Des Moines Industrial Figures Q3 2026

In Q3 2026, the market showed improving occupancy supported by strong leasing activity while new supply remained elevated but moderated from earlier in the year. Net absorption totaled 316,000 sq. ft., following 970,000 sq. ft. in Q2 2026, as vacancy fell from 7.7% to 7.4%, a decline of 30 basis points.  Tenants signed 973,452 sq. ft., up from 634,831 sq. ft. in Q2 2026 and 630,892 sq. ft. in Q1 2026, underscoring continued demand for space. Average asking rent edged up to $6.70 per sq. ft., compared with $6.66 per sq. ft. in Q2 2026 and $6.57 per sq. ft. in Q4 2025, while the construction pipeline eased to 896,000 sq. ft. across 12 properties from 956,000 sq. ft. across 14 properties in Q2 2026, and quarterly deliveries stepped down from 257,000 sq. ft. to 115,000 sq. ft.

Under-construction space expanded from 820,000 sq. ft. in Q3 2023 to 1.18 million sq. ft. in Q1 2026, keeping supply pressure high as vacancy began to improve. Net absorption swung between contraction and strong growth, including 1.05 million sq. ft. in Q2 2025 and negative 439,000 sq. ft. in Q4 2025, while annual leasing rose to 3.22 million sq. ft. in 2025 and stayed elevated in 2026, with the strongest quarter in Q4 2025 at 1.56 million sq. ft.