, Author at Ferguson Appraisals LLC

Black Hills Retail Property Trends 2025

Summary

In 2025, the retail property market in Rapid City and the broader Black Hills region of South Dakota is experiencing significant growth, driven by a combination of population increases, economic development, and strategic investments.

As Rapid City and the Black Hills region continue to grow, the retail property market is poised for further expansion. Ongoing infrastructure improvements, such as those associated with the B-21 mission at Ellsworth Air Force Base, are expected to attract additional residents and businesses, reinforcing the area’s economic momentum.

For a full analysis of market trends and local vacancy rates, please see the attached report as provided by CoStar.

Click Here

Uncategorized

Wyoming Hospitality Market Report 2025

0 Comment

The Wyoming hotel market consists of 480 properties with approximately 29,000 rooms. Among these, there are 1,800 Luxury & Upper Upscale rooms, 10,000 Upscale & Upper Midscale rooms, and 17,000 Midscale & Economy rooms.

As of February, Wyoming’s 12-month occupancy rate stands at 53.4%, with an average daily rate (ADR) of $165 and revenue per available room (RevPAR) of $88. Year-over-year, occupancy has declined by 2.9%, while ADR has increased by 7.1%, and RevPAR has grown by 4.0%.

Currently, about 380 rooms are under construction in Wyoming, representing 1.3% of the total market inventory. Over the past year, approximately 340 rooms have been added across five new properties. Over the last three years, Wyoming’s hotel inventory has expanded by 480 rooms (0.6%), compared to a national increase of 130,000 rooms (1.2%) over the same period.

For a full analysis of hotel conditions in Wyoming, please contact Ferguson Appraisals for a free market summary.

Market data is compiled by Ferguson Appraisals, LLC

Uncategorized

Black Hills Residential Real Estate Report 2024

0 Comment

The residential real estate market in Rapid City, South Dakota, has seen strong activity, driven by both local and out-of-state buyers. Factors contributing to this trend include the city’s scenic location near the Black Hills National Forest, Mount Rushmore, Crazy Horse and Sylvan Lake.

The Black Hills area of South Dakota offers affordable cost of living, and strong job market. Over recent years, Rapid City has experienced a sharp rise in home prices, reflecting a nationwide trend of increasing demand and limited housing supply. New construction has been underway, but inventory remains relatively tight, making it a competitive market for buyers. This is especially true for entry-level home buyers.

The market has also seen a mix of single-family homes, townhomes, and rental properties, with a growing interest in suburban and rural areas just outside the city. Overall, Rapid City’s residential real estate market is expected to remain active, with steady demand driven by lifestyle preferences, employment opportunities, and the region’s appeal as a desirable place to live.

Key residential statistics indicated by the local MLS indicate the following: 2024 (YTD) sales indicate a change in year-over-year average sale price of 5%. The change in year-over-year median sale price is 2%. The median annual percentage change in sale price over the last four years is 9% per year. The total sales volume in 2023 was $773,278,397 compared to the previous year’s total sales volume of $916,768,663. The 2024 (YTD) quantity of residential sales equals 1239. The quantity of sales in 2023 equaled 1993. Median days on market have ranged from 5 days to 9 days, based on the MLS data. Please note that current year statistics are incomplete.

Prices increased drastically during 2020 with low interest rates and pent-up demand for housing. Sales of homes in the area are typically purchased with conventional, FHA or VA financing with limited negotiating. The most predominant exposure period is two months or less with the median sale price being 97% of the list price.

For more detailed insights, feel free to reach out to Dustin Ferguson for the latest trends. Attached is the latest trends report created by Ferguson Appraisals, LLC.

Uncategorized

Denver, CO Office Sector Trends in 2024

0 Comment

In 2024, Denver is grappling with one of the highest vacancy rates, standing at 16.3%. The pervasive challenge of low office utilization, seen nationwide, is particularly pronounced in Denver. This susceptibility is attributed to the city’s significant reliance on the tech sector workforce, known for their prominent adoption of flexible workplace arrangements.

The prevailing high-interest rate environment has expedited this trend. Faced with economic uncertainties and slower growth, tech companies, in an effort to cut costs, are laying off workers and shedding office space. Much of this surplus office space is entering the sublease market, currently totaling around 6.0 million SF. While this represents a decrease from the peak observed earlier in the year at 7.9 million SF, it remains a substantial obstacle for landlords leasing direct space.

The CBD (Central Business District) is particularly impacted, with 5.8% of office space available for sublease—well above the 3.2% average across the entire Denver market. Notably, average asking rents for sublease listings in the CBD are 47% lower than direct listings. This is a significant shift from late 2019 when both direct and sublease listings were priced equally, reflecting the increased challenges in the current market.

Denver is anticipated to struggle with elevated office availability for an extended period, as leasing trends indicate companies are adjusting their footprints to reduce space-per-worker requirements upon lease expiration. Leases signed in the third quarter averaged around 3,400 SF, marking an improvement from the trough observed in early 2021 at 2,600 SF. Nevertheless, this still represents a roughly 40% decrease in average lease size since its peak in 2015.

Additional research is provided by CoStar in the link below.

Read More at: Denver Office Market Report

Market data is provided by CoStar Analytics. Ferguson Appraisals, LLC is a licensed user of CoStar Analytics and has received permission to share the published report.

All posts by

Summary