HEARTLAND SNAPSHOT, OCTOBER 2007

Quad Cities Retail Market

There are several private developers new to the Quad Cities that are competing for opportunities in the marketplace. Currently, small neighborhood strip centers are the bright spot in the market, and retail prices are creeping upward due to rising construction and land costs.

The majority of development of these neighborhood retail areas is serving the expanding housing market. National retailers have taken notice of Quad Cities, thanks to activity from some national retail anchors and the recognition of opportunity in the market, including the large concentration of population within a 40-mile radius of the area.

Some significant developments in the Quad Cities right now include the redevelopment of the former Joe Van site in Bettendorf, Iowa, at Interstate 74 and Middle Road. There also is significant attention being given to the Interstate 80 and Middle Road corridor. Development continues along 53rd Street, especially eastward into Bettendorf’s Golden Triangle area. There is also continued growth going both north and south on Elmore at is intersection with 53rd Street. The John Deere Road retail corridor is expanding eastward with a new development anchored by Hiland Toyota, as well as a bank and a hotel.

The are quite a few new retailers that are setting up shop in the area. Premier Furniture has recently signed a lease for 19,000 square feet at Village Shopping Center, located on Kimberly Road in Davenport, Iowa. Premier joins discount clothing retailer Steve & Barry’s, which recently leased 46,000 square feet in the center. Fast food restaurant Sonic and Noodles & Co., a restaurant specializing in noodle dishes, have also opened new locations. Great Escape has leased 50,000 square feet on Elmore Avenue and Guitar Center has taken 11,000 square feet at the Kohl’s Center, also on Elmore. Staybridge Hotels can also be counted among the new arrivals to the Quad Cities.

Much of this new development can be seen in the vacancy rate, which is hovering at the low 6 to 8 percent range for the retail sector of the market.

In the future, the Middle Road and I-80 corridor in Bettendorf is going to be a place to watch. With large available parcels abutting new housing and the interstate, it is situated perfectly for new growth. Developers are optioning land currently, including the land acquisition activity occurring in anticipation of the 67th Street extension in North Davenport.

— John G. Ruhl is a vice president and sales manager at NAI Ruhl & Ruhl Commercial Co.


©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.