Originally founded in 1843 as a military post for the US Army, Des Moines was transformed into a 19th century railroad center and the state capital of Iowa. Then came urban renewal, which led to the loss of historic structures and businesses. Now the city center is experiencing a renewal.
“The Greater Des Moines market continues to experience strong investment in a number of sectors, but one of the biggest themes is the continued evolution of downtown,” said L. Brandon Hummel, executive vice president of preconstruction at Baker Group, a specialty contracting firm. “Owners and developers are finding creative ways to repurpose existing buildings into multifamily housing, mixed-use developments and destination spaces that support the city’s long-term growth.
“Demand is strongest in adaptive reuse, housing, education, manufacturing and infrastructure. Downtown redevelopment and office renovations, focused on smaller, furnished spaces, are gaining momentum, supported by public investment,” adds Craig Erickson, managing director of architecture and engineering consultancy Shive-Hattery.
One notable project planned for downtown is the Market District, a former industrial site east of the Des Moines River and south of the East Village. The area had been home to a recycling center, scrap yard, body shops, city public works yards and a MidAmerican Energy facility.
The $600 million mixed-use development is expected to include a hotel, housing, retail and commercial buildings.
Another project taking shape is 515 Walnut Tower, a 33-story residential high-rise billed as the largest residential project ever built downtown. The plans foresee a total of 390 units. The estimated cost of the project, the tallest multifamily residential tower between Chicago and Denver, is $148 million.
Hummel says quality-of-life investments that improve businesses’ ability to attract talent go hand-in-hand with residential development. A professional football stadium is planned for a former Superfund site south of the downtown area. The Pro Iowa initiative is an economic development project designed to bring pro football downtown. Centered around a proposed $95 million 6,000-seat multi-purpose stadium and a 4-acre community plaza, the project aims to anchor a larger $500 million-plus mixed-use development.
On the corporate front, agricultural company Corteva announced in May a plan to locate the global headquarters of Vylor, its future independent seed and genetics company, in Johnston, Iowa, which is about 10 miles northwest of Des Moines.
“Investments like this strengthen the Des Moines region’s position as a hub for agriculture, biosciences and innovation,” says Hummel.
Data centers are another focus, Erickson adds.
“We’re currently working on data center and power infrastructure projects in the Des Moines area and across the country from New Jersey to Hawaii,” he says. “This work includes a new build for AI hyperscalers and additions/upgrades to existing Edge Computing and co-location data centers.”
Erickson says Shive-Hattery is also designing a variety of highway and utility projects in Des Moines, Bondurant, West Des Moines, Waukee and Altoona.
“The market is shifting to a greater emphasis on pre-construction planning, risk management and certainty.”
—Craig Erickson, CEO of Shive Hattery
“These projects will fuel billions of dollars in private investment,” he notes.
One issue the development community is monitoring is the future of tax increment financing (TIF) and how potential legislative changes could affect economic development projects.
“While there is still uncertainty about the long-term effects, many developers and city leaders are watching closely because TIF has historically played an important role in helping make complex redevelopment and infrastructure projects financially viable,” says Hummel. “Depending on how these changes play out, some projects could be delayed while owners evaluate financing strategies and project feasibility.”
Labor availability also remains a consistent issue, Hummel adds.
“The region continues to experience healthy growth, but competition for skilled trades professionals, engineers and technical talent remains strong in many industries,” he says.
“Rising costs, high interest rates and supply challenges make projects more difficult to justify, so only well-structured and financially viable developments move forward, while others stall,” says Erickson. “The market is shifting to a greater emphasis on pre-construction planning, risk management and certainty.”
He says clients are addressing these AEC industry challenges by prioritizing cost and schedule certainty through early collaboration, advanced planning and greater use of technology.
