Analyzing this year’s sales data through April, you’ll see that volume is up by an impressive 45%. Trends early in the year can be misleading but the strength across sectors gives us confidence the trend will hold. The first month of the year is usually one of our slowest but 2024 started strong, driven largely by industrial and land sales and carried through the month of February. March saw a slight dip in transactions but that was merely a timing issue as April came back with the highest number of transactions in the past 12 months. We continue to see sales driven by owner occupied uses as the investment sales still have a disconnect between buyer and seller price expectations. It has become more and more apparent that properties being purchased by an owner-occupant command a higher price. Understanding the factors influencing pricing for each product type has been very helpful as our clients determine the best way to position their properties for sale.
We have seen a slight increase in leasing availability in 2024 but the demand has been there to match the increased supply. Transactions are above what we saw in 2023 and we are seeing an increase in rental rates after a decade of very little rate growth. Turn-key retail and mid-size warehouses continue to be in the highest demand. There has been a noticeable increase in office space availability in the last 3 months so if your company is considering a move, now is the time to start your search. If you have space coming available or are looking for space, please reach out to our leasing specialist, Gina Plooster.
Significant closings in the last quarter include:
- 2310 N Maple Ave | Sale – 10,000sf office building neighboring Uptown Rapid Mall
- 2136 Marlin Dr | Sale – Multi-tenant industrial investment property
- South Creek Village | Sale – 80-unit LIHTC property
- 7201 Mt Rushmore Rd, Suite 500 | Lease – 2,865sf to Mostly Chocolates opening mid-summer 2024
New listings of note:
- 36 E Stumer | 1,519sf, newly built, turn-key salon in high-traffic strip center next to Walmart - $22.00/SF/YR NNN
- 625 Flormann St | Single tenant NNN investment property - $1,049,000
- 1136 Jackson Blvd | 2,300 or 5,100sf of Class A office space on the west side of Rapid City - $18-$20/SF/YR NNN
- 809 Deadwood Ave | 8,800sf office space in the Bluepeak building - $16.00/SF/YR Gross Lease
- Firehouse Campground | 23 RV pads, 5 cabins, 4 lodge rooms along Spring Creek just outside Hill City - $1,299,000
- 1949 Plaza Blvd | 7.48 acre light industrial parcel in NW Rapid City - $499,000
Enclosed is our list of available commercial properties and the latest market stats for Pennington County. For the most recent listing information, visit RapidCityCommercial.com, 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.
Sincerely,
Chris Long, SIOR, CCIM
Keller Williams Realty Black Hills
Enclosure
Click here to download a copy of our mailed newsletter. For the most recent listing information, visit RapidCityCommercial.com/