Wichita has long been known as the air capital of the world. Unfortunately, this designation wasn’t much help during the days of the Great Recession. The aviation industry suffered mightily during the economic slump. And Wichita, home to more than its share of aviation firms and suppliers, suffered along with it.
But Tom Johnson, president of Wichita, Kan.-based Grubb & Ellis Martens Commercial Group, is seeing the start of an aviation recovery in his market. And that’s good news for anyone who practices commercial real estate in this key Kansas city.
“We did see a big hit in the aircraft business during the downturn. We lost a lot of jobs in that sector. Most of the jobs we lost in Wichita were, in fact, from that sector,” Johnson said. “But there is some optimism in the last few months in this sector. Some of our aviation companies are doing quite well today.”
Of course, the news isn’t all good. Boeing recently announced that it is relocating its base out of Wichita. Hawker Beechcraft is also having its troubles, having recently filed for bankruptcy reorganization. The good news, though, is that whatever happens to Hawker Beechcraft, the company will keep its production facilities in Wichita.
And the way Johnson sees it, commercial brokers have the choice to see Boeing’s move as either a huge negative or an opportunity. The area’s economic development agencies are already talking to companies that are expressing interest in the Boeing facilities, even though the company hasn’t yet left them behind.
“You have to look at it as the glass being half full,” Johnson said. “Those facilities will probably be put back into productive use. I can’t tell you what that use will be yet. No one really knows. But we believe those buildings will be put to use.”
It’s important, too, to mention that not every air-related company in the area is struggling. Some are doing quite well.
Cessna and Bombardier Learjet are enjoying steady business today, with Bombardier planning an expansion in Wichita. That particular aviation company is actually adding jobs today. The suppliers to the industry are doing well, too, Johnson said.
“It’s not to say that everyone is dancing in the streets and letting loose with all the cash they’ve stored up over the last few years. But there are positive signs,” Johnson said.
And in today’s challenging real estate market, positive signs are about the best anyone can hope for.
— Dan Rafter
