According to the CBRE | Hubbell Commercial Q3 report, which was released on Tuesday, retail leasing activity continues to rebound from mid-pandemic levels as vacancy continues to tighten especially in the big box and downtown core.
The report shows:
- 11.9% vacancy – Neighborhood & community centers
- 2.9% vacancy - Big Box
This is a decrease of 190 bps through the first three quarters of 2021 and the number of available big boxes greater than 20,000 SF is now at six (6).
- 19% vacancy – Downtown, unchanged from Q2
Overall, year-to-date investment volume increased to $153 million in Q3 – eclipsing 2019’s record total of $139 million.
Most Notable Big Box transactions:
- Burlington Coat Factory, Jo-Ann Fabric and David’s Bridal leased a combined 85,000 SF in Clive
- Iowa Realty leased 23,000 SF from the former Fresh Market space in West Des Moines
- The former Gordman’s on Hubbell Ave. was purchased and will be converted into a 92,000 SF storage facility.
Ankeny, Altoona and Downtown sectors continue to account for a majority of the absorption gains in the year, with a majority of downtown’s absorption coming from the Gray’s neighborhood, south of MLK Jr. Parkway. Both LINC @ Gray’s Station and Gray’s Landing welcomed notable tenants Craft Bru, Table 128, Starbucks and Mad Meatball.
Speculative construction continues to grow, with 90 percent of the growth happening in either Grimes or Ankeny. Hubbell Construction Services continues their growth in Ankeny with Crosswinds Business Park II, a 225,000 warehouse expected to deliver mid-2022.
Read the full report HERE.