If retail is the name of the game, Sioux Falls is in it to win. After seeing big retail projects in 2013, 2014 is predicted to ultimately bring in even more money in new retail construction.
From big box stores to new restaurants, Sioux Falls continues to attract new retailers to the city. Plus, current brands already here are expected to expand.
"Some will be second stores or third stores. A lot of those franchise agreements, they have to open a certain amount of stores in a certain amount of time," Reggie Kuipers, Real Estate Broker with Bender Commercial, said.
Real Estate Company Bender Commercial takes the pulse of the city's development every year in its Market Outlook.
This year retail is one of the shining stars.
"With all the land that was sold last year, all the retail land, I think we're going to see a retail boom in construction this year," Kuipers said.
Bender Commercial predicts retail construction values to top last year's record of $40 million dollars. And it's expected to go in every direction in the city.
With vacancy rates low and rent high, we could see more speculative commercial construction, like the Remington Pointe Strip Mall at 69th and Western.
If the proposed Walmart goes in at 85th and Minnesota, there are four tenants poised to go into a strip mall near the big box store.
Then there's more redevelopment expected, like this strip mall near the mall.
"And there are some dilapidated properties along Minnesota Avenue that are ripe for redevelopment; so I would look for some of those retailers to push toward the center of the city,"
The most common question commercial brokers get is--when will Sioux Falls get a Cheesecake Factory or P.F. Chang's?
"I think their population base is about 750,000, so it will take a while. Now they do have some sister companies that could come that are similar concepts. They may be in play for the next 12 to 24 months. I'm not working with them, so I don't know.
Bender Commercial says the public can expect to start hearing retailers announce as construction season nears.
Bender Commercial says the office market is as tight as it's been in the 17 years since it's conducted the survey. It expects some speculative office buildings to go up in the next year as well.