The slowly improving economy was the driving force for commercial real estate in Kansas City during 2013, a trend that is expected to continue through 2014, according to Block Real Estate Services LLC’s 2014 Real Estate Report, which is now available.
Block Real Estate Services
BRES is a full-service commercial real estate company managing over 23 million square feet of retail, office, industrial and over 3,000 multifamily units for equity partnerships and third party owners.
BRES’s portfolio of services continues its role as the most comprehensive commercial real estate firm in Kansas City by providing and specializing in real estate brokerage services, tenant representation, investment services, asset and property management, economic incentives consultation, financial services, construction and development services, and the Block Funds.
The 64-page in-depth 2014 Real Estate Report covers all segments of the Kansas City economy and incorporates the expertise of BRES’ team’s comprehensive research. The team includes Commercial Real Estate Services, Construction Services, Multifamily Investment and Management Services, Technology Solutions, Development and Real Estate Investment and Marketing Services.
During 2013 the leading commercial real estate sectors were in multifamily housing, healthcare development and industrial facilities, trends that are expected to continue through 2014. The health sector, information technology, industry and product distribution centers are the leaders in employment in the metropolitan area.
The report highlights Cerner’s expansion with the plan to purchase 257 acres at the former Bannister Mall site as well as its campus at Village West in Kansas City, Kan., along with other major developments that included the $687 million NNSA complex in Kansas City, the new Posinelli law firm office on the Plaza, the Teva Pharmaceuticals building, the new AMC headquarters and Perceptive Software’s office campus that will open in 2014.
“These developments show the office market has tightened dramatically and point out the need for new Class A office space,” the report says.
Also driving the Kansas City economy are the recently opened intermodal rail hubs of BNSF and Kansas City Southern Railway, which the Market Report credits with driving industrial development:
“… certainly the rise in the speculative industrial development projects in Kansas City with more than two million square feet now under construction are in part, due to the opening of our intermodal center, which will bring new business and construction activity to our market.”
The report also points out strengthening residential development during the past year and highlights the growth in new multifamily development driven by higher occupancy rates, rental-growth, and strong absorption.
Another strong factor in the Kansas City area’s economy, according to the Market Report, is the investment in downtown that includes entertainment, commercial and residential expansion: “… with over $6.5 billion of investment in downtown Kansas City over the last 10 years, no city in America has done so much in such a short time to revitalize its downtown core.”
Adding to downtown’s potential is the streetcar line now under construction: “Even the proposed new streetcar system is having an effect, as it appears it will jump-start the beginning of the $100 million Columbus Park redevelopment …”
The Google fiber network, which began in 2013 in both Kansas City, Mo., and Kansas City, Kan., has spread to a number of suburbs and is impacting the area’s technology reputation, according to the report:
“The Kansas City metro and surrounding area has been nicknamed the ‘Silicon Prairie’ and we are now ranked as ‘one of America’s most entrepreneurial cities’.”
Another highlight of Kansas City’s economy is its expanding life sciences research that includes the Kansas City Area Life Sciences Institute and its participants: the Kansas Bio Science Authority, Kansas City Animal Health Corridor, Midwest Research Institute, National Bio and Agri-Defense and the Stowers Institute for Medical Research.
“The life sciences industry continues to grow in our community and has made over $1.1 billion in research expenditures over the last 10 years,” the Market Report says.
Retail development also has picked up, with the majority of it in Johnson County and includes such developments as Corbin Park, Prairie Fire and the planned Mission Gateway Project.
Not to be overlooked are the impact made by Kansas City sports, entertainment and cultural arts, all of which brought many visitors to the city.
Those who want to obtain the full report may contact BRES at 816-756-1400 or visit the website blockllc.com.