Des Moines is the insurance and financial services capital of the Midwest, producing more concentrated insurance and asset management employment per capita than any U.S. metro outside of Hartford. Principal Financial Group, Nationwide, Wells Fargo, Athene, EMC Insurance, and Voya Financial anchor a highly stable office market, while healthcare, agribusiness, and a growing data center corridor diversify the economy heading into 2026.

Des Moines Market Overview: Key Metrics

The Des Moines commercial real estate market in 2026 reflects a market shaped by Principal Financial Group, Nationwide, Wells Fargo, Athene, EMC Insurance, Voya Financial, UnityPoint Health, MercyOne, Corteva Agriscience (DuPont Pioneer), John Deere Financial, Microsoft data center operations. Here are the key metrics investors and borrowers should know:

  • Multifamily Vacancy: 5.8% — near the national average with healthy absorption
  • Industrial Vacancy: 4.5% — among the tightest markets nationally
  • Office Vacancy: 16.5%
  • Retail Vacancy: 5.5%
  • Rent Growth: 2.8% year-over-year
  • Job Growth: 1.6% — tracking near the national average
  • Population Growth: 0.9% annually
  • Median Asking Rent: $1,295

Multifamily Outlook in Des Moines

Des Moines multifamily vacancy of 5.8% and 2.8% rent growth reflect healthy fundamentals supported by financial services and healthcare hiring. Median asking rents of $1,295 are among the most affordable in growing Midwestern metros. Value-add opportunities are abundant in older product in downtown neighborhoods, while new Class A product in West Des Moines and Ankeny leases at premium rates to professionals.

Industrial & Logistics Market

Industrial vacancy at 4.5% reflects steady demand from insurance and financial services IT operations, regional distribution, agricultural supply chain, and the growing Microsoft data center corridor. Ankeny, Altoona, and the I-80 corridor anchor the market, with significant ongoing build-to-suit activity.

Office & Retail Dynamics

Des Moines office at 16.5% vacancy reflects remote-work adjustment, though downtown Class A and West Des Moines corporate product leased to insurance and financial services tenants has held relatively well. Retail at 5.5% vacancy benefits from stable household incomes and steady population growth, with Jordan Creek, Valley West Mall, and the East Village anchoring the retail map.

Financing Landscape in Des Moines

Des Moines attracts substantial lender interest given the metro's exceptional stability. Life insurance companies naturally dominate the market given the local insurance ecosystem, agency multifamily execution is competitive, regional banks maintain deep financial services relationships, and CMBS conduits are active in institutional transactions.

For borrowers in the Des Moines-West Des Moines area, current commercial mortgage rates range from 5.50% for agency multifamily to higher rates for transitional and value-add projects. Key factors that influence your rate include property type, leverage, sponsor experience, and asset location within the metro.

Top Submarkets to Watch

The Des Moines metro features several distinct submarkets that present unique investment opportunities:

  • Downtown Des Moines
  • East Village
  • Court Avenue
  • Western Gateway
  • Sherman Hill
  • Beaverdale
  • Drake University Area
  • West Des Moines
  • Jordan Creek
  • Waukee
  • Urbandale
  • Clive
  • Ankeny
  • Johnston
  • Grimes
  • Altoona

Each of these submarkets has distinct characteristics in terms of tenant demand, development activity, and pricing. The top investment corridors in Des Moines include Downtown Des Moines (Court Avenue, East Village, Western Gateway), West Des Moines (Jordan Creek), Urbandale, Ankeny, Waukee, Altoona.

Investment Outlook: Des Moines 2026

Long-term fundamentals remain highly stable as insurance, financial services, and healthcare employment provide durable anchor demand. The strongest 2026 opportunities are value-add multifamily in downtown neighborhoods, industrial serving the Microsoft data center corridor, and medical office supporting UnityPoint and MercyOne growth.

CLS CRE in Des Moines

CLS CRE provides commercial mortgage brokerage services throughout the Des Moines-West Des Moines metropolitan area, with access to 1,000+ lenders including banks, life insurance companies, CMBS conduits, agency lenders, debt funds, and credit unions. Whether you're acquiring, refinancing, or developing commercial property in Des Moines, our market expertise and lender relationships help you secure the most competitive terms available.

Explore our financing programs for Des Moines: