Office Building with
For Sale
$2,500,000
2834 NORTHGATE DR, Iowa City, IA 52245
COMMERCIAL - IowaCity, IA
Property Size17,967 SF
Lot Size1.98 Acres
Price / SF$139.14
Days on Market117
Property Features for 2834 NORTHGATE DR
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CO1
Elementary school
Shimek
Middle school
Southeast
Directions
I-80 to north on North Dodge Street. East on Northgate Drive.
Subdivision
IowaCity
Standard status
Active
APN
0736452003
Lot size
1.98 Acres
Taxes and HOA fees
Tax Year
2022
Tax Annual Amount
76512
Utilities
Heating system
Forced Air
Cooling system
Central Air
Amenities
ADA accessible
ADA compliant bathrooms
atrium
east facing patio
Building Details
Year built
1996
Flooring type
Concrete
Building materials
SteelOrMetal
Roof type
Tar/Gravel
Listing Agency:
Lepic-Kroeger, REALTORS
(319) 351-8811
Listed By:
Jeff Edberg · License #B33730000
(319) 331-6187
Added: Apr 22
Changed: Aug 4
Last Checked: Aug 16 at 11:06PM
MLS# 202602712
Copyright © 2026 Iowa City 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 17,967 SF office property combines open workspace, cubicles, private offices, and existing Herman Miller furniture. The main level measures about 12,000 SF, while the walk-out lower level contains about 6,000 SF. Both floors are ADA accessible and include two ADA-compliant bathrooms. A central atrium brings a distinctive interior feature to the first floor, and an east-facing patio provides additional outdoor space for employees or clients.
The property includes 85 parking places and carries CO-1 zoning for office, medical, and service uses. Built in 1996, the building features steel or metal construction, concrete flooring, forced-air heating, central air conditioning, and a tar-and-gravel roof. The property is located at 2834 Northgate Dr in Iowa City, Iowa.
The property includes 85 parking places and carries CO-1 zoning for office, medical, and service uses. Built in 1996, the building features steel or metal construction, concrete flooring, forced-air heating, central air conditioning, and a tar-and-gravel roof. The property is located at 2834 Northgate Dr in Iowa City, Iowa.
Key Highlights
- 17,967 SF office property with open areas, cubicles, and private offices
- Herman Miller cubicles and furniture included with the property
- About 12,000 SF on the first floor and about 6,000 SF in the walk‑out lower level
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
$206,171
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
8.25%
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%
$4,123,420
$4.1M
Cap Rate 7%
$2,945,300
$2.9M
Cap Rate 9%
$2,290,789
$2.3M
Market Conditions
NOI Build-Up for 17,967 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
$323.4K $18.00/SF
− Vacancy
−$48.5K −$2.70/SF
EGI
$274.9K $15.30/SF
− OpEx
−$68.7K −$3.82/SF
NOI
$206.2K $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%
$4,123,420
Cap Rate 7%
$2,945,300
Cap Rate 9%
$2,290,789
Alternative Uses
Best Use
Office B
$2.95M
$2.58M – $3.44M
NOI $206,171 @ 7.0% cap · market cap 8.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.90M
$3.42M – $4.55M
NOI $273,213 @ 7.0% cap · market cap 10.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
271
Businesses Nearby
Explore this area
Business Placement
Demographics for 52245, IA
21,874
Population
10,210
Households
2.1
Avg Household Size
34
Median Age
68%
College-Educated
99%
High-School Grad
8.4 sq mi
ZIP Area
2,604
Density / Sq Mi
$75,876
Median Household Income
$30,273
Median Earnings
$1,215
Median Rent
$293,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - CO-1 zoning supports office, medical, and service uses, with furnished work areas and ADA-accessible floors.
Where is this office building located?
The property is located at 2834 NORTHGATE DR Iowa City, IA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 17,967 SF office property with open areas, cubicles, and private offices; Herman Miller cubicles and furniture included with the property; About 12,000 SF on the first floor and about 6,000 SF in the walk‑out lower level
