Kansas City Office Market
| Average Asking Rent (Price/SF) | $21.33 |
| Vacancy Rate (%) | 14.6% |
| Net Absorption (SF) | -465,561 |
Market vacancy in Kansas City increased to 14.6%, up 70 basis points from the prior quarter. The market realized an increase in asking rental rates in the first quarter of 2022, as rents slightly increased to $21.33/SF, up $0.06/SF from the fourth quarter of 2021. While the overall trend in asking rental rates since the second quarter of 2020 continues to increase, tenants are often seeing more concessions in the form of free rent and tenant improvement allowances to offset the increase, as well as longer lease terms to accommodate the ever-increasing construction costs. As trailing 12-month inflation continues at levels twice the normal average, real asking rental rate growth is stagnant across many metro markets in the U.S. Total market net absorption in the quarter measured -465,561 square feet, bringing the total for the past four quarters to -1.8 million square feet. Construction projects currently underway total 881,852 square feet. No projects delivered to the market during the quarter.
Kansas City Industrial Market
| Average Asking Rent (Price/SF) | $5.48 |
| Vacancy Rate (%) | 4.8% |
| Net Absorption (SF) | 2,624,045 |
The Kansas City industrial sector started the year with robust leasing and sales activity, achieving new records for current development and future projects in the pipeline. The market continued to display strong fundamentals for demand in the first quarter of 2022, with 2.6 million square feet of total net absorption. Net absorption during the past four quarters totaled 9.7 million square feet, while projections indicate an impressive 14.3 million square feet of total net absorption could occur during the next six quarters.
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