Kansas City’s industrial sector continues to hit high notes, as reflected in Xceligent’s most recent research. The commercial real estate data company’s first quarter report notes that the market absorbed more than 670,000 square feet in the first quarter of 2016 alone. Over the rest of the year, expect to see more than 4.5 million square feet of new construction to be delivered and for overall absorption to increase substantially.
Notable transactions include Amazon’s decision to lease 822,000 square feet at Logistics Park Kansas City, where it will occupy the entire Inland Port XIV facility. The internet company is scheduled to move in in September.
It’s showing no signs of slowing. Xceligent says that numerous local tenants are growing their businesses and in need or larger spaces. Roughly 275,000 square feet of space occupied this quarter came from existing tenants in the market who needed more space or opened additional locations.
Johnson County won the most substantial absorption rates of the first quarter with more than 480,000 square feet in positive activity, mostly thanks to S&S Activewear, which contributed to that number when it located in Kansas City its fourth warehouse location in the U.S.
Find the full industrial report here.
Kansas City’s office sector is off to a rosy start as well. Xceligent reported that compared to the 150,000 square feet of negative absorption in the first quarter of 2015, Kansas City saw 328,000 square feet of positive absorption in the first quarter of 2016. Year to date, total vacancy hit another positive note when it dropped from 12.6 percent to 11.7 percent over the last year.
The biggest storyline of the office sector in the first quarter involved Burns & McDonnell’s completion of its new 311,000-square-foot facility. The firm vacated 60,000 square feet of office space to relocate to the new building in its world headquarters complex.
Asking rates are climbing, too, improving from an average of $17.65 per square foot last year to now an average of $18.35 per square foot. South Johnson County leads the way with a quoted average of $20.89 per square foot.
New office construction projects underway total more than 1 million square feet of new space. The largest project is the first phase of construction at Cerner’s new Three Trails Campus in South Kansas City. Right now, the project team is building two new towers totaling more than 800,000 square feet. Over the next ten years, expect more than 4.7 million square feet of new office space to be delivered on that campus, making it the largest economic development project in the history of Missouri.
Get the full picture by downloading the Q1 office report here.