The Quad Cities, located on the Mississippi River in the Midwestern United States, consists of five cities in two states: Davenport and Bettendorf in Iowa, and Rock Island, Moline, and East Moline in Illinois. The area has a population of over 400,000 people and a diversified economy, including agriculture, manufacturing, and healthcare. In this blog post, we will discuss the current market conditions for commercial real estate in the Quad Cities.
Office Market:
The office market in the Quad Cities has been stable in recent years, with a vacancy rate of around 10%. However, the COVID-19 pandemic has had an impact on the market, as many companies shifted to remote work, reducing the demand for office space. As a result, some companies have downsized their office footprint, while others have opted for flexible office solutions.
Industrial Market:
The industrial market in the Quad Cities has been strong in recent years, thanks to the area’s strategic location for transportation and logistics. The vacancy rate for industrial space in the Quad Cities is below the national average, with strong demand for both manufacturing and warehouse/distribution space. Additionally, the Quad Cities has seen an increase in demand for data centers due to its low risk of natural disasters and access to reliable energy sources.
Retail Market:
The retail market in the Quad Cities has been impacted by the rise of e-commerce in recent years, with some retailers struggling to adapt to changing consumer preferences. However, the area has seen new retail development, including the redevelopment of former shopping centers and the opening of new retail destinations. Additionally, the Quad Cities has a strong tourism industry, with attractions like the John Deere Pavilion and the Figge Art Museum driving retail sales.
Multi-Family Market:
The multi-family market in the Quad Cities has been strong in recent years, with a low vacancy rate and steady rent growth. The area has seen new apartment development, including both market-rate and affordable housing. The COVID-19 pandemic has had an impact on the market, with some renters opting for larger units to accommodate remote work or to take advantage of low-interest rates to purchase a home.
Conclusion:
Overall, the commercial real estate market in the Quad Cities is stable, with strong demand for industrial and multi-family properties. The COVID-19 pandemic has had an impact on the market, particularly in the office sector, but the area’s diversified economy and strategic location make it an attractive destination for businesses and investors. As the pandemic subsides, the Quad Cities is poised for continued growth and development in the years ahead.
