Kansas City Industrial Market
|Average Asking Rent (Price/SF)||$4.77|
|Vacancy Rate (%)||6.0%|
|Net Absorption (SF)||1,212,350|
The Kansas City industrial market continued its aggressive growth in the fourth quarter of 2016, as 1.2 million square feet of net absorption was posted, and average quoted rents increased $0.14/SF to $4.77/SF. A total of 1.6 million square feet of space delivered to the market during the quarter, while projects under construction remained significant, with 8.5 million square feet of product planned for delivery. Overall vacancy increased 10 basis points from the prior quarter to 6.0%.
Kansas City Office Market
|Average Asking Rent (Price/SF)||$18.81|
|Vacancy Rate (%)||12.8%|
|Net Absorption (SF)||79,057|
The Kansas City office market realized its 13th consecutive quarter of increased asking rental rates in the fourth quarter of 2016, while vacancy decreased 80 basis points over the past year, from 13.6% to 12.8%. Total net absorption in the fourth quarter measured 79,057 square feet, as projects under construction remained flat at 1.1 million square feet.
Kansas City Retail Market
|Average Asking Rent (Price/SF)||$12.89|
|Vacancy Rate (%)||6.3%|
|Net Absorption (SF)||446,976|
The Metropolitan Kansas City retail vacancy increased 40 basis points to 6.3% during the fourth quarter of 2016. Following a robust fall shopping season, the overall Kansas City market has tightened over the past year, realizing an 80-basis-point drop in vacancy. Demonstrating the strength of the local retail market, over 1.9 million square feet of net absorption occurred during the past four quarters, with nearly 3.2 million square feet absorbed over the past two years. The average quoted rental rate stood at $12.89/SF, up $0.11/SF from the previous quarter and $0.43/SF higher than the prior year. With decreasing vacancy rates, substantial net absorption and increasing rental rates, the metropolitan Kansas City retail market is well-positioned going into 2017.