Calculate cap rates and net operating income for commercial properties in Iowa. Compare your results against Iowa's secondary market benchmarks sourced from CBRE H2 2025.
Des Moines has grown into a significant insurance and financial services hub (Principal Financial, Meredith, Wells Fargo operations). Data center investment has been substantial due to Iowa's renewable energy, low taxes, and central location. Agricultural processing drives industrial demand statewide. Cap rates reflect the secondary market with strong fundamentals relative to size.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 6.0% | 8.0% |
| Industrial | 6.0% | 8.0% |
| Retail | 6.5% | 8.5% |
| Office | 7.0% | 9.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
Iowa cap rates range from 6.0–8.0% for multifamily and industrial, 6.5–8.5% for retail, and 7.0–9.5% for office. Des Moines has the most competitive rates driven by its insurance/financial services concentration and growing data center sector.
Iowa has attracted major data center investment from Microsoft, Google, Meta, and Apple due to its renewable energy availability (wind power), low electricity costs, tax incentives, and central US location. While data centers don't directly compete with traditional CRE asset classes, they represent billions in capital investment and create indirect demand for supporting infrastructure.
Des Moines is the insurance capital of the Midwest, home to Principal Financial, EMC Insurance, and major operations for Wells Fargo and other financial institutions. This provides stable, high-quality office tenancy and supports robust multifamily demand from financial services professionals.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.