Oct. 28, 2019

An office park designed to be mix of owner-occupied and leased space is under construction in southeast Sioux Falls.

The Roundabout Office Park is just west of the roundabout at 69th Street and Southeastern Avenue.

It’s owned by Roundabout Partners LLC, which is led by Norm Drake, CEO of Legacy Development & Consulting Co.

The plan is for up to eight office buildings between 3,880 and 5,000 square feet. Each can be split between two businesses and can include a vestibule in the middle.

“We projected to have a decent amount of buyers come forward needing their own building because it’s fully built-out, turnkey available – we give the keys and you start the business day one,” said Marcus Mahlen of NAI Sioux Falls, who has the property listed. “But we’ve seen more tenant interest than expected.”

The tenant for the first building is Carroll Institute, which is leasing 2,500 square feet for its Renew Counseling Clinic.

The clinic, which currently is located at 408 W. Lotta St., will offer individual and family counseling, couples therapy and premarital counseling.

Carroll Institute chose the new location because “the southeast area of Sioux Falls, by all accounts, is predicted to grow, as well as (for the) ease of access from both Southeastern Avenue and 69th Street,” executive director Gary Tuschen said.

The hope is to open in early February.

The clinic has a five-year lease with an option to purchase.

Construction also has started on a second office building.

“We’ve had a lot of medical interest, chiropractors … law firms and financial firms,” Mahlen said. “We think the activity will come as the project gets going. Many are in the 57th Street or 69th Street corridors, and they’re all tenants who are looking to buy.”

The trend toward owner-occupied small offices has taken off in the market in recent years, with new buildings on 57th Street east of Sycamore Avenue and on Technology Circle, which is west of Louise Avenue near 57th Street.