The figures contained herein focus on existing, or currently under construction, industrial buildings including warehouse, flex, commercial and small shop properties. Non-competitive, owner-occupied, special-purpose manufacturing buildings do not accurately affect local vacancy or rental rates and are therefore excluded from this analysis.

Market Overview

The Cedar Rapids industrial market consists of approx. 13,200,000 square feet (SF). Entering 2023, the vacancy rate was 1.20% which increased steadily as new construction options came online. Several larger sales/leases took place during the fourth quarter, ultimately ending the year with a vacancy rate of 1.25%.

The average asking rental rate is $6.94/SF NNN. This figure fluctuated slightly but eventually increased after beginning the year at $6.51/SF NNN. This increase can be attributed to the cost of new construction and the continued lack of available second-generation space.

Looking Ahead

Higher interest rates and material costs contributed to the considerable slowing of new construction starts in 2023. A slight decrease in tenant demand coupled with fewer construction starts will ultimately allow the vacancy rate to begin stabilization in 2024.

2023 Industrial Market Figures

Significant transactions announced, in progress, completed or traded