Principal places top office floors in "vacant mode"
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The top floors one of Primcipal Financial Group's Des Moines buildings was recently placed in "vacant mode." Photo: Jason Clayworth/Axios
Principal Financial Group recently placed the top five floors of one of its largest buildings in "vacant mode," Axios has learned.
Why it matters: Principal is one of the metro's largest employers, and its world headquarters contribute to the vibrancy of downtown DSM.
- The move follows recent decisions by other businesses and government agencies to consolidate and move out of downtown buildings.
Driving the news: A company memo obtained by Axios informed employees last month that, beginning March 28, they would not be able to access the seventh through 11th floors at 655 9th St., with elevators no longer programmed to stop on them.
- The building's sixth floor is also vacant but would remain available for project teams to use as needed, per the memo.
Flashback: The high-rise opened in 1987, three years before the completion of the company's 44-story building at 801 Grand Ave.
State of play: Principal invested hundreds of millions of dollars in campus renovations before pandemic disruptions required most employees to work remotely.
- In late 2023, the company mandated that most employees living near its downtown campus return to the office at least three days a week.
What they're saying: The vacant mode is part of an effort to evolve, modernize and assess the workspace, Principal said in a statement to Axios.
- The company, which holds over $300 million in Polk County real estate, did not respond to questions regarding future uses of the floors or the vacancy status in its other buildings.
- The company has not announced layoffs or downsizing efforts.
Yes, but: While technology allows the company to be more flexible, it remains committed to Iowa and DSM will continue to be its headquarters, president and CEO Deanna Strable told the Business Record last month.
The intrigue: The city of DSM is vacating three historic office buildings to consolidate staff into a former Nationwide building downtown.
- City Hall could be emptied next year after a recent eight-month search for redevelopment proposals received no response.
What's next: The federal government is selling the soon-to-be-vacated U.S. Courthouse downtown with bids ending April 30.
- The Neal Smith Federal Building was also recently identified as one that could be sold, although that was later updated and removed from the list.