MWM Industrial Summit signals continued strong market

A panel of leading Kansas City commercial real estate developers, builders and municipal leaders shared insight into the region's booming industrial market at MetroWireMedia's 2017 Industrial Summit on Friday, Aug. 25 at Blue Hills Country Club. 

Here's a snapshot of industry insight from our panelists:

“We are seeing about 60 percent of users come from outside the Kansas City area, and we are on pace to deliver over 10 million square feet this year."  -Kevin Wilkerson, JLL

“The supply side of industrial development has been somewhat disciplined. Demand has not outpaced supply at all, so we expect it will continue in a healthy fashion.” -Mark Long, Newmark Grubb Zimmer

“Kansas City companies can reach 90 percent of the U.S. in two days' shipping, so a company that years ago believed they needed to be near population densities on the east or west coast can reach 90 percent of their customers right here.” -Mike Bell, Hunt Midwest

“We are seeing more 'small boxes' that are appealing to tenants who want to be in their own space and not have to share a building, or they are a 60,000 to 80,000 square foot tenant and it appeals to them to have a right of first refusal and be in their own space and growing.” -Sam Stahnke, ARCO Construction

“From a long-term perspective, Kansas City has now reached a new level within the country as a major destination for e-commerce distribution, and that’s not going to change. The growth is going to continue for some time.” -Whitney Kerr, Jr., Cushman & Wakefield

“We are looking for opportunities where there is going to be a significant incentive to do business in Kansas City. We aren’t trying to create winners and losers amongst you all; we are trying to create winners for all of you within our Port District.” -Michael Collins, Port KC

“One of the challenges for local government, especially a government as small as Edgerton, is to be aware of what all levels of government are doing and how that might impact our ability to provide attractive incentives. Edgerton is certainly looking for opportunities to be creative and to have incentives that look different from other areas of the country.” -Beth Linn, Edgerton City Administrator

"MetroWireMedia has assembled a group of Kansas City commercial real estate leaders who are at the top of their game in what is without question the strongest industrial real estate market in recent Kansas City history. I look forward to leading the discussion as we hear about best practices for sustaining the momentum in the current red-hot market." -Chris Gutierrez, KC SmartPort

Want more insider scoop? Mark your calendars for MetroWireMedia's 2017 Multi-Family Summit on Oct. 12. Contact Lisa Shackelford for sponsorship information. 

Check out our slideshow below, or head to our Facebook page and tag yourself in the event photos. 

Wanted in Edgerton: Restaurant and residential development

With almost 11 million square feet of industrial space under construction and 3,400 new jobs created in three years, the City of Edgerton is scrambling to attract retail, restaurant and residential development activity.

“Our projects went extremely fast. The amount of traffic and number of employees we are seeing here and the desire to have amenities and housing options nearby just continues to increase,” said Edgerton Mayor Don Roberts.

NorthPoint Development’s Logistics Park Kansas City in Edgerton is among the most successful industrial park buildouts in the nation in recent memory, both in terms of total square footage and speed to market. But attracting and building ancillary development to support the burgeoning workforce has a longer runway, and that’s one reason the city launched its own economic development partnership, ElevateEdgerton!, earlier this year.

“There is a lot of development happening in the KC area right now, and we are trying to compete with other more established areas and trying to get people to come to Edgerton,” said Edgerton City Administrator Beth Linn. “Once people are at (LPKC), it sells itself, but getting them here can be a challenge because we are kind of an unknown in the market.”

The basic message ElevateEdgerton! wants to send is that the market is ripe and ready for additional investment beyond industrial warehouse and distribution projects. The influx of thousands of new Amazon and UPS workers requiring places to eat and spend money before, during and after their workdays has changed the conversation.

“We have the numbers, and we have to bring these other sectors,” Roberts said. “Two years ago, things were different, but a fast service restaurant will make it in Edgerton today.”

Russell Pearson with NAI Heartland is on the team marketing the Midwest Gateway speculative industrial project in Edgerton and agrees that the time is right for more development: "The industrial growth in Edgerton has been dramatic in the past few years, and this creates a real opportunity for developers to deliver commercial and residential product to support the employee base in that area.”

In addition to restaurant and residential housing, the city is working to attract a large, full-service truck stop to accommodate commercial vehicles and possibly provide additional quick service dining. Roberts believes that a dramatic rise in traffic counts over the past three years will help make the case.

“Homestead Lane wasn't even open 3 ½ years ago. To go from 0 to 10,000 vehicles a day is unheard of,” Roberts said.

Interested developers should contact Steve Hale at ElevateEdgerton! to identify top sites.