As the summer season is coming to close, we’ve had numerous conversations with investors, business owners and regional brokers and the feedback is consistent, fundamentals are trending down from the highs of 2021, but still ahead of pre-pandemic numbers. It’s safe to say that Rapid City’s market is stabilizing but the growth trends are still evident across the board. Even with the threat of a recession, and many argue that we’re there, we’re confident with Rapid City’s continued growth and business-friendly economic policies, the real estate market will weather the storm. You will see the same trends in the attached market stats with nearly every sector trending lower than 2021.
We welcomed two new team members early this summer – agent Dan Logan and marketing coordinator Erika Uecker. Dan is busy working with both leasing and sales transactions and has been helping out part-time with transaction coordination as Hannah is out on maternity leave. Erika has quickly enhanced our marketing efforts, improving our information packages, social media outreach and is coordinating the launch of our new and improved website that will be coming soon!
Leasing is still experiencing an inventory shortage, despite the perception of a lot of space available in the market. Warehouse space continues to have the highest demand with little to no inventory and vacancy below 2%. We have multiple tenants looking for warehouse/industrial space of all sizes and mid-sized office space ranging 2,000-5,000 SF. If you have space that might be a fit, contact our leasing agent, Gina Plooster – Gina@RapidCityCommercial.com or 605-519-0749 - to set up an appointment to discuss.
Notable closings for our team the last few months include:
- Best Western Devils Tower – 40 Unit Motel in Hulett, WY - $2.350,000
- Rapid City RV Park – 17 Acres on Hwy 16, Cabins and RV Sites - $1,700,000
- Greenview Apartments – 12 units in North Rapid City - $1,234,000
- McKenzie River – NNN investment property in Rushmore Crossing - $3,500,000
New recent listings include:
- Cabin Rental Property – Cole Cabins: 14 cabins, year round rental potential, close to Deadwood - $1,950,000
- 7801 Blackhawk Road – Warehouse: 4,000sf office/warehouse with 1 acre of fenced storage - $699,000
- 2527 Elderberry Blvd - Land: Great corner lot with visibility, last lot available in Orchard Meadows - $538,400
- Villa Drive – Box Elder Land: Multiple lots adjacent to Liberty Plaza - $140,000-$375,000
- 909 E St Patrick – For Lease: Medical and Retail Space, great rental rates with up to 12,000sf available
- 900 Concourse Drive: 76,316 Class A Office building going to auction on September 19, over $3 million in improvements in the last 3 years. Starting bid of $750,000 – call for more information.
Chris Long, SIOR, CCIM
Keller Williams Realty Black Hills
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