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Nathan Anderson, SIOR, CCIM
Principal ~ Director of Brokerage
Harbinger Property Group, LLC
8900 State Line Rd., Ste. 410
Leawood, Kansas 66206
913.890.2001 direct
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Free Market Report

Article - Industrial Demand

Article - Market Value

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Platte County, MO

Platte County has the smallest inventory of industrial property with only 7.1 million square feet in 162 industrial buildings. True vacancy is currently at 8.1%, which includes 186,000 sf at the Parkville Underground facility.

Larger blocks of industrial space are rare, with only six (6) buildings having 30,000 sq.ft. or more available. Despite its proximity to the airport, the KCI submarket has historically lagged the market in terms of depth of activity and frequency of transactions. Recent notable transactions include the 45,000 sf expansion of K & Company and the 50,000 sf expansion of AFC Worldwide, both in the Airworld Park.

The Riverside submarket, with great interstate access and proximity to Downtown, continues to boast low vacancy rates. Primarily a flex market, offering rates have climbed into the $6.50 to $7.00 psf Gross range. With the recent completion of an $80 million levee, nearly 1300 acres of land is poised for development over the next decade.

Clay County, MO

Clay County is comprised of roughly 35.4 million square feet in 586 industrial buildings. Vacancy including sublease space is currently at 7.8%.

North Kansas City continues to thrive due to its central location and low business and real estate taxes, although thirteen (13) blocks of 100,000 sq.ft. or greater are currently available. Lease rates have seen little or no increase over the past 5-7 years, averaging $2.75 to $3.50 psf Gross for blocks of 20,000 to 50,000 sq.ft.

Northland Park has been an attractive location for built-to-suits, landing Musician’s Friend and FedEx Ground for 702,000 sq.ft. and 215,000 sq.ft. respectively. Existing class ‘A’ distribution space has been difficult to fill, however, with vacant blocks of 127,000 and 76,000 sq.ft. on Kimball Drive.

Wyandotte County, KS

Wyandotte County is comprised of roughly 39.6 million square feet in 784 industrial properties. True vacancy is currently at 7.2%, the lowest of the 5-county metro area.

Notable vacancies include 338,000 sq.ft. in the former Fleming Foods distribution facility at 5300 Kansas Avenue and 200,000 sq.ft. in the former Lady Balitmore Foods facility at 1601 Fairfax Trafficway.

Local developer Prime Investments is banking on continued success in the class ‘A’ distribution market, proposing a 200,000 sq.ft. facility at the former UP Freight House site at 301 S. 5th. The Fairfax District, anchored by GM, continues to compete for affordable class ‘C’ product, with average rates of $2.25 to $2.50 psf on a Gross basis for blocks of 50,000 sq.ft. or greater.

Jackson County, MO

Jackson County is the largest of the 5 metro counties with just over 105 million square feet in 2,194 industrial buildings. True vacancy is currently 8.1%, down from 9.4% at the beginning of 2006.

Seventeen (17) blocks of 200,000 sq.ft. are currently vacant and available, although several are in multi-story, underground or class ‘C’ industrial buildings. Notable vacancies include the 252,000 sq.ft. former Musician’s Friend facility and the 195,000 sq.ft. Fixtures Furniture facility, both in Kansas City, Missouri.

The glut of 14’-16’ class ‘C’ product has led to very competitive rates in the $1.75 to $2.25 psf range for blocks of 50,000 sf and greater. A few outlying submarkets, however, are gaining momentum with new development including Lee’s Summit and Grandview. CenterPoint’s planned intermodal park in Grandview appears close to coming online, fueling some speculation for land along the 71-Hwy. corridor.

Johnson County, KS

Johnson County includes just under 49 million square feet in 1369 industrial buildings. True vacancy is currently a healthy 6.5%, down from a recent high of 8.4% in mid-2004.

The I-35 corridor in Johnson County continues to be the most reliable zone in the metro area in terms of ongoing demand. Notable recent transactions include Sprint United taking 202,000 sq.ft. at 14700 Santa Fe Trail, and Remel’s lease of 137,000 sq.ft. at the Meritex Underground facility.

Local developer Block & Company recently announced plans for Phase 3 and 4 of College Crossings at I-35 & Strang Line. Speculative development has been slow, despite low vacancy rates, primarily due to the underwhelming leasing market and abundance of class ‘B’ affordable facilities. Lease rates for 2nd and 3rd generation 18’-20’ clear buildings average $4.25 to $5.00 psf on a Gross basis for blocks of 20,000 to 30,000 sq.ft.