Almost one-third of Des Moines' downtown storefronts are vacant
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Some of the first-floor spaces have been vacant for years. Photos: Courtesy of the city of Des Moines
About one-third of the ground-floor commercial space in downtown Des Moines is vacant, prompting city economic development staff to propose a $7 million grant program this week to incentivize businesses.
Why it matters: A high vacancy rate could undermine the area's momentum and depress the city's tax base, despite hundreds of millions of dollars in recent investments and hundreds of new housing units.
State of play: City staff say the vacancies reflect a mismatch between older storefronts, built for pre-pandemic office traffic, and today's demand for smaller, more flexible, experience-oriented spaces — with remodel costs often too high for tenants.
The big picture: Des Moines isn't alone in its struggle with empty storefronts.
- Chicago leaders and downtown groups have explored ways to address Loop vacancies, Kansas City is using its Open Doors program to fill downtown spaces ahead of the World Cup, and Minneapolis' skyway system is increasingly turning to local retailers as national chains pull back.
- Milwaukee, Sioux City and St. Louis are among those that offer grants or rent-relief-style programs aimed at helping tenants cover buildout costs, improve storefronts and activate vacant commercial spaces.
How it works: The Restore the Core program would offer matching reimbursement grants of up to $200,000 for spaces that have been vacant for at least a year.
- The grants would help tenants pay for improvements like electrical, plumbing, accessibility upgrades, lighting, signage and façade work.
- Businesses would have to commit to staying in the space for at least 36 months and open to the public at least five days a week, five hours a day.
Zoom in: The targeted area would generally be bounded by Grand Avenue to the north, Martin Luther King Jr. Parkway to the south, the Des Moines River/riverfront to the east, and 15th Street to the west.
- Occupancy rates, new employment, visitor and foot traffic data and property valuations will be used to evaluate the program, Carrie Kruse, DSM's economic development administrator, tells Axios.
The fine print: Eligible businesses would include restaurants, retail, medical offices, veterinary services, recording studios and some bars.
- Ineligible uses would include tobacco and vape shops, liquor stores, professional offices, places of worship, nonprofits, schools, self-storage and utilities.
What's next: The City Council will be asked to formally approve the program at an upcoming meeting.
- Individual grant awards would still return to the council for approval.