The Kansas City market overall has improved with minimal supply gains and stable demand. Net absorption has outpaced deliveries each year in the last ten years with vacancies below average. Sales volume in 2017 has been slow, sales prices dipping and the market trending steady rent growth.
Retail in the downtown Kansas City market has been encouraged with the streetcar route and an uptick in population with new apartment developments. We saw a 50% increase in leasing activity in 2016 along River Market down to Country Club Plaza. This area has benefited being along the streetcar route and increasing walkability. Asking rents have exceeded $25/SF in the Country Club Plaza submarket and $22/SF in the Brookside market. Other area markets have been below $20/SF.
Kansas net deliveries in 2016 were negative due to demolition of sites. Less than 3% of space delivered last year were available at the end of last quarter. There are a number of new projects under way, proposed projects and larger scale redevelopment. Based on 133 transaction sales volume, overall CAP rates have held at 6.30% consistent with 2015-2016. Median sales prices have averaged $122.81/psf with the average deal being in the low $2M. 2016 figures are skewed due to the large portfolio sale of the 42 property Country Club Plaza to Country Club Plaza KC Partners LLC, a venture owned equally by Taubman Centers Inc. and the Macerich Co.
Kansas City Retail News Highlights
- Downtown KC Convention Hotel Slated for 2020 Completion After Receiving New Approvals
- Despite Objections, OP Approves Incentives for $182M Mixed-Use Project | Renderings
- Another Suburban Shopping Center will get a Makeover | Pine Tree Plaza
- Move Don’t redo Overland Park Farmers’ Market, Consultant Says. But Residents Object
- Shawnee Approves Rezoning for Westbrooke Village, Project Heads to City Council
National Headlines
- CRE Opinion: What’s Wrong with Those ‘Retail Armageddon’ Headlines
- A Retail Weekend for the Record Books
- PetSmart® Hits Major Milestone by Opening 1,600th Store in North America
- Art Van buys Levin and Wolf
- Rite Aid Announces First Closings for Asset Sale to Walgreens Boots Alliance
- Black Friday Boosts Battered Department Stores, Some of Which are Claiming a "Record Weekend"
- Kwik Trip Plans Major Expansion
- Dollar Tree Dazzles Hot in Retail Sector
- Food Halls Help Urban Retail Landlords Maintain Competitive Edge
- Fogo de Chão Opens Milestone 50th Location
- Retailers Experiment With a New Philosophy: Smaller is Better
- Smart & Final Boosts Promotions to Compete in Q3
- Bon-Ton to Shutter 15% of its Stores: Q3 Net Loss Widens
- Albertsons Invests in Texas - Based El Rancho Supermercado, Bob Miller Comments
- Report: Winn-Dixie's Parent Company, Bi-Lo, Could be Headed for Bankruptcy
- Papa Murphy's Loss Widens in 3Q as Store Count Falls
- Pop-Up Shops May Be This Holiday Season's Big Retail Trend
- Vitamin World Seeks to Close 124 Stores, Sell off the Rest
THE QUANTUM TEAM
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Credits:
Created with images by rudi1976 - "Kansas City skyline panorama." • wallaceweeks - "Kansas City Missouri Fountain at Country Club Plaza" • George - "Kansas City Skyline, performing arts district, Bartle Hall Pylons" • Tupungato - "Kansas City, Missouri"