Fully Leased Office
For Sale
Contact for pricing
505 Market Street, West Des Moines, IA 50266
Office asset with existing leasing and Planned Unit Development Business & Commercial zoning in West Des Moines.
Property Size28,626 SF
Price / SF$258.51
Days on Market66
Property Features for 505 Market Street
General Information
Standard status
Active
Size
28,626 SF
Class
A
Total Parking Spaces
58
Property subtype
Office
Zoning
Planned Unit Development Business & Commercial
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$494,572
Building Details
Year Built
2007
Year Renovated
2025
Buildings
1
Units
5
Tenancy
Multi
Listing Agency:
Coterie Real Estate
Listed By:
Abbey Gilroy · License #IA B69263000
Source:
Crexi
Added: Jun 28
Changed: Aug 30
Last Checked: Aug 30 at 5:52PM
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 Coterie Real Estate
Investment Insights
Based on property information with market context.
Located at 505 Market Street in West Des Moines, this 28,626 SF office building was constructed in 2007. The property is fully leased and offers an existing income-producing profile for an office-focused acquisition.
The asset is situated within the Ponderosa Business District and is zoned Planned Unit Development Business & Commercial. Its location in West Des Moines places it within an established business setting with corporate presence and regional accessibility. The property’s profile is defined by its office use, existing leasing, 2007 construction, and commercial zoning.
The asset is situated within the Ponderosa Business District and is zoned Planned Unit Development Business & Commercial. Its location in West Des Moines places it within an established business setting with corporate presence and regional accessibility. The property’s profile is defined by its office use, existing leasing, 2007 construction, and commercial zoning.
Key Highlights
- 28,626 SF office building
- Fully leased income‑producing asset
- Constructed in 2007
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
$377,176
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
5.10%
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%
$7,543,520
$7.5M
Cap Rate 7%
$5,388,229
$5.4M
Cap Rate 9%
$4,190,844
$4.2M
Market Conditions
NOI Build-Up for 28,626 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
$628.6K $21.96/SF
− Vacancy
−$125.7K −$4.39/SF
EGI
$502.9K $17.57/SF
− OpEx
−$125.7K −$4.39/SF
NOI
$377.2K $13.18/SF
Area
Polk County, 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%
$7,543,520
Cap Rate 7%
$5,388,229
Cap Rate 9%
$4,190,844
Alternative Uses
Best Use
Office B
$5.39M
$4.71M – $6.29M
NOI $377,176 @ 7.0% cap · market cap 5.10%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$27.56M
$24.11M – $32.15M
NOI $1,928,936 @ 7.0% cap · market cap 26.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,168
Businesses Nearby
Explore this area
Business Placement
Demographics for 50266, IA
36,486
Population
18,481
Households
2
Avg Household Size
34
Median Age
60%
College-Educated
97%
High-School Grad
22.3 sq mi
ZIP Area
1,636
Density / Sq Mi
$85,282
Median Household Income
$53,306
Median Earnings
$1,285
Median Rent
$325,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office asset with existing leasing and Planned Unit Development Business & Commercial zoning in West Des Moines.
Where is this office building located?
The property is located at 505 Market Street West Des Moines, IA.
What is the asking price?
The asking price for this property is $7,400,000.
What are key features of this property?
This property features: 28,626 SF office building; Fully leased income‑producing asset; Constructed in 2007
