Developers high on Northpark’s potential
As business parks in Des Moines’ western suburbs continue to build out, some developers are turning northward, where a booming residential market and prime interstate access give them reason to believe the land they’ve been eyeing for more than five years is now in high demand.
“Access to the interstate and the interstate exposure are two very important elements,” said Mike Carver, a commercial real estate broker with land owner Grubb & Ellis/Mid-America Pacific LLC. “”You find more and more national companies that are looking for that kind of visibility. The other thing you have is that part of the city not only has office park development, but also an explosion of high-quality residential development in Urbandale and Johnston. And people like to work relatively close to where they live.”
Until last fall, the 75-acre development along Northpark Drive in Urbandale, a product of the 86th Street interchange with Interstate Highways 35/80, consisted solely of the Hilton Garden Inn and the corporate headquarters of Rain & Hail LLC, a three-story, Class A office building.
But development is gaining steam. Construction was completed last month on a 9,100-square-foot building that fronts 86th Street and is occupied by Planet Sub, U.S. Cellular, First Federal Bank and Starbucks, the coffeehouse chain’s first drive-through location in Greater Des Moines.
A two-story building directly to the west was completed earlier this year, anchored by Coldwell Banker Mid-America Group Realtors in 17,240 square feet of first-floor office space. Another 5,500 square feet of space in that building remains vacant, but Rob Myers, vice president of Executive Property Management, which is the leasing agent for the building, doesn’t believe that will stay that way long.
“Everyone seems to be very, very excited about it,” Myers said. “I do not think it will take very long to fill up.”
The second floor of that building consists of one- and two-bedroom apartments.
“We’re trying to figure out if people like this mixed-use idea,” said Joy Brown, president of Executive Property Management. “People love brand-new apartments. But secondly, the comment that we keep getting is that they love living over commercial space because at night there’s not going to be anybody below them.”
The easternmost development continues to evolve, with construction under way on an 8,700-square-foot building on Northpark Drive, which will be occupied by Panchero’s Mexican Grill, Cold Stone Creamery and Maid-Rite outlets. Myers said construction is set to begin on one of two 9,000-square-foot outlots, though tenants have not been secured for either building.
Carver said Texas Roadhouse will begin construction next month on a restaurant immediately to the west of the Hilton Garden Inn.
“We see that as an area where we’re going to see a lot of growth over the next five years or so,” he said.
Though retail development has practically sprung up overnight, office development has been a bit slower to take shape, though Grubb & Ellis/Mid-America Pacific sees that hesitancy in a positive light.
“The real thing that was important was the whole question of having quality development, and sometimes it’s hard to put a timeline on that,” Carver said. “We’re more concerned with quality as opposed to getting something in under some specific timeline.”
Following a few challenging years for office park developments, Grubb & Ellis/Mid-America Pacific has begun to see positive signs emerge, starting with low interest rates, signaling a change in the market and a potential for additional development within the business center in the near future. The company has laid out plans for a four-lane divided boulevard, with a master plan that requires high-quality architecture, extensive and consistent landscaping, and monument signs.
One developer has expressed interested in building an office condo project which would be a collection of smaller office buildings within the office park, which Carver said would serve as an opportunity for small business owners to take advantage of low interest rates and attain an ownership position.
Executive Property Management and Grubb & Ellis/Mid-America Pacific have recognized the need for cohesion between the existing and upcoming retail developments and the planned office projects.
“The biggest challenge is to have the right mix of businesses,” Carver said. “We want to have a variety of eating establishments and some support services for the park.