Des Moines, IA sits at the I-35/I-80 crossroads with warehouse rates under $5/sq ft NNN - among the lowest in the nation. The city's central U.S. position, strong insurance and financial sector workforce, and agricultural supply chain infrastructure support efficient nationwide ground distribution.
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Los Angeles is the largest fulfillment metro in the US, anchored by the San Pedro Bay port complex which handles 40% of all US containerized imports. The I-710 freight corridor connects the ports to thousands of warehouses across the LA basin and into the Inland Empire.
Warehouse costs in the LA metro run $13-16/sq ft annually, higher than the Inland Empire but closer to the ports. Brands importing from Asia-Pacific suppliers benefit from same-day drayage. Ground shipping from LA reaches 60 million consumers within 1-2 days.
Des Moines offers some of the most affordable warehouse space in the United States. Average lease rates run under $5 per square foot NNN, far below the national average of $9.12/sq ft. The metro's industrial market closed Q4 2025 with 7.5% overall vacancy and roughly 240,000 square feet of positive year-to-date absorption. While vacancy has risen from pandemic-era lows, lease rates still increased 3.3% year over year, reflecting steady demand from distribution and manufacturing tenants.
The intersection of I-35 and I-80 gives Des Moines a rare dual-corridor advantage. I-80 carries transcontinental east-west freight, while I-35 runs from the Canadian border to the Gulf of Mexico. This crossroads position enables cost-effective ground shipping to major Midwest markets - Chicago, Minneapolis, Kansas City, St. Louis, and Omaha - typically within a single day. Multiple Class I railroads also serve the metro, adding intermodal options for bulk and containerized freight.
Des Moines has a large, educated workforce shaped by the city's dominant insurance and financial services sector. Principal Financial, Nationwide, and EMC Insurance are among the major employers. This white-collar base translates into a population experienced with data-driven operations, inventory management systems, and process optimization - skills that transfer well to modern 3PL and fulfillment operations. The Des Moines metro population exceeds 700,000, providing a reliable hiring pool.
Agricultural logistics is deeply embedded in Iowa's economy, and Des Moines serves as a distribution hub for grain, livestock, and processed food products. Cold storage, temperature-controlled warehousing, and food-grade facilities are common in the market. For ecommerce brands and consumer goods companies looking to place inventory in the geographic center of the country without paying premium rates, Des Moines delivers a combination of low occupancy costs, strong highway access, and a workforce accustomed to operational efficiency.
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Learn How We Vet Providers →Average warehouse lease rates in Des Moines run under $5 per square foot NNN, significantly below the national average of $9.12/sq ft. Industrial vacancy stood at 7.5% as of Q4 2025, with lease rates increasing 3.3% year over year. Des Moines is among the most affordable major distribution markets in the country.
I-80 carries east-west transcontinental freight while I-35 connects Canada to the Gulf of Mexico. This intersection enables single-day ground delivery to Chicago, Minneapolis, Kansas City, St. Louis, and Omaha. The dual-corridor position makes Des Moines a natural hub for brands distributing across the Midwest and broader central United States.
The Des Moines metro exceeds 700,000 people, with a workforce shaped by the city's insurance and financial services sector. Employers like Principal Financial and Nationwide have built a labor pool familiar with data-driven operations and process optimization. These skills transfer well to modern warehouse management and fulfillment operations.
Iowa is a major agricultural state, and Des Moines has well-developed cold storage, temperature-controlled warehousing, and food-grade facilities. The city serves as a distribution point for grain, livestock, and processed food products. 3PLs in the area commonly handle perishable goods and compliance with food safety standards.
Multiple Class I railroads serve the Des Moines metro, providing intermodal options for bulk commodities and containerized freight. Rail service complements the highway network for long-haul shipments where transit time flexibility allows cost savings over trucking. Grain, building materials, and manufactured goods are common rail freight categories in the market.
