Nick Gustafson was interviewed on Bill Zortman’s “It’s Your Business” segment on Sioux Falls KELO-AM radio station to recap this year’s Market Outlook analysis of the Sioux Falls market.
This year’s Market Outlook provided an encouraging report. Gustafson expressed how he’s never seen the Sioux Falls market “this good” in the 18 years he has been in commercial real estate.
Gustafson highlighted the low vacancy rates and incredible growth in the office and industrial markets. “The office market is doing phenomenal,” Gustafson said. “In Sioux Falls, the vacancy rate is under 10%,” while “the national vacancy rate is about 15-16%.” He noted that “Sioux Falls office sales were brisk, at a record actually, with just under $100 million in office buildings traded in 2021.”
The industrial market also provided many reasons for optimism. “There was roughly four million square feet of new construction in the industrial market in Sioux Falls last year,” Gustafson said. “That’s 70 football fields of new industrial buildings.” Despite the boom in construction, “there was a 1.43% industrial vacancy rate.”
The interview touched on the importance of bringing young individuals to Sioux Falls, to which Gustafson suggested “we don’t talk about how vibrant [the Sioux Falls] small business environment is. If you are willing to work hard and apply yourself in this market, there is so much opportunity for a young person to get started in business.”
He also emphasized the overall health of the Sioux Falls economy, saying “what we’re so proud of is how robust the Sioux Falls economy has been over the last two years. Sioux Falls businesses are flush with cash, and the community banks are flush with cash. The deposits in community banks rose 44% in the last two years – that’s incredible.”
The takeaway? Sioux Falls is looking great on every single block.