National retailers still looking to expand in Sioux Falls, though deal-making takes longer

May 19, 2025

If it’s possible to find a retail sweet spot amid the current market uncertainty, Alexa Goodroad might have done it.

This week, Goodroad opens Uptown Cheapskate at the Western Mall, a national “upscale thrift” retailer specializing in buying and selling trendy, gently used clothing, shoes and accessories.

It’s her second franchise for parent company BaseCamp Franchising, joining sister store Kid to Kid, which she opened a year ago next door at 2101 W. 41st St.

“We had a really great first year and are looking forward to keeping the momentum going,” she said. “I’m sure it’ll be a little crazy with both stores open, but we’re trying to be ready as much as we can.”

Her stores will be operating at a time when prices on new apparel and accessories appear destined to escalate, driven by higher tariffs on Chinese imports.

Uptown Cheapskate will carry men’s and women’s clothing, shoes and accessories from many brands, including trendy names such as American Eagle, Aerie, Nike and UnderArmour.

“Our internal conversations are really positive,” Goodroad said.

“We’re just excited and expecting more people to be willing to try resale. It’s not what it used to be. Our stores are clean and bright and smell nice, and we really try to create an upscale experience where you may not know it’s resale.”

Customers have been so eager for the store to open that they’re “talking about camping outside” before Thursday’s opening day. “So we’ll see how that goes.”

As she prepares to open this week, a handful of Sioux Falls commercial real estate brokers will represent sites citywide and beyond at ICSC 2025 in Las Vegas, the largest annual gathering of industry professionals.

While the post-COVID era of videoconferencing has changed the event somewhat, it’s still a chance to gauge national retailers’ interest in expansion.

“I have more meetings than I’ve ever had before,” said Ryan Tysdal of Van Buskirk Cos. “It’s a lot of Veterans Parkway, Foss Fields. You spend a few ICSC’s on these deals before they come to fruition.”

The promise of Veterans Parkway, with its connection to Interstate 90 and construction to the south that will complete the corridor, is starting to convince national retailers the time is right, he said.

“For the most part, everyone is still marching ahead for the time being,” he said. “All my (potential) Foss tenants are affected by China, but none of them have hit the brakes. What I’m seeing now is interest from restaurants, QSRs (quick-service restaurants) on Veterans Parkway. It’s getting to the point they can’t ignore it any longer.”

That said, fully developing the retail area north of Dawley Farm Village along Veterans Parkway to Madison Street could be a decade or more, he said.

“That’s probably going to be the pocket for the next 15 years because that’s about how long it took Dawley to get mostly stabilized,” he said. “In a perfect world, it goes quicker.”

But the retail world is much less than perfect at the moment. Uncertainty over trade, continued pressure around construction costs and financing and a persistent labor challenge combine to make it a hard sell at times and a slower sales process when it comes to bringing national names to town.

“I have some new nationals I’m talking to. It’s exploratory on their part primarily, but I’m excited about some of the users,” said Kristen Zueger of Lloyd Cos.

Meetings include new coffee and food concepts along with aesthetic-wellness businesses, she said.

Broadly, it’s “all the value-driven retailers” that are considering expansion, Tysdal said.

“TJX Cos. continues to bring Homesense across the country, and Dollar General has experimented with pOpshelf, which is similar to Five Below.”

He also is beginning conversations about land at Lake Lorraine as well as at 85th Street and Cliff Avenue, which could be a fit for a national big-box retailer.

“We need to start with an anchor, of course,” he said. “We have lots of interest from smaller users, but we can’t do that until we get an anchor, and that’s a two-to-four-year process.”

Selling sites

Sioux Falls doesn’t have a lot of existing real estate for national retail, especially on a large scale.

Empire Place, the most recent major center to fill with national retail, has one vacancy: the former European Wax Center, which was busy but forced to close for lack of staff, said Raquel Blount of Lloyd Cos., who has the space listed.

The vacant former Drybar will be reopening later this summer with a new franchisee, she said.

“We’ve heard from the tenants that they’re very pleased with the traffic,” she said. “The lot is super-busy with Chick-fil-A, but that’s what you want. You want a vibrant, busy center, and I think things are going well there.”

She’s also marketing remaining land at Dawley Farm Village and even sees opportunity for national retail downtown at The Steel District.

Autumn Kaufhold of Van Buskirk Cos. has several meetings lined up to continue conversations she’s already fostering with national retailers.

“This convention really helps solidify relationships and gives me a chance to highlight why Sioux Falls is the best place to do business,” she said.

Kaufhold has been working with one national retailer since last year and had a deal in process, but “they’ve had to put the brakes on because the uncertainty with tariffs was holding their product up from getting to their growing network of locations,” she said.

“I’m looking forward to meeting with this retailer – I want them to be assured Sioux Falls will support them, and I’m here when they are ready to pull the trigger.”

Restaurant interest, retail center openings

Multiple brokers representing Sioux Falls predict Dunkin’ will land in the Sioux Falls market once a franchisee is finalized. LongHorn Steakhouse, which had committed to a site at Empire Place before pulling back, reportedly is back to looking again.

The time also could be right for national full-service restaurants with one location in the market — think names like Olive Garden, Chili’s and Texas Roadhouse — to consider a second location.

“You have interest from national full-service, sit-down restaurants,” Tysdal said.

Kaufhold agrees.

“I’ve recently toured Sioux Falls with a few national restaurant chains interested in pad sites around the city,” she said. “It’s beneficial for me to be here in Vegas to continue the conversation.”

Lloyd Cos. recently listed strip mall spaces in two popular retail corridors: Gilrich Village on West 41st Street and Beakon Centre at 57th Street and Louise Avenue.

“The vacancies they have currently offer great opportunities for even junior-box-type users … because of their size and depth and ability to take contiguous suites and combine them,” Zueger said. “It’s basically on the most highly trafficked intersection with Beakon, and 41st is one of the most high-traffic areas in all of Sioux Falls.”

She’s also showing retailers available space at the Sanford Sports Complex, on the west side and at 77th Street and Cliff Avenue.

Smaller markets draw interest

The latest Target location isn’t in either of South Dakota’s largest cities, but in Brookings, where the national retailer broke ground last week for a location alongside Aldi at Brookings Marketplace.

The property, developed by Ryan Cos., has space for up to two smaller retailers at its almost 19-acre site just east of Interstate 29 and north of Sixth Street.

Across the street at the former Applebee’s location, Scott Blount of Lloyd Cos. has a purchase agreement for a new owner.

“It’s a restauranteur who has a couple locations in Sioux Falls,” he said. “I think (Target) helps tremendously, especially on that side of the interstate. Brookings has been pushing the east side of the interstate for 10 or 15 years for what they want to develop, and I think it influences the potential of this Applebee’s, which is across the street.”

Yankton also is drawing national interest, with Hobby Lobby, Marshalls and Five Below going into the redeveloped Yankton Mall.

Five Below is “eager to do more” stores in South Dakota, Tysdal said.

“They’re excited to open in Yankton. We’re looking for additional sites across South Dakota. And it’s a fun concept. They execute well, they have an interesting product mix, and it’s affordable.”

In today’s retail world, that appears to be the trifecta.

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