Three-Story Multi-Tenant Office
For Sale
$3,850,000
600 3rd Avenue SE, Cedar Rapids, IA 52401
Established office property with professional finishes, multiple occupants, and convenient access to downtown amenities and I-380.
Property Size42,837 SF
Price / SF$89.88
Days on Market687
Property Features for 600 3rd Avenue SE
General Information
Standard status
Active
Size
42,837 SF
Class
Class A
Property subtype
Commercial
Lease Term
[]
Additional Details
Highway Access
Yes
Building Details
Year Built
2012
Buildings
1
Stories
3
Construction
masonry/concrete
Tenancy
Multi
Listing Agency:
SKOGMAN REALTY COMMERCIAL
Listed By:
Tiffany Earl Williams-WSG CRE
(319) 364-8121
Source:
Cbhrealty
Added: Oct 14, 2024
Changed: Aug 30
Last Checked: Aug 30 at 7:31PM
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 SKOGMAN REALTY COMMERCIAL
Investment Insights
Based on property information with market context.
Completed in 2012, this 42,837-square-foot office building spans three stories and is configured for multiple tenants. The improvements feature a masonry and concrete exterior with wood and steel structural components. Interior finishes include commercial carpeting, painted sheetrock, and granite flooring in the lobby.
The property is situated at 600 3rd Avenue SE in downtown Cedar Rapids, with direct access to I-380. Its setting places the building near the Medical District as well as shopping, dining, and entertainment. Current occupants include Morgan Stanley and Clifton Larson Allen LLP.
The property is situated at 600 3rd Avenue SE in downtown Cedar Rapids, with direct access to I-380. Its setting places the building near the Medical District as well as shopping, dining, and entertainment. Current occupants include Morgan Stanley and Clifton Larson Allen LLP.
Key Highlights
- 42,837‑square‑foot office building completed in 2012
- Three‑story, multi‑tenant office configuration
- Masonry and concrete exterior with wood and steel structure
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
$205,724
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
5.34%
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%
$4,114,480
$4.1M
Cap Rate 7%
$2,938,914
$2.9M
Cap Rate 9%
$2,285,822
$2.3M
Market Conditions
NOI Build-Up for 42,837 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
$359.8K $8.40/SF
− Vacancy
−$85.5K −$2.00/SF
EGI
$274.3K $6.40/SF
− OpEx
−$68.6K −$1.60/SF
NOI
$205.7K $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%
$4,114,480
Cap Rate 7%
$2,938,914
Cap Rate 9%
$2,285,822
Alternative Uses
Best Use
Office B
$2.94M
$2.57M – $3.43M
NOI $205,724 @ 7.0% cap · market cap 5.34%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$6.20M
$5.42M – $7.23M
NOI $433,992 @ 7.0% cap · market cap 11.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
915
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 - Established office property with professional finishes, multiple occupants, and convenient access to downtown amenities and I-380.
Where is this office building located?
The property is located at 600 3rd Avenue SE Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $3,850,000.
What are key features of this property?
This property features: 42,837‑square‑foot office building completed in 2012; Three‑story, multi‑tenant office configuration; Masonry and concrete exterior with wood and steel structure
