Urban Outfitters brings jobs, economic stability to Kansas City heartland

The lure of centralized transportation, deep talent pool and strong partnerships proved lucrative to Urban Outfitters (UO) in their recent selection of Kansas City, Kan. as the new home for an 880,000-SF, omni-channel distribution center, which will be located on ancillary land at Kansas Speedway.

The partnership between the State of Kansas and Philadelphia-based URBN will create up to 2,000 new jobs and invest approximately $350 million in Kansas over the next several years.

The Department of Commerce worked closely with KC SmartPort, the Kansas City Area Development Council (KCADC), the Wyandotte County Economic Development Council and the Unified Government of Wyandotte County in attracting UO to the KC region.

“This was a true collaboration to generate an economic development success story that will deliver benefits in Wyandotte County and beyond in our state,” said Governor Laura Kelly.

URBN cited Kansas’ central location, transportation infrastructure and skilled workforce as key factors in choosing Kansas for its distribution operation, acknowledging the location as critical to its distribution network.

“Our region is strategically positioned in America’s heartland as a major transportation hub, so this decision makes all the sense in the world. This partnership will bring thousands of jobs and much needed investments to our community, and in turn benefit our entire state. I look forward to working with Urban Outfitters to ensure it is a smooth transition,” said Kansas Representative Sharice Davids.

"We are impressed with their culture and desire to work with the community to address community issues like transit, childcare, a local hiring goal, good wages and using local, minority and women-owned companies in the construction of their facility.

The investment and number of jobs are impressive, but the long term opportunities for growth with a company like Urban Outfitters is even more impressive. (We are) appreciative to the State of Kansas, Unified Government, Kansas Speedway, BPU and Hillwood Properties to bring this to fruition,” said Greg Kindle, president of the Wyandotte County Economic Development Council.

About UO: Urban Outfitters is a lifestyle retailer dedicated to inspiring customers through a unique combination of product, creativity and cultural understanding. Founded in 1970 in a small space across the street from the University of Pennsylvania, Urban Outfitters now operates over 200 stores in the United States, Canada and Europe.

Lenexa moves forward with sizable residential development

On Monday, the Lenexa Planning Commission approved a sizable portion of a residential development that will be located at the southwest corner of Monticello Rd. and 90th St. in the heart of Lenexa, Kan.

The planning commission unanimously recommended approval of eight out of nine items of the development, including a concept plan for the site; a preliminary plan for the Copper Creek Apartments and Townhomes on the north end; and rezoning required for nearly all components of the project.

The commission voted 8-1 to recommend approval of rezoning for the high-rise apartments.

Located on 187 acres, the proposed Watercrest South and Copper Creek project totals 1,239 housing units.

The project includes preliminary plans for 44 townhomes in seven buildings, 688 multifamily apartments in 14 buildings and 257 lots for single-family homes.

Conceptual plans were approved for the mix of a 100-unit multifamily apartment, 150 senior living units and 187,000 SF of commercial space to potentially include two hotels.

Because of the recent decline in demand for office space, previously included office space plans were removed from the city’s future land use map and replaced with additional single-family homes to the west of Watercrest Landing North.

The project also hinges on completion of Woodsonia Dr., which will run north and south through the area. City staff proposed completing the new street in one phase in conjunction with early phases of the private development, owned by Q.C. Development, P & L Development LLC. and Watercrest South LLC.

The next Lenexa City Council meeting will be held August 18, 2020, where they will continue to discuss other components of the development.

Industrial market flying smoothly through 2020 turbulence

Despite the economic turbulence COVID-19 has unleashed on 2020, the industrial real estate market seems to have buckled in for a relatively smooth ride, according to a recent CCIM KC panel.

Brent Miles, chief marketing officer and founding partner of NorthPoint Development and Joe Orscheim, SIOR, CCIM, senior vice president of CBRE, joined moderator Ben Boyd, CCIM Kansas City director of programs and vice president of Colliers International, for a webinar discussion last Friday about the state of the industrial market.

Both Miles and Orschein agreed that e-commerce is the major driver strengthening the industrial market as online shopping has exploded during the pandemic. Miles noted that increased demand for industrial space for companies like Amazon and Chewy is COVID-related, but he thinks the expansion represents a permanent change. 

“They are the infrastructure and the plumbing of how we’re getting goods,” Miles said.

According to Miles, NorthPoint Development, which owns approximately 75 million square feet of industrial properties across the United States, saw only about 5 percent of its clients request and receive rent relief.  

Orschein said he anticipated more requests from tenants for rent abatement than actually were made. Landlords, he said, used the requests as an opportunity to obtain updated financials, and in some instances, to extend the lease term by the number of months they abated rent. 

“It was good for both parties. It’s always good for a landlord to show that they’re looking out for their customer and obviously they want them to be financially strong so the project remains successful,” Orschein said.

Miles said that availability of labor remains a concern in the industrial market, with uncertainty about how future stimulus or bailout legislation will affect unemployment and labor. 

Orschein noted that there is a challenge to find “really good tracts that are ready to go” in the Kansas City area in order to satisfy demand. “We’re getting weekly calls from out of town developers and capital sources that are looking to land here in Kansas City, and we just need more land. We’ve got to figure it out. There’s strong demand, and we’re not seeing any kind of a slowdown so we’re encouraging everyone to just keep putting them up and we’ll all fill them,” said Orschein. 

Orschein also noted that rental rates in the Kansas City industrial market are “pretty steady and level” and that he is seeing lower cap rates. He anticipates that the local industrial market will see one or two big institutional players enter by the end of the year. 

“Everybody is taking note of Kansas City,” Orschein said.   

According to Orschein, there is strong demand for industrial space for the food industry; however, the challenge is to figure out food requirements and freezer cooler needs. 

“It’s obviously very expensive and highly specialized, but the need is there. We’ve just got to figure it out in Kansas City. In the industrial world, it seems like after the first couple of weeks of COVID hitting, it’s like everybody just got on the same page and said let’s all get back to work and keep the train moving,” Orschein said.