As you'll see in our year end Pennington County statistics for 2023, overall sales volume was down 7% from 2022 and total transaction count was down nearly 20%. The majority of this decline was in the office, land and hospitality sectors. Despite the national news, our office decline was supply driven, not a move to work from home. Meanwhile hospitality and tourism related properties had record breaking years in ’21 and ’22 causing higher price expectations from sellers that are no longer possible in today’s market. Not to beat a dead horse, but the land sales continue to be pressured by the higher cost of construction. We expect office and hospitality to steadily return to normal as expectations and inventory adjust, but we likely won’t see a big trend movement until 2025. We saw excellent volume growth this year in retail, industrial and multifamily which we should see continue this year if inventory keeps pace. Correctly priced commercial properties, especially investment assets, go very quickly or rarely hit the open market, making it even more important for you to have an agent engaged and keeping their ear to the ground for you.

The leasing market has also remained strong as there is a consistent stream of business owners adjusting their space needs or adjusting their physical locations to the changing market. Vacancy rates have stayed relatively flat over the last 6 months with move in ready spaces leasing very quickly and those spaces requiring a high level of tenant improvements taking a bit longer. Our leasing agent Gina was recently recognized by KW Commercial as she had more transactions in 2023 than any other agent in our nationwide network! Make sure you congratulate her the next time you see her.

Significant closings in the last quarter include:

  • 262 Cambell St | Leased - 7,800sf retail building. New location for Plato’s Closet
  • 5301 Mt Rushmore Rd | Sold - 99,600sf former NAU campus. Future home of the Children’s Home Society
  • Gateway Apartments | Sold - 30 senior affordable housing units in Kadoka, SD
  • 4551 Seger | Leased - 23,500sf industrial building. Equipment Share is opening its first location in the market.

New listings of note:

  • 1331 W Omaha Street | 4,226sf retail space with high visibility, next to Office Depot – Leases for $14.00/SF/YR NNN
  • 325 N Cambell Street | 3,520sf, completely remodeled, high traffic retail building – $799,000
  • 807 Columbus Drive | 3,412sf office building just off Mt Rushmore Rd – $565,000
  • 7519 Sturgis Road | 9,180sf Retail Building just off I-90, potential warehouse conversion – $1,085,000
  • Black Hills Industrial Center | Lots in Rapid City’s first true industrial park – sizes ranging from 4 -120 acres
  • 4703 S I-90 Service Rd | 9,584sf warehouse with prime I-90 visibility – Leases for $9.50/SF/YR NNN

Enclosed is our list of available commercial properties and the latest market stats for Pennington County. For the most recent listing information, visit, our team’s active commercial listings in the market. 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.