2024 Cedar Rapids Metro Commercial Real Estate Midyear Market Outlook

Michael Gibbs of GLD Commercial recaps the midyear market outlook for the Cedar Rapids Metro commercial real estate market.

The metro industrial submarket encompasses approximately 14 million SF. Vacancy in this submarket increased to 4.63%, up from 1.25% at the end of 2023. This can be attributed to a slight decrease in tenant demand as the market begins to stabilize post pandemic.

Throughout the first two quarters of 2024, the Central Business District added approximately 95,000 vacant SF to the market bringing the vacancy rate to 17.86%, up from 15.53% at the end of 2023. Developers and owners continue to seek ways to fill or convert their vacant space with multifamily, educational and medical users.

Overall, suburban office vacancy increased by less than 2%, ending the second quarter at 22.07%. Vacancy in this submarket remains fueled largely by corporate vacancies and downsizing. Sales and leasing of smaller suburban office buildings, especially for medical uses, remained strong throughout the first half of this year.

The retail and service submarket includes just over 9 million SF and is the only submarket to absorb some of its vacant space during the second quarter. This submarket ended 2023 at 7.6% vacancy and decreased to 7.28% by the end of Q2. Interest rates and construction costs have kept second generation retail and restaurant spaces in high demand.

CONTACT:
Michael Gibbs
[email protected]
563.542.8574