DES MOINES, Iowa — Wells Fargo said it’s staying put at 801 Walnut and 9th street despite putting up a for sale sign for the property.
Earlier this year, the company announced plans to move a large number of downtown employees to the Jordan Creek office in West Des Moines. Now, a key Wells Fargo property is up for sale, with a price tag of over $40 million.
Michael Slusark, the Lead Communications Consultant for Wells Fargo said the company is “exploring a sale of 801 walnut street in Des Moines. If we find a buyer for the building, we plan to lease back a portion of the space for the Wells Fargo employees who will remain in downtown Des Moines.”
Selling and leasing a space is not a new strategy for businesses. It’s used as a way to make changes to the way they occupy space. Justin Lossner with JLL Commercial Real Estate said a business may find it wise to sell a building they own to an investor and lease the space back for its employees.
“It allows them to have more flexibility in the future. So, while nothing may change in the short-term, it does allow a company like Wells Fargo to continue to look at its occupancy strategy, how much space they really need or don’t need, and make more flexible decisions down the road. It’s a very common practice,” Lossner said.
Locals are now left wondering, what does this mean for Des Moines? As the landscape of downtown continues to change as businesses leave the area.
According to a JLL research report, the office vacancy rate for Des Moines as a whole is nearly 12 percent, while the downtown area central business district is a full percentage point higher.
Lossner said the foot traffic in downtown is great, and that he is not concerned with the sale. If anything, he said it allows for more opportunity in downtown Des Moines.