The First Avenue Hy-Vee location in Cedar Rapids closed in 2024. Since then, the building has sat vacant, leaving many to wonder if the city can attract another grocery store to help fill the void. It appears that there are still two potential tenants for the empty building.
Grocery Store Chain Interested in the Building
The Corridor Business Journal reports that Cedar Rapids city officials confirm that the city has had initial conversations with a grocer that operates 10 “price-impact” stores in the Kansas City market. In fact, the city and that grocery store chain applied for a $250,000 USDA Healthy Food Financing Initiative Food Access and Retail Expansion Fund grant to help buy equipment needed inside the store. However, the CBJ reports that due to delays in federal funding in 2025, the possible funding has been delayed.
City of Cedar Rapids Asks for Help in Finding New Retailer
The CBJ reports that the city of Cedar Rapids is also working with the Independent Grocers Alliance to complete a market analysis to better understand local demand and support for a new grocer.
In addition, a Nebraska-based grocery store chain toured the building in October, according to the CBJ. The company, which owns and operates 33 stores, is still doing due diligence about possibly operating a store in the space. A decision could be coming in the next two to three months, according to the CBJ.
Despite renewing a five-year lease in November 2023, Hy-Vee made the decision to close the First Avenue store in May 2024.
