Positive absorption, higher rental rates and historically low vacancy rates have helped buoy the Des Moines area’s retail market, according to CBRE Inc.’s third-quarter market report.

In recent months, two large chunks of empty retail space have been removed from the market, pushing the vacancy rate in the metro area to 3.6%, slightly lower than the second quarter, when the vacancy rate was 4.1%. In 2023’s third quarter, the vacancy rate in the retail sector was 4.4%, according to the report.

Crunch Fitness is filling long-empty retail space at in the Southridge Square Shopping Center at 1200 E. Army Post Road in Des Moines, according to the report. Gordmans, a discount retailer, had previously occupied the 60,900 square feet of space. Richard Hurd, a local commercial real estate developer and broker, acquired the Southridge shopping center in late 2022.

In August, Eternity Church acquired over 62,000 square feet of vacant retail space at 5233 Stoney Creek Court in Johnston. The building previously had been occupied by AMC Classic Johnston 16 theaters.

Construction in the coming months of new retail space will likely trend toward single-tenant, free-standing buildings, the report said. Just over 500,000 square feet of the metro area’s 13.9 million square feet of retail space is available to lease. The limited supply “makes entry for new-to-market or expanding retailers difficult to achieve, especially for junior anchor or big-box occupiers. Locating available space on primary retail corridors remains problematic.”

To read the report, click here.