CBRE

FIGURESIDESMOINESOFFICEIQ42025

DesMoinesofcefinishes2025with

positiveabsorption

b71,000$20.39

SFunderconstructionFSG/YRDirectLeaseRate

15.7%

vacancyRate

▲231,152

SFconstructionDelivered

YTDSFNetAbsorption

Note:Arrowsindicatechangefrompreviousquarter.

FIGURE1:HistoricalAbsorption,Deliveries,andvacancy

sq.Ft.millionsvacancy%

SUMMARY

0.2

22

TheDesMoinesofficemarketendedtheyearwithanoverallvacancyrateof15.7%.ThecBDsubmarketfinishedtheyearwithavacancyrateof20.1%.Thewesternsuburbssubmarketclosedouttheyearwithavacancyrateof13.3%

(0.2)

(0.4)

overallnetabsorptionwaspositive231,152sq.ft.in2025.positivenetabsorptionwas

Theoverallmarketaverageaskingleaseratewas$20.39persq.ft.attheendofQ42025.TheAnkenysubmarketrecordedthehighestrateat$26.48persq.ft.,whilethesouthsubmarketpostedthelowestrateat$17.00persq,ft.

onebuildingiscurrentlyunderconstructionattheendof2025,communitystateBanksnewfour-story,71,000sq.ft.headquartersinAnkenyandisslatedforcompletioninspring2026.

4

2

0

(1.2)

concentratedprimarilyinthewesternsuburbssubmarket,recording189,703sq.ft.YTD,andthecBDsubmarket,recording49,842sq.ft.YTD.

NetAbsorptionmmDeliveriesvacancyRate

source:CBREResearch,Q42025

FIGURES|DESMOINESOFFICE|Q42025

2CBRERESEARCH?2025CBRE,INC.

vacancy

Theoverallvacancyrateclosedat15.7%forthequarter.ThecBDsubmarketpostedavacancyrateof20.1%tofinishtheyear.Thewesternsuburbssubmarketendedtheyearwithavacancyrateof13.3%.Thesouth(2.6%)andNortheast(5.3%)submarketspostedthemarketslowest

vacancyrates.

AskingRent

InQ42025,theoverallofficeaverageaskingratescameinat$20.39persq.ft.Thehighest

askingleaseratesoriginateintheAnkenysubmarket,closingtheyearat$26.48persq.ft.ontheotherendofthespectrum,thesouthsubmarketmaintainedthelowestaskingratesat

$17.00persq.ft.Thewesternsuburbssubmarketclosedtheyearwithanaverageaskingrateof$20.63persq.ft.

overall

source:CBREResearch,Q42025

FIGURE3:Avg.DirectAskingRatebysubmarket(FSG/YR)

$persq.ft.

FIGURES|DESMOINESOFFICE|Q42025

3CBRERESEARCH?2025CBRE,INC.

NetAbsorption

DesMoinespostedpositive106,490sq.ft.ofabsorptioninQ42025.Threeofthesix

submarketsrecordedpositiveabsorptionduringthequarter.Thewesternsuburbssubmarkethadthemostsignificantamountofabsorption,recordingpositive189,703sq.ft.,ledbyHolmesMurphymovingintotheirnewspaceattheArcadiaBuildinginwestDesMoines,occupying

approximately75,000sq.ft.

ThecBDsubmarketalsorecordednotablepositiveabsorptioninQ4,withpositive49,842sq.ft.,ledbyMissioncancer+Blood,partofuniversityoflowaHealthcare,occupyingapproximately40,000sq.ft.attheRiverviewofficeBuilding.

constructionActivity

officeconstructioncontinuestobeatahistoricallow.AsofQ42025,themarkethasonlyonepropertyunderconstruction,thenewfour-story,71,000sq.ft.,communitystateBank

headquartersinAnkenyat2615NE38thst.Theprojectisslatedforcompletionspring2026.

FIGURE4:NetAbsorptionTrend

source:CBREResearch,Q42025

FIGURE5:constructionActivity

source:CBREResearch,Q42025

FIGURES|DESMOINESOFFICE|Q42025

4CBRERESEARCH?2025CBRE,INC.

LeasingActivity

LeasingsawadecreaseinactivityinQ42025.Leasingactivitycameinatjustunder210,000sq.ft.duringthequarter,adecreaseofapproximately80,000sq.ft.quarter-overquarter.The

westernsuburbssubmarketaccountedfor60%ofthetotalleasingactivity,whilethecBDsubmarketaccountedfor31%.

9.0%

31.0%

60.0%

WesternSuburbsCBD

Northwest

Northwest

CBD

westernsuburbs

125,494

FIGURE6:Leasingbysubmarket

19,692

63,672

source:CBREResearch,Q42025

source:CBREResearch,Q42025

FIGURE8:keyLeaseTransactions

Tenantsq.Ft.LeasedTransactionTypeAddresssubmarket

Rain&Hail

91,636

Renewal

9200NorthparkDr

westernsuburbs

openLOOPHealth

33,086

NewLease

909Locustst

CBD

optimaeLifeservices

19,692

NewLease

2150GrandAve

Northwest

undisclosed14,521NewLease909LocuststCBD

Lamson,Dugan,&Murray

10,493

NewLease

6400westownpkwy

westernsuburbs

source:CBREResearch,Q42025

FIGURES|DESMOINESOFFICE|Q42025

5CBRERESEARCH?2025CBRE,INC.

Marketstatisticsbysubmarket

NetRentableArea

Avg.DirectAsking

DirectAvailabilitysubleaseAvailabilityRate(FSG/YR)

2025NetAbsorption

Ankeny

560,609

4.2

26.48

5,276

CBD

7,439,882

18.5

Northeast

76,318

5.3

5.3

Northwest

913,071

29.6

29.5

south

621,247

2.6

2.6

(5,302)

westernsuburbs

12,814,219

13.3

12.6

189,703

Total

22,425,346

15。7

15。7

14,8

20.39

231,152

FIGURES|DESMOINESOFFICE|Q42025

Economicoverview

Theu.s.economyissendingsomemixedsignals.Financialmarketsarefocusedontheupside,particularlyAI's

sizablecontributiontogrowthinrecentquarters.someindicatorsofbusinessactivity,suchascapitalgoodsorders,areimproving,andstrengtheningcreditmarketsarehelpingtousherrealestateintoanewcycle.

Thepicturegetsmoremelancholywhenlookingathouseholds.consumerconfidenceremainsweak,withspending

reportedlydrivenbyasmallersegmentofaffluenthouseholds.Thismosaicofdatasuggeststhatannualaverage

GDpgrowthwillbesteadyin2026,at2%,butatouchsofterthanin2025.Akeycatalystisasofterlabormarket,ascompaniesare'slowtohire,slowtofire'atrendthatislikelytolastafewquarters.Aconsequenceofthisoutlookissofterinflationandlong-termbondyieldstrendingjustbelow4%byH22026.

6CBRERESEARCH?2025CBRE,INC.

FIGURES|DESMOINESOFFICE|Q42025

MarketAreaoverview

Definitions

Total

Availablesq.Ft.dividedbythetotalbuildingArea.AverageAskingLeaseRate:Acalculatedaveragethatincludesnetandgrossleaserate,weightedbytheircorrespondingavailablesquarefootage.BuildingArea:Thetotalfloorareasq.ft.ofthebuilding,

typicallytakenatthe"dripline"ofthebuilding.GrossActivity:Allsaleandleasetransactionscompletedwithinaspecifiedtimeperiod.Excludesinvestmentsaletransactions.GrossLeaseRate:Renttypicallyincludesrealpropertytaxes,buildinginsurance,

excludesoneormoreofthe"net"costs(realpropertytaxes,buildinginsurance,andmajormaintenance)typicallyincludedinaGrossLeaseRate.occupiedsq.Ft:BuildingAreanotconsideredvacant.vacancyRate:Totalvacantsq.Ft.dividedbythetotalBuildingArea.vacantsq.Ft:spacethatcanbeoccupiedwithin30days.

surveycriteria

Includesallofficebuildings10,000sq.ft.andgreaterinsize.Buildingswhichhavebegunconstructionasevidencedbysiteexcavationorfoundationwork.

updatedTrackedcriteria

CBREhasupdatedthecriteriaforofficetrackedbuildingsetsinDesMoinestoreflectbuildingswithaNetRentableArea(NRA)of10,000squarefeetorhigher.Inadditiontocreatingregionalconsistency,thischangewillenhancethereportinganddepthofdataonDesMoinesmostcompetitivebuildings.Buildinginventorieswillbeevaluatedquarterlytoensuretheyremainthemost

comprehensiveandaccuraterepresentationofthemarket.

contacts

TonyLeshen

seniorFieldResearchAnalysttony.leshen@cbre.com

?2026CBRE,Inc.Allrightsreserved.Thisinformationhasbeenobtainedfromsourcesbelievedreliablebuthasnotbeenverifiedforaccuracyorcompleteness.CBRE,Inc.makesnoguarantee,representationorwarranty