Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/803877
66 S C T / A P R I L 2 0 1 7 S I T E S & C I T I E S A near multitude of junior anchors in a rush to occupy Des Moines shopping centers constitute as good a sign as any that Iowa's capital city is undergoing a renaissance. In 1960 the population of Des Moines was 208,892. Then, 20 years later, that fell to 191,003, and the city seemed headed downward, like Detroit and a few other Midwest cities. But thanks to a huge insurance industry and the presence of Wells Fargo Mortgage and Microsoft, Des Moines recovered; the 2015 population estimate was a record 210,330, according to the U.S. Census Bureau, and the combined statistical metro area now exceeds 700,000. The city's traditional shopping markets of West Des Moines and An- keny are booming, and a new retail re- gion is developing in Altoona, where a Bass Pro Shops has been built. Bos- ton-based New England Development will open the Outlets of Des Moines, in Altoona, later this year at nearly 100 percent occupancy. "Historical demographics are finally catching up again, and kudos to retailers for understanding Des Moines' story of healthy disposable income, population growth, great job base and spirited de- velopment," said Heath Bullock, a Des Moines–based senior vice president and Iowa markets leader for JLL. A lot of the corporate and population growth has pushed westward out of Polk County into neighboring Dallas County. "West Des Moines is really a 70-to-80-mile trade area," Bullock said. The big spur for retail development was the 2004 opening of the 1.3 mil- lion-square-foot Jordan Creek Town Center, in the city of West Des Moines. "That was a big catalyst to bring a lot of the big national retailers into the Des Moines market," noted Tyler Dingel, a Des Moines–based first vice president at CBRE/Hubbell Commercial. Appar- ently, national retailers are still coming, especially the junior anchors. Among those that have opened in the West Des Moines market in recent years are At Home, The Container Store, Fresh Thyme Farmers Market, HomeGoods, Nordstrom Rack, REI and Versona. This group of stores is different from those in Ankeny, where the main retail corridor sits along Delaware Avenue, near Interstate 35. Among the newest additions there are Mills Fleet Farm (in 2013) and Sam's Club (in 2014). Already seated along that retail cor- ridor were Best Buy, Duluth Trading Company, The Home Depot, Kohl's, MC Sports, Menards, PetSmart, Target and other big-box retailers. The vacancy rate in West Des Moines is 3.9 percent, and in Ankeny it is 4.1 percent, accord- ing to JLL. The average rental rate in the Des Moines market is about $13 per square foot, West Des Moines boasts $14.77 per square foot, and in Ankeny it is $12.85 per square foot, Dingel says. But those numbers are a little mislead- ing, he notes, because in any new cen- ter "you would be hard-pressed to find rent for under $20 a square foot, and I have seen deals upward of the mid- $30s." Indeed, the Moline, Ill.–based Heart of America Group is planning a neighborhood shopping center in Al- toona with asking rent in that mid-$30 per square foot range, he says. Among the new retailers going into Des Moines shopping centers are An- thropologie, Athleta and Soft Surround- ings. The successful local names include Blond Genius and Lincoln & Lexi, plus a crush of restaurant concepts — from pizza joints (Blaze Pizza, Fong's Pizza, Gusto Pizza, Rosati's Pizza), to healthy eateries (Eat Fit Go, Fresh Fit Meals, Get Fit Grill), to the decidedly unhealthy Draught House 50, 1908 Draught House, Whiskey House & Bourbon Grill and Whiskey River. "The younger generations love in- teresting bricks-and-mortar shopping experiences, aligned with entertain- ment options," said Bullock. "Our local developers have responded." n Heartland revival Des Moines, Iowa, draws new retail development By Steve Bergsman