Office vacancy rate increases to 16.2% in Des Moines area
The vacancy rate for office space in the Des Moines area increased to 16.2% in the quarter that ended March 31, up slightly from the fourth quarter when the rate was 15.9%, according to JLL’s quarterly office report. The highest vacancy rate – 21.2% – was reported in Des Moines’ central business district. A year ago, the office vacancy rate in the Des Moines area was 13.7%. The JLL report noted that construction was complete on the 73,000-square-foot, three-story Gray’s Landing office building located at Martin Luther King Jr. Parkway and Southwest Ninth Street. Also in the first quarter, Fidelity & Guaranty Life Co. moved out of Two Ruan Center, where it had leased 54,000 square feet. The company now occupies about 102,000 square feet at the 801 Grand Ave. office tower. The report noted that while an increasing number of Iowans are getting vaccinated against the novel coronavirus, employees of most large companies continue to work at home. The report also noted that office vacancy rates will likely “tick upward as tenants review their space needs.” (JLL is the brand name of Jones Lang LaSalle Inc., a professional services firm that specializes in real estate and investment management and has offices in Des Moines.) To read the report, click here.