Creekside Office Building Investment
For Sale
$1,495,000
2620 Jackson Boulevard, Rapid City, SD 57702
Well-located office building with high occupancy and investment potential.
Property Size11,843 SF
Price / SF$126.23
Days on Market526
Property Features for 2620 Jackson Boulevard
General Information
Standard status
Active
Size
11,843 SF
Property subtype
Commercial/Industrial
Building Details
Year Built
1987
Listing Agency:
Keller Williams Realty Black Hills RC
Listed By:
Christopher Long
(605) 343-7500
Source:
Exitrealty
Added: Apr 1, 2025
Changed: Sep 8
Last Checked: Sep 8 at 6:26AM
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 Keller Williams Realty Black Hills RC
Investment Insights
Based on property information with market context.
This professional office building, situated in the Creekside Professional office complex, features 5 individual suites. The facility is in excellent condition and well-maintained. The building has a history of high occupancy with many long-term tenants. The main level, encompassing 6,044 square feet, contains 3 occupied suites with tenants sharing a common area at the main entrance. The garden level, with 4,479 square feet, contains 2 suites, one of which is occupied and one vacant. Prominent signage is available on the monument sign at the corner of Jackson Blvd and Sheridan Lake Rd. This property presents an opportunity for an investor or an owner looking to occupy the vacant suite. The owner may consider seller financing for qualified buyers.
Key Highlights
- Rare investment property in a highly desired location within the Creekside Professional office complex.
- Well‑maintained building in excellent condition.
- Four out of five suites are currently leased, providing immediate income.
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
$113,249
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
7.58%
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%
$2,264,980
$2.3M
Cap Rate 7%
$1,617,843
$1.6M
Cap Rate 9%
$1,258,322
$1.3M
Market Conditions
NOI Build-Up for 11,843 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
$177.6K $15.00/SF
− Vacancy
−$26.6K −$2.25/SF
EGI
$151.0K $12.75/SF
− OpEx
−$37.7K −$3.19/SF
NOI
$113.2K $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%
$2,264,980
Cap Rate 7%
$1,617,843
Cap Rate 9%
$1,258,322
Alternative Uses
Best Use
Office B
$1.62M
$1.42M – $1.89M
NOI $113,249 @ 7.0% cap · market cap 7.58%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.15M
$1.88M – $2.50M
NOI $150,288 @ 7.0% cap · market cap 10.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
571
Businesses Nearby
Explore this area
Business Placement
Demographics for 57702, SD
33,162
Population
16,786
Households
2
Avg Household Size
46
Median Age
48%
College-Educated
98%
High-School Grad
285.8 sq mi
ZIP Area
116
Density / Sq Mi
$85,700
Median Household Income
$44,214
Median Earnings
$1,209
Median Rent
$341,400
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?
Office building - Well-located office building with high occupancy and investment potential.
Where is this office building located?
The property is located at 2620 Jackson Boulevard Rapid City, SD.
What is the asking price?
The asking price for this property is $1,495,000.
What are key features of this property?
This property features: Rare investment property in a highly desired location within the Creekside Professional office complex.; Well‑maintained building in excellent condition.; Four out of five suites are currently leased, providing immediate income.
