Thought Kansas City’s industrial market couldn’t get even tighter? You thought wrong. CBRE recently released its second quarter industrial research for this key Missouri city. And the news is good once again: The vacancy rate here continued to fall.
According to CBRE, the vacancy rate for the Kansas City industrial sector dropped 40 basis points in the second quarter when compared to the first quarter of the year.
This rate now stands at a low 5.4 percent, according to CBRE’s numbers.
The other numbers surrounding this sector are also strong. The market saw 300,122 square feet of completed industrial space during the first quarter, 230,122 square feet of it on a speculative basis. This means that a total of 22.2 million square feet of industrial space has been completed in this market since 2015. That is the highest total in the Midwest outside of Chicago.
Net absorption hit 947,413 square feet in the second quarter and 2.1 million square feet for the first half of 2018. The Kansas City industrial market has now posted 27 consecutive quarters of positive net absorption.
One of the bigger deals of the quarter was closed by Kubota Tractor Corp., which purchased 200 acres of land in Logistic Park Kansas City’s second phase. The company plans to build two 1-million-square-foot facilities on this land.
The Belton City Council also approved the $105 million redevelopment plan of the former Southview Golf Course in Belton, Missouri. The new development will be named Southview Commerce Center and calls for more than 2 million square feet of industrial space. Buildings on the site will range from 235,000 square feet to 622,000 square feet.
