Kansas City Office Market
The market recorded 67,924 SF of net absorption during the quarter, bringing the four-quarter total to 1.1 million SF. This marks the fifth consecutive quarter of positive absorption, driven by tenants capitalizing on favorable leasing conditions. The non-owner-occupied construction pipeline has remained inactive since the fourth quarter of 2018, with just 84,500 SF currently under construction. Vacancy remained flat at 16.2% but is expected to trend downwards to 15.8% as the market stabilizes and Class A product continues to experience strong leasing momentum. Asking rental rates increased $0.46 to $23.42/SF in the quarter, approaching a new record high.
Kansas City Industrial Market
The market recorded 1.2 MSF of positive net absorption in third-quarter 2025, following up the second-highest quarterly absorption total in the market’s recorded history (7.5 MSF) in first-quarter 2025. Robust leasing activity was ongoing in late second-quarter and continued in third-quarter 2025. Steady demand and a slowing speculative construction pipeline drove vacancy down 50 basis points year over year to 4.9%. Of the 6.1 MSF construction pipeline, more than 4.8 MSF (80%) is currently dedicated to build-to-suit projects including Panasonic’s 2.35 MSF, Amazon’s 630,000 SF and Church & Dwight’s 553,000-SF distribution center. Upon fully leasing Building 5, VanTrust has commenced construction on Raymore Commerce Center 4, a 577,500-SF facility which will be built on a speculative basis.