The figures contained herein focus on metro area office properties. CBD office and non-competitive owner-occupied medical buildings do not accurately affect local vacancy or rental rates and are therefore excluded from this analysis.
The Cedar Rapids metro suburban office market consists of approximately 5,900,000 SF. Entering 2022, the vacancy rate was 8.06% which increased each quarter, ultimately doubling and ending the year at 17.57%.
The average asking rental rate is $10.83/SF NNN, decreasing slightly from $11.81 at the beginning of 2022.
The former Aegon/Transamerica Edgewood Road campus fell out of contract for the second time and was listed for sale via an online auction site, selling to an out-of-state owner during the third quarter for $7,020,000. The existing 201,165 SF office building was subsequently listed for sale and/or lease.
Corporations will continue to reduce overall square footage as they look for more flexible lease terms including expansion, contraction and pandemic clauses. Lease rates will gradually decline as additional space becomes available.