Availble online now is the 2018 edition of The RealEstate Report, Metropolitan Kansas City. The experts at Block Real
Estate Services, LLC (BRES) have assembled the most comprehensive annual evaluation
you will find for the commercial real estate market in the Kansas City area. If
you are contemplating a real estate transaction in 2018, this report will
provide valuable information to assist you in making the best decisions.
In 2017, Kansas City
generally experienced a strengthening across all product types and submarkets.
·
Class A Office
market vacancy dropped to 8.7% at the end of 2017, down 1.8% from the same time
in 2016. 8.7% is the lowest vacancy rate for the Kansas City market in at least
the past 16 years. During 2017 over 500,000 square feet of new Class A
construction was delivered in the area and average rental rates reached $22.34.
A historic sale was seen in the area as the 22-building, 2.2 million square
foot, Corporate Woods portfolio was acquired by Group RMC out of New York and
Montreal. BRES was brought on as the exclusive leaser and property manager.
·
Growth in Kansas
City’s industrial market is being driven by more national companies that are
seeking to consolidate their logistic operations, as well as internet-based firms
looking for a central location to process and ship orders from efficiently. By the
end of 2017 there had been almost six million square feet of net absorption
with no change to the vacancy rate from the same time last year. Deliveries in
2017 reached over 9.5 million square feet which includes the 401,197 square
feet at the fourth building at BRES’ Lenexa Logistics Centre South in Lenexa,
Kansas.
·
The Retail market
is ever changing, but brick-and-mortar locations will not go away even as
retailers adapt to the changing habits of their customers. Overall, vacancy
rates fell across the metro, moving from 6.2% at the end of 2016 to 5.3% at the
end of 2017.
·
Multifamily transaction
volume continued to maintain historically high levels in Kansas City, reaching
more than $700 million through a healthy mix of sales in Class A, Class B, and
Class C properties. An additional 138,240 units were added to the market due to
low-rise, high-rise, and mixed-use developments popping up throughout the
Metro. BRES continues to be active in the multifamily market with multiple developments
in process, including: Galleria 115, 4400 Washington, The Grand, 531 Grand,
Anderson Pointe, 46 Maddison and The Apex at CityPlace.
Our
annual market report takes an in-depth look at each of the above sectors and will
provide you with a thorough understanding of the Kansas City commercial real
estate market. If you are considering real estate transactions in other markets,
BRES’s team of experts can connect you with one of our affiliates to seamlessly
incorporate the broadest and most accurate data available into your decision
process. Our entire team stands ready to answer your questions and help you
obtain a clear vision of commercial real estate in Kansas City or anywhere across
the country.
A
digital version of this report is also available at:
www.blockllc.com/marketreport
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