Des Moines, Illinois’ retail sector continues to maintain historically low vacancy rates, according to CBRE’s latest market analysis. In the first quarter, the overall retail vacancy rate held steady at five percent.
The northeast and central business districts led the way with the lowest vacancy rates, at just 1.4 percent and 2.9 percent, respectively. Among retail property types, street, freestanding, and other assets also demonstrated resilience, averaging a vacancy rate of 2.9 percent.
Net absorption remained positive, totaling 90,027 square feet for the quarter. Notably, nearly 90 percent of this demand came from the Western Suburbs submarket.
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Asking lease rates reached $17.74 per square foot NNN, which is an 89-cent increase from the fourth quarter.
"Retail continues to remain a favorable investment product sought by investors, spurred by favorable market fundamentals, including limited new inventory, consistent rent appreciation, and low vacancy," CBRE summed up in the report.
"The set of interested buyers in quality retail product continues to expand."
Retail sales investment volume was just under $20 million in the first quarter. It's unclear if that was a decline or an increase from the previous three months. The largest sale involved Silverstar Car Wash, which went for about $4.90 million. That was followed by a Chipotle store in Grimes for $3 million and a property at 3000 100 St in Urbandale that traded for $2.93 million.
Looking into 2025, CBRE said that the retail fundamentals in Des Moines remain strong as construction will remain scarce. The one challenge is construction costs for developers due to tariffs — but overall the CRE firm is bullish.
"Lease rate growth will remain strong in 2025," CBRE forecasted.
"Strong retail centers will continue to achieve 2-3% rent growth year-over-year, being that there is a limited supply of relocation opportunities for retailers."
It added that vacancy rates will remain at historical lows.
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