HEARTLAND SNAPSHOT, AUGUST 2005

Des Moines, Iowa Retail Market

There are two distinct retail trends in Des Moines, according to Mark Trost, development director at Des Moines-based Stanbrough Development. The first is the continuing attraction of the Jordan Creek Town District. This area is envisioned as a mixed-use district and already includes retailers such as Costco, Petco, Old Navy, DSW Shoe Warehouse, Bed Bath & Beyond, Barnes and Noble, Younkers, Dillard’s and Scheels. Anticipated retailers include a Wal-Mart Supercenter on Mills Civic Parkway and many new restaurants. There also is a large entertainment component featuring a multiplex cinema and a number of restaurants such as The Cheesecake Factory, P.F. Chang’s China Bistro, Joe’s Crab Shack, On The Border and Bravo. At the eastern edge of this area, adjacent to the new Mills Civic Parkway interchange at Interstate 34, is the West Glen Town Center. This development includes a SuperTarget, the new flagship store for Joseph’s Jewelry, clothing stores and a new multi-use project under construction.

The second trend is the continuing attraction of neighborhood retail centers. Housing growth — driven by steady employment, growth in professional positions and a high median household incomes — has led to the need for services near those homes. “Smaller parcels at major intersections and along transportation corridors are the places to be for services such as food, dry cleaning, video rental, insurance agencies and convenience retailers,” Trost says.

The development is particularly rapid in areas such as Altoona, Ankeny, Urbandale, Johnston, Clive and West Des Moines. New developments include the 27,000-square-foot White Birch Plaza and a 24,000-square-foot retail center adjacent to Wal-Mart in Ankeny; and a 15,000-square-foot final phase at the Somerfield Village in West Des Moines.

“Pleasant Hill is an emerging market that will support both neighborhood commercial and new regional commercial development at the Highway 163 and Interstate 65 interchange,” Trost says. The biggest development, Pleasant Hill Centre, includes a medical clinic, hotel and convenience retail. During the next year, it will grow to include a big box development, office space and condominium projects.

Occupancy in neighborhood commercial centers continues at levels greater than the mid 80 percent range while big box developments are at levels greater than 90 percent.

 An exciting area to watch is the East Village. This district is in the midst of a major influx of retailers and housing in new and rehabilitated historical buildings. “It is truly a pedestrian district nestled between the Des Moines River and the state capitol,” he says. “It benefits from its unique character, office workers, new urban dwellers and state facilities.” The East Village also will benefit from the housing growth across the river in downtown Des Moines. New lofts, condominiums and the conversion of office buildings into housing will provide an additional consumer base for retailers coming to the area. “This area is sure to continue to infill and grow,” Trost says.

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