March 7, 2023

National discount retailer Five Below is coming to Sioux Falls.

The store plans to open its first location in the city at the Lake Lorraine development. It will be part of a new building being built adjacent to Hobby Lobby.

Five Below sells nearly all its merchandise for $5 or less. It’s popular with teens and tweens for its selection of trendy and affordable inventory.

“We have been working with Five Below for over two years to bring them to Sioux Falls,” said Ryan Tysdal of Van Buskirk Cos., who brokered the deal. “They will be a great addition to the strong retail lineup at Lake Lorraine.”

The store has “a really fun product mix,” Tysdal continued.

“There’s an extensive selection of toys, candy, books, party supplies and activities. They are a really exciting retailer that we have been looking forward to at Lake Lorraine.”

Five Below will occupy 10,000 square feet in the new building.

Its current stores include large sections of T-shirts, fitness equipment and collectibles.

It’s one of many national “junior-box” retailers attracted to Lake Lorraine, Tysdal added.

“Five Below was actually in a bidding war for their space with another retailer that would also have been new to Sioux Falls,” he said. “Our city remains an incredibly strong retail market, and new retailers are working hard to open locations here.”

Many of the Lake Lorraine retailers are top performers in their respective companies, he said.

“We’ve had nice momentum at Lake Lorraine,” Tysdal said. “Dave & Buster’s had an incredibly strong opening last year, and we have continued to see demand for land parcels around the lake.”

Five Below will take about two-thirds of the new 15,000-square-foot retail building, which will to the south of Hobby Lobby. In addition, there are two 2,500-square-foot spaces next to Five Below that are available for lease. The spaces are listed with Autumn Kaufhold of Van Buskirk Cos.

“There is space available for small shop retailers that want to be located between Five Below and Dave & Buster’s,” Kaufhold said. “Small shop retail with signage opportunities along Interstate 29 is a unique offering.”

There are other small retailers nearby, including Child’s Play Toys and Wings Gymnastics.

Interstate 29 has nearly 60,000 vehicles per day at Lake Lorraine, according to Kaufhold. “Retailers love that traffic,” she added.

The Five Below building is scheduled to break ground first thing in the spring, with plans to be open in time for this year’s holiday season.