Steel District takes shape with robust retail leasing, construction progress

June 5, 2023

Nearly all the available retail space in the first phase of The Steel District is spoken for, and construction is on track for the first offices to move in this September.

Multiple buildings on the former Sioux Steel property adjacent to Falls Park West are in various stages of construction, with the nine-story office tower and restaurant building scheduled to open first.

Project developer Lloyd Cos. plans to move its office into the building in September.

“The tower is going well,” said Luke Jessen, vice president of development. “This fall, tenants will start to occupy.”

Robins Kaplan law firm will be among the earliest to move in, followed by FNBO, Holmes Murphy and Philadelphia Insurance Co. C&B Operations is building out the top two floors of the building.

While the building is about three-quarters full with office tenants, “there’s still space available for a wide range of different-size tenants,” Jessen said. “It’s a very strong tenant mix. A lot of longstanding, large organizations and quite a few more regional or national companies that have a Sioux Falls presence. It’s very heavily focused on professional services … and it takes tenants that want to buy into the atmosphere and culture and all downtown has to offer.”

Restaurant build-outs from Twin Cities restaurateur Josh Thoma will start this fall for openings next spring and include Burger Dive, a taco and tequila restaurant and a seafood-driven restaurant.

Tenants of the office tower will have access to a large fitness center in the building that also will be available to apartment tenants.

A coffee shop will open on the second floor, which will be connected through a skywalk to the parking ramp. The ramp is surrounded by another building that will include apartments and condominiums, with retail on the ground floor.

“On the wrap building, they’re framing second floor, and that should go quickly over the next several weeks,” Jessen said. “You’ll see the first floor taking shapeb and you’ll probably see tenant build-outs on the first floor probably beginning later this fall for next spring or summer openings.”

Interest in the retail space has been strong, he added. There are leases being finalized for a restaurant and bar, boutique, salon and spa, and gift shop/visitors center.

“It’s been going really well on the retail side,” Jessen said. “People are excited about it. Condos are still available, and we’re really going to start to market those this fall when people can walk it and feel those take shape.”

Apartments likely will start pre-leasing early next year. There is a second phase for the wrap building planned around the ramp that also will offer more apartments and retail space.

On the north side of the site, the Canopy by Hilton hotel is “coming along,” Jessen said. “There are two more floors to frame, so it’s going well, and we’re starting to do internal framing and will start laying the bricks and exterior facade will begin in the next few weeks.”

A conference center is yet to be built on the east side of the hotel but is scheduled to open at the same time – late summer of 2024.

Lloyd also is finalizing finishes for the hotel rooms.

The overall site will be wrapping up utilities in the next two weeks, and the skywalk is scheduled to be installed before the end of June, Jessen said.

“We’ll start to see more paving happening to make it feel more finished throughout the summer.”

Want to stay in the know?

Get our free business news delivered to your inbox.



Steel District takes shape with robust retail leasing, construction progress

Nearly all the available retail space in the first phase of The Steel District is spoken for, and construction is on track for the first offices to move in this September.

News Tip

Have a business news item to share with us?

Scroll to top