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

AREA Takes on Leasing of 3Y Office Building

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AREA has taken on the office leasing of 3Y (300 Wyandotte), a 94,846 square foot office building located in the historic River Market, at the north end of the Central Business District. The building’s unique location provides stunning views of both downtown as well as the Missouri River. The building is visible to over 178,000 cars per day from both the Broadway Bridge as well as the downtown expressway. It was originally built by OPUS for Populous Architecture in 2005.

Building features include attached covered parking, floor to ceiling glass, column-free floor plates with exposed ceilings, and roof top patio with expansive views. There is a bike share station on-site, with over 3,060 apartments within walking or biking distance. The Streetcar conveniently stops 1 block away from 3Y, creating an easy connection to the entire downtown, running south to Union Station. The building is also dog friendly.

With suites ranging from 5,000 to 24,000 square feet, the building offers a one-of-a- kind location for Kansas City’s fastest growing companies. The building is owned by New York based real estate private equity firm, Somera Road. Somera recently doubled down on its investments in Kansas City with the acquisition of the 657,000 square foot Lightwell Office building located in the heart of downtown Kansas City.

Click here to download marketing package

FOR MORE INFORMATION:
Tim Schaffer – 816.876.2535
Sean Craven – 816.777.2838
Hank Simpson– 816.777.2859

Multi-Family is Still Strong

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The commercial real estate market, and specifically the multi-family sector is booming. According to the latest research from RENTCafe, the demand for apartment units remains strong, in turn causing rental prices to increase.

As rents continue to increase across the country, more and more investors are looking for new markets to expand into.  This growth has led to historically high pricing and a surplus of buyers looking for multifamily product.  Many of the groups have set their sights on secondary and tertiary markets in the Midwest to invest their capital.

Rents are not the only driving forces behind the multi-family market strength. Other factors that are contributing to this growth include:

  • 12 consecutive years of rental demand growth, pushing total rental households to 43.3 million
  • 1 Million new renters per year from 2012-2016
  • Rental demand is at its highest level in past 50 years with 37% of U.S. households renting
  • Vacancies remain near historic lows at 5.9% nationally
  • Despite growth, the market has added less new housing over the past decade than in any 10-year period dating back to at least the 1970s
  • The U.S. will need to add over 4.6 million new rental units by 2030 to meet projected demand, or 350,000 units per year; far above the last 4-year average deliveries of 244,000 units

At AREA, we believe that today’s multi-family market is not just about buying and selling, but rather understanding the driving forces at play in the market.  We work to help our clients decide the best ways to make the most of their properties, and in turn, increase the value of them.  To learn more about the multi-family services we provide, click here or contact Grant Kollman and Charlie LaBarr to discuss your multi-family real estate needs.

Lenexa Growth & Development

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Lenexa, located in Johnson County, isn’t your typical suburb with single family neighborhoods and big box commercial.  Roughly 3,500 multifamily units have been built just within a mile of 87th & Renner, with 1,500 more under construction.  This alone is helping to make Lenexa (population of 53,500) one of the fastest growing mid-sized cities in Kansas.  The census shows that from 2010-2017, Lenexa saw a growth of 11%, which is a quicker rate than neighboring cities of Overland Park, Olathe and Shawnee.

“Money Magazine” names Lenexa the best place in Kansas to call home just this year.  $655 million of new construction is done, underway or pending. Once fully completed, the investment will be three times what the investment was to revitalize Overland Park’s downtown and on par with the investment in Kansas City’s Power & Light entertainment district. Some of the newest projects include:

City Center- SWC 87th Street Pkwy & Renner Blvd
Copaken Brooks is the developer on the 69-acre mixed-use development that includes office, retail and multi-family. City Center also is the home to Lenexa’s new civic center campus, which includes a recreation center, a new city hall, a Park University campus and a public market.  City Center Lenexa’s completed phases include Lifetime Fitness, Kiewit HQ, Renner 89 Office/Retail Building, City Hall, Recreation Center, Public Market and Domain Luxury Apartments.  Once complete, City Center Lenexa will consist of nearly 1 million square feet of office and retail, and 375 residential units.

The Lofts at City Center East-
A new $16M project, named The Lofts at City Center East, that would include office space & 67 apartments, is seeking approval from the City Council this week. Developer is Real Property Group, LLC

The “Yard” –
The Yard is a $12M mixed-use development that is home to the Indoor Sports practice facility, 4 story office building, event space, 6,000 SF restaurant with a 2,000 SF rooftop bar and 3,000 SF patio, outdoor area with pickleball, shuffleboard, fire pit and large outdoor TV.

Widmer Industrial Building-
Van Trust is presenting preliminary plans for a Speculative 140,000 SF industrial building to the Lenexa City Council. The building would fill one of the last open spaces at Lenexa Industrial Park. It would have 10,000 SF of office and 130,000 SF of warehouse.  If approved, construction could begin in the fall.

Sonoma Plaza-
Sonoma Plaza, a $220 million McKeevers Market anchored development consisting of apartment, senior living and retail. Proposed retail tenants at the site include Culvers, and Chick-Fil-A, with another 15,000 – 20,000 square feet in small shops space.

Interested in space in Lenexa? We have a few listings for you to check out!
Patio 95 – Retail (contact Rich DuVall)
Prairie Creek – Office (contact Adam Abrams, CCIM)
16000 W 108th – Industrial (contact Cory DeLong)

Edison District Approved by the City

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Last week the Overland Park City Council approved The Edison District development in Downtown Overland Park, giving the green light for construction to begin.

Edison District’s five stories will include a chef-driven food hall, outdoor event plaza and 126,000 SF of space available for office & retail tenants.  AREA Real Estate Advisors is representing Edison District in the search for occupants.

Today’s best and brightest are choosing where they work based on where they live. Optimally, they want a location where they can leave their car at home and use that extra time to be more productive. What was only available in downtown Kansas City is now a reality in the heart of Downtown Overland Park with Edison District.

With over 1,000 new residents living within four blocks of the Edison District, a company’s future address can be strategically located to retain and recruit employees in a location that can’t be duplicated.

“We are currently seeking anchor tenants for this one of a kind opportunity in the heart of downtown Overland Park,” says Tim Schaffer, AREA president. “We are beginning to field requests from the professional community about the amenities associated with the project and are confident it will fill quickly and successfully.” Employees working at Edison District will have everything they need, both personal and work-related, including a wide selection of affordable housing options, in their neighborhood and within walking distance.

This District’s future environment is sought out by today’s top talent and is a brilliant way for employers to compete to recruit and retain the area’s top talent.

For more information on the project, visit Edison District’s web site, and watch a drone tour of the site.

For Leasing Information:

OFFICE: ADAM ABRAMS– 816.876.2544
RETAIL: TIFFANY RUZICKA– 816.876.2513

New Client Takes Current Client’s Space

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It’s not often that the stars align and a new client takes a current client’s space!  We are so excited for these 2 clients of ours, and to be able to be a part of the changes they are making for their businesses.

Golden & Pine, a local interiors boutique now located in Brookside East, is expanding their space and moving into the Prairie Village Shops, next to the newly opened Caffetteria Restaurant. Their new larger shop will offer more furniture, a wedding registry wall, a continued strong plant presence and lots of natural light. Chanee Vijay, a textile design studio out of Manhattan Beach, California is relocating their studio and showroom to Golden & Pine’s former space at 63rd & Holmes. Chanee Vijay hand prints, dyes and sews textiles. Every pillow, wall hanging and bed cover is one of a kind.

Both locations will open later this summer. If you would like to know more about these shops, you can check out their web sites- goldenandpine.com and chaneevijay.com.

AREA’s Tiffany Ruzicka represented both Golden & Pine and Chanee Vijay in their transactions.

We love working with talented clients like these women!