Commercial Real Estate Market in Underwood, IA
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
5 active listings and 62 off-market properties in Underwood, IA.
Market Trends
Underwood, IA spans 46.3 square miles in Pottawattamie County, Iowa. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Underwood, 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 Underwood, IA runs 6.3% across the Midwest region in 2025, down from 8% in 2020.
Vacancy Rate % in Midwest region
Industrial
Industrial vacancy in Underwood, 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 Underwood, IA runs 8% across the Midwest region in 2025, up from 6.5% in 2022.
Vacancy Rate % in Midwest region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 77%
- Industrial 16.6%
- Commercial 3.8%
- Agricultural 2.6%
Largest Zones share of zoned land by district
Single Family Residential
General Industrial
Downtown Commercial
Open Space Agriculture
Two Family Residential
Underwood, IA zones 269 acres across 8 districts. Commercial zoning covers 3.8% of zoned land, residential 77% and industrial 16.6%. The largest single district is Single Family Residential at 73.4%. For commercial buyers the practical constraint is that only 20.4% of land carries a commercial or industrial designation.
General Industrial (M-2)
M-2 10,000 None 25 10/20 25 10/25 -- -- -- FP and FW Same as underlying base district Underwood Zoning Ordinance 44 Last Modified 9/17/09 V. SPECIAL USE REGULATIONS Certain uses of land, buildings or structures may not be appropriate under all circumstances in any given zoning district, but may be appropriate where adequate precautions can be taken to assure…
Market overview
Demographics & Economy
Underwood, IA has 2,058 residents in 751 households. Density runs 44 people per square mile. Median household income here is $107,679 and median gross rent $819 a month.
2,058
Population
751
Households
2.7
Avg Household Size
40
Median Age
32%
College-Educated
97%
High-School Grad
46.3 sq mi
ZIP Area
44
Density / Sq Mi
$107,679
Median Household Income
$47,314
Median Earnings
$819
Median Rent
$291,500
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| McClelland | — | — |
| Mc Clelland | — | — |
| Neola | — | — |
| Crescent | — | — |
Commercial property in Underwood, IA asks $131/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Underwood?
Commercial property in Underwood, IA asks an average of $131 per square foot.
What zoning applies to commercial property in Underwood?
Underwood, IA zones 269 acres across 8 districts, of which 3.8% is commercial and 16.6% industrial. The largest single district is Single Family Residential at 73.4% of zoned land. Residential zoning covers 77% and open space 0%.
Where does Realmo's Underwood market data come from?
Realmo compiles Underwood, IA figures from 5 active sale listings, 62 tracked off-market properties, the current Underwood zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 5 active for-sale and 0 active for-lease listings in Underwood, 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.
- Zoning and land use
- The current municipal zoning release: 269 zoned acres across 8 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- 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 and industrial vacancy is reported at Midwest region level.
- 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
