Renovated Historic Office
For Sale
$3,200,000
123 5th St SE, Cedar Rapids, IA 52401
Historic 1903 office building updated in 2010 with flexible floor plates for downtown business use.
Property Size32,256 SF
Price / SF$99.21
Days on Market790
Property Features for 123 5th St SE
General Information
Standard status
Active
Size
32,256 SF
Property subtype
Commercial
Zoning
Urban Form District
Taxes and HOA fees
Annual Taxes
$67,222
Amenities
Carpet
0.19
CountyRoad,Paved
Building Details
Year Built
1903
Year Renovated
2010
Listing Agency:
POTTER REAL ESTATE
(319) 213-1157
Listed By:
Lydia Fitzgerald
(319) 213-1157
Source:
Pinnaclerealtyia
Added: Jun 18, 2024
Changed: Aug 16
Last Checked: Aug 16 at 3:26AM
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 POTTER REAL ESTATE
Investment Insights
Based on property information with market context.
Renovated historic office building originally constructed in 1903 and updated in 2010, totaling 32,256 square feet. The building is designed around open floor plans with abundant natural light and provides approximately 8,000 square feet per floor, supporting a range of office configurations. Improvements and building systems are presented as modernized to support workplace productivity and comfort.
Located in the heart of downtown Cedar Rapids, the property is described as having prominent visibility and accessibility. The area also offers convenient access to nearby restaurants for employees and visiting clients.
For buyers or office tenants looking for a centrally located downtown presence, this property’s combination of historic character and modern updates can support both single-tenant and multi-tenant office strategies. With sizeable floor plates and open layouts, it may be suitable for organizations that value adaptable space for everyday operations while maintaining a visible downtown address.
Located in the heart of downtown Cedar Rapids, the property is described as having prominent visibility and accessibility. The area also offers convenient access to nearby restaurants for employees and visiting clients.
For buyers or office tenants looking for a centrally located downtown presence, this property’s combination of historic character and modern updates can support both single-tenant and multi-tenant office strategies. With sizeable floor plates and open layouts, it may be suitable for organizations that value adaptable space for everyday operations while maintaining a visible downtown address.
Key Highlights
- Historic 1903 office building totaling 32,256 SF in downtown Cedar Rapids, updated in 2010
- Flexible floor plates with approximately 8,000 SF per floor
- Open floor plans with abundant light
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
$154,909
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
4.84%
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%
$3,098,180
$3.1M
Cap Rate 7%
$2,212,986
$2.2M
Cap Rate 9%
$1,721,211
$1.7M
Market Conditions
NOI Build-Up for 32,256 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
$271.0K $8.40/SF
− Vacancy
−$64.4K −$2.00/SF
EGI
$206.5K $6.40/SF
− OpEx
−$51.6K −$1.60/SF
NOI
$154.9K $4.80/SF
Area
Cedar Rapids, IA
Vacancy
23.77%
Lease Rate
$8.40 /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%
$3,098,180
Cap Rate 7%
$2,212,986
Cap Rate 9%
$1,721,211
Alternative Uses
Best Use
Office B
$2.21M
$1.94M – $2.58M
NOI $154,909 @ 7.0% cap · market cap 4.84%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.67M
$4.08M – $5.45M
NOI $326,793 @ 7.0% cap · market cap 10.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,909
Businesses Nearby
Explore this area
Business Placement
Demographics for 52401, IA
2,320
Population
1,480
Households
1.6
Avg Household Size
35
Median Age
35%
College-Educated
89%
High-School Grad
1.2 sq mi
ZIP Area
1,933
Density / Sq Mi
$40,675
Median Household Income
$38,635
Median Earnings
$783
Median Rent
$143,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Historic 1903 office building updated in 2010 with flexible floor plates for downtown business use.
Where is this office building located?
The property is located at 123 5th St SE Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: Historic 1903 office building totaling 32,256 SF in downtown Cedar Rapids, updated in 2010; Flexible floor plates with approximately 8,000 SF per floor; Open floor plans with abundant light
