Des Moines Industrial Market Vacancy Rates Improve
The local industrial market saw increased occupancy during the third quarter of 2026.
Updated on Oct. 28, 2026 in Commercial
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Industrial occupancy in Des Moines grew during the third quarter of 2026 as leasing activity helped absorb available space. Positive market absorption successfully offset new construction deliveries in the region.
Why it matters
Tenants in the area are prioritizing functional second-generation space and lower occupancy costs to remain competitive. Meanwhile, developers face persistent headwinds from rising construction and transportation costs alongside a high demand for skilled labor.
CBRE reports a 7.4 percent market vacancy rate and 316,400 square feet of net absorption. Additionally, 895,600 square feet of industrial space is currently under construction.
The players
CBRE
A global commercial real estate services and investment firm that provides market analysis and research data.
Franzenburg Centrifuge
A company that recently expanded its local footprint through the acquisition of two industrial properties.
Next Phase Development
A real estate development firm that served as the seller for the 7700 and 7901 SW 22nd St. properties.
Red Boot Beverages
A business that secured a large-scale lease at 5844 NE 19th St. to support its local operations.
The details
Activity was bolstered by significant transactions, including the acquisition of 7700 and 7901 SW 22nd St. by Franzenburg Centrifuge and a 275,000-square-foot lease by Red Boot Beverages. Currently, 12 buildings remain available for lease in the market, with five speculative industrial spaces still vacant.
Timeline
The industrial market vacancy improvement occurred during Q3 2026.
Culture Shift
This growth follows the pattern set by the CBRE industrial market net absorption metrics. It reflects a broader shift toward optimizing logistics footprints to manage rising overhead costs.
Local businesses may face tighter competition for high-quality, move-in-ready industrial spaces due to increased absorption rates. Additionally, tenants may see upward pressure on lease rates as the volume of available speculative inventory continues to decrease.
The takeaway
Businesses looking to expand should prioritize securing functional second-generation facilities to mitigate higher new construction costs. Companies should also monitor upcoming construction deliveries to identify potential gaps in industrial availability.
Further reading
Learn more about local property trends in the Des Moines Commercial section.
Source note: This article includes information reported by Business Record.
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