IRR-Kansas City Mid-Year Viewpoint 2015 Local Market Report - Retail
The Kansas City retail market showed moderate forward progress in the first quarter 2015. Net absorption was positive and vacant sublease space increased. Quoted rental rates increased overall and there was 197,445 square feet of retail space under construction at the end of the first quarter. The trend for the past several years has been that new construction has barely outpaces the decline of older centers in underserved areas. Incentives are an unfortunate but necessary component of attracting developers and retailers to underserved areas.
Suburban areas remain strong and medical tenants are providing much of the demand for vacant in-line space and vacant improved pads. Kansas City's CBD has over the past five years become a destination with the continued build out of Kansas City Live and the Power & Light District.
In westernmost suburbs expansion of an entertainment district anchored by Kansas Speedway will soon commence as will the redevelopment of three mall sites in suburban neighborhoods. The two remaining enclosed malls are well established and should continue to push rents and see increasing store sales. Retailers in the CBD and Midtown areas expect to benefit from completion of the street car line which connects the riverfront (a diamond in the rough) with the Kansas City's Jewel, the Country Club Plaza.
Download the full version PDF of this Local Market Report below. It includes graphs and tables.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.