WEST DES MOINES, Iowa– As companies start to migrate back into the office, a local realtor said this is an opportune time for tenants to rent bigger and better office space.
According to CBRE Hubbell Commercial, between March of this year and last year the office vacancy rate in central Iowa increased by 3 percentage points, with downtown Des Moines taking the biggest hit.
Vice President of CBRE Hubbell Commercial, TJ Jacobs, said this has put pressure on landlords to become more aggressive and to be more accommodating to tenants.
Jacobs said within the last year local realtors have seen landlords accept shorter term leases and start looking at providing more amenities.
Those amenities include providing more square footage, offering an outdoor space such as decks and patios, more janitorial services and improved HVAC systems to keep up with COVID-19 safety measures and office gyms.
However, Jacobs said many employers are hesitant to take advantage of this opportunity.
“People are more concerned about just what their staff is going to be needing in terms of a hybrid mode,” Jacobs saud. “ls it going to be a three day work week type model versus five days in the office. Because of that, they’re really taking the next six to 12 months to figure out what really works for them.”