Des Moines' office vacancy rates are lower than U.S. average
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Des Moines' office vacancy rates are lower than the rest of the country's, but they still haven't returned to pre-pandemic levels, per Moody's latest tally.
Why it matters: The return-to-office push picked up momentum last year, but plenty of workers are still in hybrid or remote setups — so employers don't quite need as much office space as they did before 2020.
State of play: Wells Fargo was the biggest driver behind vacant office space last year due to the company vacating its downtown offices and consolidating its West Des Moines campus off Jordan Creek Parkway, according to CBRE.
- Downtown's vacancy jumped from 14% to 22.2%, largely due to Wells Fargo.
Yes, but: 2024 ended with some major office sales, the majority of them downtown, CBRE reports.
- An undisclosed buyer is expected to purchase downtown's former Wells Fargo campus, including four buildings and an eight-story parking garage, though details haven't been released yet.
Zoom in: Justin Lossner, a broker with JLL, tells Axios that leases and closings went up in December and January. He says there's "significant" office deals pending for the former Wells Fargo mortgage building in West Des Moines, as well as new leases at the 801 Grand building.
- There are also several requests for proposals for the Riverview project, including a potential tenant for 60,000 square feet.
- In the last 30 days, Lossner says, he's signed three deals for the Westridge Office Park complex for 5,000, 7,000 and 17,000 square foot spaces.
By the numbers: In 2007, prior to the Great Recession, vacancy rates were 12% in the metro, per Moody's. As of 2024, they're a little higher at 15%.
- Nationwide, vacancies are around 20.4%, per Moody's latest tally.
Yes, but: Chris Diebel, a managing partner of Bubba, tells Axios that the daytime crowd still isn't at the same levels as pre-pandemic.
- He's hopeful things will improve when American Equity and city officials move into the Western Gateway area in 2026.
- But until then, he expects lunches will remain sluggish and dinners will be where the activity is.
- "We're budgeting for a relatively flat 2025," Diebel says.
Go deeper: These major companies want workers back in the office