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KC Industrial Market Continues to Rise

by Morgan Bell | Sep 05, 2017

The Kansas City industrial real estate sector’s strength has continued from 2016 into 2017. According to a report from Colliers International, the Kansas City industrial market recorded more than 1.6 million square feet of positive net absorption in the second quarter of 2017. Kessinger/Hunter reported vacancy rates rose slightly in the second quarter 2017 to 6.4 percent, up 0.8 percent from first quarter 2017.

Newmark Grubb Zimmer reported the market experienced more than 1.4 million square feet in average quarterly net absorption during the past three years. According to CBRE, 2017 will be another strong year for industrial development with 6.9 million sq. ft. of space currently under construction, and multiple projects expected to break ground over the next two quarters.

Last year, Cushman & Wakefield reported the Kansas City market set records for levels of construction, delivery of new space and absorption. 2016 had 5.5 million square feet of net absorption, but through the first half of 2017 the market has already absorbed 4.8 million square feet, or 87.3 percent of the previous year’s total. While there are talks of a slowdown on the horizon, many groups, including JLL, report speculative development continues to be strong and Kansas City should continue to see a strong 2017.

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