Commercial real estate activity is on the rise, in all sectors, in Kansas City. That’s the good news from Ty Garver, a director with the Kansas City, Mo., office of BMO Harris Bank, and Dan Hampton, senior vice president and head of U.S. commercial real estate with the company.
Both Hampton and Garver talked with Midwest Real Estate News about the recovering commercial real estate market in Kansas City. Here is some of what they had to say.
Midwest Real Estate News:This is a broad question, but as 2013 arrives, are you seeing an increase in commercial real estate activity in Kansas City? Ty Garver: We are. And we’re seeing an increase in activity not only with our bank, but across the entire region. This increase is coming in all sectors, too. It’s something that we’re happy to see. Dan Hampton: Our pipeline right now is more than double what it was in the last six months, so that’s a sign that activity is on the rise. We expect this to continue.
MREN: What do you think accounts for this increased activity? Garver: There are various factors involved. One of the most important is the strength of our intermodal centers. The intermodal business is really taking off at this point. And there are no signs that this will slow any time soon. In fact, we expect our intermodal centers to continue to serve as a driver of growth in the Kansas City region in the future. Hampton: There are other factors, too, many that we see in other markets in the Midwest. The low interest rates are certainly helping. And Kansas City is enjoying population growth and job growth. There are also the presence of major universities in the area. That always helps a region remain stable.
MREN: When you look at the increased activity in the region, what sectors are performing better than others? Garver: Multi-family is the most robust sector right now. The Country Club Plaza area, in downtown, is seeing a lot of multi-family activity. And we’re seeing new multi-family coming to the Johnson County, Kansas, area. We are seeing a lot of multi-family buildings that are breaking ground, and that’s providing a boost to our economy here.
MREN: Are there any new developments in particular in the Kansas City area that have you excited? Garver: Well, I think that all commercial developments are exciting. They all add to how robust a market is. We have four or five new mult-family projects going on in the area now that are exciting. And there are many more projects that I could list. But as far as an iconic property in Kansas City, there is the Plaza Vista development in downtown. This development will be the new headquarters for the Polsinelli Shughart law firm and will include a hotel and retail space. We are excited to see that project move forward.
MREN: I know it’s hard to predict, but what do you see in the near future as far as activity in the Kansas City region goes? Do you think we’ll see commercial real estate activity continue to rise? Garver: Johnson County has had an increase in population and new jobs. Interest rates are low. And there is space available. I see no reason why we won’t continue to see increased activity during the next two years or so. I don’t see why we should see anything different in the region from what we are seeing now. Dan Hampton: Kansas City is an important region for BMO Harris. It is part of our company growth strategy to increase our market share in this region. We see Kansas City as an area for growth. And we’re excited to have such a strong team in this market.