Growing demand for large blocks of contiguous industrial space is placing pressure on commercial real estate agents to fill existing properties and spur new development.

“There was some delayed decision-making that took place from 2008 to 2010 that now is starting to come forward,” said Kyle Gamble, managing director of West Des Moines-based CB Richard Ellis/Hubbell Commercial. “That’s why we are now seeing this uptick in demand, especially from large users.”

As smaller Class A industrial spaces sit empty, Hubbell Commercial broker Morey Knutsen said he has been forced to dismiss more than one inquiry about contiguous space in excess of 100,000 square feet.

“Des Moines was one of six markets under consideration for an immediate need of 130,000 to 300,000 square feet,” Knutsen said of the size and type of industrial space sought by a CB Richard Ellis Group Inc. affiliate in Oakland, Calif.

As Quality Manufacturing Corp. gobbled up one of the last large chunks of industrial space in the western suburbs, Knutsen said he had no choice but to disappoint his counterpart. “He called me back to confirm he heard my voicemail correctly,” he said.

Delivered in 2008, the first of four planned 110,000-square-foot industrial buildings in Hubbell Realty Co.’s Grimes Distribution Park still has 70,000 square feet of available space. Before it kicks off a second phase of development near Iowa Highway 141 on Southeast Gateway Drive, the company and its out-of-state partner will likely require more assurance.

“The recession time frame hurt,” Gamble said of the economic downturn’s effect on landlords’ cash flows. “That pain takes a little while to dissipate before they’ll pull the trigger on the next risk, the next building. And there have to be good, sustainable signs of demand for these groups to pull the trigger.”

R&R Realty Group, which Knutsen said has leased the remaining space in its newest 150,000-square-foot high-cube warehouse at Meredith Business Park in Urbandale, is considering the construction of an industrial building in Interstate Acres between 109th and 114th streets on Meredith Drive.

“There are some conversations taking place about putting up another warehouse,” R&R Realty’s Paul Rupprecht said of the developer’s ability to accommodate tenants in need of 100,000 square feet or more of industrial space. “I think we would have land available to either do a build-to-suit or pre-leasing,” he said. “Whether it happens today or happens in the future, that’s yet to be determined.”

Knutsen, who said the overall industrial vacancy rate in the Greater Des Moines market has fallen to about 6 or 7 percent from 10.5 percent in January, hopes a sustained period of interest from potential tenants will cause Hubbell Commercial’s parent company to augment its inventory.

“It’s like there needs to be a period of grieving,” he said.