Season’s Greetings from Rapid City Commercial! The holidays are upon us, and we are so thankful to our clients and partnerships that have made 2023 another record year for our team. While it is easy to get caught up in the challenges that the current market presents, we realize how blessed we are to have the community and relationships to keep moving the region forward. We continue to focus on the exciting new developments taking shape in our area and want to make sure we keep our clients updated on not only current trends but what we see over the next two to three years.

You’ll note in the attached Pennington County stats for 2023, there’s a significant decrease in sales volume and transactions. Reasons for the drop can be attributed to a number of factors – limited inventory, rise of construction costs, and the adjustment to higher interest rates.

However, we are not seeing the demand side of the equation change at all! The phones are still ringing, the expansions are still happening and the investors are still buying, we may just have an ‘adjustment period’ for the next 6-12 months as buyer and seller expectations adjust to a new normal. We will continue to see new construction supply hit the market but outside of multifamily and storage, we don’t see supply being able to keep up with the demand which should continue to drive prices higher. Sales prices have stabilized after significant increases from 2020-2022, mainly due to interest rate shock but we feel that will only be temporary as inflation continues to drive rental rates higher.

We have seen a slight uptick in lease inventory, which was needed after we saw a drop in early 2023. The increase has been seen primarily in Office/Retail, while Industrial/Flex continues to be very limited. Turnkey spaces are driving the market and seeing rate increases, while shell spaces or spaces with remodel needs are proving more challenging to fill given the inflated build out costs, leading base rates in the opposite direction or making deals not pencil at all. If you’re considering leasing property, contact our leasing agent, Gina Plooster – or 605-519-0749 – to discuss how we can help.

Significant closings in the last quarter include:

  • Stoney Creek Apartments: Sale - 275 Units – Class A, Southwest Rapid City
  • 4551 Seger: Lease - 23,500sf on 4 acres - Equipment Share - Industrial - New Construction
  • Highland Meadows: Sale – Resort and Cabin property in Hot Springs, SD

New listings of note:

  • Rush No More RV Park and Resort: 140 RV Sites – 19 Cabins – 60+ Acres of Development Land - $5.2M
  • 325 N Cambell Street: 3,520sf, Completely Remodeled, High Traffic Retail - $899K
  • 330 Knollwood Drive: 5,992sf, Turn Key Office Building with I-90 Frontage - $1.095M
  • 3625 5th Street: Former VA Clinic, 15,792sf, Medical Office Building just south of Monument Hospital - $3.25M
  • 3775 Dyess: 10 Acres, Light Industrial, just north of I-90 with utilities nearby

If you are looking for a property not on our list, we would love to help. Contact me at (605) 939-4489.



Chris Long, SIOR, CCIM

Keller Williams Realty Black Hills



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Click here to download a copy of our mailed newsletter. For the most recent listing information, visit which includes all active commercial listings in the market. To see the most recent stats, please visit our Market Stats page. If you are looking for a property not on our list, we would love to help. Contact me at (605) 939-4489.