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10th Street Turnover

January 9, 2014, 10:05 PM by Angela Kennecke

10th Street Turnover

It's the main thoroughfare on the east side of Sioux Falls. East 10th Street has an eclectic collection of new and old buildings, businesses and restaurants.

But while there's new development, there are also closings and buildings sitting empty.

Some 20,000 cars travel down East 10th Street every day and there are new businesses popping up to cater to those drivers.

"Within a one mile radius you have roughly 15,000 people who live here and they've had roughly a three percent increase in your median household income, so there are a lot of positive things," Nick Gustafson, Commercial Real Estate Broker with Bender Commercial said.

The positives this year include a new Pita Pit restaurant, a Qdoba going in across the street to open next month; and a new strip mall being built to house the Mint Casino and a Jimmy John's sub shop. 

“We can barely keep up with things, all the deals we are doing, in the pipeline, in the commercial real estate business we're really happy right now," Gustafson said.

But at the same time, there are vacant spots in strip malls and several businesses have either turned over or closed up shop altogether, like the Sonic Drive-In and just his week, the IHOP. 

"The challenges of this area for restaurants is, number one, it's not really close to a working population center. So like downtown, or the airport industrial area, where people need to eat quickly. Another challenge is there's actually a lot of competition here. You have Applebees, the Fryin' Pan and Pizza Ranch, so there are other options for people," Gustafson said.

While the owners of the Great Plains Restaurant Group tell me they're disappointed that the IHOP didn't do well, they're not giving up on this location. They say they're bringing a new concept here, not a chain that will have homemade food, made from scratch. They're planning on opening up again in the spring. 

"It's a positive area; it just needs a fresh concept with a lot of energy," Gustafson said.

But being near the Interstate or a big box store can also play a role in a business succeeding. 

The Great Plains Restaurant group says it's other IHOP location the west side does fine and credits all the retail in the area

This article has been revised to reflect the following correction:
A misspelling was corrected in this story.

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