Downtown Iowa City Office
For Sale
$670,000
125 S Dubuque St B, Iowa City, IA 52240
Office suite for sale in downtown Iowa City.
Property Size3,480 SF
Lot Size0.41 Acres
Price / SF$192.53
Days on Market551
Property Features for 125 S Dubuque St B
General Information
Standard status
Active
Size
3,480 SF
Lot size
0.41 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$19,732
Building Details
Year Built
1977
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 331-6187
Listed By:
Jeff Edberg · License #B33730000
(319) 331-6187
Source:
Exitrealty
Added: Feb 7, 2025
Changed: Aug 8
Last Checked: May 20 at 1:45AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Lepic-Kroeger, REALTORS
Investment Insights
Based on property information with market context.
Located in downtown Iowa City, Plaza Center One offers a 3,480-square-foot suite on the 4th floor. Situated in the heart of the Ped Mall, this elevator-served suite features an open layout with conference, storage, office, and kitchen areas. Approximately half of the suite is currently leased, leaving 1,740 square feet available for an owner-user. The first-floor lobby is open to the public from 7 AM to 5 PM, Monday through Friday, with card key access available at any time. The listed space size includes a pro-rata portion of the common area. CAM charges cover all utilities for the suite. The space is available immediately.
Key Highlights
- Prime downtown Iowa City location in the heart of the Ped Mall.
- Half of the 3,480 SF suite is available for immediate owner occupancy (1,740 SF).**
- Existing lease on the other half provides potential income.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$39,933
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.96%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$798,660
$798.7K
Cap Rate 7%
$570,471
$570.5K
Cap Rate 9%
$443,700
$443.7K
Market Conditions
NOI Build-Up for 3,480 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$62.6K $18.00/SF
− Vacancy
−$9.4K −$2.70/SF
EGI
$53.2K $15.30/SF
− OpEx
−$13.3K −$3.82/SF
NOI
$39.9K $11.48/SF
Area
Johnson County, IA
Vacancy
15.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$798,660
Cap Rate 7%
$570,471
Cap Rate 9%
$443,700
Alternative Uses
Best Use
Office B
$570.5K
$499.2K – $665.6K
NOI $39,933 @ 7.0% cap · market cap 5.96%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$756.0K
$661.5K – $882.0K
NOI $52,918 @ 7.0% cap · market cap 7.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,614
Businesses Nearby
Explore this area
Business Placement
Demographics for 52240, IA
34,224
Population
17,035
Households
2
Avg Household Size
29
Median Age
47%
College-Educated
94%
High-School Grad
142.1 sq mi
ZIP Area
241
Density / Sq Mi
$55,189
Median Household Income
$25,508
Median Earnings
$1,065
Median Rent
$241,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office units - Office suite for sale in downtown Iowa City.
Where is this office units located?
The property is located at 125 S Dubuque St B Iowa City, IA.
What is the asking price?
The asking price for this property is $670,000.
What are key features of this property?
This property features: Prime downtown Iowa City location in the heart of the Ped Mall.; Half of the 3,480 SF suite is available for immediate owner occupancy (1,740 SF).**; Existing lease on the other half provides potential income.
