Altoona, Iowa, presents a dynamic and thriving market for commercial real estate. Investing in commercial properties in this city can offer long-term growth and profitability given its strategic location, growing population, and wide selection of business real estate opportunities.
However, before we get into the specifics of Altoona’s commercial real estate market and the properties within it, it’s important that we cover some basic information about the industry itself.
Investing in it can be beneficial for many reasons. Firstly, commercial properties have the potential to generate steady streams of passive income through rental payments. Secondly, they can appreciate greatly in value over time, which can lead to significant returns on investment. Plus, commercial real estate investments can also offer diversification benefits to an investor’s portfolio, helping to reduce overall risk. They’re stable, lucrative, and provide excellent long-term ROI.
With that being said, here are a few Altoona properties worth checking out.
ALTOONA DEVELOPMENT SITES & COMMERCIAL BUILDINGS
MIDTOWN CENTER 1005 8TH ST SW
Key highlights:
- Located off 8th St SW, Altoona’s major east/west thoroughfare
- 2 retail/office suites available for lease (1,484 and 986 square feet)
- Floor-to-ceiling windows facing 8th St SW
- 1st generation space constructed in 2018
3418 8TH ST SW
Key highlights:
- Located right off U.S. 65, a major regional route connecting Altoona with the rest of the Des Moines metro
- 1 interior retail bay available for lease (1,449 square feet)
- Front and rear parking
- Located in the heart of Altoona’s commercial district, on an outparcel in front of Target and Lowe’s
3880 PRAIRIE FIRE NW
Key highlights:
- Situated just off Hubbell Ave, a busy regional route connecting Altoona’s commercial district with I-80 and U.S. 65
- 1 interior retail bay available for lease (1,990 square feet)
- Part of the Prairie Crossing area, a massive development opportunity with 120 acres of mixed-use development space and roughly 400,000 square feet of premier retail space
9TH ST NE DEVELOPMENT SITES
Key highlights (you can learn more here):
- 5 development-ready sites, 200 acres in total
- Ideal for manufacturing and/or industrial buildings
- Located right off I-80 in Altoona (exit 143)
- Part of a fast-growing area of Altoona
- 3 nearby projects under construction
- Endeavor Development:I-80 Distribution Center
- Jetco, Inc.:new headquarters facility
- Berkey Home Builders, Inc.: 2 new company facilities
A FEW KEY FACTORS TO CONSIDER WHEN SEARCHING FOR A COMMERCIAL PROPERTY
Conducting thorough real estate due diligence is crucial when searching for a commercial property, whether you’re a landlord or a tenant. Apart from handling the paperwork and financing, it is essential to take the following factors into account.
LOCATION
The location of a commercial property has a significant impact on its value and income-generating potential. Finding a building for sale with close proximity to major population centers, transportation routes, and local entertainment destinations is ideal, but it can come at a higher cost.
Altoona provides tenants and landlords with an advantageous and rare balance of all the above factors—cost included. The city is located just 20 minutes east of Des Moines and offers immediate access to major national and regional transportation routes like I-80, I-35, U.S. 65, and U.S. 6.
Additionally, Altoona has a variety of entertainment destinations like Adventureland, Prairie Meadows, and the Outlets of Des Moines, which attract more than 4 million visitors per year and provide a considerable amount of cross-traffic for local businesses.
POPULATION GROWTH
Another key factor that can greatly impact commercial real estate success is population growth. For landlords, population growth means a larger pool of potential tenants, leading to more opportunities to fill vacancies and increase rental income.
Tenants also benefit from population growth as it creates a larger customer base for their businesses. With more people in the area, there is a greater chance of attracting customers and increasing revenue and profitability. Plus, a growing population can attract new businesses to the area, increasing the range of goods and services available to tenants.
The Altoona community has seen rapid population growth in recent years, with a 35% increase since 2010 and projected growth of another 6% by 2027. As expected, this has created a larger customer base and increased demand for local businesses, including those in the commercial real estate sector. In fact, in 2022 alone, the City of Altoona approved site plans for more than 2 million square feet of new development space.
WORKFORCE AVAILABILITY
Workforce availability is a significant variable to consider when looking at commercial real estate investments, as businesses require skilled and qualified employees to operate effectively. The Altoona area has an educated, talented, and strong local workforce spanning all sorts of industries, from construction and manufacturing to finance and tech. This has caught the attention of major companies like Meta—its largest data center is located here.
RESIDENT SPENDING TRENDS
To tenants and landlords alike, resident spending trends are of high importance. Being located in an area with high spending per capita is crucial for landlords looking to attract tenant businesses, and, in turn, for tenant businesses looking to attract customers. Again, Altoona excels in this category.
Compared to other similar cities such as West Des Moines, Cedar Rapids, Davenport, and Des Moines, Altoona boasts the second-highest sales per capita in the state of Iowa—$34,652. This is more than double the average sales per capita for the state, which is only $13,687. Moreover, in 2022, the average household income within a 1, 3, and 5-mile radius of the center of the City of Altoona (100 8th St SW) measured in at $105K+, $108K+, and $96K+.
FIND MORE COMMERCIAL REAL ESTATE PROPERTIES IN ALTOONA
Whether you’re a business owner searching for commercial real estate for lease, or an investor looking to secure another commercial property for sale in Iowa—you’ll find plenty of opportunities in the City of Altoona.
There are roughly 1,600 acres of development-ready land and an abundance of commercial buildings available in our business-friendly community. Additionally, Altoona property sales are often supported by exciting incentives, grants, and tax credits.
A leader in Iowa economic development—Altoona is equipped with the leaders, economic tools, utilities, and infrastructure needed to support the long-term growth of your business. We’re the Hawkeye State’s home for growth, a place where families, companies, and millions of visitors come to thrive.
Search our commercial property database or request additional information to learn more.