.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;}
Employment was top of mind last week at the Des Moines Business Record’s Commercial Real Estate Trends and Issues Forum.

A panel of six led the April 13 discussion, which focused on rising vacancy rates in competitive downtown office space and how workforce trends are affecting the issue.

Nationwide Mutual Insurance Co. in recent years has relocated its metro area work force to a newly constructed corporate campus at 1100 and 1200 Locust St. This year, an estimated 750,000 to 1 million square feet of downtown competitive office space is expected to hit the market when Wellmark Blue Cross and Blue Shield of Iowa and Aviva USA relocate to owner-occupied buildings.

And though those initiatives have stimulated economic development opportunities in Greater Des Moines, they have also created a paradox.

“It was great because it created a lot of jobs,” said Mark Rupprecht, president of R&R Realty Group. “But it also vacated a lot of space.”

Lis Buck, director of Iowa Workforce Development, said that in terms of employment, the state has weathered the recession better than some other areas.

“Iowa, in 2009, had the fourth-lowest unemployment rate in the country,” Buck said, noting that in the Des Moines metro area, about 7,500 jobs were lost between the highest employment levels in 2008 and the lowest in 2009.

As the economy recovers, however, more skilled workers with higher educational levels will be needed to meet demand.

The consensus is that Greater Des Moines needs to think more creatively to address these issues.

Perhaps a “green” retrofit of historic buildings could persuade site selectors. Maybe more incentives, such as free parking, would attract more tenants. Could repurposing existing office space for educational facilities or student housing be the answer? Or what about some type of cooperation between the city and county to establish administrative offices in vacated spaces?

Last week’s brainstorming session focused primarily on downtown.

Mary Bontrager, the Greater Des Moines Partnership’s executive vice president of workforce development, said that according to preliminary results of a recent survey, more than 42 percent of the Partnership’s 4,200 member companies plan to hire in the next 12 months.

Given that 85 percent of respondents employ 100 or fewer people, it may be time to switch gears from large companies to small businesses.

“Looking at these small to medium-sized businesses is where the future is for a lot of the job growth,” Rupprecht said, noting that the software and information technology industries are potential growth areas.

Chris Thomason, a vice president with NAI Ruhl and Ruhl Commercial Co., said, “I think these small, entrepreneurial operations are where we are going to see the next phase of growth.”

In addition to the U.S. Small Business Administration, which helps small businesses by giving lenders some assurances from the federal government, Thomason said the city has shown some willingness to make some low-interest loans or grants.

Whatever the solution is, maintaining a strong downtown is a key factor.

“I think that if we just wait and try to find companies to fill these office buildings, it’s going to be a very, very long time,” said Colleen Johnson, a vice president with CB Richard Ellis/Hubbell Commercial.

Johnson said entrepreneurs have historically showed up as buildings were being vacated to revitalize specific areas: Court Avenue, Western Gateway Park, East Village.

“Once we had a vision for it, we were not afraid to get rid of those buildings and to create new opportunities,” Johnson said. “We have one of the most diverse, well-planned, exciting cities in the Midwest.”

Promoting that mindset is paramount.

Tim Leach, director of economic development for the Downtown Community Alliance, said if Des Moines wants to lure new downtown office users, it must be more proactive.

“The marketing of your area, of your buildings, of this region, has to be an ongoing process,” Leach said. “You’ve got to be way out front from when these decisions are made; you’ve got to be on the map.”

“We really need to put some focus on downtown,” Thomason said. “We can’t have a community that rots from the core.”