Kansas City’s commercial real estate market is a busy one today, with developers bringing new retail centers, office towers and distribution facilities to the region. And one reason? The cost of doing business here is low when compared to other major cities.
That inspires companies to open offices in Kansas City. And that inspires the rest – retailers, restaurants, warehouses – to follow.
JLL recently took a look at just how affordable Kansas City can be for companies.
According to JLL, Kansas City has a cost-of-doing-business index of 95 and an average asking office lease of $20.50 a square foot. Both of those figures are lower than the U.S. average. According to JLL, the average-cost-of-doing-business index for cities across the United States is 100.
And when it comes to average office rents, Kansas City defnitely ranks on the lower end of the scale. Look at other major cities: Chicago’s average office rent is more than $30 a square foot. In Minneapolis, it’s just under that figure. And in New York City? The average office asking rent is nearly $80 a square foot.
Affordability isn’t the only reason why Kansas City is an attractive location for companies. JLL points to the region’s highly educated workforce and above-average per-capita income, which is attracting an even greater number of talented workers to the region.
The regional economy here is also a diverse one, with financial services, technology, logistics, healthcare, government and engineering firms all having strong presences in the Kansas City area.
JLL says that the future looks bright here, too. The company said that out-of-town investors are now entering the Kansas City market, looking for higher yields.