Des Moines Flex/Industrial
For Sale
$675,000
1429 2nd Avenue, Des Moines, IA 50314
Well-maintained flex building with warehouse and office space for sale.
Property Size8,112 SF
Price / SF$83.21
Days on Market158
Property Features for 1429 2nd Avenue
General Information
Standard status
Active
Size
8,112 SF
Property subtype
Industrial
Listing Agency:
(515) 556-9168
Listed By:
Harrison Kruse · License #IA S63825000
(515) 556-9168
Source:
Cbre
Added: Mar 25
Changed: Aug 25
Last Checked: Aug 29 at 7:18AM
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 Harrison Kruse
Investment Insights
Based on property information with market context.
Located in Des Moines, Iowa, this industrial property features a combination of warehouse and office areas. Situated in the Central Place submarket, just north of Downtown Des Moines, the flex building offers connectivity to the metro area via I-235. The property includes an existing buildout, providing infrastructure for a new user. The space is suitable for office, light industrial, or creative use. The property contains 2,924 square feet of office space, including 9 offices, 1 conference room, an open reception area, and 3 restrooms, one of which has a shower. The clear height is approximately 9 feet 6 inches. There is one 8-foot by 10-foot drive-in door and one 8-foot by 10-foot dock. Power is supplied by a 100 amp, 210 V single-phase system. The property has 11 parking spaces and a total size of 8,112 square feet.
Key Highlights
- Excellent location in the desirable Central Place submarket, north of Downtown Des Moines, with exceptional connectivity via I‑235.
- Move‑in ready condition suitable for office, light industrial, or creative use.
- Existing buildout with 2,924 SF of office space including 9 offices, a conference room, and 3 restrooms (1 with shower).
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
$45,454
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
6.73%
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%
$909,080
$909.1K
Cap Rate 7%
$649,343
$649.3K
Cap Rate 9%
$505,044
$505.0K
Market Conditions
NOI Build-Up for 8,112 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
$75.9K $9.36/SF
− Vacancy
−$6.0K −$0.74/SF
EGI
$69.9K $8.62/SF
− OpEx
−$24.5K −$3.02/SF
NOI
$45.5K $5.60/SF
Area
Des Moines, IA
Vacancy
7.90%
Lease Rate
$9.36 /SF/Yr
Expense Ratio
35.00%
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%
$909,080
Cap Rate 7%
$649,343
Cap Rate 9%
$505,044
Alternative Uses
Best Use
Flex RnD
$649.3K
$568.2K – $757.6K
NOI $45,454 @ 7.0% cap · market cap 6.73%
Second Best
Industrial
$475.2K
$415.8K – $554.4K
NOI $33,262 @ 7.0% cap · market cap 4.93%
Theoretical Best
Office A
$2.00M
$1.75M – $2.33M
NOI $139,848 @ 7.0% cap · market cap 20.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,856
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 50314, IA
11,764
Population
4,780
Households
2.5
Avg Household Size
31
Median Age
15%
College-Educated
72%
High-School Grad
2.5 sq mi
ZIP Area
4,706
Density / Sq Mi
$38,511
Median Household Income
$30,314
Median Earnings
$977
Median Rent
$146,700
Median Home Value
Market
Vacancy Rate% for Industrial in Des Moines, IA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Top It Off Liquid Catering — 100 Indiana Ave, Des Moines, IA 50314
- In The Bag Corporate Cuisine — 79 University Ave, Des Moines, IA 50314
Frequently Asked Questions
What type of property is this?
Flex space - Well-maintained flex building with warehouse and office space for sale.
Where is this flex space located?
The property is located at 1429 2nd Avenue Des Moines, IA.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: Excellent location in the desirable Central Place submarket, north of Downtown Des Moines, with exceptional connectivity via I‑235.; Move‑in ready condition suitable for office, light industrial, or creative use.; Existing buildout with **2,924 SF of office space including 9 offices, a conference room, and 3 restrooms (1 with shower).**
