Welcome to our latest commercial real estate market update. As always, it is our pleasure to bring you the latest news and up to date listings in the Western SD real estate market. Whether you have been on our list for 20 years or this is your first newsletter, we hope this provides relevant and helpful information for your business or investment portfolio.
You’ll note in the year end 2022 statistics graphic that the number of transactions dropped 29% from 2021, and overall volume was down 12%. This is where statistics can be misleading. The total volume of sales was still $23M higher than we saw in 2020. Like most businesses, 2021 was an anomaly on many levels.
Demand is still extremely high, but the market continues to be constrained by limited supply. For this reason, a majority of Pennington County sales closed in the 4th quarter were off-market, non-marketed deals. Our team is spending endless hours looking for these off market opportunities to help our buyer clients and to provide more inventory to the market. If your business has a need or you are looking for investment options, please get in contact with us so we can get you dialed into those off market opportunities.
Leasing inventory is beginning to increase from record low vacancy at the end of the last year. You’ll notice more vacancies downtown. However, high-traffic retail and office is still in high demand for most other submarkets in the city. If you have space that might be coming available, contact our leasing agent, Gina Plooster – Gina@RapidCityCommercial.com or 605-519-0749 - to set up an appointment to discuss.
We also have tenants looking specifically for the following:
- 500-2,000 SF – High-traffic retail in Rapid City
- 7,000 SF – Medical office in Spearfish
- 1,500 SF – Warehouse units with small office and overhead door in Rapid City
New Sale Listings to Note:
- Gateway Apartments – 30-unit Senior HAP project in Kadoka, SD. Great income history with professional management in place.
- Yak Ridge Cabin Resort – Fantastic vacation rental opportunity located between Rapid City and Mount Rushmore with room for expansion with CUP in place. 4 cabins plus housekeeping cabin on 10 acres - $1,600,000
- 222 Disk Drive – 50,000+ sq ft available on the south end of the Phase Technologies building. 4 loading docks, 32’ clear height, ability to subdivide portions - $8.50/SF/YR
Chris Long, SIOR, CCIM
Keller Williams Realty Black Hills
Click here to download a copy of our mailed newsletter. For the most recent listing information, visit RapidCityCommercial.com/