With city aid, Urbandale office building getting makeover as realty company seeks tenants

Phillip Sitter, Des Moines Register
Updated ·2 min read
The Crescent Building at 12421 Meredith Drive in Urbandale. With the help of a city tax increment financing rebate, R&R Realty is renovating common spaces in the building in a bid to attract more tenants.
The Crescent Building at 12421 Meredith Drive in Urbandale. With the help of a city tax increment financing rebate, R&R Realty is renovating common spaces in the building in a bid to attract more tenants.

Putting the right kinds of amenities in a workplace is part of what's necessary to help employers draw employees back to the office in-person, according to a metro real estate agency renovating an Urbandale office building.

West Des Moines-based R&R Realty is giving the Crescent Building at 12421 Meredith Drive in Urbandale a makeover that will include a Starbucks coffee kiosk, a gym, new lobby and collaborative spaces to accommodate small team conferences and large training sessions.

"We really want to put in the amenities and 'wow' features" to get new tenants, said Adam Kaduce, president of R&R.

More: Principal Financial Group orders Des Moines employees back to downtown offices

The 225,000 square-foot former Marsh Mercer Building has been exclusively home to Marsh and McLennan Cos.' offices since it was built in 2006. The company still has offices on the third floor after downsizing its regional headquarters, but there's more than 45,400 square feet vacant on the first floor, more than 76,700 square feet vacant on the second floor and more than 26,800 square feet available on the third floor, according to R&R.

An interior view shows vacant office space inside the Crescent Building at 12421 Meredith Drive in Urbandale. With the help of a city tax increment financing rebate, R&R Realty is renovating common spaces in the building in a bid to attract more tenants.
An interior view shows vacant office space inside the Crescent Building at 12421 Meredith Drive in Urbandale. With the help of a city tax increment financing rebate, R&R Realty is renovating common spaces in the building in a bid to attract more tenants.

Paul Rupprecht, executive vice president of R&R, said he expects demand for workspace will never again be what it was before the COVID-19 pandemic, but that people will always use office space and that the "pendulum is swinging back" from remote work.

More: Principal Financial Group orders Des Moines employees back to downtown offices

Rupprecht said employers want people back in offices, especially for innovation and mentoring purposes, but employees are looking for the amenities they've had while at home, such as coffee on demand and the ability to get a workout in over the lunch hour.

A patio that's part of the Crescent Building at 12421 Meredith Drive in Urbandale.
A patio that's part of the Crescent Building at 12421 Meredith Drive in Urbandale.

There aren't yet new tenants signed, according to R&R spokesperson Dollie Pinegar, but Kaduce and Rupprecht said there has been interest.

R&R also has a development agreement in place between Marsh I LLC and Urbandale city government, and plans to finish the renovation by the end of the year.

Urbandale City Council on Aug. 22 approved a three-year, 90% tax increment financing rebate on the post-renovation increase in the building's value.

The city estimated R&R's improvements to the building will increase its value by $7 million and expects $413,000 in TIF rebates.

In exchange, per the agreement with the city, new tenants must agree to stay put for at least five years, bring new jobs and lease more than 20,000 square feet. Tenants from outside Urbandale can lease smaller spaces but must first get approval.

More: These 4 Des Moines metro suburbs have grown so much they need a special census

Phillip Sitter covers suburban growth and development for the Des Moines Register. Phillip can be reached via email at psitter@gannett.com. He is on Twitter @pslifeisabeauty.

This article originally appeared on Des Moines Register: Urbandale's Crescent Building getting makeover to attract new tenants