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Wednesday, January 15, 2014

Global, U.S. and Kansas City Overview - BRES 2014 Market Report

What changes in the global environment could negatively impart growth in the U.S. Economy?  How has the nation's lackluster economy affected the health of the commercial real estate sector?  What must happen before we once again see a healthy housing market?

2014 Kansas City Market Report
After discovering the IRS was targeting conservative leaning political groups, U.S. citizens took the streets to show their disapproval

Read more for the 2014 KC Market Report highlights!

The slowly improving economy was the driving force for commercial real estate in Kansas City during 2013, a trend that is expected to continue through 2014.  

During 203 the leading commercial real estate activities were in multifamily housing, healthcare development and industrial facilities, trends that are expected to continue through 2014.  The health sector, information technology, industry and product distribution centers are the leaders in employment in the metropolitan area. 

The report highlights Cerner's expansion with the plan to purchase 27 acres at the former Bannister Mall site as well as its campus at The Legends in Kansas City, Kansas, along with other major developments that include the $687 million NNSA complex in Kansas City, the new Posinelli law firm office on the Plaza, the Teva Pharmaceuticals building, the new AMC headquarters and Perceptive Software’s office campus that will open in 2014.

“These developments show the office market has tightened dramatically and point out the need for new Class A office space,” the report says.

Also driving the Kansas City economy are the recently opened intermodal rail hubs of BNSF and Kansas City Southern Railway, which the Market Report credits with driving industrial development:

“… certainly the rise in the speculative industrial development projects in Kansas City with more than two million square feet now under construction shows that our intermodal center will bring new business and construction activity to our market.”

The report also points out strengthened residential development during the past year and highlights the growth in new multifamily development driven by the high occupancy rate, rental-growth rate and strong absorption.

Another strong factor in the Kansas City area’s economy, according to the Market Report, is the investment in downtown that includes entertainment, commercial and residential expansion: “… with over $6.5 billion of investment in downtown Kansas City over the last 10 years, no city in America has done so much in such a short time to revitalize its downtown core.”

Adding to downtown’s potential is the streetcar line now under construction: “Even the proposed new streetcar system is having an effect, as it appears it will jump-start the beginning of the $100 million Columbus Park redevelopment …”

The Google fiber network, which began in 2013 in both Kansas City, Missouri, and Kansas City, Kansas, has spread to a number of suburbs and is impacting the area’s technology reputation, according to the report:

“The Kansas City metro and surrounding area has been nicknamed the ‘Silicon Prairie’ and we are now ranked as ‘one of America’s most entrepreneurial cities’.”

Retail development also has picked up, with the majority of it in Johnson County and includes such developments as Corbin Park, Prairie Fire and the planned Mission Gateway Project.

And much more, click here for your own copy of the 2014 Kansas City Market Report!

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