Markets · Des Moines–West Des Moines, IA MSA

Des Moines Industrial Market Report

Bluebird CRE Research · As of 2026 Q1 · Data: CoStar Group, www.costar.com

A steadily growing market with insurance, agribusiness, and distribution demand and constrained new supply.

7.0%
Vacancy
$7.85/SF
Asking Rent
$7.05/SF
NNN Rent
254K SF
Net Absorption (12 mo)
2.2M SF
Under Construction
9.2%
Market Cap Rate

Asking Rent / SF

2016–2026

Now $7.85 · +2.1% YoY

Vacancy Rate

2016–2026

Now 7.0%

Net Absorption (12 mo)

2016–2026

Now 253,570 SF

Annual figures through 2026 Q1. Source: CoStar Group, www.costar.com.

Market overview

As of 2026 Q1, Des Moines industrial vacancy stands at 7.0% with asking rents near $7.85/SF. The market absorbed 253,570 SF over the trailing year, and investment sale pricing implies roughly a 9.2% cap rate. Those are the figures that frame how we underwrite here.

Bluebird's read

A steadily growing market with insurance, agribusiness, and distribution demand and constrained new supply. Bluebird targets functional small-bay and IOS product here at a basis below replacement cost, with leasing and mark-to-market as the value-add levers.

Economy

Population
763,221
Total employment
411,609
Industrial employment
48,410
Median HH income
$88,311

Key submarkets

  • • Ankeny
  • • Grimes
  • • Altoona
  • • West Des Moines

Representative tenants

  • • Amazon
  • • Nationwide
  • • Wells Fargo
  • • Kreg Tool

Explore other markets

Columbus, OH
6.5% vacancy · $8.41/SF
Indianapolis, IN
7.6% vacancy · $7.71/SF
Milwaukee, WI
5.1% vacancy · $7.68/SF

Market data sourced from CoStar Group, www.costar.com (as of 2026 Q1); figures are point-in-time estimates and forecasts are not guarantees. Provided for informational purposes only and not an offer to sell securities. Past performance does not guarantee future results.

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