Top 10 spots to watch in 2018

The Sioux Falls community for years has enjoyed steady growth in all areas of town, and it seems like that trend will continue in 2018.

Several areas are on the verge of taking off with development, but these are the top 10 spots we feel are positioned for potentially significant projects and growth in the coming year.

69th & Louise

Home to the largest construction project in the city’s history, 69th Street and Louise Avenue likely will be a center of activity in the coming year.

Avera on Louise is taking shape, and 2018 will be a year of solid construction as the complex moves toward a 2020 opening.

On the northwest corner, expect construction to start in the spring for Cornerstone Bank, which is building a 15,000-square-foot branch. There are four acres left on that corner, which are attracting interest from retailers, hotels and restaurants, so don’t be surprised if all or part goes under contract in the coming year.

10th & Phillips

The city’s most controversial location of late will make plenty more news in 2018. The development at the corner, including Lewis Drug, Sanford Health and an expanded PAve, will be a welcome addition to downtown when it opens in late spring, offering a pharmacy and acute care services, plus a place to buy grocery and household items.

Farther east is where the uncertainty develops. A $50 million public-private partnership involving the city and Legacy Developments to construct a mixed-use parking ramp has come under scrutiny by the City Council because of legal charges pending against co-guarantor Aaron Hultgren, whose company was the contractor for the project resulting in the deadly 2016 building collapse at the same corner. While the odds are long for halting the ramp project, we’re still waiting to learn the hotel operator and brand. And assuming the concept moves forward, other tenant announcements could materialize in 2018.

Downtown rail yard

This should be the year that developers’ visions for the downtown rail yard take a significant step closer to becoming reality.

The city has taken possession of the land from BNSF Railway and is removing rail crossings and tracks. During the winter, the freight house will be removed, and the site will be prepared for redevelopment.

Expect an announcement of at least one private development in the area before Mayor Mike Huether leaves office, assuming all involved can get on the same proverbial page. From there, the new administration likely will determine the approach taken to redeveloping the area.

Foundation Park

The first development in the 800-acre Foundation Park property is scheduled to open this spring, and others likely will follow.

Win Chill brings needed logistics services to the park, and demand has been strong enough the owners already are planning expansion.

Given the availability of sites of varying sizes with rail access, Foundation Park is likely to attract other industrial tenants in the coming year. The new federal tax environment might not hurt prospects for business expansion, either.

The Empire Mall

The first quarter will tell part of the story about business at The Empire Mall — though much of it will fall outside of local control. Post-holiday season is usually when national retailers announce closures, and when an entire chain goes out of business, the mall isn’t spared.

Analysts for years have been predicting a Sears closure, so we’ll see if 2018 brings one.

Later in the year, expect news about the vacant property in front of the mall that used to be Sioux Falls Ford Lincoln. And don’t forget about The District, which has been on the market for months and seems due for a deal.

Gage Brothers land

As Gage Brothers prepares to move to its new state-of-the-art facility in northeast Sioux Falls, the current 35-acre site likely will start to draw redevelopment prospects in 2018.

It’s a solid location at 12th Street and Interstate 29 that likely will appeal to hotels, restaurants and retailers. Watch for announcements in the coming year as those businesses work ahead toward opening once Gage relocates in 2019.

Lake Lorraine

The epicenter of retail development in 2017 will still have plenty of activity in 2018. DSW and Kirkland’s will open in the early part of the year, and work is underway to attract the next batch of smaller retailers and restaurants.

Lake Lorraine

The coming year will bring significant hotel development to Lake Lorraine, as Aloft and another national hotel brand plan to start construction in the spring.

Total Card also is under construction with its new office in the area, and expect other projects to be announced in the coming year as well.

Sanford Sports Complex

There’s plenty of land left to develop at the Sanford Sports Complex, and 2018 might be a year with new announcements.

Power & Grace Gymnastics is building a 16,000-square-foot center at the complex in northwest Sioux Falls, which plans to open midyear.

That still leaves a lot of room for retail development, another hotel and more sports centers — all prospects that could materialize in the coming year or two.

School for the Deaf campus

One of the more intriguing redevelopment opportunities in 2018 is the former School for the Deaf campus on East 10th Street.

A recent report to the Board of Regents recommended selling approximately 6 acres of green space at the campus and leasing out much of its 98,000 square feet of building space, which includes offices, classrooms, an indoor pool and gymnasium. Selling the entire 14.5-acre campus also remains an option.

A consulting agreement with Bender Commercial Real Estate Services runs through mid-2018, so a more defined plan  for redevelopment likely is coming. There’s also more retail development anticipated for the adjacent property to the west, which has drawn interest from several restaurants.

The USD Discovery District

This could be the year the USD Discovery District starts to feel more like an actual development and less like a concept.

An Omaha company is helping guide development of the 80-acre park, which had planned to open a 25,000-square-foot building in 2018. No tenants have been announced yet. The park also put out a call in 2017 for hotel developers, but nothing has been announced yet.

The USD Discovery District is a public-private partnership effort among the University of South Dakota, the city of Sioux Falls, the South Dakota Board of Regents and the business community through Forward Sioux Falls.

Sioux Falls 2018 market outlook: Potential for another big year

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Top 10 spots to watch in 2018

There’s development occurring all around Sioux Falls in 2018. These are our top 10 spots to watch.

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