Retail Growth in Greater Des Moines Spurs New Patterns in Local Job Market

Retail vacancy rates in Greater Des Moines remain notably low at just 4.0%, indicating strong demand for retail space across the metro area, according to recent CBRE data[1]. The Northeast submarket holds the tightest vacancy at 1.7%, followed by the Central Business District at 2.3%, underscoring a vibrant retail environment in these locations.

This low vacancy is driven by several factors: major new store openings, shifting retail strategies, and suburban expansion. Retailers are adjusting their operations to blend traditional storefronts with digital services like online ordering and curbside pickup, while some vacant spaces are being repurposed for offices, reflecting evolving use of commercial real estate. Meanwhile, rising construction costs and labor shortages are limiting new retail developments, concentrating growth in existing or adaptive locations[3].

New Stores and Shifting Retail Spaces

Recent openings have injected vitality into key shopping centers. H&M launched a sprawling 25,000-square-foot store at Jordan Creek Town Center late last year, joining Fabletics, which opened its first Iowa location there for the holiday season[2]. West Des Moines welcomed Floor & Décor’s inaugural Iowa store at Westowne Shopping Center, occupying a former Gordmans space. In suburban Clive and other suburbs, national chains Burlington and Painted Tree Boutiques have taken over large spaces once held by JoAnn Fabrics and Bed Bath & Beyond, highlighting a reuse of previously shuttered retail footprints[1][2].

Valley West Mall in West Des Moines is undergoing rezoning to transform its retail-only space into a mixed-use development combining residential, office, retail, and entertainment uses. This rezoning signals a shift in the retail landscape, reflecting changing consumer habits and the need for multifunctional spaces that blend shopping with work and leisure[4].

Impact on Local Employment and Talent Demand

The region’s retail market recovery supports a robust job market in and around commercial hubs. Investment sales surpassed $50 million in the third quarter of 2025, and average asking lease rates rose 4.3% year-over-year to $17.50 per square foot[5]. These economic indicators suggest retailers have regained confidence post-pandemic, leading to hiring surges particularly for roles that integrate physical retail operations with omnichannel fulfillment.

However, labor shortages remain an ongoing challenge. The need for workers trained to navigate omnichannel retail-including inventory management and customer service both online and in-store-is creating new skill demands. Adaptive reuse of retail spaces into offices also fuels demand for administrative and professional workers skilled in these environments. Local workforce programs, facilitated through Iowa Workforce Development and community partners, are critical to bridging the gap in trained talent for both traditional and emerging retail roles[3].

Suburban retail expansion in growing communities such as Waukee, Ankeny, Altoona, Norwalk, and Grimes is expected to further diversify the geographic distribution of retail jobs. As these areas develop, demand for retail employees with flexible skills is also likely to increase, alongside ancillary positions in logistics and facility management[4].

The combined effects of new store openings, adaptive reuse, and rezoning initiatives are reshaping the employment landscape, creating both opportunities and challenges for job seekers in Greater Des Moines. For workers, gaining skills aligned with integrated omnichannel retail and office-based operations could position them well for the evolving market.

Employers and economic planners alike should monitor these shifts closely. Continued investment in targeted workforce development programs, alongside support for retail operators balancing physical and digital realms, will be key to sustaining growth. Prospective employees seeking retail work should consider training opportunities offered through Iowa Workforce Development centers, such as the one at 200 Army Post Road, which provides career assistance and connections to relevant training[3].

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.