This article provides a detailed overview of the availability and characteristics of Class A office space in the Central Business District (CBD) of Des Moines, as analyzed by brokerage firms CBRE and Colliers.
Key Highlights:
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Current Availability: As of September 21, approximately 1.05 million square feet of Class A office space is available in the CBD, with an additional 600,000 square feet in suburban communities.
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Vacancy Rates: The CBD has a vacancy rate of about 17%, while the suburbs are at around 16.2%.
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Distribution of Space:
- Most larger spaces are found in the downtown area, concentrated in major buildings like the Skyview Building, Capital Square, and Hub Tower.
- Suburban Class A space is more dispersed across numerous buildings.
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Market Demand: Companies are increasingly focused on the amenities that Class A spaces offer, including modern lobbies, shared conference rooms, and convenient parking options.
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Space Size Preferences:
- More than half of the available Class A space includes smaller units under 25,000 square feet, with a significant portion under 10,000 square feet.
- Tenants have specific requirements concerning size and location, influencing their choices significantly.
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Challenges for Aging Buildings: Some older buildings, like those in Capital Square and Ruan Center, are struggling to attract tenants compared to newer buildings that have better amenities.
This assessment indicates a dynamic market with varying options depending on location and specific tenant needs.
