Why FRH targets Des Moines
Central Iowa has become one of the country's larger hyperscale data-center clusters. Microsoft operates multiple data centers in West Des Moines and is building more, and Meta and Apple also run campuses in the metro. That investment adds construction activity, power infrastructure and tax base. Des Moines also sits at the I-35/I-80 crossroads, which supports distribution and small-bay industrial users serving the region.
Iowa. An FRH growth-driver secondary metro. Data last verified 2026-10-23.
Data centers bring capital but relatively few permanent jobs. The deeper demand base is the metro's insurance and financial-services employment, along with state government and healthcare. Payrolls dipped over the past year and the apartment pipeline is still large, so FRH leads here with manufactured housing and RV communities and small-bay industrial, and considers workforce multifamily only below replacement cost.
Demand drivers
Population and jobs
- The Des Moines–West Des Moines MSA had 758,539 residents on July 1, 2025 1.
- Total nonfarm jobs fell by 1,900 (-0.5%) from August 2025 to August 2026, per preliminary BLS data, which BLS does not rate as significant 2.
Employers and anchor investments
- Microsoft, West Des Moines. Microsoft's October 2025 Iowa fact sheet says its operating data centers employ about 540 people and that it is building new data centers in the greater Des Moines area 3. We did not verify the size or schedule of the newest buildings.
- Meta (Altoona) and Apple (Waukee). Both operate data centers in the metro. We did not re-verify their current expansions in this pass, so we state no figures for them.
- Insurance and finance. Insurance, banking and financial-services headquarters and back offices remain the core employment base.
Infrastructure
- I-35 and I-80 meet in Des Moines, with Union Pacific and other rail service. There is no water freight or refining.
- Iowa has 590 public DC fast-charging ports 4.
Housing supply and affordability
CBRE's 2026 mid-year review, as reported by Hubbell Realty, put metro apartment occupancy at 93.7%, with asking rents up 2.9% year over year to an average of $1,216. The metro delivered 723 units in the first half of 2026, more than 3,100 units are under construction and about 4,700 more are planned 5.
That pipeline is large for a metro of this size. Until it is absorbed and payrolls turn positive, FRH holds off on new multifamily acquisitions except at a basis clearly below replacement cost. Covered land and small-bay industrial face much less new competition.
Where FRH strategies fit
| Strategy | Fit | Where |
|---|---|---|
| 01 Covered Land (MHC/RV) | Lead strategy | Communities in Polk, Dallas, Warren, Story, Jasper and Marion counties |
| 02 Workforce Multifamily | Selective | Older 6–50 unit buildings in Des Moines' established neighborhoods, Urbandale, Windsor Heights and Ankeny, below replacement cost only |
| 03 Opportunistic | Lead strategy | Small-bay, shallow-bay and flex near I-35 and I-80, Ankeny, Altoona and the West Des Moines/Waukee data-center corridor; fee-simple special situations |
| 04 Debt / Notes | Active | Notes from Iowa community banks and credit unions on buy-box collateral |
Captured within about 75 minutes: Ames, Ankeny, Waukee, Altoona, Indianola and Pella. Marshalltown is at the edge. Drive times are approximate.
Key risks
- Apartment pipeline. About 3,100 units under construction and 4,700 planned 5.
- Payroll softness. Jobs fell 0.5% over the year 2.
- Few permanent data-center jobs. About 540 Microsoft employees 3 against billions in capital.
- Infrastructure-light economy. No water freight or refining. The EV network is moderate 4.
- Liquidity. Thinner buyer and lender pool than in core metros.
In the news
What's moving in Des Moines
Recent headlines from commercial real estate trade press (Bisnow, GlobeSt, Connect CRE, REBusiness Online, Commercial Observer, Multi-Housing News and others) and local business journals, refreshed every business day. Links open the publisher's site; FRH does not write or verify these stories.
Capital markets & lending
Sales, financing, refinancing and distress
Sources
Every figure on this page is cited. Broker research uses different methods, so figures are not always comparable across metros.
- U.S. Census Bureau, Vintage 2025 metro population estimates (July 1, 2025; released Mar 26, 2026), as compiled by StatRanker. statranker.org (accessed 2026-10-23)
- U.S. Bureau of Labor Statistics, Metropolitan area employment, over-the-year change, Aug 2026 (preliminary). www.bls.gov (accessed 2026-10-23)
- Microsoft, "Microsoft datacenters in Iowa" fact sheet, Oct 2025. local.microsoft.com
- U.S. DOE Alternative Fuels Data Center, Alternative Fueling Station Counts by State (data updated Oct 23, 2026). www.afdc.energy.gov
- Hubbell Realty, "Des Moines Multifamily Market Outlook 2026" (citing CBRE 2026 Mid-Year Review), Aug 11, 2026. www.hubbellrealty.com
Other markets
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