Widmer Partnership

03/22/2024

The Kansas City industrial market conditions changed rapidly for both tenants and landlords in 2023. Review your unique situation with a 2024 outlook and plan your next move sooner than later.

02/22/2024

The Commercial Real Estate market performed remarkably well in 2023 despite a shift from post-pandemic supply replenishment to a period of moderating demand. Expect limited sales activity in the first half of 2024 until the gap between buyer & seller expectations is bridged by lower capital costs and greater market uncertainty.

11/23/2023

Even though tenant leasing demand has slowed considerably, the average asking rental rate still continues to increase. Given the current interest rate environment, it has become much more challenging to secure capital and break ground on new industrial development projects. Therefore, there has been very little new product introduced to the market so that is causing a premium to be placed on existing warehouse space.

08/27/2023

The Kansas City Commercial Real Estate is experiencing slower tenant demand for all size ranges due to a slowing economy and a generally slower summer season. Despite this, the average asking rental rates are up and landlords are still commanding higher asking rents.

05/26/2023

Although there is a sustained demand for industrial space in Kansas City, the Lenexa Industrial Park market activity during Q1 2023 has shown signs of deceleration, but not with regards to base rental rate growth for space under 100,000 SF. Lack of new construction on first generation warehouses/distribution centers will put a premium on existing, second generation packaging facilities.

02/17/2023

While demand for industrial space continues to prosper throughout Kansas City, rising vacancy and availability should provide relief for new and expanding Kansas City area tenants.

11/26/2022

As 2022 winds down, industrial demand in Kansas City remains at unprecedented levels. In just the last 12 months alone more than 10.4 million square feet of space has been absorbed. Developers are busy as absorption has outpaced new construction deliveries, leaving the market with fewer options for tenants and aggressive rent inflation. The advent of e-commerce kicked demand into high gear, but left developers scrambling to keep pace.

10/27/2022

Developers continue to respond to heightened demand for industrial space in Kansas City as vacancy drops to a record low of 4.4%. Asking rent (NNN) remains near record high registering $5.63/SF, an increase of 15.7% from 3Q21 to 3Q22. The Kansas City region is emerging as a major electric vehicle manufacturing and supply hub, further boosting industrial demand. Panasonic recently announced plans to bring $4.0 billion EV battery mega project to De Soto, KS.

06/13/2022

At this point, industrial tenants know these dreaded phrases all to well… “Low vacancy rates”, “tight market”, “it’s a landlord’s market”, especially tenants that occupy warehouses in the Lenexa Industrial Park. To make matters even more challenging for tenants, some landlords are proposing renewal rates that are double tenants expiring rent. The obstacle is that when the tenant checks the market to look for more affordable options, they realize that alternative spaces won’t be ready in time, there isn’t another cheaper option or there are no options at all! Unless there is a major driver to move, such as a tenant needing double or triple the square footage or half of what they are currently occupying, their hand is forced to sign an expensive lease renewal deal.

Widmer Partnership is a commercial real estate company headquartered in Kansas City MO.

05/06/2022

Widmer Partnership has been responsible for one of the most iconic buildings in the Lenexa Industrial Park - valued at over $3 million.

Widmer Partnership is a commercial real estate company headquartered in Kansas City MO.

02/16/2022

The Kansas City industrial real estate market continues to boom as e-commerce and unstable supply chains continues to drive demand for warehouses, distribution centers and logistics facilities. Rapid rental rate growth is a common theme in each Kansas City industrial submarket, but specifically in the well located Lenexa Industrial Park. Landlords are the main benefactors of this current market environment because there is not enough available inventory to accommodate demand.

01/20/2022

The 1st Quarter Kansas City Industrial market continues to sizzle as rental rates increase with high demand and limited supply coming to market. Many tenants are choosing to expand with additional space to combat supply chain disruptions. Nationally, KC is one of the best performing markets in absorption, rental rate increases and falling vacancy rates.