Block Real Estate Services, LLC (BRES) has completed its annual report on the Kansas City Commercial Real Estate Market for 2020. The report features information on the global, U.S., and local Kansas City economies, along with a thorough analysis of the market activity in 2019 and projections for 2020. Market conditions in the Kansas City Metro are addressed in the report in addition to the largest and most important commercial real estate deals from 2019.
An in-depth study of the area’s Office, Retail, Industrial, Multifamily, and Investment markets are provided with special attention paid to the Downtown submarket. In 2019, Kansas City generally experienced a strengthening across all product types and submarkets.
The Kansas City office market rental rates increased to $20.31 per square foot compared to the national office rental rate increasing to $33.83 per square foot. The office market also experienced positive absorption of nearly 38,800 square feet in 2019.
Kansas City’s industrial market has been experiencing an unprecedented expansion for the past several years which continued through 2019. Industrial leasing in 2019 totaled 10.48 million square feet with net absorption of 6.3 million square feet. Vacancy rates are anticipated to increase slowly over the next few years while rents continue to increase.
The retail industry continued its evolution in 2019 as the development of greenfields slowed while the refacing of older, yet viable, centers at strong intersections increased. An increased number of mixed-use developments brought retail straight to the consumer beneath luxury apartments. There continues to be new retailers filing for bankruptcy protection while others attempt to evolve through right-sizing their brick and mortar footprints and expanding their ecommerce offerings. Overall, vacancy rates barely changed across the metro while average rental rates decreased slightly.
The Kansas City multifamily market remained strong in 2019 with 2,533 units absorbed. Average vacancy remained low and relatively unchanged and market rents grew 2.6% in 2019.
BRES expects 2020 to be a very strong real estate year if the interest rates remain in check and the global economy does not deteriorate further. Some of the major real estate projects occurring, include Advent Health, Paragon Star and Waddell & Reed Financial, Inc.
BRES’ principals and top associates personally author each section of the Market Report leading to more accurate information for clients. They spend the time necessary to examine specific trends and transactional activity while providing market analysis. The entire report can be downloaded at: www.blockllc.com/marketreport
For more information contact MAC today. MAC is a contractor Kansas City property and facility managers have trusted for more than 25 years. MAC can help you with any facility repairs, remodeling, custom cabinetry, construction and many other projects.