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The Quad Cities commercial real estate market is strong, but there are some “bumps in the road” in the coming months. That was one of the main messages delivered during the Commercial Real Estate Symposium, presented by the Quad Cities Regional Business Journal, on Thursday afternoon, Nov. 2, at the Quad Cities Waterfront Convention Center in Bettendorf. The second annual QCBJ event, which attracted about 200 people from the business community including real estate, construction and banking leaders, outlined some trends, challenges and predictions in the local commercial real estate sector.
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- Retail: The vacancy rates are 8% in the Iowa QC and 10% in Illinois. The market rates in the region are $19.50 to $30 per square foot for new construction in Iowa, and $18 to $23 per square foot for newer construction in Illinois. The retail trends include smaller bay sizes and depth; restaurant turnovers continue; and existing lease rates increasing at lease renewal.
- Industrial: Mr. DenHartog said “this is still the darling of the industry” with a vacancy rate of 6% and 118 active listings in the area. The Iowa industrial sales are $16 to $102 per square foot (PSF). The Illinois market sales are $18 to $40 PSF, and the Illinois market rents are $2.75 to $4.25 PSF.
- Office space: Vacancy rates are 13% in Iowa QC, and 21% in Illinois. The trends include: employers are bringing employees back to the office, but at a slower pace than expected. There is a “flight to quality or newer space,” according to information provided by Mr. DenHartog.
- Multi-family units: Mr. DenHartog also briefly addressed multi-family real projects. There are 29 active sales listings in the area. He pointed out that some of the notable sales this year have included: a 44-unit property at 1902 E 38th St., Davenport, for $3.7 million; a 162-unit property at 3700 Fifth St., Rock Island, for $14.5 million; and a 25-unit property at 2615-2649 Pine St., Davenport, for $1.975 million.