Kansas City Office Market
| Average Asking Rent (Price/SF) | $21.02 |
| Vacancy Rate (%) | 11.9% |
| Net Absorption (SF) | -154,476 |
The Kansas City office market loosened in the first quarter of 2021 as total net absorption measured negative 154,476 square feet. Total net absorption during the past four quarters totaled negative 1.4 million square feet. Vacancy increased 230 basis points over the past year, from 9.6% to 11.9%, while asking rental rates also increased by $0.08/SF to $21.02/SF. Construction projects currently underway total 410,396 square feet, with no deliveries during the quarter.
Download Kansas City Office Market Report 1Q21Kansas City Industrial Market
| Average Asking Rent (Price/SF) | $5.13 |
| Vacancy Rate (%) | 5.10% |
| Net Absorption (SF) | 1,794,989 |
The Kansas City industrial sector started the year displaying very strong market fundamentals with 1.8 million square feet of total net absorption during the first quarter. Net absorption during the past four quarters totaled 5.4 million square feet, ranking Kansas City ninth out of all industrial markets in the U.S. Increases in land pricing, construction pricing and general demand have pressed rental rates upward. However, asking rent increases have been, to some extent, countered as larger structures continue to deliver to the market pressing downward the average per-square-foot rate. As such, average asking rental rates have been kept relatively in check during the past year. Rates decreased $0.10/SF during the past quarter to $5.13/SF. Projects under construction slightly decreased from 9.9 million square feet to 9.4 million square feet, but that figure will rise as multiple projects in the proposal phase will officially change to “under construction” over the next six months. The market realized 1.4 million square feet of deliveries during the first quarter, up 18.5% from the average deliveries per quarter during the past two years. Although Kansas City only ranks 17th in overall market size in the U.S., the market ranked 12th in both total deliveries and under-construction square footage during the past four quarters. As a result of the large amount of leasing activity during the quarter, overall vacancy decreased 20 basis points, from 5.3% to 5.1%.
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