Downtown Flex Building with
For Sale
$1,122,000
724 3rd Avenue SE, Cedar Rapids, IA 52401
Two-story facility with showroom, office, warehouse, and basement storage plus ceiling heights from 11 to 25 feet.
Property Size16,800 SF
Price / SF$66.79
Days on Market84
Property Features for 724 3rd Avenue SE
General Information
Standard status
Active
Size
16,800 SF
Property subtype
Commercial
Zoning
Urb
Additional Details
Highway Access
Yes
Clear Height
25 ft
Taxes and HOA fees
Annual Taxes
$28,890
Amenities
elevator access
basement storage
digital billboard
Carpet
Yes
2
Display Window(s)
Storage
Building,Land
Public
0.19
.19 Acre
Off Street
Building Details
Year Built
1905
Stories
2
Listing Agency:
GLD COMMERCIAL
(319) 393-0900
Listed By:
Cole Breitbach
(319) 551-6448
Source:
Pinnaclerealtyia
Added: Jun 16
Changed: Sep 6
Last Checked: Sep 7 at 6:23AM
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 GLD COMMERCIAL
Investment Insights
Based on property information with market context.
Located at 724 & 725 3rd Avenue SE in Downtown Cedar Rapids, this 16,800 SF two-story commercial property includes both the main building and the adjacent lot at 725 3rd Avenue SE. The space is designed for flexible use, featuring a large showroom and warehouse area, five private offices, elevator access, and basement storage. Ceiling heights range from 11 to 25 feet, supporting a range of operational needs.
The property includes ample parking on the adjacent lot, along with additional street parking. A new digital billboard is installed, and the location provides convenient access to Interstate 380.
Overall, the building combines showroom, office, warehouse, and storage components in a centralized downtown setting.
The property includes ample parking on the adjacent lot, along with additional street parking. A new digital billboard is installed, and the location provides convenient access to Interstate 380.
Overall, the building combines showroom, office, warehouse, and storage components in a centralized downtown setting.
Key Highlights
- 16,800 SF two‑story commercial property at 724 & 725 3rd Avenue SE, including a main building plus the adjacent lot at 725 3rd Avenue SE
- Versatile interior with showroom, warehouse, five private offices, and basement storage
- Ceiling heights range from 11 to 25 feet across showroom and warehouse areas
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
$88,086
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
7.85%
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%
$1,761,720
$1.8M
Cap Rate 7%
$1,258,371
$1.3M
Cap Rate 9%
$978,733
$978.7K
Market Conditions
NOI Build-Up for 16,800 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
$131.0K $7.80/SF
− Vacancy
−$5.2K −$0.31/SF
EGI
$125.8K $7.49/SF
− OpEx
−$37.8K −$2.25/SF
NOI
$88.1K $5.24/SF
Area
Cedar Rapids, IA
Vacancy
3.97%
Lease Rate
$7.80 /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%
$1,761,720
Cap Rate 7%
$1,258,371
Cap Rate 9%
$978,733
Alternative Uses
Best Use
Flex RnD
$1.67M
$1.46M – $1.95M
NOI $117,019 @ 7.0% cap · market cap 10.43%
Second Best
Warehouse
$1.53M
$1.34M – $1.78M
NOI $106,962 @ 7.0% cap · market cap 9.53%
Theoretical Best
Specialty Retail
$2.43M
$2.13M – $2.84M
NOI $170,205 @ 7.0% cap · market cap 15.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
25 ft
Clear height
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
915
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 52401, IA
2,320
Population
1,480
Households
1.6
Avg Household Size
35
Median Age
35%
College-Educated
89%
High-School Grad
1.2 sq mi
ZIP Area
1,933
Density / Sq Mi
$40,675
Median Household Income
$38,635
Median Earnings
$783
Median Rent
$143,800
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.
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Frequently Asked Questions
What type of property is this?
Flex space - Two-story facility with showroom, office, warehouse, and basement storage plus ceiling heights from 11 to 25 feet.
Where is this flex space located?
The property is located at 724 3rd Avenue SE Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $1,122,000.
What are key features of this property?
This property features: 16,800 SF two‑story commercial property at 724 & 725 3rd Avenue SE, including a main building plus the adjacent lot at 725 3rd Avenue SE; Versatile interior with showroom, warehouse, five private offices, and basement storage; Ceiling heights range from 11 to 25 feet across showroom and warehouse areas
