Creative Office Building with
For Sale
Contact for pricing
118 SE 4th St, Des Moines, IA 50309
Multi-tenant creative office building undergoing renovation, with available space for up to 33,792 SF and up to 55 leased parking stalls.
Property Size33,792 SF
Price / SF$146.48
Days on Market685
Property Features for 118 SE 4th St
General Information
Standard status
Active
Size
33,792 SF
Total Parking Spaces
55
Property subtype
OFFICE
Additional Details
Highway Access
Yes
Amenities
rooftop patio
Building Details
Stories
2
Construction
creative loft
Tenancy
Multi
Listing Agency:
CBRE
(515) 224-4900
Listed By:
Bill Wright · License #S33231000
(515) 210-3050
Source:
Moodyscre
Added: Oct 29, 2024
Changed: Sep 5
Last Checked: Sep 13 at 11:06AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of CBRE
Investment Insights
Based on property information with market context.
The Market Building is an office property designed for a multi-tenant setup, with plans for a complete renovation. The building totals 33,792 square feet and will be available for flexible occupancy, including demising down to 4,000 square feet or taking the full space. The 1st-floor area is currently supported by short-term leases, while the entire 2nd-floor is 100% vacant. Ownership will also consider retail/event/entertainment uses.
The property is located in the Market District, just south of the East Village and east of the downtown Des Moines core, with access described as minutes from Interstate 235. On-site parking is available for lease, with up to 55 parking stalls offered.
The offering includes a tenant improvement package available for lease terms, and an as-is sale price is listed. The sale price includes a surface parking lot at 101 SE 3rd Street and notes eligibility for historic and development incentives.
The property is located in the Market District, just south of the East Village and east of the downtown Des Moines core, with access described as minutes from Interstate 235. On-site parking is available for lease, with up to 55 parking stalls offered.
The offering includes a tenant improvement package available for lease terms, and an as-is sale price is listed. The sale price includes a surface parking lot at 101 SE 3rd Street and notes eligibility for historic and development incentives.
Key Highlights
- 33,792 SF office building in the Market District with ability for multiple tenants.
- Available space: 1st floor 16,896 SF with short‑term leases; 2nd floor 16,896 SF is 100% vacant.
- Space can be leased/demised down to 4,000 SF or leased up to the full 33,792 SF.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$445,243
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.99%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$8,904,860
$8.9M
Cap Rate 7%
$6,360,614
$6.4M
Cap Rate 9%
$4,947,144
$4.9M
Market Conditions
NOI Build-Up for 33,792 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$742.1K $21.96/SF
− Vacancy
−$148.4K −$4.39/SF
EGI
$593.7K $17.57/SF
− OpEx
−$148.4K −$4.39/SF
NOI
$445.2K $13.18/SF
Area
Des Moines, IA
Vacancy
20.00%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$8,904,860
Cap Rate 7%
$6,360,614
Cap Rate 9%
$4,947,144
Alternative Uses
Best Use
Office B
$6.36M
$5.57M – $7.42M
NOI $445,243 @ 7.0% cap · market cap 8.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.32M
$7.28M – $9.71M
NOI $582,563 @ 7.0% cap · market cap 11.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,850
Businesses Nearby
Explore this area
Business Placement
Demographics for 50309, IA
9,532
Population
7,562
Households
1.3
Avg Household Size
30
Median Age
67%
College-Educated
96%
High-School Grad
2.7 sq mi
ZIP Area
3,530
Density / Sq Mi
$57,974
Median Household Income
$52,775
Median Earnings
$1,166
Median Rent
$286,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Des Moines, IA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Multi-tenant creative office building undergoing renovation, with available space for up to 33,792 SF and up to 55 leased parking stalls.
Where is this office building located?
The property is located at 118 SE 4th St Des Moines, IA.
What is the asking price?
The asking price for this property is $4,950,000.
What are key features of this property?
This property features: 33,792 SF office building in the Market District with ability for multiple tenants.; Available space: 1st floor 16,896 SF with short‑term leases; 2nd floor 16,896 SF is 100% vacant.; Space can be leased/demised down to 4,000 SF or leased up to the full 33,792 SF.
