The 2019 Market Report is Now Available

Availble online now is the 2019 edition of The Real Estate 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 2019, this report will provide valuable information to assist you in making the best decisions.

In 2018, Kansas City generally experienced a strengthening across all product types and submarkets.

• Class A Office market vacancy dropped to 8.1% at the end of 2018, down 0.6% from the same time in 2017. This 8.1% vacancy rate represents the lowest rate for the Kansas City market in the past 17 years. During 2018, over 350,000 square feet of new Class A construction was delivered in the area with absorption out pacing delivery by approximately 50,000 square feet. Average rental rates climbed $0.24 to reach $22.58 at year end. BRES is set to deliver it’s first of four office buildings at CityPlace in 2019. The 120,268 square foot, four-story, Class A building is expected to be completed in June 2019 and plans are already underway for the second 120,000 square foot Class A office building.
• Growth in Kansas City’s industrial market is being driven by the brick and mortar retailers rush to cut delivery times and transportation costs, raise their ecommerce capabilities, and compete with a changing landscape driven by Amazon. By the end of 2018, over six million square feet of net absorption had occurred, and the vacancy rate dropped 1.2% from the same time last year to 4.4%. Leasing activity in 2018 included Turn5 Inc., an ecommerce retailer in the aftermarket automotive parts industry, leasing of 363,063 square feet of the 635,834 square foot BRES developed in Lenexa Logistics Centre North Building 1 in August of 2018.
• Retailers continue to embrace omni-channel strategies to reach the consumer on every digital device they touch. While shopping for daily commodities has, and will continue to, become more streamlined with self-pay stations in stores and one-click ecommerce purchases with same-day delivery, the opportunity to find great products while socializing with others at brick and mortar stores won’t be going away anytime soon. Overall, vacancy rates rose across the metro, moving from 5.3% at the end of 2017 to 5.9% at the end of 2018, while average rental rates rose $0.59 to $13.56.
• The Kansas City multifamily market continued to grow with the delivery of 1,935 units in 2018 bringing the total to 144,035 for the market. Average vacancy decreased 1.2% to 6.7% across the market with a 1.6% increase in market rents. BRES continues to be active in the multifamily market with multiple developments in process contributing to the 8,357 units currently under construction, including: Galleria 115, 4400 Washington, The Clearing at Anderson Pointe, 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

Deal of the Week: Multifamily Property in KC

Michael Block and Aaron Elyachar of Block Real Estate Services, LLC (BRES) closed on the sale of a multifamily property in Kansas City, Missouri.

Valuation of Commercial Real Estate: Part 1

Commercial real estate comes in four varieties: Office, Industrial, Retail and Multifamily.

Amenities, Amenities...It's all about the Amenities to Attract the Right Clientele?

Gone are the days when a simple pool and a lone treadmill were the only amenities needed in the
multifamily market. Now properties that are under construction or in the development stage must find ways to provide unique and enticing amenities to attract individuals to the development. To accomplish this, these properties are focusing in on a few amenities such as the location, finishes, and layout.

The Earth Just Moved at CityPlace

With a ceremonial first turn of the soil, September 24, 2014 marked the official start of construction at Block Real Estate Services’ CityPlace, a mixed use development in Overland Park, Kansas. CityPlace will feature Class A office buildings, multi-family residences, retail services, restaurants and senior living, all connected in one vibrant and energetic community.

Marketing to Millennials-Are You Positioned Correctly?

Millennials are the largest and most educated generation currently. Because of their size they have impacted the way companies and even property management companies are communicating with their customers. Most have switched to methods of creating a personalized communication as this is the type of communication the Millennial generation has responded the best to. A personalized communication is a unique message that utilizes nicknames, culture specific terms and unique vocabulary. With traditional media channels creating a unique interaction is next to impossible. This is why property management companies of multifamily units are turning even more to social media and websites to reach out and connect on a personal level with the Millennial audience.

Retail's Role In Mixed-Use Development

It is an exciting time for commercial real estate development. Live/work/play communities are in high demand. Retail plays a crucial role in this type of development. Dense population supports sales and, as such, retail perfectly complements a strong multifamily development. Add daytime office workers and the need is increased. When we began planning the CityPlace development in Overland Park, we knew that retail would be needed to help support this new in-fill community. Here are some of the insights we gleaned when incorporating retail into the CityPlace development:

Urbanization Driving Multifamily Demand

Demographics are creating a surge of urbanization and increased interest in multifamily rehab developments. According to the Census Bureau, 2013 saw 2.3 million more people living in metro areas than in 2012, with 269.9 million people now living in cities and their surrounding areas. Shifts in different renter appeals are driving urbanization and thus, there is great desire for revitalization and rehab in urban areas.

A Property Manager's New Year's Resolutions

The New Year inspires new goals and aspirations that drive people to improve themselves and their businesses. In this blog post, we think upon what a commercial real estate property manager would have for their new year's resolutions in 2014 and what "more" can be brought to the table in 2014.

Day 4 - Multifamily Development - 12 Days of Why It's Great to be in KC!

From the downtown to the suburbs, we are seeing great opportunities arise for successful multifamily

developments all over the Kansas City area. On day four of our Block Real Estate Services 12 Reasons Why It’s Great to be in KC, we will share the multifamily forecast for 2014 and feature one of our own multifamily developments.

Trending In Multifamily: Amenities



In the commercial real estate multifamily market, investors are looking at quality assets in markets where the existing job market is stable and the future of job creation and job growth is on the horizon. Residents seeking multifamily housing in these markets are looking for amenities to match the up-and-coming lifestyle of these healthy job markets.  2014 multifamily developments will continue to show the demand for amenities for future developments.

Block Multifamily Partners with Balfour to Deliver Solutions

Two heads are better than one...and sometimes two companies are better than one.

Block Multifamily Group (BMG) and Balfour Beatty Communities have partnered to jointly pursue property management opportunities for HUD, Low Income Housing Tax Credit (LIHTC) and other Public Housing Authority projects. Learn the basics of LIHTC here.  

Property Management Tip #7 - Vendor Relations

Cultivate positive vendor relationships!

A well-managed property should build better vendor relationships.

On-site and regional managers should proactively build relationships with skilled workers.  Choose vendors that are in your price range, are trustworthy, and do very good work.  Keep them close, and they will come to the rescue when the property needs it most. 

Multifamily Commercial Real Estate Social Media

The accessibility and reach of social media can be a great ally to reach your market in the apartment world. An integrated social media strategy will help you push leasing and communicate with residents, which equals: get new residents, and keep the ones you have! In this blog post, I will examine how social media can add value to the different facets of multifamily commercial real estate. 

Property Management Tip #4 Internet Marketing

Being Relevant Means Being Connected!

 

A well-managed property should be more connected than its competitors.

New Opportunities for Commercial Real Estate in 2013

There are many new challenges and opportunities for commercial real estate in 2013 to keep in scope as they new year progresses. A key part of the BRES 2013 business strategy is to aggressively pursue opportunities that will elevate results for our clients. The face of the commercial industry is ever-changing and any CRE company must be actively pursuing the challenges opportunities in the industry in a way that will best benefit their clients. At BRES, some of the major opportunities we pursued have developed into divisions of their own.....

Day 8: 12 Days of the KC Market Report: Opportunities for 2013

As 2012 comes to a close, we look to the upcoming opportunities of 2013. Where do you see the biggest opportunities for commercial real estate in 2013?

•  Downtown?
•  Office?
•  Industrial?
•  Retail?
•  Investment?
•  Multi-Family?

Click here to weigh in on the survey and check back for the results. Also, be sure to sign up to receive the 2013 Block Real Estate Services Market Report. 

Multifamily Collaboration on a Big Scale

2012 has been a great year for the Multifamily industry. There are new opportunities, developments and technological advances everyday. One of the ways to fully capitalize on what’s happening is by putting yourself out there through networking and sharing information with other professionals.

Apartments as a Consumable Product

Apartments are consumable products. At our company, Block Multifamily Group, (BMG) we understand this concept through the Retail lens. Through this lens, we imagine the property as a retail shop, with the front door being the property’s entrance; the product for sale being the units; the store being the grounds and the salespeople being every member of the Management, Leasing and Maintenance staff. This approach has proven to be a critical management tool, and we have seen great on site improvements as a result. 

Outlook on Commercial Real Estate For 2nd Half of 2012

Recently, Block Real Estate Services, (BRES) LLC was honored to be featured in the Midwest Real Estate News Best of the Best 2012. See how BRES ranked. In the issue, BRES' Managing Principal Kenneth G. Block shared his insight on CRE for the remainder of 2012:

Multifamily
Currently, multifamily and the assisted-living side of the market are strong. A tremendous amount of multifamily projects have been sold, thus, showing a significant development opportunity in this sector. Young people are also playing an influential role in the success of multifamily. As a result of the economy, significant changes have developed in young people’s attitudes towards owning homes.  They don’t see buying a home as an investment, and are looking at multifamily residential to provide more flexibility. This is a big change for our country, and it bodes well for the future of the multifamily market.