- Real Estate
- Food & Drink
May 23, 2018
The demand for big-box retail hasn’t gone away in Sioux Falls.
Ryan Tysdal of Van Buskirk Cos., who has the property for lease, said he’s in the beginning stages of a deal for the vacant former Kmart on West 12th Street.
“Interest in the West 12th Kmart has been strong from a variety of users. If our current deal comes to fruition, it will definitely be the ‘highest and best use’ for the property,” he said.
Scott Blount of Lloyd Cos., who has the property listed for sale, also has potential takers.
“We’ve got a couple different parties interested in it,” he said.
The vacant former Kmart on East 10th Street has ongoing interest, according to listing broker Ryan Amman of NAI Sioux Falls, although much of it is from users who want a smaller space.
“So issues remain over demise and costs associated with that process,” he said. “There have also been inquiries regarding change of use. I continue to be optimistic that the right fit is out there, and that we will get this property back to a useful occupancy.”
Overall, big-box interest is still pretty strong, Tysdal said.
He has two transactions in the next couple of months for large retail buildings in excess of 40,000 square feet, he added.
“Activity and interest in big retail continues to be robust. Many of the retailers in these types of properties in Sioux Falls are performing exceedingly well. In some cases, these new retailers are doing double the sales that they projected for our market,” Tysdal said.
He’s also meeting this week at RECON, the national convention of the International Council of Shopping Centers, to discuss a deal for the soon-to-be-vacant Herberger’s space in Aberdeen.
“One of my meetings this week is to discuss a deal currently in the works for the soon-to-be vacant Herberger’s space in Aberdeen. Even before these spaces are coming empty, opportunity is knocking. We have been watching the Bon-Ton news stories closely over the last several months, and we have tenants writing offers on those spaces as they come available.”
The former Kmart on West 12th Street is among several big-box spaces drawing interest from retailers.