Kansas City Industrial Market
|Average Asking Rent (Price/SF)||$4.75|
|Vacancy Rate (%)||5.8%|
|Net Absorption (SF)||1,444,834|
The Kansas City industrial market continued its strong growth into the fourth quarter of 2017, as 1.4 million square feet of net absorption was posted. Average quoted rents decreased from $4.77/SF to $4.75/SF. A total of 1.0 million square feet of space was delivered to the market during the quarter, while projects under construction remained significant, with 4.7 million square feet of product planned for delivery. Overall vacancy decreased 20 basis points, from 6.0% to 5.8% from the prior quarter.
Kansas City Office Market
|Average Asking Rent (Price/SF)||$19.69|
|Vacancy Rate (%)||10.0%|
|Net Absorption (SF)||-129,039|
The Kansas City office market realized its 17th consecutive quarter of increased asking rental rates in the fourth quarter of 2017, while vacancy decreased 120 basis points over the past year, from 11.2% to 10.0%. Total net absorption in the fourth quarter measured negative 129,039 square feet, bringing year-to-date absorption to 1.3 million square feet. Current projects under construction remained flat at 145,745 square feet during the quarter, as no project delivered to the market.
Kansas City Retail Market
|Average Asking Rent (Price/SF)||$13.16|
|Vacancy Rate (%)||5.40%|
|Net Absorption (SF)||107,711|
The overall Kansas City market tightened over the past year, realizing a 20-basis-point decrease in vacancy demonstrating a sound local retail market, 1.2 million square feet of net absorption occurred during the past four quarters, with over 3.3 million square feet absorbed over the past two years. The average quoted rental rate measured $13.16/SF, up $0.43/SF from the prior year. The local market is showing positive indicators, including decreasing vacancy rates, substantial net absorption and increasing rental rates coming out of the important holiday shopping season. Local brick-and-mortar announcements and a shift in the national retail landscape dominated the news in the fourth quarter of 2017.