Contractor Bay Flex
For Sale
$2,700,000
855 Vernon Valley Drive, Cedar Rapids, IA 52403
Flex space with three suites available for lease near major southeast Cedar Rapids crossroads.
Property Size23,094 SF
Price / SF$116.91
Days on Market80
Property Features for 855 Vernon Valley Drive
General Information
Standard status
Active
Size
23,094 SF
Property subtype
Commercial
Lease Term
[]
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
2022
Listing Agency:
SKOGMAN REALTY,
(319) 360-6615
Listed By:
John Beardsworth · License #IA S68410000
(319) 364-8121
Source:
Cbhrealty
Added: Jun 12
Changed: Aug 30
Last Checked: Aug 30 at 6:11PM
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 SKOGMAN REALTY,
Investment Insights
Based on property information with market context.
This flex-space property contains contractor bay buildings totaling 23,094 square feet. Three suites are available for lease, providing a multi-suite configuration within an industrial-oriented asset offered for sale.
The property is positioned near the intersection of Mt Vernon Rd and Hwy 13 on the southeast side of Cedar Rapids. Its county location places the asset outside city limits, a relevant distinction for evaluating the property’s operating costs.
The property is positioned near the intersection of Mt Vernon Rd and Hwy 13 on the southeast side of Cedar Rapids. Its county location places the asset outside city limits, a relevant distinction for evaluating the property’s operating costs.
Key Highlights
- 23,094‑square‑foot flex‑space property
- Contractor bay buildings offered for sale
- Three suites available for lease
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
$160,859
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
5.96%
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%
$3,217,180
$3.2M
Cap Rate 7%
$2,297,986
$2.3M
Cap Rate 9%
$1,787,322
$1.8M
Market Conditions
NOI Build-Up for 23,094 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
$263.3K $11.40/SF
− Vacancy
−$15.8K −$0.68/SF
EGI
$247.5K $10.72/SF
− OpEx
−$86.6K −$3.75/SF
NOI
$160.9K $6.97/SF
Area
Cedar Rapids, IA
Vacancy
6.00%
Lease Rate
$11.40 /SF/Yr
Expense Ratio
35.00%
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%
$3,217,180
Cap Rate 7%
$2,297,986
Cap Rate 9%
$1,787,322
Alternative Uses
Best Use
Flex RnD
$2.30M
$2.01M – $2.68M
NOI $160,859 @ 7.0% cap · market cap 5.96%
Second Best
Warehouse
$2.10M
$1.84M – $2.45M
NOI $147,035 @ 7.0% cap · market cap 5.45%
Theoretical Best
Specialty Retail
$3.34M
$2.92M – $3.90M
NOI $233,971 @ 7.0% cap · market cap 8.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
40
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 52403, IA
23,012
Population
10,759
Households
2.1
Avg Household Size
41
Median Age
40%
College-Educated
95%
High-School Grad
26.3 sq mi
ZIP Area
875
Density / Sq Mi
$73,848
Median Household Income
$46,148
Median Earnings
$857
Median Rent
$190,700
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Flex space - Flex space with three suites available for lease near major southeast Cedar Rapids crossroads.
Where is this flex space located?
The property is located at 855 Vernon Valley Drive Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: 23,094‑square‑foot flex‑space property; Contractor bay buildings offered for sale; Three suites available for lease
