Kansas City Industrial Market
|Average Asking Rent (Price/SF)||$4.93|
|Vacancy Rate (%)||5.4%|
|Net Absorption (SF)||1,071,240|
The Kansas City industrial market continued to tighten in the third quarter of 2018, as 1.1 million square feet of net absorption was posted. Average quoted rents increased from $4.82/SF to $4.93/SF. A total of 804,238 square feet of space was delivered to the market during the quarter, while projects under construction remained at 3.9 million square feet. Overall vacancy decreased 10 basis points, from 5.5% in the prior quarter to 5.4%.
Kansas City Office Market
|Average Asking Rent (Price/SF)||$20.11|
|Vacancy Rate (%)||9.0%|
|Net Absorption (SF)||1,530|
The Kansas City office market realized its 20th consecutive quarter of increased asking rental rates in the third quarter of 2018, while vacancy decreased 20 basis points over the past year, from 9.2% to 9.0%. Total net absorption in the third quarter measured 1,530 square feet, bringing the total for the past four quarters to 195,666 square feet. Construction projects currently underway totaled 60,000 square feet. No projects delivered to the market during the quarter.
Kansas City Retail Market
|Average Asking Rent (Price/SF)||$13.96|
|Vacancy Rate (%)||5.3%|
|Net Absorption (SF)||445,842|
The overall Kansas City retail market tightened year-over-year in the third quarter of 2018, realizing a 30-basis-point decrease in vacancy. Net absorption totaled 900,398 square feet for the past four quarters and more than 2.5 million square feet for the past two years, indicating a sound market. The average quoted rental rate measured $13.96/SF, up $0.84/SF from one year ago. Local brick-and-mortar announcements and retailer and consumer trends dominated the news in third-quarter 2018.