KC & National Investment Market Report

Investment Commercial Real Estate Transaction Rise.  Kansas City continues to be at  the top of investors’ preferred list, although the challenge is breaking into this  tightly held real estate market and being able to place enough capital to gain market share.

With the tremendous amount of equity in the marketplace in 2012, Kansas City and national investment professionals saw transaction volume increase significantly over 2011 and dramatically over 2009 and 2010. Several factors pushed investment commercial real estate back to the forefront as an investor’s preferred asset class. According to Real Capital Analytics, third quarter 2012 property sales volume totaled $67 billion, a 19% increase over the same period in 2011. A more important factor for Kansas City and other secondary markets is the increased trend of investors going into secondary and tertiary markets to find higher investment yields.

KC Top Investment Deals from 2012:

1. One Nineteen Shopping Center
2. Essex Place
3. Market Station
4. The Coleman Company Distribution center
5. City Center Square
6. Perimeter Park Distribution Center
7. Botts Road Distribution Center

Botts Road Distribution Center, a 500,000 sq. foot facility in Grandview, Missouri, was purchased by a group of Block Real Estate Services investors, led by Managing Principal Ken Block. The building is fully leased to tenants Caravan Ingredients Inc. and Church & Dwight Co. Inc.

Glimcher Realty Trust is rebranding the One Nineteen shopping center at 119th & Roe Avenue after its recent purchase, and will change its name to Town Center Crossing in order to pair it with nearby Town Center Plaza.

 

Best Bets for 2013

• Concentrate acquisitions on budding infill locations
• Construct new-wave office and build core properties in 24-hour markets
• Develop select industrial facilities in major hub distribution centers near ports, international airports, and emerging intermodal ports
• Use caution investing in secondary and tertiary markets unless teaming with best local operators with boots on the ground
• Begin to back off apartment development in low-barrier-to-entry markets
• Consider single-family housing funds
• Repurpose the surplus of obsolescent properties

  Source: “Emerging Trends in Real Estate 2013”

 

For more information on the KC Market Report Click here 

Contributing Author:

Grant Reves

Investment Sales & Acquisitions

Block Real Estate Services

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