Analysis
The figures contained herein focus on metro area retail buildings and service establishments.
Market Overview
The Cedar Rapids retail/service market consists of approx. 9,300,000 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 NNN, a slight increase from $14.96/SF NNN at the beginning of 2023.
The Westdale area saw several 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 along with the closing of Bed, Bath & Beyond, 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 branch. 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 brings 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.
Significant transactions announced, in progress, completed or traded
- 4444 1st Avenue NE, Cedar Rapids — Lindale Mall — 723,666 SF enclosed shopping mall sold for $28,500,000
- 1200 Collins Road NE, Cedar Rapids — Marriott Hotel — 187,782 SF hotel on 8.32 acres sold at auction for $8,180,000, rebranded as a Radisson
- 4515 Westdale Parkway SW, Cedar Rapids — Boulder Tap House — rebranded the Lindale Mall location and opened a stand-alone location at Westdale
- 4601 1st Avenue SE, Cedar Rapids — Marketplace On First Shopping Center — off-market sale for $19,500,000
- 3214 1st Avenue NE, Cedar Rapids — Starbucks — former Hardee’s renovated into a leased drive-through coffee retailer
- 2360 Edgewood Road SW, Cedar Rapids — Westdale Retail Strip Center — 2,774 SF leased to Napoli’s Italian Restaurant, 2,388 SF Crab House Seafood Boil & Bar and 2,056 SF Metro Infusion Center
- 2380 Edgewood Road SW, Cedar Rapids — Westdale Retail Strip Center — 5,638 SF RNR Tire Express, 4,512 SF Slager Appliance and 1,500 SF Jersey Mike’s Subs
- 2400 Edgewood Road SW, Cedar Rapids — JCPenney — signed a lease extension on their 68,432 SF space at Westdale through October 2029
- 170 1st Street SW, Cedar Rapids — Big Grove Brewery & Taproom — completed construction on an 11,313 SF restaurant and brewery