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KC Leverages Central Location

by Mary Rooney | May 05, 2021

The Kansas City region continues to leverage its advantages as a central U.S. transportation hub to supply the warehouse and fulfillment center needs of companies across multiple industry sectors. More industrial space is under construction in the KC region than ever before as demand for distribution centers continues to rise.

In Kansas City, 2.7 million sq. ft. of new industrial space was delivered in Q1 2021, with an additional 8.9 million sq. ft. currently under construction and another 4 million sq. ft. announced. In total, more than 15 million sq. ft. is on track to be completed in 2021, a record for the market and evidence of the surge in demand for manufacturing, warehouse, and distribution space. Of all markets in the country with at least 225 million sq. ft. of existing inventory, the only locations with a higher percentage of new inventory under construction at the end of the first quarter were Memphis, Phoenix and the Pennsylvania Distribution Corridor.

Recent announcements of industrial development include: 

  1. Amazon recently broke ground on its 10th location in the metro area which once completed, will bring the company’s total KC footprint to over 4 million sq. ft. 

  2. NorthPoint Development recently broke ground on a 1 million+ sq. ft., speculative warehouse – the largest in Kansas City history. 

  3. Lineage Logistics is constructing a 407,900 sq. ft., build-to-suit cold storage facility in Olathe, KS. The facility will create approximately 300 jobs and represents an estimated $85 million investment. 

  4. Hunt Midwest announced it will build out an additional 700,000 sq. ft. of Class A speculative space in SubTropolis, the world's largest subterranean industrial park and a naturally climate-controlled environment. 

  5. Scannell Properties has plans to develop 2 million sq. ft. of industrial space at Compass 70 Logistics center in Bonner Springs, KS and 3.5 million sq. ft. at 435 Logistics Center, the former Woodlands racetrack site in Kansas City, KS.

  6. Port KC plans to develop 415-acres of former steel mill land along the Missouri River into a multimodal, inland port called the Missouri River Terminal (MRT). In 2020, Port KC was awarded a $9.88 million grant to help advance the redevelopment of the MRT.

In the last year alone, the Kansas City region has successfully attracted 12 manufacturing, eCommerce and distribution operations from outside of the market pledging to create more than 3,000 jobs and invest more than $1 billion. Company highlights include: 

  • Urban Outfitters (880,000 sq. ft. facility and up to 2,000 jobs)

  • Chewy (800,000 sq. ft. facility and 1,200 jobs)

  • Melaleuca (508,000 sq. ft. facility and 200 jobs)

  • BoxyCharm (575,000 sq. ft. facility)

  • National Fulfillment Services (100,000 sq. ft. fulfillment center)

  • UPS (534,000 sq. ft. facility)

  • Dots Pretzels (186,100 sq. ft. facility)

  • Pretzels, Inc. (146,000 sq. ft. facility and 281 jobs)

  • Scarbrough Warehousing (226,000 sq. ft. 3PL facility)

With more than 250 million sq. ft. of existing industrial space in both surface and underground business parks, ample land for new buildings, a skilled logistics workforce and robust utility and transportation infrastructure, Kansas City is one of the preferred geographic locations for distribution centers and is poised for continued growth. 

Learn more about Why KC.

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