Industrial remains the strongest of the commercial real estate sectors, even when facing higher interest rates and rising construction costs. This explains the positive mood during Midwest Real Estate News’ 2nd Annual Kansas City Industrial Summit.
More than 130 of the region’s top industrial CRE pros attended the Aug. 24 event. They spoke about the continually high demand for industrial space among tenants, a slowdown in industrial sales thanks to interest rates and the many reasons why Kansas City remains a strong market for end users seeking industrial space.
Interest rates were a hot topic during the first panel of the event, The State of Kansas City’s Industrial Leasing Market & What Tenants Want. Panelists agreed that industrial sales activity should rise again once the Federal Reserve Board stops boosting interest rates.
Speaking on this panel were Scott Bluhm, Newmark Zimmer; Matthew Severns, Kessinger Hunter & Company; Phillip Algrim, JLL; Austin Baier, CBRE; Mike Bell, Hunt Midwest; and Kelli Griffith-Keedy, CoStar.
Higher rates have slowed commercial sales in all markets and sectors. Kansas City is no exception. But the speakers on the event’s Industrial Investment Sales & Capital Markets Update panel were optimistic about the future of this sector. They expect more sales activity once interest rates stabilize.
Speaking on this panel were Jeff Dillon, VanTrust Real Estate; Brent Peterson, NAI Heartland; John Hassler, Newmark Zimmer; Aoifinn Devitt, Moneta Group Investment Advisors; Aaaron Mesmer, Block Real Estate Services; and Carmine DiFulvio, Security 1st Title.
Because demand for industrial real estate remains high in Kansas City, developers are still targeting this market for new warehouses and distribution centers. New construction has slowed with higher rates, but the panelists speaking on the Development, Construction & Design Trends panel expressed hope that building will pick up once rates stop rising.
Speaking on this panel were Chris Gutierrez, Kansas City SmartPort; Daniel Jensen, Kessinger Hunter & Company; Cam Duff, Scannell Properties; Greg Sikora, Russell; and Darryl Fields, Mid-America Regional Council.
