2021 Cedar Rapids Metro Industrial Market Outlook

"Overall, our market has seen a rush to lease warehouses as well as an influx of new construction industrial space. The rise of e-commerce coupled with the immense strain on the supply chain have forced retailers and manufacturers to seek additional space to store consumer goods and assembly materials."

David S. Drown, SIOR, CCIM

ANALYSIS – The figures contained herein focus on existing, or currently under construction, industrial buildings including warehouse, flex, commercial and small shop properties.

Owner-occupied special purpose manufacturing buildings do not accurately affect local vacancy or rental rates and are therefore excluded from this analysis.

MARKET OVERVIEW – The Cedar Rapids industrial market consists of approximately 11,000,000 square feet (SF). Entering 2021, the vacancy rate was 5.5% which followed a downward trend, ultimately ending at 0.71%.

An uptick in second quarter vacancy is primarily due to the 198,884 SF former Gazette Color Web Printers building becoming vacant and available. This uptick was quickly absorbed during strong third quarter leasing activity.

The average asking rental rate is $6.21/SF NNN which is largely attributed to the cost of new construction.

LOOKING AHEAD – The industrial market has remained robust over the last 36 months and will continue to be active well into 2022. The demand for larger distribution and logistics buildings is largely being driven by the focus on current and future supply chain demands.

SIGNIFICANT TRANSACTIONS ANNOUNCED OR COMPLETED

? 9400 Earhart Lane SW, Cedar Rapids — Alro Steel Corporation — $20,000,000 regional distribution facility with approx. 199,200 SF

? 1035 Commerce Park Drive SW, Cedar Rapids — FedEx warehouse — $ 108,500,000 warehouse and distribution center with approx. 479,000 SF

? 3215 64th Avenue SW, Cedar Rapids — Edgewood Logistics Park — initial 203,840 SF industrial building, part of a $125,000,000 planned 145-acre logistics park with approx. 1,500,000 SF

? 2020 Lefebure Road, Fairfax — Travero Logistics Park — 259,000 SF food-grade certified industrial building

? 10020 Atlantic Drive SW, Cedar Rapids — Worley Warehouse — 20-acre site with initial 350,250 SF industrial building, part of a $57,000,000 warehouse and distribution park totaling 1,150,000 SF

? 8200 6th Street SW, Cedar Rapids — Klein Tool building — sale and subsequent lease to Goodwill of the Heartland Outlet— 180,000 SF building sold for $5,700,000

? 6000 Huntington Court NE, Cedar Rapids — Eco Lips — 86,750 SF vacant warehouse sold for $3,650,000

? 4150 C Street SW, Cedar Rapids — CellSite Solutions — 190,466 SF vacant warehouse sold for $9,500,000

? 5405 & 5507 Ely Road SW, Cedar Rapids — Hollingsworth Companies — part of a multi-city industrial portfolio. The Cedar Rapids buildings totaled 410,000 SF on 21.2 acres and sold for $16,800,000

To download the full 2021 Cedar Rapids Metro Commercial Real Estate Report digitally, scan this code with your smartphone camera or visit gldcommercial.com.

Real estate data contained herein was acquired through the Cedar Rapids Area Association of Realtors MLS, Cedar Rapids Assessor and Linn County Assessor. All information furnished is obtained from sources deemed in our opinion to be reliable but not guaranteed. If you have a property currently listed with another broker, this is not a solicitation of that listing.