, or outdoor storage. I-2 Unrestricted Industrial zoning supports a variety of industrial and commercial uses, providing flexibility for different operating requirements. The facility is located at 617 N Production Street in Aberdeen, South Dakota.
The property includes approximately 2 acres of excess land that can accommodate expansion, additional yard area, or outdoor storage. I-2 Unrestricted Industrial zoning supports a variety of industrial and commercial uses, providing flexibility for different operating requirements. The facility is located at 617 N Production Street in Aberdeen, South Dakota.
Key Highlights
- 11,200 SF facility on 4.38 acres
- Approximately 3,300 SF of office space and 7,900 SF of shop space
- Four roll‑up doors: (2) 16' x 14' and (2) 12' x 12'
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
$100,800
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
5.45%
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%
$2,016,000
$2.0M
Cap Rate 7%
$1,440,000
$1.4M
Cap Rate 9%
$1,120,000
$1.1M
Market Conditions
NOI Build-Up for 11,200 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
$168.0K $15.00/SF
− Vacancy
−$33.6K −$3.00/SF
EGI
$134.4K $12.00/SF
− OpEx
−$33.6K −$3.00/SF
NOI
$100.8K $9.00/SF
Area
Brown County, SD
Vacancy
20.00%
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%
$2,016,000
Cap Rate 7%
$1,440,000
Cap Rate 9%
$1,120,000
Alternative Uses
Best Use
Office B
$1.44M
$1.26M – $1.68M
NOI $100,800 @ 7.0% cap · market cap 5.45%
Second Best
Flex RnD
$1.24M
$1.08M – $1.44M
NOI $86,486 @ 7.0% cap · market cap 4.67%
Theoretical Best
Healthcare Medical
$1.96M
$1.71M – $2.28M
NOI $136,886 @ 7.0% cap · market cap 7.40%
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
40
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 57401, SD
32,275
Population
15,016
Households
2.1
Avg Household Size
37
Median Age
35%
College-Educated
93%
High-School Grad
278.8 sq mi
ZIP Area
116
Density / Sq Mi
$68,183
Median Household Income
$40,562
Median Earnings
$787
Median Rent
$216,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - I-2 Unrestricted Industrial zoning supports industrial and commercial uses with fenced outdoor storage and expansion land.
Where is this flex space located?
The property is located at 617 N Production Street Aberdeen, SD.
What is the asking price?
The asking price for this property is $1,850,000.
What are key features of this property?
This property features: 11,200 SF facility on 4.38 acres; Approximately 3,300 SF of office space and 7,900 SF of shop space; Four roll‑up doors: (2) 16' x 14' and (2) 12' x 12'
