The fourth quarter marked positive net absorption as companies took advantage of decreased rents in some areas, according to quarterly office reports from brokerage firms.

The reports also showed vacancy rates in the middle teens with new construction remaining limited.

The Business Record analyzed market reports for the fourth quarter of 2025 from JLL, CBRE, and Cushman & Wakefield.

JLL reported that significant change is forecast for 2026 as major tenants move to new spaces. The report cited American Equity Investment Life Insurance Co.’s move to 1150 Locust St., and the city of Des Moines’ move to 1200 Locust St., as examples of changes that will happen in 2026.

“These moves will provide substantial momentum to the Western Gateway area of the [Central Business District],” the report said.

JLL also reported that the western suburbs will also experience notable change with Bradford Allen’s acquisition of Regency West from R&R Realty and improvements at R&R’s Crescent Building. 

According to JLL, modern office availability has been hampered by limited new construction. Only 30,000-square-feet of speculative office space is under construction, the firm said.

Cushman & Wakefield reported that the fourth quarter saw a drop in rent rates, resulting in a decline in vacancies.

“2025 was certainly not a fire sale environment when it came to leasing space, however landlords did adjust their rental rates to provide an incentive to expand,” the brokerage firm reported.

Cushman & Wakefield also reported that increased leasing in 2025 resulted in positive absorption, calling 2025 “the best year for office leasing in the post-COVID era of Des Moines” and saying it helped turn the office market in a positive direction at the start of 2026.

CBRE also reported positive net absorption, led in part by Holmes Murphy’s move into the Arcadia building in West Des Moines, and Mission Cancer + Blood occupying 40,000-square-feet in the Riverview Office Building downtown.

According to CBRE, one building was under construction at the end of 2025. Community State Bank’s new 71,000-square-foot headquarters in Ankeny is scheduled to be complete in spring 2026.

Here are highlights from each report:

JLL

• Total vacancy: 16.2%
• Total net absorption YTD: 204,147 square feet
• Class A asking rent: $26.79 per square foot
• Overall asking rent: $22.01 per square foot

Cushman & Wakefield

• Total vacancy: 14.8%
• Total net absorption: YTD: 444,000 square feet
• Asking rent: $20.85 per square foot

CBRE

• Total vacancy: 15.7%
• Total net absorption YTD: 231,152 square feet
• Lease rate: $20.39 per square foot