Corrigan Station is a 150,000-square-foot multi-tenant office development at 19th & Main. In the first quarter, Hollis + Miller Architects announced it would be the building’s first major tenant.
Newmark Grubb Zimmer has released its office and industrial reports for the first quarter of 2016. Grab a copy of the office report here and the industrial report here, but in the meantime, here’s a peek at the highlights:
OFFICE
The office market continues to climb the rental rate ladder, notching its 10th consecutive increase in rental rates in the first quarter of 2016. Additionally, vacancy rates have steadily eased downward by 80 basis points over the past year from 14.2 percent to 13.6 percent.
The Downtown/Crown Center submarket continue to thrive, but the most impressive performance goes to the Midtown/Plaza area, which has realized a 700-basis-point drop in vacancy over the past year, from 12.4 percent to 5.4 percent.
Storylines of the past quarter in the office segment include Hollis + Miller Architects’ decision to relocate to Corrigan Station, a move scheduled for the fourth quarter of 2016. It will occupy more than 30,000 square feet spread across the top three floors of the building. Developers of the project, Copaken Brooks and 3D Development, were approved for $50 million in public bonds to be repaid via a sale/leaseback plan. The $42 million project is expected to create 750 long-term jobs with average salaries of $55,000.
The report also notes that Kansas City will soon be home to the largest coworking spaces in the country. Read all about Plexpod Westport Commons here.
Inland Port XIV will be a 822,104-square-foot spec-built warehouse at Logistics Park Kansas City in Edgerton, Kan. Amazon announced in the first quarter it would occupy the entire building.
INDUSTRIAL
After a strong 2015 showing, the industrial market is showing no signs of slowing. In the first quarter alone, more than 1.2 million square feet of industrial space was delivered.
The first quarter posted 238,465 square feet of net absorption with average quoted rents at $4.48 per square foot. The report says nearly 6 million square feet is under construction, and luckily, demand is keeping pace. Expect e-commerce and automotive users to continue to flock to Kansas City to take advantage of its logistical advantages.
Key moves in the first quarter include Clarion Partners’ purchase of a 1.1 million square foot Johnson County industrial portfolio, which includes 24 industrial buildings and traded for $55.35 million, or $51 per square foot.
Amazon also grabbed headlines with its 822,100-square-foot lease at Inland Port XIV at Logistics Park Kansas City. The e-commerce retailer will occupy the entire building, which is Kansas City’s largest industrial spec building to date. The move is expected to create 1,000 new full-time positions and triple Amazon’s Johnson County presence.