Third-quarter reports from JLL show an active office market, with tenants finding many reasons to locate in downtown Des Moines, and an industrial sector with tenants slow to sign in a low-vacancy environment.

In the office market, large tenants are on the prowl for space, according to the report, with amenities offered in downtown Des Moines helping to lure some tenants.

“New restaurants, multifamily developments, cultural events and the downtown skywalk have made suburban tenants rethink their space options,” the report said. Dwolla, for example, is among the new tenants of the Federal Homes Loan Bank of Des Moines building on Locust Street, where Starbucks also will take up space.

Other large tenants that signed leases across Greater Des Moines during the quarter included Right Dose/Guardian Pharmacy with 11,547 square feet at 217 Walnut St. in Ankeny and Medical Oncology & Hematology with 6,100 square feet at 100 E. Grand Ave. in Des Moines.

Ten office property sales during the third quarter totaled slightly more than $11 million at an average sales price of $102.05 per square foot.

As has been the case for some time, owners are being pushed to upgrade their properties to stay competitive.

Another challenge is new office space that is set to open. R&R Realty opened its Paradigm office building last week in Urbandale and is actively marketing its Westfield complex in West Des Moines; both offer top-shelf amenities.

“Newer and modern spaces will continue to challenge the more mature office choices for tenants,” the report said.

JLL also pointed out that suburban developments in Ankeny, Waukee and Urbandale are seeing growth.

Office vacancies stood at 14.1 percent during the quarter, and gross average asking rents were $18.38 per square foot.

The industrial market, cruising along with an enviable 3.2 percent vacancy rate, is seeing steady leasing activity, JLL said. The Greater Des Moines market has not had a vacancy rate above 5 percent in more than five years.

Larger leases signed during the quarter included Tritz Pallet with 100,000 square feet at 6600 Merle Hay Road in Johnston, UnityPoint with 47,000 square feet at 3001 S.E. Convenience Drive in Ankeny, and Storey Kenworthy with 30,000 square feet at 51 Forest Ave. in Des Moines.

The weighted average lease rate for these spaces was $4.91 triple net..

During the quarter there were 10 sales of buildings that averaged 30 years old at an average price of $36.76 per square foot.

JLL said to be on the lookout for more flex/manufacturing buildings in the western suburbs, while new warehouse projects should be announced in the north and east submarkets.

“Des Moines is an industrial market that has steady growth and does not see the huge influx of speculative developments like some larger markets,” JLL said. “Many larger industrial markets force developers to search miles outside their city centers. There are ample parcels of land within a 20-minute drive of downtown Des Moines that could be developed into industrial projects. Logistics firms and manufacturers are still needing space in the market.”