2020 Office Trends to Watch
BPC Staff Apr 22, 2020 | 4:31 am
1 min read time298 wordsBusiness Record Insider, Real Estate & Development
Office activity occurring in second-generation space
By Justin Lossner
Managing Director | JLL
In 2019 a significant amount of the office activity occurred in second-generation, Class B/A- space, located in the western suburbs. Most active among those were buildings that recently experienced lobby and common area renovations. There were a few large outliers — 19,000 square feet signed in the new Paradigm Building in Urbandale and 84,000 square feet signed in 801 Grand downtown — but for the most part, space along Westown Parkway and the new 100th Street interchange saw the most velocity. A significant driver of this trend was the increasing impact of construction cost pushing tenants to seek space that is closer to turn-key rather than shell space.
I would anticipate we see similar trends in 2020. The overall market occupancy remains stable, only negatively impacted by a handful of large companies that built new or relocated within the metro. Even while construction prices continue to climb, the steady recovery has allowed some companies to reinvest in existing space or build new buildings to help them attract talent in the highly competitive war for workforce. Companies continue to seek amenity-rich properties and space that includes enhanced on-site conferencing/training facilities, updated fitness centers including classroom areas and high-end equipment, outdoor rooftop or green space that presents flexible work environments, convenient food and coffee options, along with plenty of “we” space inside and outside of their occupied space. Look for this trend to continue into the future.
In 10 years, downtown Des Moines will have evolved into a true regional destination. Thriving high-rise multifamily will change the sky line, the river will have been transformed into an entertainment draw with skateparks and rapids parks flanked by bustling retail and the highly successful Market District development.