R
eal estate trends in the Quad Cities region are looking up, according to experts who spoke at the Quad Cities Regional Business Journal's third annual Commercial Real Estate Symposium. The event brought together over 160 people at Bally's Quad Cities Casino & Hotel in Rock Island on November 6.

    Keynote speaker Thad DenHartog, managing broker and principal of Mel Foster Commercial Real Estate Services, highlighted several positive trends in the region's commercial real estate market. Office space, in particular, is seeing a resurgence as employers bring employees back to the office at an accelerated pace. "The trend of 'work from home' I think is over, especially in the Quad Cities," DenHartog said.

    In contrast to national trends, where the office vacancy rate is around 20%, the Quad Cities region has a relatively low office vacancy rate of 11% in Iowa and 21% in Illinois. The multifamily building market is also strong, with recent bidding wars from investors looking to get into the local market.

    Other sectors outlined by DenHartog include industrial, retail, and commercial investment real estate. Industrial vacancy rates are at 8%, while retail vacancy rates are 8% in Iowa and 15% in Illinois. Ag land and farm demand is strong, with prices ranging from $4,800 to $16,900 per acre.

    DenHartog also discussed major market factors, including the prime lending rate, total commercial real estate sales volume, and unemployment rate. He noted that refinancing risks and tightening lending standards are trends to watch for next year, as well as construction costs and local employment changes.

    Other speakers at the symposium included Ben Keith of MidAmerican Energy and Travis Deese of CBRE Econometric Advisers. Keith spoke about energy needs of data centers, while Deese gave a report on commercial real estate and multifamily buildings. A recent CBRE report noted that the U.S. multifamily market is showing signs of recovery, with a national vacancy rate drop to 5.3% in the third quarter.

    Deese emphasized that there are excellent business opportunities for multifamily building projects in the region, citing strong renter demand and diminishing supply pipelines. He also highlighted the growth of data centers, including a proposed $800 million project in Davenport and a $750 million development in southwest Cedar Rapids.