KCADC announces new HQ, new venture news at annual meeting

The Kansas City Area Development Council (KCADC) announced today at its annual meeting that NetPMD Solutions is locating its corporate headquarters in the Kansas City region.

The company selected the KC region based on a combination of factors — including telecommunications infrastructure, central U.S. location, available workforce and affordable tax and utility costs.

“Our projects span across the U.S., so being based in the Midwest provides easy access to our customers. In addition, the favorable business economics and a deep well of talent to draw from in KC will further our growth,” said David Seematter, CEO of NetPMD Solutions.

NetPMD Solutions provides comprehensive design solutions for customers across the U.S., with a focus on fiber networks. The company offers a variety of professional services that can be brought together to form a complete solution, including network design, network engineering and turnkey solutions.

“Kansas City is the most connected region in the U.S. with 5.5 million miles of fiber, and NetPMD Solution’s selection of the KC market for its headquarters will enhance the company’s long-term success,” said Tim Cowden, president and CEO at the Kansas City Area Development Council. “With KC’s tech industry employing one in every 10 workers, our region is a prime location for companies looking to tap into a collaborative and talent-rich community.”

While NetPMD Solutions is selecting its final real estate option in Kansas, the company is actively hiring highly driven individuals to join its new operations in a hybrid work model. A variety of technical and non-technical positions are available including CAD Drafters, GIS Engineers, Fiber Network Designers, Professional Civil Engineers and Project Managers. Potential candidates may visit NetPMD Solutions for more information.

The company, with an office currently in Arizona, plans to create more than 100 technical and corporate jobs.

The 2021 KCADC Annual Meeting leaders also announced the new home for KC Global Design, a collective of the world’s leading architecture, engineering, design and construction firms based in the KC region.

Under the KCADC umbrella of initiatives, KC Global Design will continue to focus on building awareness for KC as a top design market, expanding talent attraction and retention, and driving innovation in the industry through collaborative leadership.

“As the sales and marketing engine for the region, KCADC has the resources and expertise to help KC Global Design further its ability to showcase Kansas City’s excellence in architecture, engineering, construction and tech,” said Rich Smith, president and CEO of Henderson Engineers and co-chair of KC Global Design.

KCADC’s Annual Meeting is one of the region’s top business luncheons, gathering company executives, community leaders and civic partners from across the two-state, 18-county area.

Stay tuned next week for additional MWM recap articles from this event, including highlights from the event’s keynote speaker, Mel Robbins.

Three 'R’s' of real estate and the economy: Reinvent, Recharge, Reignite

KCRAR Commercial hosted its annual commercial real estate forecast in a virtual format on Thursday, October 22.  Dr. Ted C. Jones, senior vice president-chief economist at Stewart Title Guaranty Company, offered his perspective of national developments in commercial real estate during the pandemic and his outlook for the future.

Jones discussed the three “R’s” of real estate and the economy:  reinvent, recharge and reignite.

Jones said that last year the real estate industry reinvented the way it did business; giving the examples of virtual tours, virtual online notarizations, the use of e-signatures to close transactions and the proliferation of the restaurant carry-out business.

Jones estimates that compared to 15 months ago, consumers have $2.2 trillion more in their bank accounts, thanks to stimulus money — but, that comes with a cost.

“We go back to March 2020, (when in the ) first time in history we saw both sides of the aisle in my lifetime move and say we’ve got to do something — and we did a massive amount of stimulus. in fact, so much we’re enjoying some of that appreciated inflation we’re seeing right now,” said Jones.

Jones said that as the country recovers from the pandemic, a re-ignition is taking place, and we are seeing a hot economy.

“Every time there is a change, we literally have winners and losers.  Last year, commercial real estate was a big loser.  But commercial real estate is coming back,” Jones said.

In the United States, total commercial real estate sales year to date is up 75 percent compared to last year, with apartments sales up 115 percent.  Industrial property sales haven’t done as well because nobody in industrial wants to sell right now, said Jones.  

Jones said the big winners last year and this year were multifamily and industrial properties.  The biggest losers have been hotels, retail and offices.

“We’ll see how they come back out.  But things are changing.  The great American reopening continues,”  he said.

The pandemic drove housing to its highest intrinsic value in history.  People have been spending more time in their homes, and it’s impacted our quality of life and our lifestyles, Jones said. And, the housing market is so hot because demand is outstripping supply.

Jones said that sales of apartments in the third quarter of this year were the highest in any quarter in United States history. From the beginning of the year through September, median apartment rents in the United States increased 16.4 percent.  In comparison, in the three years before the pandemic, apartment rents increased an average of 3.4 percent.

“That’s a five-fold factor increase.  Pretty amazing,” said Jones.

Jones said that low-interest rates have been really critical in our economic recovery, but he predicts that interest rates will increase, driving more people to the rental market.

Jones said that in 40 days during March and April 2020, the country lost every job that had been added in the previous 10 years; but, nationally almost 80 percent of those jobs have come back.  The Kansas City metro area fared better, he said, having recovered 91 percent of its lost jobs.

Jones predicts that artificial intelligence technology and robots are going to impact future demand for commercial real estate.  Citing a 2020 survey conducted by Jones, 43 percent of companies planned to reduce their workforce as a result of new technology.

“You don’t need as much office space.  You may need more industrial space because robots take up a lot of room,” he said.

Currently, the office vacancy rate in Kansas City is pretty close to the average historical rate of 16.3 percent.  Jones said the Kansas City office market is doing better than many other markets.

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This is part 2 of the KCRAR event held on October 22, 2021. To read the first article, click here.