Des Moines Industrial Space
For Sale
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2500 Dixon St, Des Moines, IA 50316
135,197 SF industrial space in Des Moines for sale.
Property Size135,197 SF
Lot Size4.94 Acres
Price / SF$73.97
Days on Market859
Property Features for 2500 Dixon St
General Information
Standard status
Active
Size
135,197 SF
Lot size
4.94 Acres
Property subtype
Industrial
Zoning
I1
Investment Type
Owner/User
Building Details
Year Built
1975
Year Renovated
2001
Listing Agency:
LOCATE Commercial Real Estate
(515) 778-8188
Listed By:
Chris Thomason · License #IA B37107000
Source:
Crexi
Added: Apr 26, 2024
Changed: Aug 14
Last Checked: Aug 30 at 5:47PM
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 LOCATE Commercial Real Estate
Investment Insights
Based on property information with market context.
This expansive industrial space offers 135,197 square feet of versatile area. The property features a modern design and sturdy construction. It is strategically positioned in Des Moines' bustling industrial district, providing excellent connectivity to major transportation routes. The property includes a total of 23 dock doors, facilitating loading and unloading operations. Clear height is 30 feet in 30,000 square feet and 24 feet in 90,000 square feet, providing ample vertical space suitable for accommodating large equipment and machinery. The versatile layout allows for workflow and productivity optimization. Ample parking space is available for employees and visitors. The property includes 4.94 acres of land, providing expansion opportunities or additional development potential. This is an ideal investment opportunity for businesses seeking a strategic location in Des Moines' dynamic economic landscape.
Key Highlights
- Expansive 135,197 square feet of versatile industrial space.
- Excellent connectivity to major transportation routes in Des Moines' bustling industrial district.
- 23 dock doors facilitating smooth loading and unloading operations.
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
$635,034
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
6.35%
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%
$12,700,680
$12.7M
Cap Rate 7%
$9,071,914
$9.1M
Cap Rate 9%
$7,055,933
$7.1M
Market Conditions
NOI Build-Up for 135,197 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
$811.2K $6.00/SF
− Vacancy
−$64.1K −$0.47/SF
EGI
$747.1K $5.53/SF
− OpEx
−$112.1K −$0.83/SF
NOI
$635.0K $4.70/SF
Area
Des Moines, IA
Vacancy
7.90%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
15.00%
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%
$12,700,680
Cap Rate 7%
$9,071,914
Cap Rate 9%
$7,055,933
Alternative Uses
Best Use
Warehouse
$9.07M
$7.94M – $10.58M
NOI $635,034 @ 7.0% cap · market cap 6.35%
Second Best
Industrial
$7.92M
$6.93M – $9.24M
NOI $554,347 @ 7.0% cap · market cap 5.54%
Theoretical Best
Office A
$33.30M
$29.13M – $38.85M
NOI $2,330,753 @ 7.0% cap · market cap 23.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
442
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 50316, IA
16,785
Population
6,002
Households
2.8
Avg Household Size
33
Median Age
13%
College-Educated
78%
High-School Grad
3.6 sq mi
ZIP Area
4,663
Density / Sq Mi
$53,090
Median Household Income
$33,994
Median Earnings
$963
Median Rent
$137,300
Median Home Value
Market
Vacancy Rate% for Industrial in Des Moines, IA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - 135,197 SF industrial space in Des Moines for sale.
Where is this warehouse located?
The property is located at 2500 Dixon St Des Moines, IA.
What is the asking price?
The asking price for this property is $10,000,000.
What are key features of this property?
This property features: Expansive 135,197 square feet of versatile industrial space.; Excellent connectivity to major transportation routes in Des Moines' bustling industrial district.; 23 dock doors facilitating smooth loading and unloading operations.
