Why companies are racing into downtowns across America

The Downtown Council’s annual luncheon.

A diverse spectrum of different types of companies are descending upon downtowns across the country. For companies looking to strategically locate their business, why are downtown areas becoming a lucrative option?

In a recent research report by Cushman & Wakefield and Smart Growth America, a team studied 500 companies who recently made this move to find the motives behind their relocation efforts. A few themes arose.

The report says downtown setting allows companies to attract and retain talented workers, helps build brand identity and company culture, supports creative collaboration, centralizes business operations, and brings companies closer to their customers and business partners, among a host of other reasons.

Jason Tolliver, vice president of Americas research for Cushman & Wakefield, will discuss some these findings on Friday when the Downtown Council of Kansas City hosts its annual luncheon. The luncheon will also feature remarks by Kansas City Mayor Sly James, an award ceremony for DTC’s 2015 Urban Hero Award, and a Spirit of Downtown Kansas City exhibit.

Lee & Associates, NAI LaSala-Sonnenberg to merge

Mike Sonnenberg

The newly combined commercial real estate firms have announced a merger as of January 1, and will go by the name of NAI LaSala-Sonnenberg Heartland in the transition phase. Mike Sonnenberg will be managing partner. By January 1, 2017, the firm’s name will permanently become NAI Heartland Commercial.

The firm’s eight partners include Nathan Anderson, Jon England, Russell Pearson (all formerly of Lee & Associates Kansas City), and Mike Sonnenberg, Ray Sonnenberg, Carl LaSala, Brandon LaSala and Chad LaSala (all formerly of NAI LaSala-Sonnenberg). The firm will offer retail, office and industrial brokerage services, investment services, property management and commercial real estate consulting services. The firm consists of 16 brokers and 7 staff people.

“Nathan Anderson and I believe that this merger allows our combined agencies a broader, stronger platform on which to compete in Kansas City and globally,” Mike Sonnenberg said. “This merger will help to strengthen and improve service lines, and add experience at the local Principal level for those Kansas City area clients who value a locally owned and controlled service provider.”

Cerner will expand data center in Lee's Summit in $528M deal

The Lee's Summit City Council has stamped its approval on a set of incentives that will help Cerner expand its data center in Lee's Summit. The health IT company has purchased the north building at the Summit Technology Campus for about $106 million and plans to pour more than $422 million into new computer equipment, the Lee's Summit Journal reports.

The City Council has approved Chapter 100 incentives for the project, which will eliminate property taxes on Cerner's investment, the report says. As part of the deal, Cerner will make payments of roughly 50 percent of the taxes it would have paid. Additional payments in lieu of taxes will generate more than $1.3 million for local schools, the city, and other tax jurisdictions.