Here’s something that doesn’t happen often: Warehouse space vacancy has increased a tad
KENT DARR Oct 12, 2016 | 10:01 pm
1 min read time
345 wordsAll Latest News, Real Estate and DevelopmentThe Greater Des Moines industrial market has experienced a slight increase in vacancies through the end of the third quarter, something that hasn’t happened in at least five years.
Much of the increase occurred when Hewlett Packard Enterprise Co. moved out of a warehouse and distribution center at 3600 Army Post Road and consolidated operations at newer warehouse space at 3440 Gannett Ave., according to JLL’s third-quarter report on the Greater Des Moines office and industrial markets.
The vacancy rate at the end of the quarter was 3.6 percent, up from 2 percent in 2015 but well short of the 5.8 percent vacancy rate in 2011.
The report notes that there continues to be strong demand for large blocks of space.
Some warehouses were picking up users. Homemaker’s has filled 120,000 square feet in its new warehouse at 4000 N.W. Urbandale Ave., G&K Services is occupying 66,000 square feet at a warehouse finished last year by Knapp Properties Inc. at 3000 Gannett Ave., and Sportsplex East has leased 37,800 square feet at the former Townsend Engineering facility at 2425 Hubbell Ave.
“This negative absorption should be temporary as there are some large users looking for space in Des Moines and fourth-quarter activity is typically strong,” according to the report. Click here to read the report.
The office vacancy rate was 11.7 percent at the end of the third quarter, compared with 11.8 percent in 2015. Nearly 20,000 square feet of space opened up in the western suburbs and in downtown Des Moines, according to data compiled by JLL and Xceligent.
Ten new leases were signed for office space in the western suburbs and eight leases were signed for space in downtown Des Moines, leading activity in Greater Des Moines.
The report also points out that R&R Realty will complete more than 250,000 square feet of office space in 2017 and 2018 and that the Kum & Go headquarters in West Des Moines will open up when the company moves to the Krause Gateway Center that is under construction in downtown Des Moines.Click here for the office report.
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