Please click below for our in-depth Kansas City 2017 market overview.
The Kansas City market overall has improved with minimal supply gains and stable demand. Net absorption has outpaced deliveries each year in the last ten years with vacancies below average. Sales volume in 2017 has been slow, sales prices dipping and the market trending steady rent growth.
Retail in the downtown Kansas City market has been encouraged with the streetcar route and an uptick in population with new apartment developments. We saw a 50% increase in leasing activity in 2016 along River Market down to Country Club Plaza. This area has benefited being along the streetcar route and increasing walkability. Asking rents have exceeded $25/SF in the Country Club Plaza submarket and $22/SF in the Brookside market. Other area markets have been below $20/SF.
Kansas net deliveries in 2016 were negative due to demolition of sites. Less than 3% of space delivered last year were available at the end of last quarter. There are a number of new projects under way, proposed projects and larger scale redevelopment. Based on 133 transaction sales volume, overall CAP rates have held at 6.30% consistent with 2015-2016. Median sales prices have averaged $122.81/psf with the average deal being in the low $2M. 2016 figures are skewed due to the large portfolio sale of the 42 property Country Club Plaza to Country Club Plaza KC Partners LLC, a venture owned equally by Taubman Centers Inc. and the Macerich Co.