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Commercial real estate market still strong

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The Des Moines commercial real estate market remains healthy, according to commercial real estate and apartment market surveys conducted for CB Richard Ellis/Hubbell Commercial. The company will report at a luncheon today that most sectors in the industry remain steady or are improving. Here are the highlights:

According to the real estate market survey, in 2006 the inventory of office space in Greater Des Moines increased by 647,000 square feet to nearly 25 million square feet.

Although the industrial market is improving, there has not been strong growth in the manufacturing or flex portion of the market, resulting in no new major projects being planned for 2007.

Retail space has increased 560,000 square feet over last year, with occupancies remaining nearly unchanged.

Many out-of-state investors are interested in buying investment properties in Greater Des Moines. According to commercial real estate broker Linda Gibbs, “82 percent of the volume Tim [Sharpe] and I did last year was with out-of-state investors.”