Stability. Amenitization. Millennials.

These words cropped up more than a few times during Tuesday’s Annual IREM/CCIM Market Forecast at Des Moines Golf & Country Club. 

Panelists included: Kate Byus, vice president, brokerage, with JLL; Ryan Jensen, senior vice president with CBRE|Hubbell; Marcus Pitts, managing director with JLL; and Steve Scott, senior vice president with Cushman & Wakefield Iowa Commercial Advisors. Gene Nelsen with Nelsen Appraisal Associates moderated the presentation. 

Here are some takeaways from the market outlook:

– In the multifamily segment, there are 4,700 units planned or under construction with 3,000 expected to be delivered this year. But, Jensen pointed out, the pipeline will slow for 2020 and beyond. The slowdown in the single-family market could be a opportunity for new multifamily construction. Rents are expected to be flat for the next few years. Millennials’ potential to buy homes could also be a factor.

– In the office sector, Byus said there are several themes to watch, including ownership and amenitization. Some lease owners in Greater Des Moines are making plans or have made plans to own, among them Kum & Go, Federal Home Loan Bank, Deere & Co. Intelligent Solutions Group and Sammons. Byus also said employers continue to look for more amenities to attract and retain workers.

– “The industrial market is tight; the labor market is tight,” Pitts said as he presented the outlook for that area. “Conversations start with the unemployment rate.” Industrial also sees amenitization as a trend but not locally so far. In 2018, there were 1.1 million square feet of new product in Des Moines; 2019 is projected to bring 800,000; and 2020 looks to be bigger with 1 million or 1.5 million square feet added. Pitts said there are some out-of-state developers looking at big projects.

– Scott listed shifts in the retail area, highlighting disruptions like Amazon, millennials’ buying habits and the closings of some major retailers like Younkers. “It’s been changing so fast,” he said. The local shopping malls will have to change to be relevant, Scott said.