The Des Moines office market achieved positive absorption last year for the first time since 2017, according to the latest research from JLL. This is an improvement from the average annual absorption of negative 251,000 square feet that this market had recorded from 2018 through 2024.
At the same time, the overall office inventory in the Des Moines market shrunk by about 210,000 square feet, JLL reported in its fourth quarter 2025 Des Moines office market report.
In 2025, the Des Moines market demonstrated robust leasing activity for office spaces exceeding 10,000 square feet, with new leases, expansions and relocations totaling 860,000 square feet, JLL reported.
Notable tenants driving this activity included Holmes Murphy, Athene, RSM, Mission Cancer and Veenstra & Kimm.
Limited new office construction in the Des Moines area has reduced modern office space availability, forcing users to reassess their space needs and talent strategies. Three speculative office projects totaling 30,000 square feet are currently under construction, JLL reported
The Des Moines-area office market saw some notable activity, too, during the fourth quarter. Bradford Allen, a Chicago commercial real estate firm, acquired Regency West from R&R Realty during the quarter for $15.5 million. The office park sits at the intersection of 50th Street and Westown Parkway in West Des Moines and encompasses eight buildings totaling approximately 616,000 square feet of rentable space across 44 acres. The buildings were originally developed by Mid-America Group in the 1980s.
High Properties, a Cedar Rapids-based company, acquired the Insurance Exchange building at 505 5th Ave. in Des Moines from The Graham Group for $4.3 million. The 136,000-square-foot, 10-story office tower will continue operating as office space under its new ownership. High Properties intends to preserve the building’s iconic Travelers umbrella sign on the east facade, maintaining this photographically popular downtown landmark.
Woodside Capital Partners acquired the ground lease for Dentons Tower at 215 10th St. from Healthcare Realty Trust for $7.23 million. The 13-story building encompasses 432,630 square feet and features four office floors positioned above a parking structure, with ground-level retail space.
Overall, the Des Moines-area office market recorded 204,147 square feet of positive absorption in 2025 while the office vacancy rate for this market ended the year at 16.2%. Class-A direct asking rent stood at $26.79 a square foot at the end of the fourth quarter of 2025, while overall direct asking rent hit $22.01 a square foot.
JLL reported that 91,230 square feet of new office space was under development in the Des Moines market as of the end of 2025.
