Flex Warehouse
For Sale
Contact for pricing
535 SW 7th St, Des Moines, IA 50309
For-sale flex warehouse with dock-high doors, exterior signage, and fiber optic service available, plus on-site parking.
Property Size36,071 SF
Price / SF$97.03
Days on Market341
Property Features for 535 SW 7th St
General Information
Standard status
Active
Size
36,071 SF
Property subtype
FLEX_R_AND_D
Additional Details
Utilities to Site
Yes
Amenities
Exterior Signage
Centurylink fiber optic service available
Adjacent to multiple mass transit routes
hotels with conference facilities
restaurants
retail
medical
Court Avenue Entertainment District
Listing Agency:
CBRE
(515) 224-4900
Listed By:
Bill Wright · License #S33231000
(515) 210-3050
Source:
Moodyscre
Added: Oct 9, 2025
Changed: Sep 6
Last Checked: Sep 13 at 4:46AM
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.
This for-sale flex warehouse is positioned as a corporate headquarters with versatile space to accommodate a range of tenant needs. The property offers free parking measured at 5.4 spaces per 1,000 square feet, exterior signage, and dock-high doors. Utilities are available to be submetered if the space is demised, and Centurylink fiber optic service is available.
Located at 535 SW 7th St in Des Moines, the building is described as nestled back and insulated from the main thoroughfare while still providing convenient access. It is adjacent to multiple mass transit routes, with nearby amenities including hotels with conference facilities, restaurants, retail, medical, and the Court Avenue Entertainment District.
The building is owned and professionally managed by Hubbell Realty Company. The offering also notes potential for additional docks and drive-in doors to be installed.
Located at 535 SW 7th St in Des Moines, the building is described as nestled back and insulated from the main thoroughfare while still providing convenient access. It is adjacent to multiple mass transit routes, with nearby amenities including hotels with conference facilities, restaurants, retail, medical, and the Court Avenue Entertainment District.
The building is owned and professionally managed by Hubbell Realty Company. The offering also notes potential for additional docks and drive-in doors to be installed.
Key Highlights
- Flex warehouse with dock‑high doors and potential to add additional docks and drive‑in doors
- Centurylink fiber optic service available
- Free on‑site parking: 5.4 spaces per 1,000 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
$202,119
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
5.77%
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%
$4,042,380
$4.0M
Cap Rate 7%
$2,887,414
$2.9M
Cap Rate 9%
$2,245,767
$2.2M
Market Conditions
NOI Build-Up for 36,071 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
$337.6K $9.36/SF
− Vacancy
−$26.7K −$0.74/SF
EGI
$311.0K $8.62/SF
− OpEx
−$108.8K −$3.02/SF
NOI
$202.1K $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%
$4,042,380
Cap Rate 7%
$2,887,414
Cap Rate 9%
$2,245,767
Alternative Uses
Best Use
Flex RnD
$2.89M
$2.53M – $3.37M
NOI $202,119 @ 7.0% cap · market cap 5.77%
Second Best
Industrial
$2.11M
$1.85M – $2.47M
NOI $147,902 @ 7.0% cap · market cap 4.23%
Theoretical Best
Office A
$8.88M
$7.77M – $10.36M
NOI $621,852 @ 7.0% cap · market cap 17.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,547
Businesses Nearby
Under-served
Demand for This Use
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 Industrial in Des Moines, IA
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Frequently Asked Questions
What type of property is this?
Flex space - For-sale flex warehouse with dock-high doors, exterior signage, and fiber optic service available, plus on-site parking.
Where is this flex space located?
The property is located at 535 SW 7th St Des Moines, IA.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: Flex warehouse with dock‑high doors and potential to add additional docks and drive‑in doors; Centurylink fiber optic service available; Free on‑site parking: 5.4 spaces per 1,000 SF
