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Apartment and Industrial Sectors Driving KC’s Commercial Real Estate Scene

January 15, 2014

P&L Constr

by Jeff Pinkerton

Integra Realty Resources released its 2014 forecast earlier this week and the Kansas City market definitely has some bright spots.


The Great Recession is now well in our national rear-view mirror. Most markets across the country are in recovery or expansion mode in the four main real estate segments (office, apartment, retail and industrial).

The Kansas City market is doing particularly well in apartments and industrial real estate, where we fall into the expansion category. This category is marked by decreasing vacancy rates, moderate to high levels of new construction, high absorption rates and higher rental rates.

The apartment segment has been the fastest growing segment on a national level as well, although there are signs that the growth may be slowing.

The Kansas City office and retail segments are still placed in the recovery category, meaning that vacancy rates are starting to decline, but there is little new construction and rental rates haven’t yet begun to rise.

Real Estate Cycle

Source: Integra Realty Resources

The main local story is that all four sectors are on the upswing after struggling in the years since the recession, and in the near term, market demand for multi-family housing and industrial space has pushed these two sectors into a more active growth phase.

The full report is available for download at Integra’s website.


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