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Report: Office vacancy rates in Des Moines area at 16.2%


The following are highlights from CBRE|Hubbell Commercial’s 2021 first-quarter office market report for the Des Moines area:

• In the first quarter, 16.2%, or 2.8 million square feet, of office space was vacant. The vacancy rate was slightly higher than 2020’s fourth quarter rate of 14.7%. In the first quarter of 2020, the vacancy rate was 13.2%. The 2021 first quarter vacancy rate in the central business district, with more than 6.3 million square feet of office space, was 17.4%. Urbandale, with 1.8 million square feet of office space, had an 18% vacancy rate. The Des Moines area has 17.4 million square feet of rental office space.

• Construction of an office building at 220 S.W. Ninth St. was completed in the first quarter, adding 72,000 square feet of office space to the market. Also, a total of 115,000 square feet of space became available in the Bell Avenue Business Center and at 3600 Army Post Road.

• 260,000 square feet of office space is under construction including 110,000 square feet in the central business district, 60,000 square feet in Urbandale and 25,000 square feet in Ankeny. No new projects were started in first quarter.

Office vacancies “will persist at a stubbornly high rate in the near term and rent growth will be difficult to achieve as market conditions remain decidedly in favor of tenants,” according to the report. However, as more people are vaccinated against COVID, the office market will begin to stabilize as confidence is restored in reoccupying office space, the report said.

Read the report.

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