Updated Multi-Tenant Office
For Sale
$220,000
2101-2103 Falls Avenue, Waterloo, IA 50701
Two-unit office property with refreshed interiors, central air, dedicated parking, and a corner position in central Waterloo.
Property Size2,600 SF
Price / SF$84.62
Days on Market319
Property Features for 2101-2103 Falls Avenue
General Information
Standard status
Active
Size
2,600 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$2,479
Amenities
professional landscaping
Central Air
3
Building Details
Year Built
1951
Tenancy
Multi
Listing Agency:
Berkshire Hathaway Home Services One Realty Centre
(319) 288-5382
Listed By:
Jared Hottle · License #S68688000
(319) 288-5382
Source:
Xome
Added: Oct 17, 2025
Changed: Aug 30
Last Checked: Aug 30 at 2:30PM
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 Berkshire Hathaway Home Services One Realty Centre
Investment Insights
Based on property information with market context.
This 2,600-square-foot office building, constructed in 1951, contains multiple tenant spaces with one unit currently available for occupancy. Recent improvements include a 2023 roof replacement, new flooring and interior paint, LED lighting, updated parking-lot striping, professional landscaping, efficient boiler heat, and central air conditioning serving all units.
The property occupies the corner of Magnolia Parkway and Falls Avenue in central Waterloo, with reported exposure to more than 3,000 cars per day. On-site parking and direct access support day-to-day office use, while nearby housing development and new commercial construction add to the surrounding activity. The current configuration provides space for an owner-user alongside rental occupancy or continued multi-tenant operation.
The property occupies the corner of Magnolia Parkway and Falls Avenue in central Waterloo, with reported exposure to more than 3,000 cars per day. On-site parking and direct access support day-to-day office use, while nearby housing development and new commercial construction add to the surrounding activity. The current configuration provides space for an owner-user alongside rental occupancy or continued multi-tenant operation.
Key Highlights
- 2,600‑square‑foot office building constructed in 1951
- 2023 roof replacement plus updated flooring, paint, LED lighting, and parking‑lot striping
- Central air conditioning serves all units; efficient boiler heat also installed
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
$17,028
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
7.74%
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%
$340,560
$340.6K
Cap Rate 7%
$243,257
$243.3K
Cap Rate 9%
$189,200
$189.2K
Market Conditions
NOI Build-Up for 2,600 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
$30.0K $11.52/SF
− Vacancy
−$7.2K −$2.79/SF
EGI
$22.7K $8.73/SF
− OpEx
−$5.7K −$2.18/SF
NOI
$17.0K $6.55/SF
Area
Black Hawk County, IA
Vacancy
24.20%
Lease Rate
$11.52 /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%
$340,560
Cap Rate 7%
$243,257
Cap Rate 9%
$189,200
Alternative Uses
Best Use
Office B
$243.3K
$212.9K – $283.8K
NOI $17,028 @ 7.0% cap · market cap 7.74%
Second Best
—
—
no second resolved use
Theoretical Best
Mixed Use
$3.26M
$2.85M – $3.80M
NOI $228,150 @ 7.0% cap · market cap 103.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
529
Businesses Nearby
Explore this area
Business Placement
Demographics for 50701, IA
29,806
Population
14,530
Households
2.1
Avg Household Size
39
Median Age
30%
College-Educated
95%
High-School Grad
79.1 sq mi
ZIP Area
377
Density / Sq Mi
$62,857
Median Household Income
$41,464
Median Earnings
$846
Median Rent
$183,400
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 - Two-unit office property with refreshed interiors, central air, dedicated parking, and a corner position in central Waterloo.
Where is this office building located?
The property is located at 2101-2103 Falls Avenue Waterloo, IA.
What is the asking price?
The asking price for this property is $220,000.
What are key features of this property?
This property features: 2,600‑square‑foot office building constructed in 1951; 2023 roof replacement plus updated flooring, paint, LED lighting, and parking‑lot striping; Central air conditioning serves all units; efficient boiler heat also installed
