The figures contained herein focus on metro area retail buildings and service establishments.
Retail/Service
Analysis
Market Overview
The Cedar Rapids retail/service market consists of approx. 9,300,000. Entering 2022, the vacancy was 4.72%, increasing slightly and ending the year at 6.03%.
The average asking rental rate is $14.96/SF NNN, a slight increase from $13.90 at the beginning of 2022. This increase is attributed to new construction costs and Class A space availability.
Net-leased retail investments dominated the first half of 2022 while business sales including restaurants, banquet hall/event centers and auto dealerships commanded the second half. New retail development came online in the vicinity of anchor tenants at Westdale and Blairs Ferry Super Target.
Looking Ahead
While most shoppers turned online during the pandemic, boosting e-commerce and the need for increased warehouse space, many of those shoppers are returning to the store looking for an experiential retail experience. Customers prefer to try products before buying, which is difficult to accomplish online. Expect the retail market and rental rates to stay stable throughout 2023.
Significant transactions announced, in progress, completed or traded
- 4000 Westdale Pkwy. SW, Cedar Rapids — Home2Suites Hotel — constructing an 84-room hotel at Westdale
- 2811 Wiley Blvd. SW, Cedar Rapids — Wiley Crossing — demolition of an existing retail strip to make way for a new 17,020 SF retail strip, a $5,400,000 investment
- 1202 3rd St. SE, Cedar Rapids — Brewhemia/Olympic Theater — 20,700 SF multi-tenant retail/special purpose building sold as an investment for $3,307,189
- 167 Jacolyn Dr. NW, Cedar Rapids — Cedar Hills Retail Center — 37,336 SF multi-tenant retail center sold as an investment for $1,655,000
- 295 Tower Terrace Rd., Marion — Barrel House Restaurant-Anchored Center — 20,700 SF multi-tenant retail/office center sold as an investment for $2,500,000
- 2120 Edgewood Rd. SW, Cedar Rapids — Top Shape Gym — 35,346 SF single-tenant investment sold for $2,775,000
- 5225 Buffalo Ridge Dr. NE, Cedar Rapids — Dollar Tree — 9,500 SF single-tenant investment sold for $1,943,500
- 3120 Edgewood Rd. SW, Cedar Rapids — former Fazoli’s freestanding restaurant — 3,601 SF on 0.92 acres sold vacant for $1,200,00