Walk down North Phillips Avenue today and you’ll notice something’s a bit off. The massive brick-and-glass fortress that has defined the corner of 9th and Phillips for decades—the Wells Fargo building—feels different. For a long time, it was the beating heart of local finance. Now, it’s a giant question mark in the middle of a city that's currently exploding with new growth.
Honestly, if you've been following the Wells Fargo building Sioux Falls redevelopment, you know the rumor mill has been spinning faster than a prairie wind turbine. People see the "Space for Lease" signs and the empty lobby desks and assume the building is dying.
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It's not dying. It’s just having a massive identity crisis.
The Big Move Nobody Saw Coming
The reality is that Wells Fargo didn't just decide to "leave" Sioux Falls. That’s the first thing people get wrong. They’ve actually consolidated.
In May 2025, the bank officially pulled the plug on its retail banking services at the downtown North Phillips location. It was a weird day for the regulars. You used to be able to walk in, smell that specific "bank smell," and handle your mortgage. Now? The doors are locked to the public.
The bank moved its main office operations to their massive campus on North 4th Avenue. Why? Efficiency. Basically, they had too much square footage downtown that wasn't being used. Post-pandemic office culture hit Sioux Falls just like it hit Minneapolis or Denver. You don't need five floors of cubicles when half your staff is working from a home office in Brandon or Tea.
So, the building sits. But it’s not just sitting empty.
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What’s Actually Happening Inside?
Current reports and local sightings from early 2026 suggest that the "ghost town" vibe is temporary. If you peek through the glass, you might catch a glimpse of construction crews or updated renderings.
There's been a lot of talk about a "mixed-use" future. In the world of urban planning, that’s a fancy way of saying "we’re putting a bar on the bottom and apartments on the top."
The Ground Floor Shakeup
Specifically, renderings floating around the local business circuit have shown a radical redesign of the main entrance. We’re talking:
- Outdoor patio seating right on Phillips.
- A "transparent" lobby concept to replace the heavy, 1990s-era fortress aesthetic.
- Potential for a high-end restaurant or "food hall" style setup.
It makes sense. Look at what happened at Cherapa Place or the Steel District just down the road. Sioux Falls is moving away from the "office-only" downtown model. We want places where we can drink overpriced (but delicious) lattes while we pretend to work on our laptops.
Why This Matters for the Rest of Downtown
You can't talk about the Wells Fargo building Sioux Falls redevelopment without looking at the neighborhood. It’s caught in a pincer movement between two of the biggest projects in South Dakota history.
To the north, you have the Steel District. Lloyd Companies basically built a new city within a city up there. To the east, Jeff Scherschligt’s team just wrapped up the final massive phases of Cherapa Place.
If the Wells Fargo building stays as a "dead" office block, it becomes a hole in the donut. Property owners in the area are desperate for this redevelopment to work because it connects the historic "Old Downtown" vibe of Phillips Avenue with the shiny, new "Riverfront" vibe of the newer districts.
The Challenges (Because It’s Never Simple)
Let’s be real: redeveloping an 11-story bank building is a nightmare.
The HVAC systems are ancient. The floor plates are designed for 1980s filing cabinets, not modern open-concept lofts. And then there's the parking. While there is a ramp attached, the logistics of turning a secure bank facility into a public-friendly residential or retail hub are expensive.
I’ve heard local developers joke that it would almost be cheaper to knock it down and start over, but the building has "good bones," as the realtors say. Plus, the city of Sioux Falls isn't exactly keen on losing more historic-adjacent skyline to a demolition crew.
The "Graco" Factor
While the downtown building is the one everyone stares at, it’s worth noting that Wells Fargo’s other big footprint in town has already seen success.
The old operations center was snatched up by Graco Inc. back in 2024. They’ve already pumped millions into it, turning cubicle farms into high-tech manufacturing spaces. This is the blueprint. It shows that even when a giant like Wells Fargo shrinks its "physical" presence, the buildings themselves can be repurposed for the next generation of Sioux Falls industry.
What to Watch For Next
If you’re looking for a sign that things are moving, keep an eye on the building permits at City Hall.
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Usually, these big downtown shifts happen in three stages:
- The Quiet Period: Where we are now. Lots of "For Lease" signs and "NDA" meetings between developers and the city.
- The Design Reveal: When a local firm like Koch Hazard or TSP drops a glossy 3D flyover of what the building could look like.
- The TIF Ask: This is the big one. The developers will likely go to the City Council asking for Tax Increment Financing. When you see that on the council agenda, you’ll know the project is officially "go."
Actionable Steps for Locals and Investors
If you live in Sioux Falls or you're looking at the real estate market here, don't ignore this corner.
- For Small Business Owners: Keep an eye on the retail vacancies within a two-block radius. Once the redevelopment of the Wells Fargo building kicks off, the "gravity" of downtown will shift back toward 9th Street, likely driving up rents.
- For Residents: Expect more road construction. It’s the Sioux Falls state bird, after all. If this turns into a residential project, Phillips Avenue is going to get even more crowded.
- For History Buffs: Take your photos of the "old" facade now. If the renderings are even 50% accurate, the "Fortress on Phillips" is going to look like a glass-walled boutique hotel or modern tech hub by 2027.
The redevelopment of the Wells Fargo building isn't just about one bank leaving. It’s the final piece of the puzzle for a downtown that is finally growing up and realizing it doesn't need to be a 9-to-5 office park anymore. It’s going to be messy, it’s going to be loud, and it’s definitely going to be expensive. But honestly? It’s exactly what Phillips Avenue needs to stay relevant.
Stay tuned to the local planning commission meetings. That’s where the real dirt always comes out first.