Kansas City Office Market
| Average Asking Rent (Price/SF) | $21.30 |
| Vacancy Rate (%) | 13.8% |
| Net Absorption (SF) | -327,398 |
Market vacancy in Kansas City increased to 13.8%, up 50 basis points from the prior quarter. The market realized an increase in asking rental rates in the fourth quarter of 2021, as rents decreased to $21.30/SF, down $0.16/SF from the third 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. Total net absorption in the quarter measured negative 327,398 square feet, bringing the total for the past four quarters to negative 1.4 million square feet. Construction projects currently underway total 631,852 square feet. No projects delivered to the market during the quarter.
Kansas City Industrial Market
| Average Asking Rent (Price/SF) | $5.03 |
| Vacancy Rate (%) | 4.7% |
| Net Absorption (SF) | 2,759,997 |
The Kansas City industrial sector closed out the year with robust leasing and sales activity, achieving new records for current development and future projects in the pipeline. Upon examination of modern industrial facilities built since January 2015 and possessing at least 100,000 square feet of rentable building area, the Kansas City market averages less than three quarters to achieve a leasing stabilization threshold of at least 75% of occupied space upon delivery to the market. Half of the properties, including both fully or partially build-to-suit or speculative developments, achieve the stabilization threshold before or during the quarter of delivery to the market, even more impressive considering a total of 40.3 million square feet of product delivered to the market during the past seven years.
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