Des Moines Industrial Figures Q4 2022

Market Summary

–Overall warehouse & distribution vacancy rates decreased 69 basis points (bps) quarter-over-quarter, a result of just under 250,000 sq. ft. of positive net absorption in Q4 2022.

–Net absorption for the year was led by the Western Suburbs submarket with over 600,000 sq. ft. of positive absorption –driven by strong lease activity and relatively low levels of new supply.

–A strong Q4 brought the Greater Des Moines industrial market overall net absorption to over 500,000 sq. ft. on the year. Robust activity in both warehouse & distribution and flex property types drove market performance, accounting for over 90% of the total with five of the six submarkets experiencing positive net absorption for the year (Figure 1).

–Over 2 million sq. ft. of new space was delivered in 2022 with approximately 75% (1.5 million sq. ft.) of this space already leased. Record levels of development continue with over 2.3 million sq. ft. of space under construction going into 2023 and other new developments expected to break ground.