Sioux Falls Developers Broke Ground on Foss Fields

The 300-acre project will add retail and apartments to the city's east side.

Updated on Oct. 10, 2026 in Openings & Closings

Cleared construction site featuring churned brown earth and heavy machinery, set against a wide Midwestern horizon. — Developers in Sioux Falls broke ground this week on the 300-acre Foss Fields project, a $200 million retail and residential development. AI Illustration. Upload story photo >

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Developers broke ground on the 300-acre Foss Fields mixed-use project at Sixth Street and Veterans Parkway. The $200 million development will feature a 118,500-square-foot retail center and 500 apartment units.

Why it matters

This project represents a decade of planning aimed at increasing retail density and job creation on the east side of Sioux Falls. The expansion significantly increases the local inventory of both commercial square footage and residential supply.

The development encompasses 300 acres and includes a 118,500-square-foot retail center, anchored by tenants such as Hobby Lobby and Petco. Total construction value is estimated at $200 million for the site, which will also host 500 new apartment units.

The players

Hobby Lobby

A national arts and crafts retailer that serves as an anchor tenant for the new development.

Casey's

A national convenience store chain that will occupy a standalone site within the project.

Petco

A national pet specialty retailer joining the new retail center as an anchor tenant.

The details

The project site at Sixth Street and Veterans Parkway required a decade of coordination with city departments to finalize infrastructure requirements. The retail portion includes a 55,000-square-foot Hobby Lobby along with Sierra, Ross Dress for Less, Five Below, and Petco. Additionally, a Casey's location is slated for construction at the intersection of Veterans Parkway and Madison Street.

October 6, 2026: The official groundbreaking ceremony took place.
Fall 2027: The retail center is scheduled to open to the public.

Market Landscape

The project takes its name from the site of the regional airport, which was dedicated as Joe Foss Field in 1955. This development follows a pattern of city-led expansion on the east side of Sioux Falls to meet growing demand for commercial and residential space.

Operators should monitor upcoming tenant announcements as the retail center moves toward its 2027 opening. The addition of significant residential and commercial capacity will shift local foot traffic patterns and competitive dynamics for businesses on the east side.

The takeaway

Large-scale mixed-use developments provide a leading indicator for infrastructure and consumer traffic shifts in developing city corridors. Local business owners should evaluate the impact of these 500 new residential units on their projected customer base and staffing availability.