Empty office space on the rise; industrial space is tight
KENT DARR Apr 18, 2018 | 10:45 pm
1 min read time
166 wordsAll Latest News, Real Estate and DevelopmentBusinesses continued to move out of older space and into new or renovated offices, resulting in a slight increase in Greater Des Moines office vacancies to 13.7 percent in the first quarter, according to a report from the Des Moines office of JLL.
Eric Land, who leads the office’s research, said the number can be misleading because of companies moving from one large space to other upgraded or new spaces.
An estimated 284,814 square feet of office space is under construction. Vacancies were highest in downtown Des Moines at 20 percent, with the largest chunk of that number in Class A spaces.
The high-end offices downtown also commanded the highest rents in Greater Des Moines at $21.67 per square foot.
Meanwhile, developers seem unable to outbuild the demand for industrial and manufacturing spaces, where vacancies stood at 2.9 percent at the end of the quarter. Slightly more than 1.7 million square feet of warehouse and distribution space was under construction at the end of the quarter.