Des Moines area’s apartment vacancy rate at 5.3%
BUSINESS RECORD STAFF Jul 28, 2021 | 1:02 pm
1 min read time246 wordsAll Latest News, Real Estate & Development
The following are highlights from CBRE|Hubbell Commercial’s 2021 second-quarter multifamily market report for the Des Moines area:
• The vacancy rate of the 35,775 apartment units surveyed was 5.3% in the second quarter, which ended June 30. The rate slipped more than a percentage point from the first quarter’s 6.3% vacancy rate. The central business district had the area’s highest vacancy rate at 8%.
• The average asking monthly rent was $973, up slightly from the first quarter’s $955. Average monthly rental rates ranged from $768 on Des Moines’ east side to $1,150 in the central business district. In the second quarter, 13 of 36 downtown rental properties that were surveyed were offering rent concessions in the form of free rent, down nearly 40% from the first quarter, according to the report.
• Nearly 1,191 apartment units are under construction. Among them Hubbell Realty Co.’s $29 million project called Level, located in the Bridge District in the East Village. The project will include 114 apartment units. Also, a four-story structure is under construction at 3611 N.E. Otterview Circle in Ankeny that will include 184 units.
“Sustainable levels of upcoming new supply, widespread vaccinations, an improving economy and a return of office workers will all contribute to further multifamily market improvement for the balance of the year,” according to the market report. “Steady absorption gains should encourage continued concession burn-off, allowing for restored economic occupancy and effective rent growth over the next two quarters.”
Read the report.