July 3, 2023

Building permits in Sioux Falls are on pace for another $1 billion year, despite lagging about $300 million behind the same time last year.

Permit valuation through June totaled $570.5 million, down from $868.5 last year but up from $492.2 million in 2021.

“That’s pretty good, especially when I compare back to 2021,” said Butch Warrington, the city’s chief building official. “2022 was the perfect storm where we did a whole bunch of projects, a lot of large projects, so I think it’s more realistic to look at the 2021 numbers, and we’re about 16 percent over what we did in 2021, so I’m real pleased with it.”

New commercial construction accounts for a big chunk of the gap. It totaled $307.4 million, down from $586.4 million last year but still well ahead of $173.5 million in 2021.

Commercial additions and remodeling projects are about double compared with last year at $140.2 million versus $75.8 million.

Major projects permitted in June include:

• Glory House expansion, 1654 W. 51st St., $7.4 million.
• Dakota Digital expansion, 4720 W. 61st St. N., $6 million.
• Presidio Components expansion, 4205 E. Producer Lane, $4.3 million.
• Aerostar build-out, 5900 W. Wireless St., $3.9 million.
• Huether Family Match Pointe expansion, 4210 N. Bobhalla Ave., $3.3 million.

The largest projects that have been issued permits for the first half of the year are the One2 apartments at 205 E. 12th St. for $35 million, part of Sanford Health’s virtual care center at 3001 W. Opportunity Drive for $27.7 million and the new Maguire Iron headquarters and manufacturing facility at 2001 E. Robur Drive for $22.6 million.

New residential construction continues to lag the past two years by a considerable measure, totaling $73.1 million compared with $162.6 million in 2022 and $166.5 million in 2021.

That accounts for 181 new single-family homes compared with 434 for the first half of last year and 475 in 2021.

Residential additions and remodeling projects are ahead of the past two years at $49.9 million compared with $43.7 million last year and $31.7 million in 2021.

The multifamily market is still holding its own, with permits issued for 1,109 units so far this year, compared with 1,830 units last year and 1,031 two years ago.

“We still have a lot of apartments we’re reviewing,” Warrington added. “A lot of nice-sized projects are coming in. I don’t see the big projects coming in this year, and that’s the biggest thing I see as a difference.”