Q3 2025 Market Trends
The Des Moines industrial market consists of 82.1 msf of space in three counties across the metro. Overall there was (154,100) sf in negative absorption bringing YTD to 375,000 sf positive absorption. Q3 2025 finished with a 5.7% vacancy rate.
In third quarter 2025, the Des Moines industrial market showed clear signs of stabilization. Leasing velocity improved, and net absorption reached its highest level since early 2023.
Although vacancy hovered between 5.7% and 5.9% through 2025, the vacancy rate ended Q3 at 5.7% and appears near its cyclical peak as new construction continues to slow.
Des Moines remains one of the more affordable markets with rents coming in at $8.43/SF. That has dropped slightly from the beginning of the year, although has held pretty consistent since Q3 of 2023.
In the Des Moines market, average industrial rent stands at $8.43 per square foot, versus a national average of $12.04 per square foot, which is down nearly 2% since the start of 2025.
Vacancy Rate
Rent growth has continued to moderate. Q3 rents rose 1.3% quarter-over-quarter, but year-over-year growth decelerated by roughly 2.5 percentage points, dipping below the 10-year annual average of 4.4% and well off the recent three-year peak of 6.5%.
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