Kansas City’s 2017 retail outlook (think local, pizza) and what’s coming to town

Kevin and Kathy Euston, owners of Euston Hardware in the Red Bridge Shopping Center.
Kevin and Kathy Euston, owners of Euston Hardware in the Red Bridge Shopping Center.

Uncertainty spurred by a contentious election? Or the continued growth of e-commerce?

Whatever the reason, retailers were cautious in late 2016 and are likely to remain so into 2017, according to a new report by Kansas City’s Lane4 Property Group, a commercial real estate company.

The “2017 Kansas City Retail Report” focuses on the progress of new shopping centers and developments, lease and vacancy rates, and retailer expansions throughout the Kansas City metro.

Among the trends:

▪ Redevelopment of tired shopping centers and outdated buildings instead of ground-up development. “Usually located in stable, fundamentally sound areas, these renovations to older centers are capitalizing on the existing population density and market demand to supply the developments with loyal customers.”

▪ Hospitals and entertainment venues are becoming the new anchors.

▪ Mom-and-pop shops. Bolstered by the public’s increasing preference for locally owned stores and restaurants that provide unique experiences.

“Locally owned Stock Hill going head-to-head with the Capital Grille by the Plaza,” Brandon Buckley, vice president of Lane4, offered as an example.

▪ Several grocers made substantial upgrades to their existing stores, including Hen House Market in Leawood.

▪ Due to over-saturation, national quick service restaurants as a whole did not see the same increase as in recent years, according to the report. “However, they often paid top-of-the-line market rents in order to out-position their competition, especially in key trade areas at regional intersections.”

“It’s a very competitive market,” Buckley said. “Five or six years ago it was yogurt places and then hamburgers. It’s a lot of pizza tenants right now. Qdoba (Mexican Eats) has been active and Potbelly (Sandwich Shop).”

Pie Five Pizza Co. is scheduled to open a new location at 18921 E. Valley View Parkway, Independence, on Friday. Industry sources said Blaze Pizza also is looking at entering the area market.

▪ Developers and investors need to keep a close eye on attracting businesses that are “internet proof” such as restaurants, salons, fitness centers, medical operations and retailers offering “experiences.”

Among the top retail updates in 2016 and 2017:

Northwest Kansas City. Tiffany Springs MarketCenter said Marshalls has signed a lease for 23,773 square feet in the former Sports Authority space, at 8980 N. Skyview Ave. A Marshalls store is just a couple of miles away in Zona Rosa. In a statement, Marshalls officials said: “We have not announced any new stores for these areas.”

Tiffany Springs MarketCenter also is in negotiations for another tenant to take the remaining 16,500-square-foot space in the former Sports Authority site. Aldi recently opened a new format store in the shopping center.

Edgewood Farms, at the southeast quadrant of Interstate 29 and Barry Road is under development and will include such tenants as Main Event Entertainment center, which is scheduled to open May 9. Freddy’s Frozen Custard Steakburgers plans to open a freestanding restaurant in mid-March with drive-thru and patio at 8071 N.W. Roanridge Road.

Northeast Kansas City. Liberty Commons, the redevelopment at Interstate 35 and Missouri 152, is now anchored by Academy Sports, Natural Grocers and Gordmans. Other tenants opening in the center include HomeGoods, Petco and Off Broadway Shoe Warehouse.

Metro North Shopping Center is being demolished and a redevelopment plan calls for 744,000 square feet of new retail, as well as office space, a hotel, multi-family units and restaurants. Macy’s continues to operate in Metro North.

Central Kansas City. The Country Club Plaza, which is under new ownership, added a flagship Niall luxury watch store. Eddie V’s Prime Seafood also opened in the Plaza area.

Whole Foods is under construction by the University of Missouri-Kansas City. Whole Foods officials said the store is scheduled to open in early 2018.

South Kansas City. The first phase of Cerner’s $4.45 billion “innovation campus” on the former site of Bannister Mall is ready for 3,000 employees.

The first phase of Red Bridge Shopping Center is completed with a new Euston Hardware. Blue Bicycle Health & Fitness plans to double in size but keep customer fees the same.

Ward Parkway Center’s “south end restaurant district” is scheduled to open in July with such tenants as Midici The Neapolitan Pizza Co.

Truman’s Marketplace, the redevelopment of Truman Crossing, includes a remodeled Price Chopper and new tenants such as Ross Dress for Less.

Southeast Trade Area. Dick’s Sporting Goods is relocating to Summit Fair and expanding and H&M plans to open a 20,000-square-foot store, both scheduled for later this year. Big Whiskey’s American Restaurant & Bar plans an April opening in Summit Fair, 860 N.W. Blue Parkway, Suite Y, in Lee’s Summit.

Sam’s Club also plans to open a new store in Summit Place.

Menards and Hobby Lobby opened in Belton and Cedar Tree Shopping Center was redeveloped, adding Brewbakers Bar & Grill.

Eastern Jackson County. Dick’s Sporting Goods relocated to Independence Center from a nearby power center, taking part of the Sears store. Menards also opened an Independence location.

North Johnson County. Lane4 announced plans to tear down the former Metcalf South Shopping Center, at 95th and Metcalf in Overland Park, and replace it with a development anchored by Lowe’s Home Improvement. Sprouts Farmers Market opened in Nall Hills.

Lenexa City Center at Interstate 435 and 87th Street in Lenexa will include Lenexa Public Market. Lane4 said the biggest hurdle will be attracting tenants to an area with a low population density.

Woodside Village’s first phase includes Blue Sushi Sake Grill and Ulah men’s store. Roasterie Cafe also plans to open in the center in March or April.

South Johnson County. Town Center Crossing and Town Center Plaza remain a focal point in the eastern portion of the 119th Street corridor, home to the only area locations of such upscale retailers as Restoration Hardware. Corbin Park added such tenants as Redrock Canyon Grill. Maggiano’s Little Italy and Larkburger will open later this year. Dave & Buster’s plans a March 6 opening.

Phase I of Bluhawk, at 159th Street and Antioch Road in Overland Park, is currently under construction and will be anchored by a 62,000-square-foot Cosentino’s Market set to open this summer.

Wyandotte County. The American Royal Association is planning a $160 million facility in Village West to house the “World Series of BBQ.”

Joyce Smith: 816-234-4692, @JoyceKC