Growing Right, Left, and Center
Communities around the metro share their development outlooks.
The Des Moines Area Association of REALTORS®’ (DMAAR) Young Professionals Network (YPN) hosted a Lunch & Learn event in November that offered a peek at economic development activity around the metro. Held at the Courtyard by Marriott in Ankeny, the light luncheon was followed by speakers from several metro communities who presented a detailed look at current development and key projects on the horizon.
Economic Outlook
Jason Froelich, HomeServices Lending
Sharing his perspective on mortgage rates and the national economy, Froelich looked ahead at how the 2025 construction market might be affected. With conflicting inflation and economic data, Froelich says there are both positive and negative signs to consider. “The national debt remains a factor, but home equity is at an all-time high,” he says. “I anticipate a slow, steady decrease in mortgage rates over the next several months—nothing dramatic, but continuing its gradual downward trend.”
Froelich echoed what other lenders have said, reminding audience members, “While interest rates matter, they are less important than total monthly debt payments. Home equity can help with that.”
Ankeny
Derek Lord, Economic Development Director
One of the fastest-growing communities in the state for a number of years, Ankeny continues to lead the way with capital improvement projects. With a budget of over $50 million annually, 2025 projects include infrastructure improvements as well as quality-of-life and revitalization projects.
“Ankeny is becoming more of a destination on its own, not just a bedroom community,” Lord says. “Prairie Trail alone draws many times more unique visitors annually than we have residents, which tells us our community and our amenities are drawing from all around the state and even outside the region.”
As Ankeny’s Prairie Trail District reaches development capacity, the city is anticipating commercial and residential growth on the north side of the city and east of I-35. “We’ve got a number of commercial projects in the works around 36th Street near Costco, we’re developing a vision to revitalize the Ankeny Boulevard corridor both north and south of 1st Street to guide how future projects will develop in that area, and we’ve got some fun quality-of-life projects, including updating our trail system and putting in more recreational facilities,” says Lord.
In its city surveys, Ankeny residents consistently rate their hometown high in quality of life and image, recommending it as a great place to live. City leaders use that feedback as a guide in developing future projects to maintain that reputation.
Waukee
Jennifer Brown, Economic Development Director
Another community experiencing unprecedented growth is Waukee. The population has increased 30% in less than 18 years, and building permits have climbed nearly 300% in the past decade.
“Commercial growth is beginning to catch up with residential,” Brown says. “And as businesses are being added or expanded, we’re seeing job growth as well. In fact, we average about 25 new businesses every year.”
Brown says in the past two years about 300 new jobs have been created and $100 million invested. Projects are currently underway in the city’s downtown triangle as well as Waukee Towne Center and the Kettlestone and Kettleview areas. “We’re making it a priority to improve the vitality of our original downtown neighborhood, including renovating and repurposing those historic buildings,” says Brown.
In the newly developed areas, the community is working to offer a mix of commercial and residential, including single-family and multiuse housing. “The Kettlestone Central project is anchored by the athletic complex, which is due to open in the spring,” Brown says. “It also includes multifamily residential and medical services. And we’ve got a number of restaurants and retail underway in our entertainment district, which includes the Vibrant Music venue and a hotel.”
Already establishing a reputation for its sports facilities, Waukee has plans for a new public safety facility, additional community amenities, and an affordable housing project that will begin with a partnership with Habitat for Humanity.
Norwalk
Hollie Zajicek, Economic Development Director
The community of Norwalk has seen significant residential growth in the past few years and has been focusing on commercial development to support that growth.
Zajicek says, “A number of commercial areas have expanded in recent years around our Norwalk Center district. One of the things we’re really proud of is that the majority of that development has been privately funded and is privately owned, so no tax-payer dollars have been required.”
One city-owned project, the Fieldhouse, is a multisport complex that opened in the fall. Commercial and retail development nearby has already opened with more underway, including hotels, high-end restaurants, grocery stores, and additional retail, such as the first Amazon Go store in the state.
“Another exciting project opening in the spring is our NorWalk of Fame,” Zajicek says. “It’s an immersive tour with holograms and an app that introduces visitors to all the famous people who’ve come from Norwalk.”
The city of Norwalk is also developing a 40-acre industrial park and is conscientiously planning its southwest development corridor that will ultimately connect Highway 28 and Interstate 35 with new infrastructure and traffic patterns.
“Norwalk has always taken a long-term approach to development,” says Zajicek. “Most of the projects opened in the past two or three years were in development for a decade. We want to grow strategically without losing the community feel we’ve always had.”
Des Moines
Carrie Cruse, Economic Development Administrator
Like other metropolitan areas, one of the biggest challenges the city of Des Moines has been facing is its office vacancy rate. With entire commercial buildings vacant and on the market, filling those spaces has been a priority.
“We have a number of downtown projects nearing completion or in the works, including renovation of a historic warehouse building into fully-leased office space and conversion of vacant office spaces into housing,” she says.
Des Moines is also looking forward to the completion of some new commercial construction downtown, some mixed-use and some solely residential. Cruse says, “Developers are responding to demand from consumers by offering more two-bedroom units and providing additional options for affordable housing.”
One such project just south of downtown is a new urban neighborhood from Hubbell Development, featuring apartments, townhomes, and single-family rental and owner-occupied properties. “As a city, we’ve made affordable housing a priority,” says Cruse, “and 24% of units currently in development include incentivized affordable options.”
In addition, the relocation of city government offices to the former Nationwide building and the Federal Courthouse to its new building will provide opportunities for repurposing those newly vacant buildings as well.
“There are some exciting possibilities around the metro, such as Highland Park, the southeast edge of the city limits, the completion of the airport. We’re seeing record levels of activity,” she says.
West Des Moines
Ryan Moffatt, Economic Development Director
West Des Moines, too, has been facing commercial vacancy issues while seeing steady growth in both residential and commercial projects.
“Valley Junction, our original commercial district, is experiencing a revitalization with more restaurants and mixed-use spaces as a result of updated design guidelines to better reflect the area’s history,” Moffatt says.
Elsewhere in the suburb, renovations of vacant office buildings are creating state-of-the-art facilities with high-end amenities that fit today’s work/culture needs. “The Arcadia Building, Wells Fargo’s Home Mortgage Campus, and the West Bank headquarters renovations all demonstrate what can be done with these existing spaces,” he says.
Although West Des Moines also has some long-vacant properties that present unique challenges, city leaders are optimistic about the possibilities. “It was a quiet year for retail development in West Des Moines in 2024, but several high-profile projects are on the horizon—facilities like Topgolf, a Porsche dealership, and The Grand Experience,” says Moffatt.
Besides new businesses, growth of existing businesses has resulted in additional development. “We’re expanding facilities for ice sports at the MidAmerican Energy RecPlex and expanding facilities around the Raccoon River Park. We have some industrial projects under discussion. And thanks to Microsoft, we have another 5,000 acres open for development,” he says.