The Business Record reached out to several city economic development leaders to ask them about the commercial development outlook for 2024. We are publishing their responses in today’s newsletter and on Jan. 3.

Here’s the question we asked the leaders:

The pace of starts for new commercial projects slowed throughout much of the metro area in 2023. What is the outlook for new commercial starts in 2024 in your community,and do you anticipate an increase from 2023? Why or why not? Also, can you share what types of projects have been discussed with city officials?

Chad Quick, economic development director, Altoona
“While major commercial starts and finishes have decreased, activity is still strong, and we are seeing interest in future development. 2024 will bring more industrial and commercial retail projects. There has been a large expansion in warehouse/distribution space over the last few years, so it’s natural those are slowing, but interest in these types of projects is still strong.

“There are a few restaurants opening in late 2023 into early 2024, with others looking for space. We are also in the early stages of some larger mixed-use and redevelopment projects that could begin in 2024.”

Cody Christensen, Development Services director, Des Moines
“Des Moines Development Services staff recently engaged in conversations with real estate developers and architecture firms on insights and predications for commercial development sector trends in the next year. Though developers indicated increasing challenges in obtaining and securing financing for commercial construction projects due to overall costs and the increasing interest rate environment, they maintain optimistic views of what 2024 may bring. Architecture firms reinforced this sentiment, indicating that they have remained busy working on new designs for projects they expect to launch once interest rates begin to decline. We expect confidence to build throughout 2024, which will help drive increases in our commercial development activity.”

Jennifer Brown, economic development director, Waukee
“Commercial growth in Waukee continued its upward trajectory in 2023 with more than $77 million of new commercial valuation. The city of Waukee is optimistic about growth in 2024. The population continues to expand and commercial corridors are filling in, which bring increasing numbers of visitors to Waukee. New restaurant, retail and hospitality projects are planned for Waukee Towne Center, Kettlestone Central and KeeTown Loop. Notable projects set to open in 2024 include Iowa Clinic South, UnityPoint Medical Park, Aloft Hotel, Target and Apple’s data center.”