Freestanding Storefront Retail
For Sale
Contact for pricing
525 Hwy 1 W, Iowa City, IA 52246
CC2-zoned retail property with signalized access along Highway 1 W, approximately one mile from the University of Iowa campus.
Property Size4,560 SF
Price / SF$252.19
Days on Market222
Property Features for 525 Hwy 1 W
General Information
Standard status
Active
Size
4,560 SF
Property subtype
Retail
Zoning
CC2
Investment Type
Owner/User
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1986
Buildings
1
Stories
1
Listing Agency:
Buyers Realty, Inc
(515) 490-0551
Listed By:
Mike Cunningham · License #IA S43122000
Source:
Crexi
Added: Jan 21
Changed: Aug 29
Last Checked: Aug 29 at 2:43PM
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 Buyers Realty, Inc
Investment Insights
Based on property information with market context.
Built in 1986, this freestanding retail building contains 4,560 square feet and is identified for storefront retail use. The property is zoned CC2 and offers a standalone configuration suited to a retail occupancy.
The site fronts Highway 1 W in Iowa City, with access to a stoplight serving the property. The University of Iowa campus is approximately one mile away, providing a nearby institutional presence and surrounding demand context.
The site fronts Highway 1 W in Iowa City, with access to a stoplight serving the property. The University of Iowa campus is approximately one mile away, providing a nearby institutional presence and surrounding demand context.
Key Highlights
- 4,560‑square‑foot freestanding retail building
- CC2 zoning supports the property's retail classification
- Signalized access from Highway 1 W
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
$43,207
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
3.76%
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%
$864,140
$864.1K
Cap Rate 7%
$617,243
$617.2K
Cap Rate 9%
$480,078
$480.1K
Market Conditions
NOI Build-Up for 4,560 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
$65.7K $14.40/SF
− Vacancy
−$3.9K −$0.86/SF
EGI
$61.7K $13.54/SF
− OpEx
−$18.5K −$4.06/SF
NOI
$43.2K $9.48/SF
Area
Johnson County, IA
Vacancy
6.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$864,140
Cap Rate 7%
$617,243
Cap Rate 9%
$480,078
Alternative Uses
Best Use
Retail
$617.2K
$540.1K – $720.1K
NOI $43,207 @ 7.0% cap · market cap 3.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$990.6K
$866.8K – $1.16M
NOI $69,341 @ 7.0% cap · market cap 6.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
626
Businesses Nearby
344k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 43%
Superstores 26%
Shops & Services 14%
Groceries 8%
Walmart
Superstores
88,081 visits/mo
0.3 miles
McDonald's
Dining
37,057 visits/mo
0.4 miles
Aldi
Groceries
28,506 visits/mo
0.2 miles
Culver's
Dining
26,507 visits/mo
0.2 miles
Kum & Go
Shops & Services
26,219 visits/mo
0.4 miles
Demographics for 52246, IA
22,829
Population
10,627
Households
2.1
Avg Household Size
29
Median Age
67%
College-Educated
95%
High-School Grad
16.7 sq mi
ZIP Area
1,367
Density / Sq Mi
$55,088
Median Household Income
$28,598
Median Earnings
$1,049
Median Rent
$327,100
Median Home Value
Market
Vacancy Rate% for Retail 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?
Storefront property - CC2-zoned retail property with signalized access along Highway 1 W, approximately one mile from the University of Iowa campus.
Where is this storefront property located?
The property is located at 525 Hwy 1 W Iowa City, IA.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: 4,560‑square‑foot freestanding retail building; CC2 zoning supports the property's retail classification; Signalized access from Highway 1 W
