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.
Industrial
Analysis
Market Overview
The Cedar Rapids industrial market consists of approx. 12,700,000 square feet (SF). Entering 2022, the vacancy rate was 0.71%, it fluctuated significantly throughout the year as new construction came online and large existing spaces (Gazette facility) were sold or leased. The 2022 industrial vacancy rate ultimately ended at 1.17%.
The average asking rental rate is $6.51/SF NNN which has steadily increased since the beginning of 2022 at $6.21/SF NNN. This increase is due to the cost of new construction, continued supply chain issues and lack of available second-generation space.
Looking Ahead
Following several robust years, industrial market demand, values and rental rates should begin to level off and stabilize in 2023. Rising interest rates coupled with the potential for an economic recession will also slow the rate at which speculative new construction is being built.
Significant transactions announced, in progress, completed or traded
- 655 Capital Dr. SW, Cedar Rapids — Hy-Vee Bakery/Warehouse — constructing an $8,000,000 bakery and distribution facility of approx. 50,000 SF
- 999 Enterprise Dr., Marion — Speculative Warehouse — constructing a $3,600,000 flex building for light industrial, distribution and warehousing of approx. 52,300 SF
- 10015 6th St. SW, Cedar Rapids — Sub-Zero Manufacturing — constructing a $90,000,000 light manufacturing facility of approx. 400,000 SF
- 725 41st Ave. Dr. SW, Cedar Rapids — JRS Pharma — constructing an $18,000,000 expansion of its manufacturing facility by approx. 9,200 SF
- 3545 3rd Ave., Marion — Marion Process Solutions — 48,327 SF among 3 buildings on 3.49 acres sold as an investment for $4,625,000
- 4700 Bowling St. SW, Cedar Rapids — former Gazette Colorweb Printing Facility sold to Raining Rose — 198,884 SF on 34.59 acres sold vacant for $6,000,000
- 3215 64th Ave. SW, Cedar Rapids — Edgewood Logistics Park — 101,920 SF new construction warehouse leased to Midwest Refrigerated Services
- 1201 Continental Pl. NE, Cedar Rapids — Global Filter — 100,000 SF lease signed at an existing facility
- 3350 10th St. SW, Cedar Rapids — Lowe’s Home Improvement — 81,000 SF lease
- 64th Ave. SW, Cedar Rapids — Edgewood Logistics Park — 50,000 SF new construction leased to Zurcher Tire