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February 19, 2018 10:04 PM

Apartment Vacancies, Industrial Growth Up

Sioux Falls, SD

It's one of the biggest gatherings of business leaders in the community.

Tuesday is Bender's Sioux Falls Market Outlook.

From record industrial building to an uptick in apartment vacancies, here's a look at a couple of the hot topics you can expect.

Take a drive around Sioux Falls, and you'll see apartment buildings going up all over town. That also means vacancy rates are increasing. Around one in every ten units is available.

"The last time we saw vacancy nearly this high was back in January 2010," Bender Commercial Real Estate's Nick Gustafson said.

During that time, the country was going through a recession, and there was a lot of uncertainty.

"People who were coming out of college weren't necessarily getting the same jobs that they would have just a year or two before. They were much more likely to stay in their parent's basement," Gustafson said.

This time around Gustafson says it's simply a matter of supply and demand.

"This isn't necessarily, 'Oh, the sky is falling.' It's simply that we've built a little too many units. If developers pull back a little bit, we'll see those units absorb pretty quickly," Gustafson said.

Meanwhile, one of the largest projects in Sioux Falls right now is a warehouse, which will freeze and store foods for companies across the region. Win Chill may seem unusual, but you can expect more projects like this in the future.

"If you're an industrial user in New York or Chicago, it's really tough to find land in the city. Luckily for us we have a lot of farmland around the city," Bender Commercial's Rob Fagnan said.

While retail projects may take a hit from online shopping, it is spurring more industrial growth.

"In order for those projects to get to those locations, there are manufacturing, warehouses, distribution and transportation," Fagnan said.

These services could find a home in Sioux Falls.

"Over the next decade we'll see quite a bit of growth," Fagnan said.





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  • Industry
  • Housing
  • Development
  • Business
  • Sioux Falls, SD
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