With available property on all 4 sides, 85th & Louise positioned for future development

March 26, 2026

Every corner at 85th Street and Louise Avenue indicates development likely is about to accelerate here.

The area is bolstered by the success of nearby 85th and Minnesota Avenue as a major commercial intersection to the east, a nearby interstate interchange to the north, the future Veterans Parkway a mile to the south and a future interchange to the west.

“Everybody is in the mode of being ready,” said Raquel Blount, vice president of commercial real estate at Lloyd Cos. “With that being the first (Interstate 29) exit into Sioux Falls from the south, it’s going to dramatically change traffic patterns. We see it as a very viable new emerging development area.”

She has 2 acres listed on the southwest corner that could support multiple commercial buildings.

“It’ll be service retail,” she said, mentioning a potential strip mall, quick-service restaurant or bank.

“We’ve had conversations with people. I think it’s the gearing up of the area right now — we’re seeing a lot of housing growth to the south and more multifamily — but I think it’s really going to be tied with the interchange open.”

The new interchange at 85th Street and I-29 is under construction and on track to be done next year.

On the northwest corner, Platinum Plaza is planned on 2.5 acres owned by Johnson Properties. At one point, it had been envisioned as a full-service restaurant.

“Our conceptual plan includes a retail strip center ideal for neighborhood uses such as a salon services, restaurants, coffee, and then our site includes a little out-parcel pad for a drive-thru coffee user or something similar to that,” said Ryan Tysdal, vice president of commercial real estate for Van Buskirk Cos., who has it listed.

The site is designed to accommodate users up to 10,000 square feet such as a junior-box anchor, with smaller spaces, including a drive-thru endcap.

“We’ve had a lot of people (interested) but never at the same time,” Tysdal said. “Our junior-box space, for the right fitness user, could be a good opportunity. There are lots of rooftops in the area, and this whole pocket of the city is very underserved by commercial.”

The only existing commercial businesses at the intersection are on the northeast side, where the Raintree retail center developed by Van Buskirk marks a decade in business this year. Tenants in the two buildings include Subway, Farm Bureau Insurance and Burn Boot Camp. There’s 4,419 square feet available, which can be subdivided, in addition to a 2,300-square-foot endcap.

“Van Buskirks … bought the land and built it because they knew it was going to be a good corridor,” said Autumn Kaufhold, a commercial broker with Van Buskirk Cos. who has it listed.

“Subway is doing great. People drive in and out of there all the time. We think now that 85th and Minnesota is doing well, we’ll start getting more interest where we are.”

Across the street, the southeast corner has yet to be annexed into the city.

It’s farmland that has been in the same family for more than a century, said Brian Smit of Better Homes and Gardens Real Estate Beyond, who has the 43.5-acre site listed.

“I’ve worked with the city quite a bit on different ways it can be developed that would be appealing to the city and the surrounding neighborhood because that becomes a big factor when you have a piece of ground that’s not on the edge of town anymore,” he said.

The size of the parcel could support both neighborhood commercial and some level of multifamily housing, including a senior living community, Smit said.

“I feel like it could be a terrific fit for somebody,” he said. “I compare it (the area) to an apple on a tree. It’s hanging there, but it’s still a little bit green. It’s not going to be too many years and 85th and Louise is going to be a pretty busy intersection in Sioux Falls.”

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