Nov. 7, 2024

The industrial area around the Sioux Falls Regional Airport is seeing some changing uses.

Xcel Energy plans to wrap up construction this month on an almost 48,000-square-foot building to expand its fleet maintenance and warehouse operations on the northwest corner of Minnesota Avenue and Russell Street.

The utility provider acquired the 4.2-acre property in 2021 from Border States Electric. Located next to Xcel’s existing service center, “the property provides much-needed space to meet the growing needs for electric service distribution in Sioux Falls and the surrounding region,” said Eric Pauli, community relations manager for Xcel Energy.

“With our growing economy and community in the city of Sioux Falls, we’re planning ahead so that we can serve our customers safely and reliably well into the future.”

The facility is split between a 19,500-square-foot fleet addition, with a high-bay garage space and a wash bay to perform service on bucket trucks and equipment, and a 20,500-square foot warehouse that will provide additional storage space for materials and supplies used to expand and maintain the electric distribution system in Sioux Falls. The remainder of the building renovation and addition is comprised of support spaces, including offices, meeting room, restrooms and a break area for employees.

TKDA Architects

Like the existing facility, the site will be secured and screened by a perimeter fence.

“We will use the expanded yard space for storage of equipment and large materials, creating better access and circulation for our employees on the site,” Pauli said. “Primary access to the site will remain from the frontage road on Russell Street with an exit onto Minnesota Avenue for Xcel Energy vehicles.”

Employees are expected to move into the facility in December.

Across Minnesota Avenue, the former Maguire campus also is transitioning to other uses after the Sioux Falls-based company moved this fall to an expanded headquarters in northeast Sioux Falls.

The property on the east side of Minnesota north of Russell Street is a combination of office and industrial uses.

Reynolds Construction Management Services now owns several of Maguire’s former industrial buildings and likely will be making them available to other users, said Dennis Breske of NAI Sioux Falls, who helped broker multiple transactions on the campus.

“He’s got a couple prospects,” Breske said. “I’ve got somebody looking to come into the market that needs a rail spur, and it’s really tough to find a property where you can have a rail spur configured, especially in the way this particular company wants it.”

Rion Equipment, which sells and services material-handling equipment, including forklifts, warehouse products, automated guided vehicles, Shuttlewagon railcar movers and Terberg terminal tractors, purchased one of the industrial buildings.

“They didn’t do a lot of remodeling — they’re set up and operating,” Breske said. “They really valued the yard space.”

Rion has operated in Sioux Falls for 12 years. Its 10 employees moved from a location on the south side of the city into the newly acquired 34,000-square-foot building, which can support 25 employees.

“It has good visibility, proximity to interstate access and a loyal customer base,” said Jeff Reynolds, Rion vice president and general manager, adding that the company plans to renovate the building next year.

“We’re proud of our Sioux Falls operation and excited to continue investing in the local community.”

Maguire continues to own two office buildings on the property, which are available for lease through NAI.

“We have had interest,” said Gregg Brown, who has the buildings co-listed with Breske.

“We’ve had a handful of tours, and our hope is that it would end up being a user that needs to be close to the airport and doesn’t want to be all the way downtown.”

The location is convenient for firms that travel a lot or have many visitors flying into town, though the area is still more industrial in nature, he said.

“You still have a lot of big-name companies around there,” Brown said. “Xcel did a nice job, but it’s still an industrial use. You’ve got your historical original industrial park there, and those properties still trade because there’s always users that want to be close to the airport. It’s a traditional industrial airport zone. That’s what was needed back then. So it really does serve its purpose.”