Sioux Falls New Construction*
Source: City of Sioux Falls
*Based on the total value of building permits issued
2015 2016 2017
Sioux Falls commercial market
Permits for new commercial construction, additions and remodeling
projects in Sioux Falls were valued at $465 million in 2017, up from
$245 million in 2014, a 90 percent increase over the three-year period, the
city’s planning and building services division reported.
Sioux Falls’ industrial real estate sector grew considerably in 2017, with
the $41.8 million value of new-construction permits nearly quadrupling
the total from 2016. New-construction permit values for office, institutional and educational projects, apartments and other commercial
projects all declined year over year in 2017, however. Sioux Falls added
1,215 new multifamily-housing units in 2017, 374 fewer than in 2016.
The city issued 11 building permits for commercial real estate projects
valued at $10 million or more in 2017, including several for apartment
complexes; a new $32.9 million cold-storage warehouse that was scheduled for completion this spring; and $25.5 million for a portion of Avera
Health’s new campus that is slated to open in 2020.
What the locals say
“Because of the favorable business environment we’ve nurtured
over decades of sound fiscal policy, businesses are choosing to
invest and reinvest in South Dakota at a pace far greater than
most other locales. Our operational costs are 88 percent of the
national average. Our state pension plan is fully funded. Our
regulations are reasonable. We have a structurally balanced
budget. Savvy business leaders who are thinking long term are
By Neil Pierson
The Mount Rushmore State prizes business and education.
South Dakota became a state in 1889. It was originally part of the mammoth
Dakota Territory, which also included present-day North Dakota, as well as
parts of Montana and Wyoming.
South Dakota is home to one of the world’s most recognizable monuments,
Mount Rushmore, which is also the origin of the state’s official nickname.
It took 14 years to carve the 60-foot-tall faces of presidents George Washington, Thomas Jefferson, Abraham Lincoln and Theodore Roosevelt into
the Black Hills granite. Mount Rushmore National Park drew more than 2.4
million visitors in 2016.
The state has been lauded in recent years for being attractive to businesses.
It ranked No. 1 among all states in three separate studies. The top marks
were earned as follows: least-volatile tax revenues; lowest business costs,
including labor, energy and taxes; and best business climate, because of the
elimination of some taxes and the growth of startup companies.
South Dakota boasts 28 higher-education institutions, including four technical institutes that provide training in culinary arts, computer technology,
health care, manufacturing and mechanical trades, among other things.
The Mount Rushmore State retains about 70 percent of graduates each year
from its six public universities for employment or postsecondary education opportunities, a key for bolstering the state’s stagnant working-age population,
the South Dakota Board of Regents said. Distance-education programs are
helping to deliver more qualified employees as 45 percent of public-university
students were enrolled in an out-of-classroom course this past fall.
Sioux Falls and Rapid City are the state’s largest cities, with respective populations of 174,000 and 74,000 as of July 2016, according to U.S. Census
In the Sioux Falls metro area, the workforce grew 17 percent between 2007
and 2016. About one-third of the workforce has a four-year college degree
and 38 percent of the population is between the ages of 18 and 44, the Sioux
Falls Development Foundation reported. Rapid City touts a regional trading
area of more than 470,000 people within a 200-mile radius, bolstering industries such as retail, recreation, and medical and professional services.
South Dakota had roughly 865,000 residents as of 2016, making it the
fifth-smallest state by population. Its per-capita personal income of $47,834,
however, ranked in the top half of all states, the U.S. Department of Commerce reports. The state’s gross domestic product (GDP) was $48.4 billion
in 2016, ranking 47th — although its compound annual GDP growth rate
from 2006 to 2016 was 2.1 percent, compared to 1.2 percent nationwide, U.S.
Department of Commerce figures show. n
Business development director,
South Dakota Governor’s Office of