Kansas City’s industrial market continues to improve. And the market should gain even more strength once the new BNSF Intermodal facility opens in late 2013 in nearby Edgerton, Kansas.
These are the two big findings in the latest report on Kansas City’s industrial market compiled by Colliers International.
According to Colliers, the industrial vacancy rate in the Kansas City market fell to 6.10 percent in the first quarter of 2013. That’s good, and it’s down from a vacancy rate of 7.40 percent in the first quarter of 2012.
During the first quarter, the market absorbed more than 1.78 million square feet of industrial space.
Colliers researchers wrote that the new intermodal facility will elevate Kansas City’s profile and status among the major national distribution and logistics cities. Because of this, new developments are being planned for the areas around the new intermodal site.
According to Colliers, the presence of intermodal railroad operations is a common trait of the most active industrial markets. Colliers says that 13 of the 15 US. warehouse markets with the lowest vacancy rates are port or inland distribution markets with intermodal rail connecting to one or more of the seven class-1 railroads operating in North America.
As Colliers researchers write: “The importance of creating a strong intermodal market will attract companies as they look to revamp their supply lines to the center of the country and capitalize on cost-effective shipping as rail speed, reliability and cost now rival movement of goods by truck.”
