Vacant Retail and Office
For Sale
$75,000
705 W 5th Street, Waterloo, IA 50702
Vacant building with a wide-open interior layout, suited for retail or office uses, with parking for employees and clients.
Property Size864 SF
Price / SF$86.81
Days on Market52
Property Features for 705 W 5th Street
General Information
Standard status
Active
Size
864 SF
Property subtype
Commercial
Zoning
C-2
Lease Term
Years - 2
Net Operating Income
$8,000
Taxes and HOA fees
Annual Taxes
$921
Amenities
0.05
864
Building Details
Building Size
864 SF
Year Built
1977
Stories
1
Listing Agency:
Lockard Realty Company
(319) 393-0900
Listed By:
Jaime Hymer
(319) 651-9617
Source:
Pinnaclerealtyia
Added: Jul 24
Changed: Sep 12
Last Checked: Sep 13 at 5:08AM
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 Lockard Realty Company
Investment Insights
Based on property information with market context.
This vacant commercial building offers a wide-open floor plan that can be configured to fit retail or office needs. The space is currently clean and ready for new occupancy, with flexibility for a tailored build-out.
Located at 705 W 5th Street in Waterloo, IA, the property benefits from exposure along a major thoroughfare. The building includes parking for both employees and clients and features an exterior facade that supports roadside visibility.
The property is available for sale, and the remarks note that 701 and 705 W 5th St. may be purchased separately or together.
Located at 705 W 5th Street in Waterloo, IA, the property benefits from exposure along a major thoroughfare. The building includes parking for both employees and clients and features an exterior facade that supports roadside visibility.
The property is available for sale, and the remarks note that 701 and 705 W 5th St. may be purchased separately or together.
Key Highlights
- Vacant commercial building with a wide‑open interior layout (864 total building area) for retail, office, or other flexible uses
- Located at 701 & 705 W 5th St., which may be purchased separately or together for a discount, or leased
- Lot size is 0.05 acres
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
$5,658
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
7.54%
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%
$113,160
$113.2K
Cap Rate 7%
$80,829
$80.8K
Cap Rate 9%
$62,867
$62.9K
Market Conditions
NOI Build-Up for 864 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
$10.0K $11.52/SF
− Vacancy
−$2.4K −$2.79/SF
EGI
$7.5K $8.73/SF
− OpEx
−$1.9K −$2.18/SF
NOI
$5.7K $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%
$113,160
Cap Rate 7%
$80,829
Cap Rate 9%
$62,867
Alternative Uses
Best Use
Retail
$122.5K
$107.2K – $142.9K
NOI $8,572 @ 7.0% cap · market cap 11.43%
Second Best
Healthcare Medical
$116.6K
$102.1K – $136.1K
NOI $8,165 @ 7.0% cap · market cap 10.89%
Theoretical Best
Mixed Use
$1.08M
$947.7K – $1.26M
NOI $75,816 @ 7.0% cap · market cap 101.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,129
Businesses Nearby
Explore this area
Business Placement
Demographics for 50702, IA
20,447
Population
9,722
Households
2.1
Avg Household Size
37
Median Age
21%
College-Educated
89%
High-School Grad
9.8 sq mi
ZIP Area
2,086
Density / Sq Mi
$59,784
Median Household Income
$38,826
Median Earnings
$926
Median Rent
$145,800
Median Home Value
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Retail space - Vacant building with a wide-open interior layout, suited for retail or office uses, with parking for employees and clients.
Where is this retail space located?
The property is located at 705 W 5th Street Waterloo, IA.
What is the asking price?
The asking price for this property is $75,000.
What are key features of this property?
This property features: Vacant commercial building with a wide‑open interior layout (864 total building area) for retail, office, or other flexible uses; Located at 701 & 705 W 5th St., which may be purchased separately or together for a discount, or leased; Lot size is 0.05 acres
