Business is booming in the Midwest. At the epicenter of it all, Iowa stands out as a thriving hub for commercial real estate investment.
From bustling urban centers to sprawling rural landscapes, the demand for versatile commercial properties is skyrocketing—especially in the industrial sector. More businesses are popping up left and right, and they need more space to, well, do their business.
With favorable industry trends, ample land, easy upkeep, low tenant turnover and an unbeatable location, investing in Iowa’s industrial real estate is a wise choice for those seeking long-term returns. Keep reading to learn more.
1. INCREASED DEMAND FOR INDUSTRIAL SPACES
Iowa’s industrial real estate market is rapidly evolving, fueled by steady population growth and economic development. And while industry giants like Amazon continue to dominate larger facilities, a plethora of companies across various sectors are searching for cheaper, more flexible industrial spaces that will support their growth in the long term.
For retail businesses transitioning to e-commerce, the shift away from traditional brick-and-mortar stores necessitates a new approach to warehousing and distribution. Leasing space in an industrial park makes it cheaper and easier to get closer to urban centers—reducing shipping times and costs while meeting the demands of today’s consumers for fast and reliable delivery.
Subsequently, industrial, manufacturing and logistics companies are facing growing pressure to optimize their operations and enhance supply chain efficiency. It all starts with finding the right facility.
In light of these trends, the outlook for industrial commercial real estate investing in Iowa remains promising, offering a wealth of opportunities for investors and developers alike.
2. ABUNDANT AND AFFORDABLE COMMERCIAL LAND SUPPLY
One of Iowa’s most compelling advantages for industrial real estate investment is its large and competitively priced supply of land. In Altoona alone, there are over 1,600 acres of development-ready land, providing ample opportunities for businesses and developers to establish or expand their industrial footprint.
This abundance of land not only offers scalability but also ensures cost-effectiveness, making it an attractive proposition for industrial development projects. Plus, Altoona land development opportunities are often supported by exciting incentives, grants, and tax credits.
3. LOW-MAINTENANCE PROPERTIES
Industrial real estate stands out for its low maintenance requirements when compared to other types of commercial properties. One significant advantage is the relatively low capital expenditure, primarily focused on roofing rather than extensive plumbing and electrical systems seen in other property types. Unlike apartment complexes or office buildings, industrial spaces often function as empty shells, simplifying upkeep and predicting expenses for the foreseeable future.
Tenant improvements in industrial properties also tend to be minimal, as tenants usually don’t require much more than basic functionality—ample square footage, efficient storage systems and enough flex space to account for long-term growth. Moreover, industrial commercial real estate leases are often structured to minimize landlord responsibilities, reducing tasks such as landscaping and interior/exterior maintenance. This streamlined approach contrasts sharply with the exhaustive list of maintenance demands associated with other kinds of properties.
While maintaining high-quality buildings remains important in industrial real estate investment, the simplicity and predictability of maintenance tasks make industrial properties increasingly attractive to investors seeking a low-stress and potentially lucrative venture.
4. LOW TENANT TURNOVER
Tenant turnover is a perennial concern for commercial real estate investors, but its frequency varies depending on the type of property. Single-tenant leasing, common in retail and dining sectors, typically experiences the highest turnover rates since the departure of one tenant leaves the property vacant. In contrast, multi-tenant properties offer more stability, as the departure of one tenant doesn’t significantly impact overall occupancy.
Industrial properties provide a different form of resilience against tenant turnover. With fewer alternative properties available, industrial tenants are less likely to relocate. On top of that, most industrial tenants (like data centers) would much rather make additions and expansions to their facilities than search for a new location altogether.
Although it’s juxtaposed with the ever-changing business landscape faced by clients, this inherent stability makes industrial properties comparatively advantageous for minimizing turnover when compared to other property types.
5. STRATEGIC LOCATION AND ACCESSIBILITY
For industrial businesses in Iowa, finding properties that are centrally located and easily accessible is paramount for several reasons. Firstly, Iowa’s geographic location in the heart of the Midwest provides businesses with proximity to major markets and transportation networks. Being centrally located allows businesses to efficiently reach customers across the region and beyond, reducing shipping times and costs.
Close to Des Moines and with access to major roadways like I-80, I-25 and U.S. 65, Altoona is arguably the best location for transportation and logistics businesses in Iowa. This not only facilitates efficient movements of materials and orders, but also enhances access to a diverse, fast-growing customer base—with the Greater Des Moines area boasting a population of more than 700,000 residents.Top of Form
Furthermore, central location and accessibility are essential for attracting and retaining talent. Industrial businesses rely on skilled workers to operate their facilities and drive innovation. By locating in areas that are easily accessible from surrounding communities, businesses can tap into a larger pool of potential employees, enhancing recruitment efforts and ensuring a steady workforce supply.
FIND AN INDUSTRIAL REAL ESTATE OPPORTUNITY IN ALTOONA, IOWA
Ready to make the move and capitalize on an expanding business opportunity in Iowa? Start your search 10 minutes east of Des Moines, IA in the City of Altoona.
A leader in Iowa economic development with an unrivaled location, fast-growing and high-spending population, and a skilled local workforce—Altoona is the place to make the most out of your industrial real estate investment. There are roughly 1,600 acres of development-ready land and an abundance of industrial buildings available in our business-friendly community.
Whether it’s finding the right location, understanding incentives, or planning for future expansions—the City of Altoona can provide an array of resources to help build your business. Search our commercial property database or request additional information about how to relocate your business to Altoona, Iowa.