Why Central Iowa Continues to Win Industrial Investment

Interview with Nathan Rupprecht, Commercial Real Estate Manager, and Adam Kaduce, President of R&R Real Estate Advisors 

Q: The Des Moines industrial market has experienced tremendous momentum over the past several years. What's driving that growth, and how would you describe current tenant demand across the metro? 

Nathan Rupprecht: Des Moines has really stepped into its own as an industrial market. A big part of that is our strong labor force and strategic location within Midwest logistics networks. Companies are increasingly looking for cost-efficient, growth-oriented metros, and Central Iowa fits that profile very well. 

Tenant demand remains consistently healthy, particularly in the 20,000- to 80,000-square-foot range. Overall, demand today feels materially stronger than it did even five years ago. 

Adam Kaduce: I think Nathan hit on one of the biggest drivers: workforce. Central Iowa offers access to talent, an affordable cost of living, and a strong Midwestern work ethic. As logistics networks continue evolving, companies see Des Moines as an efficient location to serve the broader Midwest while maintaining access to a dependable labor pool. 

Q: New industrial development continues to expand into communities like Grimes, Ankeny, and Waukee. Which submarkets are gaining the most traction today? 

Nathan Rupprecht: The Grimes-Urbandale corridor continues to see significant momentum. There's strong infrastructure, new Class A industrial product, and excellent connectivity near the I-80 and I-35 interchange. 

Ankeny is also attracting a great deal of interest due to its access to I-35, continued population growth, and expanding labor pool. 

Adam Kaduce: When tenants evaluate this market, two factors consistently rise to the top: access to labor and access to the interstate system. On the west side of the metro, where much of our development activity occurs, businesses benefit from multiple interchanges and direct connectivity to I-35 and I-80. That provides efficient access to customers throughout the Midwest. 

Q: Tenant expectations continue to evolve. How are industrial users thinking differently about building design, amenities, and lease flexibility today? 

Nathan Rupprecht: The standard for industrial product is higher than it's ever been. Tenants increasingly expect features such as LED lighting, higher clear heights, improved truck courts, and flexible office layouts. 

We're also seeing greater interest in expansion options, early renewals, and creative lease structures. Our role is often helping bridge tenant expectations with ownership objectives to create long-term value for both parties. 

Q: Construction costs and interest rates continue to challenge new development. How are landlords and developers adapting? 

Nathan Rupprecht: Landlords are becoming more strategic. We're seeing phased construction, more efficient buildouts, and a stronger emphasis on flexibility. Developers are also being more intentional about where they build and what they build. 

At the same time, we're seeing renewed interest in second-generation warehouse product. Many buildings developed in the 1990s and early 2000s remain highly functional. While they may not offer today's highest clear heights, they often provide strong dock access, quality construction, and lower occupancy costs. 

For many users, repurposing existing space can create meaningful savings while shortening occupancy timelines. 

Q: Which product types are seeing the strongest demand in Central Iowa today? 

Nathan Rupprecht: Mid-sized distribution facilities—typically in the 40,000- to 80,000-square-foot range—continue to represent the strongest segment of the market. 

We're also seeing growing demand for small-bay flex space as entrepreneurs and expanding local businesses seek flexible options. Large-scale logistics users remain active, but their requirements tend to be more specialized and location-specific. 

Adam Kaduce: Historically, Central Iowa has excelled as a regional distribution market. Most users are looking for high-quality, institutional-grade buildings, but in practical, right-sized footprints rather than massive logistics facilities. 

Q: Central Iowa competes with markets like Omaha, Kansas City, and the Twin Cities. What continues to make this region attractive to tenants and investors? 

Nathan Rupprecht: Tenants and investors value stability, and Central Iowa consistently delivers that. We have a strong workforce, predictable operating costs, and a location that makes regional distribution highly efficient. 

Investors also appreciate the long-term stability of the market. At R&R, our ownership philosophy centers on long-term investment and reinvestment in our properties, which helps create lasting value for tenants and communities alike. 

Adam Kaduce: Central Iowa is simply a great place to do business. Local municipalities have generally been supportive of industrial development, and the region has built a reputation as a stable, business-friendly market with strong fundamentals. 

Q: Looking ahead, what defines a best-in-class industrial asset in Central Iowa, and what will it take to stay competitive in the years ahead? 

Nathan Rupprecht: Tenant expectations continue to rise. Best-in-class industrial facilities today typically include modern clear heights, ESFR sprinkler systems where feasible, LED lighting, functional truck courts, trailer parking, and flexible office layouts. 

Beyond functionality, landlords should focus on creating spaces that help tenants recruit, retain, and operate efficiently. Building quality, curb appeal, and flexibility will continue to play an increasingly important role as the market evolves. 

Q: If you could give one piece of advice to industrial landlords planning for the next five years, what would it be? 

Nathan Rupprecht: Stay focused on flexibility and long-term value creation. Tenant needs are changing more quickly than they have in the past, and buildings that can adapt to those changing requirements will remain the most competitive. 

Adam Kaduce: Continue investing in your assets. Industrial real estate remains a strong long-term investment, but the owners who consistently reinvest in their properties and respond to tenant needs will be best positioned for success. 

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