Kansas City developer Ken Block is planning a four-story, 125,000-square-foot new office building in Overland Park and is not ruling out the possibility that he builds it on a speculative basis.
Block, managing principal of Block Real Estate Services, submitted a request to an Overland Park City Council committee last week for economic development revenue bonds in connection to a proposed office building at the southeast corner of Switzer Road and 113th Street.
The $30 million office building would be part of Block’s CityPlace development, a large-scale mixed-use development near College Boulevard and U.S. Highway 69. The building would add inventory to the largest office submarket in south Johnson County in terms of inventory.
South Johnson County also has among the lowest vacancy rates and highest lease rates in the Kansas City area.
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Block said on Monday that the building could be built on a speculative basis, meaning that he may begin work without a substantial tenant committing to a lease prior to the start of construction. Speculative office buildings, while sometimes carried out in other larger metro areas, has not found its spot in Kansas City’s current office climate.
Block’s application for economic development revenue bonds indicated there was significant demand for new office space along College Boulevard and the project would add to the mix of development underway at CityPlace.
The application indicates that the project would start this year and open in 2019. the larger CityPlace development has plans for three additional office buildings, in addition to multifamily housing and retail.
The Overland Park Finance, Administration & Economic Development Committee last week approved the request for economic development revenue bonds, which results in a sales tax exemption on construction related materials for the project.