Olathe Council approves incentives for Lineage cold storage facility

The Olathe City Council has granted tax incentives to Lineage Inc. for the construction of a new automated cold storage warehouse, a project projected to exceed $300 million in investment and add hundreds of jobs to the region.

The state-of-the-art facility will rise near 175th Street and Lone Elm Road, covering roughly 219,000 SF on a 146-acre site. Once operational, the project is expected to generate around 200 long-term positions, with an average starting salary of about $60,000. The site selection aligns with Olathe’s employment corridor goals, reinforcing the city’s strategy to attract industrial and logistics-focused growth.

City officials approved a $23 million package of tax incentives for the project, which may include a combination of industrial revenue bonds and property tax abatements. The incentives are contingent upon performance benchmarks tied to job creation, investment thresholds, and operational safety standards.

The council’s approval followed months of review and a close 5-2 vote after the city’s Planning Commission initially recommended denial. Olathe staff cited the project’s alignment with future land-use plans and the city’s ability to support the infrastructure needs of a large-scale industrial operation.

The fully automated facility will serve as a regional logistics hub, supporting food producers, distributors, and retailers throughout the Midwest. Construction is expected to begin in 2026 with completion anticipated by 2027.

City leaders have positioned the Lineage development as a significant step toward expanding Olathe’s role in national supply chain operations. They emphasized that the project will contribute to long-term economic stability, create skilled employment opportunities, and enhance the city’s standing as a center for advanced logistics and cold storage innovation.

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Header image: A rendering of the proposed 219,000 SF automated cold storage facility coming to Olathe, Kan. Photo | The City of Olathe

Flight to Quality, Fractional Spaces & the World Cup Effect: Key Takeaways from MetroWire’s Retail-Office Summit

Kansas City, Sept. 23, 2025 — In a packed room on a rainy fall morning, MetroWire’s Retail-Office Summit convened top voices from Kansas City’s commercial real estate community to tackle a central question: What will define successful office and mixed-use projects in the next 3–5 years?

The consensus: tenants are demanding more—better design, more flexibility, curated amenities—and developers must rethink fundamentals to deliver in a market reshaped by COVID, rising construction costs and global events like the 2026 World Cup.

From Flex to Flight: The New Office Tenant Playbook

Tom Ward (Kessinger Hunter) kicked off with a market reality check: while early pandemic shifts saw tenants push for shorter, more flexible leases, today’s rising construction costs have reversed that trend. Tenants are now locking in longer terms, especially in Class A office spaces that offer modern amenities, walkability and energy.

“Flight to quality” remains dominant. Tim Ockinga (JE Dunn) added that landlords must now build spaces better than home offices to win talent back. That means open collaboration zones, cafes, on-site fitness with active programming, and ample “third places” within the office.

Andrew Brain (Brain Group) observed growing interest in fractional-use spaces — shared training rooms, conference suites and drop-in work zones that tenants can access without paying for full-time occupancy. His Park 39 project is now 98% leased, up from 50% pre-COVID, driven by flexible usage models.

Repurposing & Suburban Shifts

Ward noted that while C-class buildings continue to struggle, B-class space remains competitive in suburban markets. Urban locations are seeing selective conversions to multifamily, especially where tax credits are available.

On the construction side, Ockinga cited JE Dunn’s pivot to prefab manufacturing as a way to combat labor shortages and inflation. “Labor is the top constraint,” he said. “We’re innovating by building offsite in controlled environments—it’s safer, more efficient, and helps balance limited skilled workforce.”

Programming, Retail Synergy & Amenity Wars

Audrey Navarro (Clemens Real Estate) highlighted the value of retail as placemaking. Coffee shops, plazas and pop-up spaces help lease-up velocity in new mixed-use developments, especially in emerging submarkets.

But she stressed that it’s not just design; it’s about programming. Landlords like Corporate Woods are hiring staff to activate common spaces with workshops and community events, borrowing tactics from multifamily to boost tenant retention.

Above: Attendees of the MWM KC RETAIL + OFFICE SUMMIT networking before the panel discussion.

Capital Stacks & Creative Financing

Brain was blunt: “Office is a four-letter word to lenders right now.” His firm is front-loading equity—75% or more—on new deals while seeking nontraditional financing paths. Navarro shared a compelling recent deal on the Plaza where a seller, driven by legacy rather than returns, offered 2% seller-financing to achieve his desired valuation.

Where Economic Development Meets Real Estate

Samantha Jefferson (Kansas City Area Development Council) emphasized that company relocation decisions are increasingly tied to culture fit. Suburban settings appeal to distributed workforces; urban neighborhoods win with lifestyle and walkability. The key, she said, is matching space to company DNA.

She also noted the KCADC’s growing role in positioning Kansas City to national and international firms, especially ahead of the 2026 FIFA World Cup, which she called a “worldwide commercial for our region.”

Looking Ahead: 2026 and Beyond

Panelists were asked to forecast the next 3–5 years in office and retail:

• Ward: Flight to quality will continue. As interest rates ease, Class A leasing and development will pick up.

• Brain: Fractional space and flexibility will be key. Landlords must add shared-use environments to compete.

• Navarro: Kansas City must avoid a one-size-fits-all approach. Success will come from diversity of inventory.

• Ockinga: Corporate buildouts are on the rise again. Large tenants are ready to reinvest in headquarters space.

• Jefferson: The key to long-term growth? Talent. Kansas City must continue producing a skilled, accessible workforce.

The final word came on market activity expectations. Most panelists predict moderate gains in leasing and transactions in 2026, spurred in part by the World Cup and improving capital conditions.

Next Up at MetroWire: The Industrial Summit, Oct. 30, will explore trends shaping KC’s booming logistics and manufacturing landscape.

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Header image: The 2025 MWM Retail + Office Summit panelists from left to right–Tom Ward, Beck Johnson (Moderator), Samantha Jefferson, Tim Ockinga, Audrey Navarro, Andrew Brain, and Russ Pearson with BoxDevCo Real Estate at the podium.

The Improve I-70 KC Project is underway and set to bolster development opportunities

Work has started on the Improve I-70 KC project, a $237 million initiative aimed at reshaping a heavily traveled corridor through the city. The improvements are expected to ease congestion, enhance freight mobility, and create ripple effects across Kansas City’s commercial real estate market.

The Missouri Department of Transportation, in partnership with the Federal Highway Administration, is leading the design-build project. Construction will stretch between The Paseo Boulevard and the U.S. 40/31st Street interchange and continue through spring 2028. Plans include adding an additional eastbound lane, replacing 15 bridges, rehabilitating seven others, and realigning multiple interchanges to improve safety and traffic capacity.

Because I-70 serves as a key freight artery, industry observers note that more reliable travel will increase the appeal of warehouse, logistics, and industrial properties near the corridor. Retail and mixed-use developers are also watching the project closely, as upgraded interchanges and pedestrian improvements could spark redevelopment and attract new investment.

The project will be carried out by Clarkson-Radmacher Joint Venture, which was awarded the design-build contract in 2024. It is part of a larger statewide program to modernize nearly 200 miles of I-70 by 2030, underscoring Missouri’s long-term commitment to infrastructure and economic growth.

For commercial real estate professionals, the construction may bring short-term challenges, but the long-term outlook is widely seen as positive. Improved access, stronger freight efficiency, and renewed infrastructure are expected to drive property value gains and open doors for new development along the corridor. As Kansas City positions itself for continued growth, the I-70 project stands as both a transportation upgrade and an investment in the region’s commercial future.

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Header image: Aerial view of the I-70 and I-435 interchange on the east side of Kansas City, Mo. Image | MODot

Conexon sets sights on Crown Center with new downtown headquarters lease

Conexon, a leading rural fiber broadband design and deployment firm, has signed a lease for a new headquarters at 2300 Main St., an 11-story Class A office building near Crown Center and Union Station in Kansas City. The move underscores the area’s growing appeal as a destination for corporate tenants.

The 2300 Main building, which spans approximately 520,000 SF, recently underwent more than $7 million in upgrades, including modernized building systems, lobby improvements, landscaping, and elevator enhancements. These improvements helped raise occupancy from 76 percent to roughly 90 percent.

Conexon, founded by co-CEO Randy Klindt, will consolidate its operations in the new space, which will house network design, construction management, operations, sales, and marketing, as well as a state-of-the-art network operations center and technical support call center. Klindt said the location allows the company to stay close to partners and clients while benefiting from Kansas City’s central location in the Midwest tech and rural broadband markets.

The lease highlights Crown Center’s evolution as a walkable, amenity-rich district combining office space, hotels, restaurants, retail, cultural venues, and open green spaces. Plans for a nearby streetcar expansion, expected to begin operations in 2025, will further improve connectivity for employees and tenants.

Conexon’s headquarters is seen as a boost for downtown Kansas City, reinforcing the city’s emerging status as a hub for tech and infrastructure companies while attracting and retaining talent.

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Header image: 2300 Main Street Building near Crown Center and Union Station will be the new HQ for Conexon. Image | Van Trust Real Estate

Swope Health breaks ground on new 'Village' project

Swope Health has broken ground on Swope Health Village, a 12-acre, multi-phase campus designed to knit affordable housing, behavioral health, primary care, and community amenities into one destination along Swope Parkway in southeast Kansas City. Early site work followed demolition that started in January 2024; a ceremonial groundbreaking was held Aug. 7, 2025.

Planned in phases, the $126 million initiative will introduce senior housing, residential behavioral health care, a health clinic, and supportive services, with outdoor and community spaces that encourage wellness. Public support includes $5 million from the City of Kansas City, Mo., and $7.5 million in state American Rescue Plan Act dollars, alongside a capital campaign to complete funding.

Design and construction partners include Perkins Eastman, HFG Architecture, and Moody Nolan, with McCownGordon serving as general contractor. Perkins Eastman’s plan envisions senior apartments and behavioral-health rooms anchored by health and community buildings; subsequent phases contemplate additional services and adaptive reuse elements. Swope Health has indicated it will add a development partner for later phases.

Above: A conceptual street view rendering of Swope Health Village in Kansas City, Mo. Image | Perkins Eastman

The Village advances Swope Health’s 55-plus-year mission to expand access for patients regardless of ability to pay. The organization opened in 1969 as Model Cities Health Corporation—part of President Lyndon Johnson’s Model Cities program—in the basement of Metropolitan Missionary Baptist Church. From serving about 2,000 patients with a $100,000 budget in its first year, Swope Health now provides integrated primary care, dental, and behavioral health to more than 50,000 patients annually across western Missouri and eastern Kansas as a federally qualified health center.

Local leaders describe the Village as a health-forward neighborhood model intended to reduce barriers to care on the city’s East Side. Early concepts have called for affordable senior apartments, residential behavioral-health units, expanded substance-use recovery services, community gardens, and space that could house civic and retail uses—bringing everyday services closer to residents.

As construction begins, Swope Health and its partners say the project will generate construction employment and, upon opening, new clinical and support roles. The campus is also planned to prioritize local hiring and participation from minority-owned firms, aligning the physical build-out with the organization’s long-standing equity mission.

With planning led by a national design team and backed by city and state support, Swope Health Village marks a significant reinvestment in a historic corridor—and a tangible step toward affordable, accessible health care and housing for Kansas Citians from all walks of life.

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Header image: A conceptual rendering of the mixed-use campus of Swope Health Village in Kansas City, Mo. Image | Perkins Eastman