Market Reports

Downtown Sioux City Experiencing Explosive Growth, Transformation

by Kristin Harlow September 10, 2020

By Marty Dougherty, City of Sioux City Downtown Sioux City, Iowa is currently experiencing growth and transformation on an unprecedented scale. This emerging and vibrant place is not only celebrating its rich and colorful history with multiple historic property renovations, but has made strides to re-invent itself and take the downtown to new levels. These efforts include the growth of new residential options, an increasing number of cultural attractions and quality-of-life amenities, new entry corridors and a commitment to an extraordinary and ever-evolving riverfront park. This energy and economic activity offers a range of development opportunities, including residential, office, retail and entertainment. While COVID-19 has had some minor impacts, all of the ongoing downtown construction projects have been able to stay on track and are being completed on schedule, as of the writing of this article. Reinvestment district Over $150 million in public and private capital is currently being invested in a 25-acre downtown reinvestment district. This entertainment, cultural and residential district has been designed to extend from the downtown’s entryway directly into the heart of downtown. The district features four signature projects, with a total of 10 public or private buildings that will be fully completed in 2020. These …

September 10, 2020

Iowa Market Reports Midwest Midwest Market Reports Mixed-Use

Flood of Development Activity Continues in Cedar Rapids

by Kristin Harlow August 22, 2019

As I have enjoyed writing in six previous August articles since 2013, we have seen Cedar Rapids, the 2014 “All-America City,” go from flood recovery in 2008 and 2016 to record levels of development. The city set a record for building permits in fiscal year 2018 of $375 million, which was $133 million over the previous year and $29 million more than the 2012 record by $29 million. Activity in fiscal year 2019 is estimated to be a very impressive $320 million. Flood protection system reached another milestone on Nov. 22, 2018, when the city and Army Corps of Engineers officially signed the agreement for $117 million of federal funds to allow the entire east side of the river flood protection system to be completed within five years. The west side is being funded through a state sales tax rebate program and 10 years of flood bonds to allow the entire $750 million flood protection system to be completed in the next decade. This year there are already four sections under construction with several additional portions being bid over the next several months. The flood protection system will not be just berms or walls that will block the view of …

August 22, 2019

Iowa Market Reports Midwest Midwest Market Reports Office

Office Amenities Drive Tenant Decisions in Des Moines Market

by Kristin Harlow June 20, 2019

In the last few years, the greater Des Moines metro area has been a title holder, reigning as a “Top Place to Live,” “Top City for Young Professionals” and even “Best Place to Retire.” Meanwhile the economy, business environment and commercial real estate sector hold titles like steady, stable and reliable. However, over the past 24 months, the commercial office market could add thriving, prosperous and robust to that list of adjectives. As office lease rates continue to rise 1.5 to 2.5 percent annually in quality buildings, most landlords are implementing capital improvement plans that “refresh” their assets and have begun to offer amenity packages that the tenant marketplace demands. With the unemployment rate near a historical low — an estimated 2.4 percent — it has become ever more critical and competitive to recruit and retain new workforce talent. Lease concession offerings from landlords, such as rent abatement and above-standard tenant improvement packages, have decreased since post-recession levels. Despite these positive fundamentals, headwinds are facing the marketplace. A tremendous amount of block space, some from formerly non-competitive or single-tenant buildings, has come available and concession levels could once again increase as landlords compete for tenants looking for a larger footprint. …

June 20, 2019

Iowa Market Reports Midwest Midwest Market Reports

Development Activity in Cedar Rapids Abounds Across Property Sectors

by Kristin Harlow August 9, 2018

In a series of citywide events on June 13, the city of Cedar Rapids celebrated the recovery efforts from the historic flood of 2008 that crested that day 10 years ago. The events also remembered those that lost so much in the residential and business community. Many are still impacted by this natural disaster. As I have previously noted in past articles, the city’s recovery efforts have been nationally recognized, including: • All-America City Award in 2014 from the National Civic League, which recognizes communities where citizens work to identify and overcome citywide challenges and achieve uncommon results. • Phoenix Award in 2018 from the American Planning Association for outstanding achievement and innovation relating to environmental and community issues in the NewBo District redevelopment after the 2008 flood. • In July, Cedar Rapids ranked No. 13 on WalletHub’s list of the “Best-Run Cities in America.” The study compared the operating efficiency of 150 of the largest U.S. cities. But more than the above recognition, Cedar Rapids city government, businesses and citizens joined together to use temporary flood projection of earthen berms and sand filled defensive (Hesco) barriers to hold back a major flood event in September 2016, limiting damage to …

August 9, 2018

Iowa Market Reports Midwest Midwest Market Reports Retail

Outlets of Des Moines Fills a Retail Void in the Metro Area

by Kristin Harlow June 28, 2018

Outlets of Des Moines brings some of the best brand names in retail to the Des Moines metropolitan area, one of the strongest economies in the country. Retailers include such favorites as American Eagle, Asics, Bath & Body Works, Brooks Brothers, Converse, Express Factory Outlet, francesca’s, Le Creuset, Levi’s, LOFT Outlet, Lucky Brand Jeans, Michael Kors, Nike Factory Store, Skechers, Tommy Hilfiger, Vera Bradley and Under Armour. Since Outlets of Des Moines opened in October 2017, hundreds of thousands of local and regional residents have visited the Des Moines region’s newest shopping destination. Located at an established area for entertainment and shopping, the site is easily accessible to the residential trade area of nearly 1 million. With no major outlet center located within 80 miles, the 300,000-square-foot property fills a void in this populous market. New England Development’s newest shopping destination, Outlets of Des Moines has an unparalleled location in this major metropolitan market. Some features include: • Six miles from downtown Des Moines, the capital of Iowa and the most populous city in the state • At the intersection of I-80 and US-65 in Altoona, an established destination for entertainment and shopping • Located at the same exit as …

June 28, 2018

Industrial Iowa Market Reports Midwest Midwest Market Reports

Des Moines Industrial Sector Can Compete With Other Tech-Centric Markets

by Kristin Harlow June 21, 2018

When hearing the names Apple, Microsoft, Google and Facebook, one’s mind might automatically shift to the Silicon Valley: the West Coast mecca of technology and computing. But you can find those same companies in the corn and soybean fields of Iowa. The state has become synonymous with state-of-the-art data centers for these familiar technology companies and others. When I recently attended a Society of Industrial and Office Realtors (SIOR) conference in Austin, Texas, I was asked by many of my peers what is happening in Iowa. I casually referenced this impressive list of technology companies and I began to field questions from inquisitive industry professionals. Why Iowa, they ask? “Simple,” I say. “Affordable, renewable energy and lower cost, abundant water.” In August 2017, Apple announced its plans to purchase 2,000-plus acres in Waukee, a western suburb of Des Moines. The technology giant will construct the first phase of its 400,000-square-foot, cloud-based data center and the center’s power consumption will be 100 percent fed by renewable fuels, primarily wind energy provided by Mid-American Energy. The announcement of this landmark project drew so much attention that Apple CEO Tim Cook joined Governor Kim Reynolds for the announcement, stating his excitement for the …

June 21, 2018

Iowa Market Reports Midwest Midwest Market Reports

Increased Development Activity in Cedar Rapids Flows Across Property Types

by Kristin Harlow August 10, 2017

These are momentous times for the Cedar Rapids economy. On the jobs front, the unemployment rate for the Cedar Rapids area stood at 3.2 percent in May, even tighter than the national unemployment rate of 4.3 percent for the same period. Meanwhile, the housing market recorded its lowest inventory of housing on the market in two years with 1,482 active listings in June 2017, 540 less than June 2015. On average, the number of days that houses were on the market dropped from 87 to 62 in the last year-and-a-half, while the median house price increased to $166,646. The city has seen dramatic housing, commercial and industrial growth in the last several years. Municipal and business leaders are addressing several issues, including: • affordable housing for entry-level workers and those earning 30 to 50 percent of the area median income; • recruitment of workers to fill an abundance of job openings; • more recreational, retail and cultural opportunities to attract Millennials to the city to fill the job openings; • completion of the flood protection system to reinforce the confidence of developers in creating projects along the Cedar River. What follows is an update on the performance of the major …

August 10, 2017

Iowa Market Reports Midwest Midwest Market Reports Multifamily

Population Growth Sparks Apartment Development Wave in Des Moines

by Kristin Harlow June 29, 2017

While recently visiting a local Starbucks, I noticed an employee behind the counter with a tattoo in the shape of California. I decided to ask the barista if she was from the Golden State, and indeed she was. I asked what brought her to Des Moines, thinking she would say family or a love interest, but I was wrong. She had read and heard so much positive press about the Des Moines area that she decided to give it a shot. She started applying for jobs online and landed one with Wells Fargo, the largest employer in Des Moines. Working at Starbucks was her second gig. I asked if she lived in the suburbs. She replied, “Nope, I live downtown and work in the suburbs.” Population surge This anecdotal story is pretty common these days. Young people are flocking to Des Moines like never before. I have lived in Des Moines nearly 40 years, and never have I seen the growth we are currently experiencing. Much of it has to do with the quality of life. We don’t yet have a rush hour — we call it rush minutes. The cost of living is reasonable, and young people stand a …

June 29, 2017

Industrial Iowa Market Reports Midwest Midwest Market Reports Mixed-Use Multifamily Office Retail Uncategorized

Sioux City Experiences ‘Crane Craze’ Across Property Types

by Christina Cannon September 1, 2016

The skies are dotted with cranes — not the type you would find on route west to the Sandhills of Nebraska, but the type synonymous with a robust economy. It is safe to say there have never been so many cranes at work in the history of Sioux City. Several large industrial projects are resulting in further development of retail and multifamily space that has been in demand for some time in Sioux City. Retail, entertainment wave Helping to draw residents and visitors alike out into the streets of Sioux City is the $130 million Hard Rock Hotel & Casino. The Hard Rock replaced the floating Argosy riverboat casino in a first-in-the-state competitive bidding war for a land-based casino. Due to the popularity of the development since it opened in August 2014, the Hard Rock already has plans to add an $8 million casino expansion by the end of the year. Hard Rock has played a vital role in making Sioux City a regional, cultural and entertainment destination. Dallas-based Anthony Properties is planning to deliver 350,000 square feet of retail space by the summer of 2018. The 64-acre site, located at the intersection of Sunnybrook Drive and Sergeant Road, is …

September 1, 2016

Iowa Market Reports Midwest Midwest Market Reports Mixed-Use Multifamily Office Retail

Cedar Rapids Real Estate Market Stays Hot As Flood Recovery Efforts Wind Down

by Christina Cannon August 24, 2016

The historic flood of June 2008 is becoming a distant memory as the city of Cedar Rapids prepares for the dedication of the new Northwest Recreation Center, the last public facility to be completed as part of the flood recovery project. The dedication ceremony is slated for Thursday, Aug. 25. The recovery has led to a revitalization of many flood-impacted areas in the city, ranging from residential neighborhoods to the downtown business district. Now the momentum is turning toward several new projects: • This month, tenants will begin moving into the 11-story CRST tower downtown, which features 300 feet of the new flood protection system. • A 28-story, mixed-use tower is being proposed on city-owned property downtown. The development may contain retail, office, hotel and residential space led by Allen Development, an Iowa City developer. • Over 10 downtown housing projects are under construction that will create almost 400 new condo and apartment units, which will bring our core closer to a live-work-play environment. These projects are also putting vacant retail and office buildings to new uses. • The Czech Village-New Bohemia neighborhood continues to grow with historic buildings being renovated and repurposed while augmenting exciting new construction featuring retail, …

August 24, 2016

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