The figures contained herein focus on metro area retail buildings and service establishments.

The Cedar Rapids retail/service market consists of approx. 9,300,000 square feet (SF). Entering 2024, the vacancy rate was 7.60%, remaining consistent throughout the year, ending at 7.73%. The average asking rental rate is $14.64/SF NNN, a slight increase from $15.13/SF NNN at the beginning of 2024.

The retail/service submarket has stabilized due to limited new construction, creating opportunities for retailers and restaurants to quickly step in and revitalize second- and third-generation spaces.

First Avenue/Hwy 151 saw a considerable amount of activity throughout the year. The downtown HyVee grocery closed leaving a “food desert” among the College District and Wellington Heights neighborhoods. Pickle Palace, Aroma Pizza and BarTini’s opened or were announced for Kingston Yard at First Ave. and First St. SW. Barrel House left downtown which was quickly replaced by CityWalk Eatery, and Outback Steakhouse closed at the corner of First Ave. and 40th Street Dr. SE. Harbor Freight Tools backfilled the former Bed, Bath & Beyond at First Ave. and Collins Rd.

New construction will remain slow as e-commerce is here to stay. Inflation and increased prices of consumer goods have shoppers looking for less expensive items for everything from groceries to household items. Big box stores will continue partnering with complementary retailers, Target and ULTA Beauty for example, to reduce and/or optimize brick-and-mortar costs.