Building Details

Year built 1971

Flooring type Concrete, Carpet

Building materials Frame

Roof type Shingle

Listing Agency: Pinnacle Realty LLC d***@pinnaclerealtyia.com Show Phone

Listed By: Trev Adair · License #322502720 Show Phone

Added: Nov 28, 2025 Changed: Aug 19 Last Checked: Aug 30 at 8:06AM

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MLS# 2509604

Copyright © 2026 Cedar Rapids Area Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This 1,702-square-foot office building offers a combination of professional and retail functionality on a 1.15-acre parcel. The structure features frame construction, concrete and carpet flooring, and a shingle roof. Built in 1971, the property provides an established commercial improvement with a practical finish package.

Zoned Comm, the property is located at 2601 120th St. NW in Swisher, Iowa. Its position between Cedar Rapids and Iowa City places the building within reach of both communities while retaining a Swisher address. The office and retail configuration supports a range of commercial occupancy formats subject to applicable zoning and use requirements.

Key Highlights

• 1,702‑square‑foot office building
• 1.15‑acre commercial parcel
• Zoned Comm

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

$19,530

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

3.95%

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%

$390,600 $390.6K

Cap Rate 7%

$279,000 $279.0K

Cap Rate 9%

$217,000 $217.0K

Market Conditions

NOI Build-Up for 1,702 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

$30.6K $18.00/SF

− Vacancy

−$4.6K −$2.70/SF

EGI

$26.0K $15.30/SF

− OpEx

−$6.5K −$3.82/SF

NOI

$19.5K $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%

$390,600

Cap Rate 7%

$279,000

Cap Rate 9%

$217,000

Alternative Uses

Best Use

Office B

$279.0K

$244.1K – $325.5K (±1% cap)

NOI $19,530 @ 7.0% cap · market cap 3.95%

Second Best

Retail

$230.4K

$201.6K – $268.8K (±1% cap)

NOI $16,127 @ 7.0% cap · market cap 3.26%

Theoretical Best

Office A

$369.7K

$323.5K – $431.4K (±1% cap)

NOI $25,881 @ 7.0% cap · market cap 5.23%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Rtl Equipment Inc Big Box & Wholesale Store IC Construction Company Construction Company

Suggested Use

Top Pick Dental Office Auto Parts Store Plumbing Service (Bike/Boat/Book/etc) Store Real Estate Agency Building Supply

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

21

Businesses Nearby

Explore this area Business Placement

Demographics for 52338, IA

3,457

Population

1,380

Households

2.5

Avg Household Size

45

Median Age

44%

College-Educated

98%

High-School Grad

33.4 sq mi

ZIP Area

104

Density / Sq Mi

$124,357

Median Household Income

$58,253

Median Earnings

$1,067

Median Rent

$384,600

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

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Frequently Asked Questions

What type of property is this?

Office building - Commercially zoned office property with frame construction, mixed flooring, and retail-use potential.

Where is this office building located?

The property is located at 2601 120th St. NW Swisher, IA.

What is the asking price?

The asking price for this property is $495,000.

What are key features of this property?

This property features: 1,702‑square‑foot office building; 1.15‑acre commercial parcel; Zoned Comm