Commercial Real Estate Market in Iowa City, IA
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
268 active listings and 2,256 off-market properties in Iowa City, IA. Commercial property asks $247/SF to buy and $21.56/SF/Yr to lease.
Market Trends
Iowa City, IA spans 181.4 square miles in Johnson County, Iowa. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Iowa City, IA runs 21.3% across the Midwest region in 2025, up from 13.7% in 2019.
Vacancy Rate % in Midwest region
Retail
Retail vacancy in Iowa City, IA runs 6.3% across the Midwest region in 2025, down from 8% in 2020.
Vacancy Rate % in Midwest region
Industrial
Industrial vacancy in Iowa City, IA runs 4.9% across the Midwest region in 2025, up from 4.4% in 2019. Nearly 1.6x the 2022 low of 3.1%.
Vacancy Rate % in Midwest region
Multifamily
Multifamily vacancy in Iowa City, IA runs 8% across the Midwest region in 2025, up from 6.5% in 2022.
Vacancy Rate % in Midwest region
Market overview
Demographics & Economy
Iowa City, IA has 106,903 residents in 48,189 households. Density runs 589 people per square mile. Median household income here is $62,131 and median gross rent $1,084 a month.
106,903
Population
48,189
Households
2.2
Avg Household Size
30
Median Age
58%
College-Educated
95%
High-School Grad
181.4 sq mi
ZIP Area
589
Density / Sq Mi
$62,131
Median Household Income
$29,157
Median Earnings
$1,084
Median Rent
$281,667
Median Home Value
Tools
Lease vs Buy Breakeven
At $21.56/SF/Yr lease vs $247/SF buy → buying wins if held > 1.8 years.
At a 8.7% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| University Heights | — | — |
| Coralville | — | $24.94 |
| North Liberty | — | $15.74 |
| Hills | — | — |
Commercial property in Iowa City, IA asks $247/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Iowa City?
Commercial property in Iowa City, IA asks an average of $247 per square foot. The 4 most recent recorded sales traded at a median of $86/SF, so asking sits 188% above the achieved median.
How much does it cost to lease commercial space in Iowa City?
Asking lease rates in Iowa City, IA average $21.56 per square foot per year.
Is it cheaper to lease or buy commercial space in Iowa City?
Buying beats leasing in Iowa City, IA if the property is held longer than 1.8 years, comparing $21.56/SF/Yr asking rent with $247/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
Where does Realmo's Iowa City market data come from?
Realmo compiles Iowa City, IA figures from 5 recent recorded sales, 153 active sale listings, 115 active lease listings, 2,256 tracked off-market properties. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 153 active for-sale and 115 active for-lease listings in Iowa City, IA. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at Midwest region level, retail vacancy is reported at Midwest region level, industrial vacancy is reported at Midwest region level and asking prices run materially above recent closed pricing.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
