Commercial Land with Existing
New
For Sale
$2,950,000
2622 Lincoln Way, Ames, IA 50014
Commercial Sale, Ames, IA
Property Size22,580 SF
Lot Size2.10 Acres
Price / SF$130.65
Days on Market5
Property Features for 2622 Lincoln Way
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CSC
Directions
From Lincoln Way turn South onto Sheldon Ave and follow to the entrance behind Dunkin Donuts.
Subdivision
0003 - Ames SW
Standard status
Active
APN
09-09-125-035
Size
22,580 SF
Lot size
2.10 Acres
Taxes and HOA fees
Tax Description
Determined with final platting
Tax Annual Amount
8880
Legal Description
Determined with final platting
Utilities
Sewer type
Public Sewer
Cooling system
Central Air
Water source
Public
Building Details
Year built
1930
Floors in Building
3
Building materials
Combination
Listing Agency:
RE/MAX REAL ESTATE CENTER · RE/MAX International
2324663
Listed By:
Betts Team · License #B67497
2324663
Added: Aug 28
Changed: Aug 31
Last Checked: Sep 1 at 9:06AM
MLS# 71159
Copyright © 2026 Central Iowa Board of Realtors, Inc. 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 2.1-acre commercial land offering includes two existing buildings totaling 22,580 square feet. The primary structure contains 10,406 square feet and measures approximately 86 feet by 121 feet. A separate 12,174-square-foot annex includes a 3,472-square-foot full basement and is occupied by multiple tenants. Built in 1930, the improvements feature combination construction and central air conditioning.
Located at 2622 Lincoln Way in Ames, the property is adjacent to Dunkin Donuts and positioned within the Campustown area. CSC zoning supports consideration of high-density residential, retail, commercial, or mixed-use redevelopment, subject to final platting approval by all parties. Public water and public sewer serve the property.
Located at 2622 Lincoln Way in Ames, the property is adjacent to Dunkin Donuts and positioned within the Campustown area. CSC zoning supports consideration of high-density residential, retail, commercial, or mixed-use redevelopment, subject to final platting approval by all parties. Public water and public sewer serve the property.
Key Highlights
- Approximately 2.1 +/- acres of commercial land
- Existing improvements total 22,580 square feet
- 10,406 SF building measuring approximately 86' x 121'
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
$228,623
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
7.75%
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%
$4,572,460
$4.6M
Cap Rate 7%
$3,266,043
$3.3M
Cap Rate 9%
$2,540,256
$2.5M
Market Conditions
NOI Build-Up for 22,580 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
$406.4K $18.00/SF
− Vacancy
−$40.6K −$1.80/SF
EGI
$365.8K $16.20/SF
− OpEx
−$137.2K −$6.07/SF
NOI
$228.6K $10.13/SF
Area
Story County, IA
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$4,572,460
Cap Rate 7%
$3,266,043
Cap Rate 9%
$2,540,256
Alternative Uses
Best Use
Mixed Use
$3.27M
$2.86M – $3.81M
NOI $228,623 @ 7.0% cap · market cap 7.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.28M
$4.62M – $6.16M
NOI $369,373 @ 7.0% cap · market cap 12.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,009
Businesses Nearby
Explore this area
Business Placement
Demographics for 50014, IA
31,587
Population
14,860
Households
2.1
Avg Household Size
26
Median Age
69%
College-Educated
98%
High-School Grad
54.2 sq mi
ZIP Area
583
Density / Sq Mi
$57,372
Median Household Income
$20,952
Median Earnings
$1,083
Median Rent
$312,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - CSC-zoned property includes two structures and public water and sewer service.
Where is this commercial land located?
The property is located at 2622 Lincoln Way Ames, IA.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: Approximately 2.1 +/- acres of commercial land; Existing improvements total 22,580 square feet; 10,406 SF building measuring approximately 86' x 121'
