Overview of the Commercial Real Estate Retail Submarket
The Cedar Rapids metro commercial real estate retail submarket consists of approx. 9,300,000 square feet (SF). Entering 2023, the vacancy was 6.03%, increasing steadily and ending the year at 7.60%. The average asking rental rate is $15.13/SF triple net (NNN), an increase from $14.96/SF NNN at the beginning of 2023.
The Westdale area saw retail strip centers lease to full capacity, a new Boulder Tap House and Take 5 Oil Change in addition to a Michaels lease and JCPenney lease renewal. The Lindale area has yet to fill some vacancies with the closing of Bed, Bath & Beyond (rumored to be backfilled by Harbor Freight Tools), Tuesday Morning and David’s Bridal.
Cedar Rapids downtown lost long-time staples Jeff Jones Furniture and retail banking services at the downtown U.S. Bank and Wells Fargo branches. Metro area restaurants QDogs BBQ, Rodina, Hospoda, Sugarfire Smoke House and the NE El Bajio also closed.
Looking Ahead
Metro area retail vacancy remains low and steady. 2024 brought the openings of Big Grove Brewery and Pickle Palace in the Kingston Yard/1st and 1st West development.
Rising interest rates and construction costs will make new construction more difficult, commanding lease rates near $30.00/SF, keeping second-generation retail and restaurant spaces in high demand.
For additional information on the commercial real estate retail submarket or other submarkets including office, industrial or multifamily, contact GLD Commercial at 319.731.3400 or visit gldcommercial.com.