Des Moines Office Figures Q4 2023

Another year of negative absorption in the Des Moines office market.

January 10, 2024 5 Minute Read

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The Des Moines office market ended the year with an overall vacancy rate of 12.9%. Overall vacancy rates remained largely flat quarter-over-quarter, experiencing a decrease of 30 basis points (13.2% to 12.9%).
Overall net absorption was negative 256,354 sq. ft. in 2023, with four of the six submarkets recording negative absorption. The Western Suburbs accounted for over 80% of that negative absorption. (Figure 2)
Total Sublease availability increased slightly in 2023 to just over 174,000 sq. ft., up from 168,000 sq. ft. at the end of 2022. (Figure 4)
Asking lease rates in the overall market decreased 7.2% year-over-year ($13.66 per sq. ft. to $12.67 per sq. ft.) The highest asking lease rates in the market originate in the City of Waukee (part of the Western Suburbs submarket) with an average asking rate of $16.34 per sq. ft.
The CBD office vacancy rate decreased 60 basis points year-over-year (17.9% to 17.3%).