Kansas City Industrial Market
|Average Asking Rent (Price/SF)||$4.78|
|Vacancy Rate (%)||6.0%|
|Net Absorption (SF)||1,878,310|
The Kansas City industrial market continued its aggressive growth into the first quarter of 2017, as 1.9 million square feet of net absorption was posted, and average quoted rents increased $0.02/SF to $4.78/SF. A total of 823,566 square feet of space delivered to the market during the quarter, while projects under construction remained significant, with 8.1 million square feet of product planned for delivery. Overall vacancy decreased 40 basis points from the prior quarter to 6.0%.
Kansas City Office Market
|Average Asking Rent (Price/SF)||$19.03|
|Vacancy Rate (%)||11.6%|
|Net Absorption (SF)||246,221|
The Kansas City office market realized its 14th consecutive quarter of increased asking rental rates in the first quarter of 2017, while vacancy decreased 120 basis points over the past year, from 12.8% to 11.6%. Total net absorption in the first quarter measured 246,221 square feet, as projects under construction decreased to 376,650 square feet.
Kansas City Retail Market
|Average Asking Rent (Price/SF)||$13.24|
|Vacancy Rate (%)||6.2%|
|Net Absorption (SF)||533,508|
Following a robust winter shopping season, the overall Kansas City retail market has tightened over the past year, realizing a 100-basis-point drop in vacancy. Demonstrating the strength of the local retail market, over 2.5 million square feet of net absorption occurred during the past four quarters, with nearly 3.9 million square feet absorbed over the past two years. The average quoted rental rate measured $13.24/SF, up $0.75/SF from the prior year. With decreasing vacancy rates, substantial net absorption and increasing rental rates, the metropolitan Kansas City retail market is well-positioned coming out of the winter holiday shopping season.