Leasing activity slowed and speculative development remained on hold in the second quarter, according to industrial market reports from area brokerage firms.

Vacancy rates dipped slightly in the second quarter, the reports showed, with more than 7 million square feet of industrial space remaining vacant, much of that in the western suburbs and the northeastern part of the metro.

Brokerage firms CBRE, Colliers and JLL recently released their reports on industrial market activity for the period ending June 30.

Here are some of the highlights from those reports.

CBRE

• Industrial vacancy rate in the second quarter was 7.2%.
• Net absorption was 1.1 million square feet.
• There was 397,000 square feet of construction delivered.
• No new square feet was under construction.
• Average market lease rate was $6.85 per square foot.
• Two buildings that were delivered to the market were Kemin Industries’ new 342,000-square-foot warehouse expansion on Maury Street, and Insane Impacts’ new 55,000-square-foot headquarters on Southwest 22nd Street.

Colliers

• Industrial vacancy rate was 5.7%.
• Net absorption was 579,900 square feet.
• 177,500 square feet of industrial space was under construction.
• Overall asking lease rate was $7 per square foot.
• Most buyers of industrial buildings have been individuals and owner users.

JLL

• Industrial vacancy rate at the end of the second quarter was 6.1%.
• Net absorption was 673,931 square feet.
• 239,431 square feet of industrial space was under construction.
• Average lease rate was $6.21 per square foot.
• Buzz Oates acquired warehouse property at 7125 S.E. Delaware Ave., in Ankeny for $16.85 million. The 180,000-square-foot property was developed by Endeavor Development and the purchase by Buzz Oates marks its second warehouse investment in the metro.

According to the JLL report, industrial leasing activity slowed during the second quarter as a result of concerns over tariffs. “Though underlying demand for industrial space persists,” the report read.

The report said that vacancy rates are forecast to decline in the coming months as vacant speculative space attracts new tenants.

In its report, Colliers said buyers spent $23.1 million on industrial buildings in Des Moines in the second quarter, bringing the year-to-date sales volume to nearly $36 million, up 42% compared to the first half of 2024.

The increase is indicating interest from buyers in industrial space in the metro, the report said.

“The stage is set for strong sales volumes throughout the second half of 2025,” officials with Colliers said in the report.