Retail hot spots: Where the next national brands could open in Sioux Falls

May 21, 2018

All sides of Sioux Falls will be covered as several commercial real estate brokers attend this week’s RECON event.

They will be marketing multiple properties at the retail real estate industry’s largest conference – the starting point for many national deals.

Here’s a sampling of where new stores and restaurants could land next.

Dawley Farm Village

Buffalo Wild Wings is helping draw new customers to the east-side Dawley Farm Village retail area, and construction of a connection to Interstate 90 is driving additional interest from retailers.

“We’re already seeing traffic growth because of Buffalo Wild Wings, and we’re thrilled to welcome Perkins to the neighborhood for more variety,” said Raquel Blount of Lloyd Cos., who represents the property.

“The housing growth, the new apartments in the area, the future office development, are all really encouraging.”

A new retail building going up next to Buffalo Wild Wings will have room for one or two businesses, and there’s additional space north of PetSmart and south of 18th Street.

“We have a concept that would put a restaurant on the corner (next to PetSmart) and a retail use to the north,” said Ryan Tysdal of Van Buskirk Cos., who also is shopping the property for a potential investor.

“It comes down to whether there’s a restaurant that wants to take it.”

The Empire Mall area

It’s the state’s most robust retail area, so The Empire Mall is always on the radar of national chains.

The challenge can be finding space for them.

Simon Property Group, which owns the mall, uses a massive hotel ballroom as its “booth” at RECON and likely will be meeting with potential tenants for the mall’s limited vacant space.

That includes the Younkers space, where interest already is active, the soon-to-be vacant Toys R Us, which is on the mall’s campus, and a few spaces inside the mall.

The food court, which will add Firehouse Subs this summer, has a couple of spaces being used for storage that could be leased to restaurants.

Lake Lorraine

The center of retail activity in Sioux Falls for the past year, Lake Lorraine is proof that deals starting at RECON often land in the market.

Since last fall, a litany of national names has opened: Carters, DSW, Hobby Lobby, HomeGoods, Kirkland’s Marshalls and Ross Dress for Less.

Those anchors should help draw smaller stores and restaurants to the next phase of development at the site.

“We have interest. People are responding to calls, but we’re back to meeting with the next set of smaller retailers to work them in,” co-developer Mike Van Buskirk said. “It’s a matter of fishing the seas again.”

Van Buskirk Cos. will be marketing a retail building starting construction next to Hobby Lobby that has about 32,000 square feet available.

“I think that might be the impetus to get people over the edge because they’re definitely thinking about it.”

There’s also room for more restaurants on the property, including spots along the lake, although nothing has come together yet.

“We’re talking to nationals that might be interested, but I’d love to get solid local operators too,” Van Buskirk said.

Other activity at Lake Lorraine this year involves two hotels expected to be under construction, including Aloft, and a smaller building near Marion Road that will include national sandwich chain Capriotti’s.

Roosevelt Marketplace

GreatLIFE Golf & Fitness and Year Round Brown kicked off leasing activity for this eventual center near Roosevelt High School.


“And we have more retail announcements in the coming weeks,” said Tysdal, who represents the property. “I have a couple spaces available for lease, including an end-cap drive-thru. I am meeting with several potential tenants this week at RECON about Roosevelt Marketplace.  For retailers, it’s all about co-tenancy, and I’m talking to tenants who love being next to fitness and tanning tenants.”

Sanford Sports Complex

The recent announcement of Mills Fleet Farm is expected to draw more retail to the Sanford Sports Complex.

The 185,000-square-foot store is comparable in size to a Walmart, which typically acts as an anchor for smaller stores and restaurants.

Fleet Farm is scheduled to open in 2019, which allows Blount, who represents the property, to promote additional opportunities to other retailers at RECON.

“It’s a total game-changer,” she said. “We’ll have the ability to create that synergy and co-tenancy that all the other retailers require. You have to have an anchor to create the draw.”

57th Street near JJ’s

JJ’s Wine, Spirits & Cigars might have some national retail neighbors depending on interest at RECON.

Tysdal is marketing the 15,000-square-foot retail center at the property off 57th Street west of Western Avenue. Cambria and Stone Center already are signed on to be tenants there.

“We had really nice early interest in that,” he said. “Brand new retail in the thick of 57th  Street is unique in today’s market. This site’s strong demographics and retail co-tenancy in all directions make it attractive to both local and national tenants.”

69th & Cliff

The undeveloped land on the northeast corner of 69th and Cliff is proving attractive to retailers, said Tysdal, who is marketing it for Van Buskirk Cos.

“We currently have four parcels sold, and we are in several discussions with a wide variety of retail users. I’m talking to several different groups this week at RECON, and my goal is to line up a fast-food user or two for the development,” he said. “This area of the city is very underserved for food options.  We expect to be able to make some announcements of retailers for this site in the coming months.”

69th & Western

Multiple retail centers at 69th Street and Western Avenue will be marketed at RECON.

Nelson Commercial Real Estate will be promoting The Wedge, which has leased space to national franchises EarthWise Pet Supply and Define Body & Mind fitness business.

“We are right at 50 percent leased,” Ron Nelson said. “We have had lease interest and offers for more than the remainder of the space, but we’ve chosen to be highly selective on the best tenant mix, so we’ve passed on several concepts.”

The Galleria, a project starting construction this year just north of The Wedge, also has the potential for national retail, according to Blount, who represents it.

“I’ve got interest from a national wireless store, and it’s also a potential site for other national retailers already in the market looking for a second, third or fourth location,” she said.

41st & Sycamore

Sycamore Square, a retail center under development across from Fareway, has the ability to attract national retailers, according to Raquel Blount, who is marketing it.

Anytime Fitness is opening there, and other tenants are looking.

“We have interest from a regional restaurant group, a national sandwich shop, so we’ll be looking to fill in some gaps potentially,” Blount said. “We’d like to secure a neighborhood bank and a day care.”

85th & Minnesota

Walmart’s retail “magnet” affect has been clear at 85th and Minnesota, where one strip mall on the site has filled, another is being leased up and Aldi is preparing to open across the street.

Tysdal is marketing the retail property under construction that will include Urban Chislic restaurant.

“We have multiple deals in the works, and we’re nearing having that strip mall full,” he said. “We have one drive-thru end left for lease in building one, and then we’ll set our sights on the second strip mall in that development.”

Blount is marketing space on the same corner behind the Reliabank that’s under construction next to Walmart.

“It’s affordable retail tenant space,” she said. “We’re missing a sit-down restaurant out there and some service uses. The experience of the current retailers has been good. We’re getting very positive feedback on sales and traffic.”

Nelson Commercial Real Estate is marketing the remaining land near Aldi and Subaru.

Van Buskirk Cos. is marketing additional property to the south, near the future Highway 100, which would be a space for a larger retailer looking to open in the area.

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Retail hot spots: Where the next national brands could open in Sioux Falls

All sides of Sioux Falls will be covered as several commercial real estate brokers attend this week’s RECON event.

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