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 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.
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
- 4601 1st Avenue SE, Cedar Rapids — Marketplace On First Shopping Center — off-market sale for $19,500,000