BHC

Kansas City Industrial Growth: Smarter Sites, Stronger Collaboration

MetroWire Media closed out its 2025 programming with a standout KC MWM Industrial Summit, hosted at Johnson County Community College. With rising construction costs, evolving tenant expectations, and major infrastructure needs, our expert panel explored what’s driving Kansas City’s industrial momentum—and how the region is positioning for what’s next.

Special thanks to our sponsors who made this event possible:

Platinum Sponsors: JE Dunn Construction, Miller Stauch Construction
Bronze Sponsors: Bartlett & West, ARCO, Seal-O-Matic, Armstrong
Brew Crew Sponsors: Capitol Federal, KC SmartPort, BHC, studioNorth Architecture

What Makes KC Competitive?

Chris Gutierrez of KC SmartPort opened the conversation: “Every company that comes here asks how we got Missouri and Kansas in the same room from the start. That collaboration is our edge.” He emphasized KC’s multimodal freight infrastructure, industrial developer base, and workforce reliability as top selling points.

Construction Cost Pressure and Preconstruction Strategy

Ryan Schroeder of Russell Construction pointed to a slowdown in private investment due to high interest rates, but stressed that early collaboration is a winning formula: “Clients want cost and schedule certainty. That means contractors must be involved from the design phase, not just at bid time.”

Above: Attendees at MetroWire Media’s 2025 Industrial Summit listen in as the panel discusses the current state of Kansas City’s industrial real estate market. Image | BGSTUDIOS PHOTOGRAPHY + FILM

Speculative vs. Build-to-Suit: Staying Disciplined

Brent Peterson of NAI Heartland provided perspective from the leasing and capital markets side: “KC has been disciplined about what we build, and that’s why we’re still absorbing. Most activity today is build-to-suit, but spec buildings remain vital—especially smaller footprints under 500,000 SF.”

Infrastructure Is Now a Front-End Issue

Krizia Diaz, leading JE Dunn’s industrial manufacturing sector, discussed how “pad-ready” doesn’t always mean infrastructure-ready: “We’re helping clients pivot mid-project to phase development or self-supply utilities like wastewater treatment or power generation. That shifts design, cost, and timeline significantly.”

Flexibility in Design: The New Standard

Kevin Polit of studioNorth Architecture explained how flexible shell buildings support long-term utility: “You’re not just designing for one tenant anymore. You’re building a platform that can support automation, manufacturing, cold storage, or ESG upgrades over decades.”

John Krudwig of Bartlett & West agreed, adding: “We’re designing spec with build-to-suit in mind—high-performing roof structures, flat floors, even modular under-slab systems for future use. It’s more rewarding, more strategic.”

Automation Expectations Are Real—and Rising

Karley Felz, an automation systems expert, shared how tenant demands are shifting: “Automation is no longer optional. With labor tight, tenants want high-speed connectivity, stronger slabs, and wider column spacing. We’re seeing higher employee satisfaction too—robots aren’t replacing people, they’re supporting them.”

Data Centers: Boon or Bottleneck?

The discussion turned to KC’s growing data center market. With Meta and Google investing billions, power availability is now a gating factor. “These aren’t one-and-done builds,” said Gutierrez. “They upgrade every two years. But they also generate secondary demand—construction, manufacturing, automation. It’s an ecosystem.”

Panelists noted the need for better long-term planning around power generation, with Kevin Polit citing innovations like small modular nuclear reactors as viable mid-term solutions. Brent Peterson explained that the “$100 billion” data center numbers are cumulative over decades, reflecting upgrades, infrastructure, and equipment, not just construction.

Above: Guests mingle at the MWM 2025 Industrial Summit at Johnson County Community College before the panel discussion.

Looking Ahead: Where's the Growth?

The panel identified I-35 south of Olathe, Liberty/Northland, and Lee’s Summit as key corridors for future development. “We need more product,” said Gutierrez. “When interest rates drop, we’ll need those buildings ready to go.”

John Krudwig confirmed that multiple spec projects are in design across the region. Peterson added: “Post-2008, speculative development changed our market. If you build it—smartly—they will come.”

The Workforce Pipeline Starts Now

Several panelists praised Kansas City’s workforce development infrastructure, with Ryan Schroeder sharing a personal anecdote about a Rockhurst student exploring trade school: “This generation sees the trades differently—and we should be encouraging that.”

In Closing: Collaboration Remains KC’s Superpower

Angela Dicioccio, MetroWire’s Event Director, wrapped the event: “What makes Kansas City work is the collaboration between developers, designers, builders, and economic partners. We’re already planning for 2026—and with the World Cup coming, Kansas City is about to take the global stage.”


Header image: Panelists discuss what's driving the Industrial real estate market in the Kansas City region at MetroWire Media's 2025 Industrial Summit at the Regnier Center- Johnson County Community College. Image | BGSTUDIOS PHOTOGRAPHY + FILM

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Feature photo(s) credit: Jacia Phillips | Arch Photo KC

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JE Dunn + team break ground on Operation Breakthrough Ignition Lab

Representatives from Operation Breakthrough, Eighty-Seven and Running, GC JE Dunn Construction and the design team recently celebrated the groundbreaking of the Ignition Lab, located at 3030 Troost Avenue in Kansas CIty, Mo.

When Travis Kelce signed a four-year, $57 million contract extension with the Kansas City Chiefs in August 2020, his first purchase was the Muffler Shop - that building will soon be transformed into the Ignition Lab, an environment designed to engage teens in real-world learning experiences through workforce development and entrepreneurship, providing multiple pathways after high school.  

“In signing on for six more years with the Chiefs, I’m recommitting myself to the work I have left to do off the field as well. Kids (that) I danced and ate pizza with at OB (Operation Breakthrough) a few years ago are now teenagers navigating a world that doesn’t always have their back,” said Kelce.

The Ignition Lab is the natural next step for students, ages 14-18, who have aged out of Operation Breakthrough’s MakerCity program having acquired basic skills in coding, circuitry, culinary arts, construction and design, digital media, robotics, visual art and more.

“We are excited to close the opportunity gap in STEM.  Helping our children explore a variety of different fields including computer science, automotive and engineering, manufacturing, electronics and multimedia will not only help them figure out what they are passionate about but create opportunities to build a strong portfolio of client work, certifications and capstone projects.  I know of no other program that will provide this range of opportunities for our high school children,” said Mary Esselman, CEO of Operation Breakthrough.

More than 700 urban Kansas City children come to Operation Breakthrough each weekday for nutritious food, lively learning, health and dental care, therapy and TLC, while their parents work or attend school.

The children range from infants to age 14. About 20 percent are homeless. More than 700 percent of families live on annual earnings of less than $12,000, 65 percent of our children witness violence by the age five. More than 90 percent of our 5-year-olds test “school ready” each year, as compared with fewer than 50 percent of children in poverty nationally.

The current Operation Breakthrough MakerSpace and MakerCity STEM spaces promote hands-on collaborative learning in the arts, electrical, robotics, construction, culinary arts, multimedia, automotive and engineering, maker and green tech for children age 5 to 14.

“The vision is to give them a safe haven where they can continue to find role models, discover interests and develop skills once they age out of OB’s after-school program. I’m so excited to be purchasing a building adjacent to OB’s MakerCity that will be the future home of ‘The Ignition Lab, powered by 87 & Running.’ Together with OB’s staff and supporters, we’ll create a co-working space where teens will have the support, resources and opportunity to explore careers in STEM, launch their own entrepreneurial ventures and gain real-world experience,” said Kelce.

Students at the Ignition Lab can enter into the experiences at a beginner level and work through experiences that build proficiency.  When they are ready, experiences are available for mastery development, including when appropriate industry recognized certifications.

When Operation Breakthrough students are at school, area high school students will use the space during the day to enhance their classroom curriculum. The Lab, designed by Clockwork Architecture + Design, is expected to open Fall 2021 at the beginning of the new school year. 

Other project partners include: MEP engineer - Lankford Fendler; structural engineer - STAND Engineering; civil engineer - BHC; owners representative - MC Realty Group; and Solar Consortium.

Before and after pictures of the lab along with some construction video are available via Google Drive: https://drive.google.com/drive/folders/1loa9TQsc2mkYnCL71hu1HF9w8Arvhii4?usp=sharing

About Operation Breakthrough: Operation Breakthrough, incorporated in 1971, provides a safe, loving and educational environment for children in poverty and empowers their families through advocacy, emergency aid and education.  It cares for more than 700 children ages six week to 14-years-old every weekday and will be expanding to serve high school students in the fall. www.operationbreakthrough.org

About Eighty-Seven & Running: Founded by Travis Kelce, Eighty-Seven & Running helps underserved youth strive to become productive citizens by mentoring and motivating them to explore and develop their abilities while learning critical life skills. Founded in 2015, it has remained dedicated to providing resources and enrichment opportunities for youth and their communities through fundraising, athletic programs, mentoring, and outreach initiatives. www.87running.org