Des Moines Industrial & Warehouse Market Report | Q3 2026
Key Takeaways
- Des Moines industrial vacancy fell 30 basis points to 7.4% in Q3 2026, according to CBRE, as net absorption totaled 316,000 SF.
- Tenants signed 973,452 SF of leases, the most in any quarter this year, up from 634,831 SF in Q2.
- CBRE’s average asking rent edged up to $6.70/SF/yr, from $6.66 in Q2 and $6.57 in Q4 2025.
- 896,000 SF is under construction across 12 properties, down from 956,000 SF across 14 in Q2, and deliveries slowed to 115,000 SF.
Browse warehouse space for rent in Des Moines
7.4%
Overall Vacancy (Q3 2026, CBRE)
$6.70
Avg. Asking Rent ($/SF/yr, CBRE)
316K
SF Net Absorption (Q3 2026)
896K
SF Under Construction
Des Moines’ industrial market kept improving in Q3 2026. CBRE reports vacancy down 30 basis points to 7.4% on 316,000 SF of net absorption, a smaller gain than Q2’s 970,000 SF, as only 115,000 SF of new space delivered. Leasing rose to 973,452 SF, the strongest quarter of the year, and the average asking rent edged up to $6.70/SF/yr. The metro sits at the I-80 and I-35 interchange.
This edition uses CBRE’s Q3 2026 Des Moines Industrial Figures for metro totals. Cushman & Wakefield has not published a local Q3 2026 Des Moines MarketBeat, and its Q3 2026 U.S. Industrial MarketBeat shows Des Moines at its Q2 vacancy and rent with zero Q3 absorption and leasing, so the C&W national figures used in earlier editions are not comparable with the CBRE totals below. Prior-quarter figures are as restated in CBRE’s Q3 release. Submarket detail still comes from C&W’s latest local report, the Q1 2026 Des Moines Industrial MarketBeat, which uses its own dataset.
Market Snapshot: Q3 2026
| Metric | Q3 2026 | Q2 2026 (restated) | YoY or note |
|---|---|---|---|
| Overall vacancy (CBRE) | 7.4% | 7.7% | −30 bps QoQ; Q2 first published at 7.5% |
| Average asking rent ($/SF/yr, CBRE) | $6.70 | $6.66 | $6.57 in Q4 2025 |
| U.S. vacancy (CBRE) | 6.4% | n/a | −20 bps YoY nationally |
| Net absorption | 316,000 SF | 970,000 SF | Q2 first published at 982,000 SF; −439,000 SF in Q4 2025 |
| Leasing activity | 973,452 SF | 634,831 SF | Highest quarter of 2026; Q4 2025 peak 1.56M SF |
| Deliveries | 115,000 SF | 257,000 SF | Quarterly figures |
| Under construction | 896,000 SF | 956,000 SF | 12 properties (14 in Q2) |
| C&W national-table vacancy; rent | 7.6%; $7.24 | 7.6%; $7.24 | Q3 row repeats Q2 values with no Q3 absorption; not used |
Source: CBRE, Des Moines Industrial Figures Q3 2026 (Q2 2026 as restated by CBRE; first-published Q2 figures from CBRE’s Q2 2026 release); CBRE, Q3 2026 U.S. Industrial & Logistics Market Report (U.S. vacancy); Cushman & Wakefield, U.S. Industrial MarketBeat Q3 2026, Des Moines row.
Rent Trends: Up to $6.70/SF in CBRE’s Q3 Figures
CBRE’s average asking rent was $6.70/SF/yr in Q3 2026, up from $6.66 in Q2 and $6.57 in Q4 2025. The gains are small, but they point the same way as the improving vacancy and leasing figures.
Rents differ by product and location. In C&W’s local Q1 2026 report, warehouse/distribution space asked $6.82/SF/yr, office/service industrial space $10.27, and new construction $11.06. Warehouse rents ranged from $5.41/SF/yr in Ankeny to $7.30 in the Western Suburbs.
For Tenants
Tenants still have options, but the window is narrowing. At 7.4% in CBRE’s figures, vacancy is above CBRE’s U.S. rate of 6.4%, and rents are edging up. Leasing is accelerating, with 973,452 SF signed in Q3. Big-box users should look at the Northeast and Western Suburbs, which had the most vacant space in C&W’s Q1 local report. Newly built space asks a premium. Search Des Moines warehouse listings on WareCRE.
Construction Pipeline: 896,000 SF Underway
CBRE counts 896,000 SF under construction across 12 properties at the end of Q3, down from 956,000 SF across 14 properties in Q2 and 1.18 million SF in Q1 2026. Deliveries slowed to 115,000 SF in Q3 from 257,000 SF in Q2. In its Q1 local report, C&W described the 1.16 million SF then underway as the highest pipeline since late 2022, with the Northeast holding the most, 645,645 SF.
CBRE describes new supply as still high but slower than earlier in the year, and its Q3 summary credits strong leasing for the improvement in occupancy.
For Operators
Demand is improving and the pipeline is shrinking, which helps owners. Owners of older warehouse space should still expect competition from new buildings, which asked $11.06/SF/yr in C&W’s local Q1 figures, and from the 896,000 SF still under construction.
Submarket Breakdown
C&W’s local report divides Des Moines into six submarkets. The figures below are from the Q1 2026 local MarketBeat, the latest available. That report’s metro vacancy was 8.1%, compared with 7.4% in CBRE’s Q3 figures, because the two use different datasets and periods. The four largest submarkets hold most of the inventory.
Northeast (Altoona, Bondurant)
The largest submarket at 29.1 million SF, with direct access to the I-80/I-35 interchange. Vacancy was 8.6% in Q1 and warehouse space asked $6.45/SF/yr. It recorded negative absorption of 249,130 SF, driven by a 265,200 SF move-out at Altus Commerce in Altoona. It also had the 270,000 SF Baker Group lease in Altoona that C&W says anchored Q1 leasing, and the most space under construction, 645,645 SF.
Western Suburbs (West Des Moines, Waukee)
A 25.0 million SF submarket that led Q1 absorption with 315,141 SF. Vacancy was 9.2%, the highest of the four largest submarkets, and warehouse space asked $7.30/SF/yr, the highest in the metro. It delivered 215,344 SF of new construction in Q1.
Northwest
A 9.6 million SF submarket with 6.3% vacancy and warehouse rents of $6.52/SF/yr. It posted negative absorption of 113,621 SF in Q1 and had 210,998 SF under construction.
South
A 7.8 million SF submarket with 6.6% vacancy and warehouse rents of $6.61/SF/yr. It absorbed 85,098 SF in Q1 and had 120,601 SF under construction.
| Submarket (Q1 2026) | Vacancy | W/D Asking Rent ($/SF/yr) | YTD Net Absorption (SF) | Under Construction (SF) |
|---|---|---|---|---|
| Northeast | 8.6% | $6.45 | -249,130 | 645,645 |
| Western Suburbs | 9.2% | $7.30 | 315,141 | 191,220 |
| Northwest | 6.3% | $6.52 | -113,621 | 210,998 |
| South | 6.6% | $6.61 | 85,098 | 120,601 |
| Ankeny | 3.7% | $5.41 | 7,849 | 0 |
| CBD | 9.6% | $6.99 | 3,052 | 0 |
| Des Moines total (local basis) | 8.1% | $6.82 | 48,389 | 1,168,464 |
Source: Cushman & Wakefield Alliance, Des Moines Industrial MarketBeat Q1 2026, market statistics table. Rents are base asking rates per year. These local statistics are not comparable with the CBRE metro totals above.
Co-Warehousing & Flexible Warehouse Space in Des Moines
Flex space in Des Moines asks far more than standard warehouse space. In C&W’s local Q1 2026 report, office/service industrial space, the category that includes most flex product, asked $10.27/SF/yr, against $6.82 for warehouse/distribution space.
Flexible-space users in Des Moines range from e-commerce businesses using the metro’s central location to agricultural technology and ag-processing companies. Insurance and financial services firms take space for records storage and fulfillment, as do construction trades and food producers and distributors.
Browse available co-warehousing and small-bay warehouse listings on WareCRE’s Des Moines marketplace.
Looking for warehouse space in Des Moines?
Key Trends to Watch
1. Absorption Slowed but Stayed Positive
CBRE recorded 316,000 SF of net absorption in Q3, following 970,000 SF in Q2 and a loss of 439,000 SF in Q4 2025. Quarterly absorption has swung widely, from 1.05 million SF in Q2 2025 to that Q4 loss, so a single quarter says little on its own. For broader context: Industrial Real Estate Trends & Outlook 2026.
2. Leasing Is Running Ahead of Last Year
Tenants signed 973,452 SF in Q3, up from 634,831 SF in Q2 and 630,892 SF in Q1, for 2,239,175 SF so far this year (WareCRE calculation). CBRE’s figures imply about 1.66M SF for the first three quarters of 2025 (3.22 million SF for the year less 1.56 million SF in Q4). Read more: Small-Bay vs. Big-Box: What the Vacancy Gap Means in 2026.
3. Data Centers Are Competing for Industrial Land
C&W reports that Des Moines’ emergence as a data center hub accelerated in Q1, when the City of Norwalk approved a $12 billion, 282-acre data center project by Denver-based Tract. Tract also acquired 453 acres in Altoona in 2025. Large land purchases like these can limit sites for future warehouse development in the same corridors.
Outlook: What to Watch in Early 2027
Year-end 2026 reports from CBRE and C&W are expected in January. For Des Moines, also watch for an updated local C&W report, since the latest local figures date from Q1.
Watch whether vacancy keeps falling from CBRE’s 7.4%. With deliveries down to 115,000 SF, new supply is adding less vacant space each quarter.
Watch whether Q3’s leasing turns into occupancy. The 973,452 SF signed in Q3 should show up as absorption as tenants move in.
Neither CBRE’s summary nor C&W’s Q1 local report breaks out preleasing on the pipeline. New deliveries that arrive vacant would push vacancy back up.
Find warehouse space in Des Moines
Browse co-warehousing, small-bay, and distribution listings across the Des Moines metro.
Data sources: CBRE Des Moines Industrial Figures Q3 2026 (metro totals; Q2 2026 as restated by CBRE) and Q2 2026; CBRE Q3 2026 U.S. Industrial & Logistics Market Report (U.S. vacancy); Cushman & Wakefield Alliance Des Moines Industrial MarketBeat Q1 2026 (submarket, product-type and local context figures; rents base asking, $/SF/yr); Cushman & Wakefield U.S. Industrial MarketBeat Q3 2026 (Des Moines row, not refreshed for Q3). Each report reflects the most recent vacancy, rental, and construction data available at the time of publication. We refresh our reports as new market data is released, and we’re continually expanding coverage to additional metros.
Related Resources
Frequently Asked Questions
What is the current industrial vacancy rate in Des Moines?
Des Moines industrial vacancy was 7.4% in Q3 2026, according to CBRE, down 30 basis points from 7.7% in Q2. Cushman & Wakefield has not published updated Q3 figures for the metro.
How much does warehouse space cost in Des Moines?
CBRE’s average asking rent was $6.70/SF/yr in Q3 2026, up from $6.66 in Q2. In C&W’s local Q1 report, warehouse/distribution space asked $6.82/SF/yr, office/service industrial space $10.27 and new construction $11.06.
Which Des Moines submarket is best for warehouse space?
It depends on the requirement. The Northeast, around Altoona and Bondurant, is the largest submarket at 29.1 million SF, with direct I-80/I-35 access and the most construction underway. The Western Suburbs led Q1 absorption and have the highest warehouse rents. Ankeny is the tightest submarket at 3.7% vacancy.
How much industrial space is under construction in Des Moines?
CBRE counts 896,000 SF under construction across 12 properties at the end of Q3 2026, down from 956,000 SF across 14 properties in Q2. Deliveries totaled 115,000 SF in the quarter.
What are the Des Moines industrial market trends in 2026?
Demand is recovering after negative absorption in Q4 2025. CBRE’s vacancy fell to 7.4% in Q3 on 316,000 SF of net absorption, and leasing reached 973,452 SF, the strongest quarter of 2026. Rents are edging up at $6.70/SF/yr. Data center projects, including Tract’s $12 billion Norwalk campus, are a growing source of land demand.
