Twelve Des Moines-area industrial properties were sold during 2022’s third quarter, two of which were purchased by a buyer from Austin, Texas, according to JLL’s third-quarter industrial market report.

AIC Ventures, a venture capital group based in Austin, paid $4.9 million for warehouse property at 2525 Delaware Ave. and $2.2 million for warehouse property at 2701 Delaware Ave. in Des Moines.

“This continues the trend of out-of-state investors purchasing fully leased industrial properties in Des Moines,” the report said.

Leasing was also active during the third quarter. Specifically, Factory Direct leased 156,000 square feet at Prairie Business Park IV in Grimes, which is under construction. Also, Covetrus leased 80,000 square feet in the facility.

Nearly 3 million square feet of industrial space is under construction. An estimated 1.2 million square feet of speculative warehouse construction is expected to be completed during the fourth quarter, according to the report.

“Warehouse demand continues with large requirement users looking for space in Central Iowa,” according to the report. “As land costs and construction costs increase, expect asking rents to gradually increase in step with development costs.”

The vacancy rate for industrial space in the Des Moines area is 2.9%, according to the report. The average direct asking rent rate is $6.09 per square foot.

To read the entire report, click here.