There's a land rush going on in Sioux Falls right now--a rush for industrial land. That's driving the price up and businesses are moving farther north.
Contractor Robby Schulte opened up this storage business near Catfish Bay. It's land that for years sat empty, just north of I-90 and west of Cliff Avenue.
"There isn't a whole lot of land in Sioux Falls that the city will let you build storage units on so this was a piece that was zoned properly. It has Interstate visibility. We also like the access to I-90 and Cliff Avenue," Schulte said.
Since he put up his business, Schulte has seen others pop up on these 20 acres of industrial land. Special Olympics is adding a 16,000 square foot training facility nearby. The latest to purchase land here are an electrician and a security business, which will both put up new buildings.
The price of industrial land has risen as much in the last year as it has in the past decade. And that has caused somewhat of a buying frenzy.
"We're finally starting to see some people expand out into these areas because of that exact reason," Rob Fagnan of Bender Commercial said.
Angela: It's cheaper?
Rob: It's cheaper.
There are also a limited number of existing buildings available for businesses to move into, so they build.
"There's so much activity in the land market right now--we're starting to run out of it. And when I say run out of it, I mean build-ready sites--where we have infrastructure in place to be able to move right on the property and start building," Fagnan said.
"Usually it seems like in a development like this as soon as somebody builds then everybody notices and starts to build. I'm surprised it didn't happen sooner. But I think it's a great little development--it's easy to get to, truck traffic in and out--it will be nice," Schulte said.
There are still about five to eight acres of the industrial land in this area for sale. But at the rate it's going now, it's not expected to last long.
Bender Commercial says it's also working on land purchase deals north of I-90 and east of Cliff Avenue in the Granite Valley Industrial Park.