Speculative Love- Market trends show that the love is growing for speculative as there is a constrained supply of high-quality space. At the end of third quarter of 2014 the industrial vacancy rate was set at 6.31 percent. From 2013 to present there has been nearly 3.3 million square feet of new bulk industrial construction, of which nearly 75 percent was built on a speculative basis. Kansas City's central location and available land is driving the love for speculative development expansion. These speculative developments are able to fulfill the needs of businesses who prefer to be in close proximity to their customers. They do this by improving speed-to-market, reducing inventory carry costs, reducing risk and improving customer service.
Industry Rules of Attraction - It's no surprise that Kansas City's market attracts strong performing distribution and industrial businesses. The e-commerce and the automotive industry have a love for Kansas City's speculative like no other. Block Real Estate Services, LLC (BRES), secured Amazon, Inc. the nation's dominant U.S. online retailer, at Lenexa Logistics Centre with a 260,707 square foot speculative building in late 2014. While Ford Motor Co. recently announced that they will invest $1.2 billion in their Kansas City Assembly Plant and add 900 jobs due to the consumer demand for the new 2015 F-150.These two industries were attracted to the strong performing inland distribution channels in Kansas City that are stout enough to handle the high capacity of intermodal and cargo operations that speed-to-consumer operations demand.
Everlasting Infatuation - Kansas City's speculative and intermodal hub have proven an everlasting love. If you build it, they will come has proven true in many cases like Amazon, Inc at Lenexa Logistics Centre and with the instantaneous deals at College Crossing K. The sturdy market and the demand for modern space will continue to have a love affair with the industrial market. Currently there is early-on lease activity when buildings start construction and it seems that every building has multiple potential tenants in play,leaving little room for heartbreak.
There's no better place to be than in KC! Click here to view how BRES meets KC's love for speculative development.