AREA BlogKeeping you up-to-date on Kansas City commercial real estate trends.

Three AREA Properties Recognized as Capstone Award Honorees

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We are proud to be a part of three projects that are honorees of the Kansas City Business Journal’s Capstone Awards, highlighting new construction projects in our city. The three projects include Edison District in Downtown Overland Park, Gallerie in Downtown Kansas City and Regency Park in Overland Park. To be nominated, each project had to be move-in ready by the end of 2019.

Below is more information on the three honorees we have been working with.

Edison District is a newly built, mixed-use development that incorporates premier office and retail space in the extremely walkable Downtown Overland Park. The district also includes a chef-driven collective known as Strang Hall, which offers a unique dining experience featuring six chefs, along with a coffee shop and a bar. Click here to download our marketing package

The newly built Gallerie, is a mixed-use development located off of 27th Street and McGee Trafficway, just south of Crown Center. Phase I of Gallerie includes 361 Class A apartments and over 7,000 SF in retail space. Phase II will include additional apartments and townhomes. Click here to download our marketing package

Regency Park’s newly renovated shopping center located in Overland Park on the NWC of 93rd Street and Metcalf Avenue. The shopping center includes a Natural Grocers, Micro Center and many other daily use tenants. The prime location is just off of I-435 with easy access to Metcalf Avenue and 95th Street. Click here to download our marketing package

The award ceremony will be held on March 24th, we wish the best of luck to our team involved in each building.

To see the full list of the 2020 Capstone Award honorees, click here

MMGY Global Moves HQ to The Edison District

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MMGY Global, a travel and hospitality marketing agency, will move its Headquarters from The Country Club Plaza to the new Edison District in Downtown Overland Park.  MMGY has been in their current location since 2005, and the evolution of their company and their industry led to the move across State Line.

CEO Clayton Reid talked more about the decision to move in his interview with the Kansas City Business Journal here. With collaboration being the key component to the success of their company, Edison District allows MMGY’s employees the space to be all on one floor, rather than spread out across four floors in their current HQ. “It’s an opportunity to create the kind of space that’s conducive to the way we do business,” Reid said.

The character of Downtown Overland Park, the centralized location, Edison’s food hall and the rest of the new development were other factors that helped with their HQ relocation decision. GastingerWalker is helping MMGY with the build out of their space, drawing inspiration from MMGY’s 9 other global offices. The 32,000 square foot space will have a modern look with a variety of common areas as well as more private spaces. MMGY is awaiting approval from the city of Overland Park but hopes to move in this summer.

The Edison District developers see the Downtown Overland Park project as a suburban/urban hybrid development that adds more of an urban feel to Johnson County, adding amenities that previously were not there. The mixed-use development includes over 100,000 square feet of office, 10,000 square feet of retail, Strang Hall food hall (now open), an outdoor event plaza, and a park; creating a truly walkable community. Click here to read more on Tim Barton’s plan for the development, which will have the office build-out and outdoor portions completed this spring.

AREA’s Adam Abrams, Mike Levitan & Tim Schaffer represent the Edison District. To download the leasing package, click here.

Edisondistrict.com

AREA Property Management Adds Two New Properties to our Management Portfolio

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AREA Real Estate Advisors is proud to announce that our property management team has taken on the management of The Creamery Building and ON Broadway in the Freighthouse District in Kansas City, Missouri.  The Freighthouse District was once the site of manufacturing and warehousing buildings served by major rail lines passing through.  Over the last decade, the area has been reborn as a cultural, commercial and residential center for Kansas City, featuring new streetscapes, outstanding restaurants, many loft apartments and a vibrant art scene.  It is a highly sought after walkable urban area.

AREA’s Property Management team will be providing the Creamery Building and ON Broadway with the following services: AP Management, Lease Administration, Bid Contract and Administer Vendor Services, Vendor Insurance Administration, Product and Supply Procurement, After Hours Call Out and Alarm Response, Building Engineering Supervision and Security Staff Supervision.

The Creamery Building, located at 2100 Central Street, is 28,000+SF and was built in 1911. Listed in the National Register of Historic Places, it was once home to one of the largest dairy companies in the country. The building was revitalized and has become home to 16 corporate offices ranging from non-profit agencies to design and construction companies.  The building was designed to offer a variety of office suite sizes across four levels to accommodate small to mid-size companies.   Perks of being a tenant? Every tenant gets to enjoy the downtown skyline view while enjoying a game of pool or even some BBQ from the penthouse common space.

ON Broadway is a 35,000+ SF building prominently situated on the southeast corner of 21st & Broadway. The building was formerly called the Candle Building, which was home to two long-time artisan candle manufacturers, Empire Manufacturing Co and Creative Candles, both of which supplied candles internationally.  The building was restored in 2014 into a multi-level office building.  It hosts open floorplans that cater to small and large corporations.  The 360-degree views celebrate the raw historic integrity of the building.

Both buildings are owned by 3D Development.  3D Development revives historic buildings to create contemporary multi-use spaces.  Their visions are endless with office to co-working spaces, restaurants to event spaces.  You will find each building has a thoughtfully designed rooftop space to enjoy the incredible views of downtown Kansas City.  It is their signature feature!

We are excited and thrilled to provide our services to these two properties that make up part of our city’s history!

Five Reasons Large Distribution Centers are Choosing Kansas City

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By Brent Peterson – Vice President, Director of Industrial Brokerage

Kansas City has always been a center for commerce and in recent years, has established itself as a leading distribution center within the United States.

According to the Kansas City Area Development Council, “Kansas City is experiencing one of the largest industrial booms in its history and is a center of choice for warehousing, manufacturing, and distribution.  Business has prospered in large part due to the region’s abundant multi-modal transportation network.”  In 2017, the metro saw growth in distribution facilities from 100,000 to 1.2 million square feet, which included eCommerce companies like Amazon, HyVee Aisles, Dollar Tree, Spectrum Brands, and Horizon Global.

So, what makes Kansas City so attractive to large distribution centers?

  1. Rail. Currently, the metro receives more tonnage by rail than any other city in the United States in large part thanks to Kansas City’s efficient rail lines that come into the city and leave with little incumbrances.  The multiple rail yards are the perfect spots for finished and raw goods, including grain, vehicles, and coal.
  2. Location.  Companies can reach 90% of the continental U.S. and nearly 99% of their customers within a two day drive time.  Its central location makes it a natural crossroads for transcontinental rail, interstate, and waterway.
  3. Interstate. Distribution Centers can piggyback on the large interstate system running all directions, including I-70, I-35, I-29, the 435 loop, and I-49. This allows companies to move goods more efficiently without congestion.
  4. Labor Cost.  The cost to operate in the Kansas City metro is significantly less than some other major metros such as Chicago, Dallas or Los Angeles.
  5. Community. Kansas City is mainly comprised of the non-transient workforce who come to the region and choose to stay in the area.  A low cost of living, big-city amenities and small-town feel, along with jobs and schools all contribute to why potential employees stay.

Driver Shortages in the U.S. Trucking Industry

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By Brent Peterson – Vice President, Director of Industrial Brokerage

According to a recent USA Today article, “Trucking companies nationwide are about 60,000 drivers short; a gap that is expected to grow in the coming years and could threaten U.S. supply chains.”

The American Trucking Association warns driver shortages could reach six-figures by 2024.  As over the road, truckers continue to age and head into retirement, the question becomes who will continue to fill the need and what does the future of this vital industry look like?

There is a constant need to keep recruiting drivers given the shortage of drivers currently facing the truck industry.  While hiring, training and retaining drivers over the long-term is crucial and has its challenges, it all begins with the recruitment of the right candidates and giving them a reason to stay.  To this end, benefits for truck drivers have become more crucial than ever because all motor carriers are facing the driver shortage.  Above industry-standard benefits, could mean the difference between a fleet of drivers that stick around and one that leaves looking for better perks.

Consider these five benefits that could help the driver retention:

  1. Find ways to attract more drivers through incentives, including becoming their owner-operators, owning their rig and equipment and more workforce training.
  2. Make improvements in efficiency and comfort in big rig trucks.  Truck drivers spend a considerable amount of time in these vehicles. We need to ensure they are safe and comfortable.
  3. Consider having more distribution centers, smaller in size in more cities so truck drivers have fewer nights away from home, making their personal lives and lifestyle less disruptive.
  4. Have more teams of two people driving together to relieve each other and make the job less lonely. Isolation is a huge reason for the turnover in the trucking industry.  Setting up a team environment could ease the burden of individual drivers.
  5. Start paying more money with more competitive retirement packages and health benefits.