The evolving office space trends shaping the future of commercial real estate

The commercial office space market is undergoing significant shifts as it adapts to a post-pandemic world. Office valuations, which have been slipping since the pandemic, continued their decline in 2024. According to data from CommercialEdge, the average sale price of office buildings dropped by 11% last year, reaching $174 per SF, down from $196 in 2023. This decline comes as businesses adjust to hybrid work models and reduce their office footprints, further pushing down demand for traditional office spaces.

The federal government is also facing real estate challenges. The General Services Administration (GSA), which manages a substantial real estate portfolio, has been actively reassessing its needs and has already started trimming its office space. In the Washington, D.C. area, leases with early termination clauses are expected to be among the first targets for cuts, as they provide more flexibility. These measures reflect broader efforts within the government to optimize its real estate holdings, potentially impacting millions of square feet of office space over the coming years.

In the private sector, the commercial real estate market continues to evolve as tenant expectations shift. The rise of hybrid work models, along with economic pressures, has led to increased vacancy rates, particularly in central business districts (CBDs). Companies are looking for spaces that foster collaboration, creativity, and employee well-being, which has led to a demand for high-quality, amenity-rich properties. Amenities such as wellness centers, green spaces, and on-site cafes have become priorities for tenants seeking to enhance their workplace environments.

Developers are responding by reimagining office spaces to meet these changing needs. Sustainability features, including energy-efficient designs, green building certifications, and smart technologies, are becoming more common as businesses prioritize environmental responsibility. At the same time, many older office buildings are being repurposed into mixed-use developments or residential properties, creating opportunities for investors who can navigate these complex conversions.

While the demand for traditional office space has decreased, there are still opportunities for flexible office spaces and suburban developments. As more companies decentralize their offices, suburban areas are seeing a resurgence in demand for well-located office properties that balance accessibility and cost-effectiveness. Investors and developers focusing on these emerging trends are poised to capitalize on new growth areas.

Looking ahead, the commercial office market is expected to continue evolving, driven by changes in work habits, tenant preferences, and environmental considerations. As the market adapts to these new realities, developers and investors must remain agile and open to innovative solutions, including flexible office spaces, suburban office developments, and sustainability-focused properties. While the market may never fully return to pre-pandemic conditions, opportunities remain for those who are prepared to navigate the ongoing changes in the commercial real estate landscape.

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Header image: 46 Penn Centre just off the Country Club Plaza in Kansas City, Mo. Image courtesy of Block & Company

$20 million parking project aims to improve accessibility and infrastructure in 18th & Vine

Kansas City, Missouri, has partnered with Grayson Capital to develop a new 470-space parking facility in the 18th & Vine District, a historic and culturally significant area. The project will not only increase parking capacity but also improve infrastructure and connectivity, supporting the District’s growth as a hub for entertainment, culture, and history.

The parking garage at 1819 Lydia Ave. will serve as a key transit hub, providing much-needed space for the District’s visitors and residents. Funded by a $20 million allocation from the City Council, the project will enhance accessibility for the area’s ongoing revitalization efforts.

Mayor Quinton Lucas emphasized the development's importance in fostering the long-term growth of the Jazz District, noting that this project will support future developments while preserving the District’s cultural heritage. City Manager Brian Platt highlighted the project's broader impact, which is one of many revitalization efforts underway in the 18th & Vine area, bringing investment and job opportunities to Kansas City’s East Side.

Councilwoman Melissa Patterson-Hazley pointed out the significance of the public-private partnership, calling it a milestone for community development and economic growth. Councilwoman Melissa Robinson also expressed her enthusiasm, noting the improvements in walkability, safety, and access that the new facility will bring to the area.

The facility, currently in the design phase, is slated for completion ahead of the 2026 FIFA World Cup. Once finished, the City of Kansas City will own and operate the garage, ensuring its role in supporting local businesses and attractions for years to come. JE Dunn Construction will collaborate with Grayson Capital to bring the project to fruition.

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Header image: A conceptual rendering of the 470-space parking garage at the18th and Vine District. Image courtesy of Grayson Capital

Kansas City is revitalizing Berkley Riverfront with a bold vision for the future

In July 2023, Port KC and the Kansas City Current unveiled an ambitious 10-year master plan to transform Berkley Riverfront into a vibrant, mixed-use district. This collaboration is set to revitalize the area, blending residential, commercial, and recreational spaces to create a dynamic urban destination.

As of early 2025, construction is well underway, with significant progress already made. Spanning approximately 10 acres, the development will feature two seven-story apartment buildings with 1,038 residential units, 10% of which will be designated as affordable housing. The project also includes 53,000 square feet of retail space, a "Crew Quarters" building with indoor-outdoor restaurant facilities, and a town square with a central plaza and splash pad. A scenic riverfront promenade will further enhance the area, providing a welcoming space for activities like dog walking and leisure strolls.

More than two acres of community and gathering spaces will host year-round events such as movie nights, food festivals, fitness classes, and live music, fostering a strong sense of connection and engagement.

Above: The scenic Berkley Riverfront promenade facing the Missouri River. Image courtesy of Port KC

The Origin Hotel Kansas City, a boutique hotel featuring pet-friendly accommodations and pre-game dining at its Show Pony restaurant, is ready to welcome guests. Additionally, Two Birds, One Stone—a two-story beer garden offering outdoor food and entertainment—is set to open soon, with an exact date to be announced.

Further boosting the area's accessibility, the KC Streetcar's Riverfront Extension is expected to be operational by early 2026. The first phase of the development is scheduled for completion ahead of the 2026 FIFA World Cup, positioning Berkley Riverfront as a premier destination for residents and visitors alike.

This transformative project reflects Kansas City's commitment to revitalizing its riverfront, creating a walkable, high-density district that honors the area's rich history while embracing modern urban living.

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Header image: A rendering of the 10-acre Berkley Riverfront Development is a 10-year project that will bring multifamily housing, retail, and business to the riverfront area. Image courtesy of Pork KC

From Buc-ee’s and Google to Margaritaville and Panasonic, big names are betting on KC

MetroWire Media hosted its KC Mega Developments Summit 2025 last week. Panelists Mike Bell, SVP of Hunt Midwest; Tim Holverson, president of De Soto Economic Development Council; Greg Kindle, president of Wyandotte Economic Development Council; Bart Lowen, VP of development at Price Brothers; Jolene Mead, SHRM-SCP, chief of staff at Port KC; and Richard Napper, managing partner of NAR Realty Consulting, LLC, showcased some of the mega-developments in the Kansas City area in which their organizations are involved. Terrell (TJ) Jolly, MBA, founder and CEO of Integrity Capital Management, LLC, moderated.

Bell said the 3300-acre KCI 29 Logistics Park is the only mega site in the state of Missouri. The project, located in what Hunt Midwest describes as the logistics epicenter of the United States, will house more than 20 million SF of class-A industrial space. According to Bell, Ace Hardware is locating its 1.5 million SF distribution center there, and Project Falcon (revealed in the press to be Amazon.com, Inc.) is also taking space.

In March of last year, Google announced it was building a $1 billion data center at Hunt Midwest Business Center.

“Google was the first hyper-scaler that actually looked at Kansas City. . . . The other thing for Kansas City is that this is the largest single investment that Google ever made,” said Bell.

Bell said Google will bring in people to train and who will work on the project.

“If you ask Google, and this was in one of their press releases, it’s a generational job for them. So these construction workers, it’s not temporary. . . . [S] Some of those folks will be there, literally get married, have kids, and see their kids graduate. So, that has a major impact on Kansas City. Not to mention because it’s technology, other companies want to be nearby, and we’re seeing it right now,” Bell said.

Bell said Google is also working with the North Kansas City School District, creating a public-private partnership in which Google helps the schools and the workforce and training. This partnership will ultimately promote the spec development of industrial projects and attract manufacturing jobs to Kansas City, said Bell.

“We’ve done $6.2 billion over the last 10 years in Wyandotte County. This year I would expect that our capital investment goal would be closer to a $1 billion. . . . These numbers are really big,” said Kindle.

One mega project in the works in Wyandotte County is Buc-ee’s, which will be located near the Kansas Speedway. The project is outside of the STAR Bond district, and Buc-ee’s will pay property taxes from day 1, Kindle said.

“Buc-ee’s has a cult following. Everybody loves Buc-ee’s. . . . It sucks you in, and then 45 minutes later, you come out with $50 worth of things you didn’t think you really needed. About 120 fuel pumps plus the electric charging. It is like a city. Five thousand plus people a day will visit Buc-ee’s in that location, and 70 percent of those folks will be from outside of Wyandotte County. . . . There will be tons of folks coming through there. . . . The project has 250 employees, and they pay really good wages,” said Kindle.

Wyandotte County is also home to a state-of-the-art youth sports facility developed by Homefield, a local amateur youth sports company. The facility is located near the site of the former Schlitterbahn Waterpark, which Homefield dismantled. Napper said the project features an indoor volleyball and basketball facility.

Above: Over 200 attendees listen in on the current Kansas City metro area mega-developments at the 2025 KC Mega Development Summit hosted by Metrowire Media at the Aspira Campus auditorium.

“Really what we want to do is give the youth athlete and their parents the best facilities possible and then in between games overnight give them food and lodging and entertainment options that are better than they’ve had anywhere else,” Napper said.

Some amenities under development for these visitors include the Margaritaville Hotel Kansas City, a $150 million, 229-room full-service resort, and Atlas9, an entertainment venue, which Napper described as an immersive museum that is “unlike anything you’ve ever seen.” Dimensional Innovations is partnering on the Atlas9 project.

Approximately 25 miles to the south of the Homefield project sits Bluhawk, a mixed-use development anchored by the recently opened AdventHealth Sports Park, a 420,000 SF youth sports facility. The first phase of the project is complete. Ninety-seven percent of the built retail space is occupied, said Lowen.

“Youth sports is, in my opinion, tomorrow’s anchor to mixed-use developments,” he said.

Because the Bluhawk project is using STAR Bonds, it must attract visitors from out of state.

“You’ve got to create something that is going to drive people to that location. Quite simply, it’s taking all those experiences and putting it in one walkable[location]—I call it adjacency—that just brings all of that together to a place that just creates a qualitative experience that everybody wants. Just put it all together. Just offer it,” said Lowen.

According to Holverson, the $4 billion Panasonic electric vehicle battery plant under construction is transforming the community of De Soto, Kansas, which boasts approximately 6700 residents. With the plant has come new infrastructure as well as much private sector investment, including more than 1000 apartment units, approximately 500 single-family homes, a number of townhomes and duplexes, and new retail. The plant is projected to employ, ultimately, 4,000 people.

“De Soto’s sales tax revenues are up 88 percent year over year. Starting maybe from a smaller number, but we’ve seen tremendous growth and really just project that to continue on,” Holverson said.

Improvements to the Berkley Riverfront represent the culmination of a plan that’s been in play for 35 years, Mead said.

“I think we’ve arrived at something really great,” she said.

The opening in 2018 of the Union Berkley Riverfront Apartments, a mixed-use residential project developed by Flaherty & Collins Properties, brought residents back to the Riverfront.

“People hadn’t lived on the Riverfront for decades, and I think that’s really impressive. It’s kind of been just the building blocks to get us where we’re at,” she said.

The partnership between Port KC and Kansas City Current also has been transformative for the Riverfront development, including the construction of the

CPKC Stadium is the first in the world purpose-built women’s stadium, Mead said.

Another project which has been several years in the making is the South Loop Project, which Mead called “game-changing”. Plans for the collaborative effort led by Port KC, Downtown Council of Kansas City and Kansas City, Missouri, include creating a sustainable urban park over Interstate 670.

“It’s going to bring people back Downtown in droves, even more so than now. And we all know that life is better when there is green space and when there is access to green space,” Mead said.

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Header image: Lisa Shackelford (far left) with the panelists at the 2025 KC Mega Development Summit (L to R): Terrell (TJ) Jolly, Mike Bell, Jolene Mead, Richard Napper, Greg Kindle, Tim Holverson, Bart Lowen. Image credit: Jacia Phillips | Arch Photo KC

Hausmann builds momentum in KC housing market

Hausmann Construction, recognized for its innovative and relationship-driven approach, continues to shape Kansas City’s thriving housing and development landscape. With a portfolio exceeding $1 billion across eight states and six corporate offices, the firm has built a reputation for delivering high-quality projects that meet the demands of a competitive real estate market.

Kansas City’s real estate market has garnered national attention, recently earning the title of the No. 1 housing market in the United States, according to a 2024 US News and World Report. Contributing to this momentum, Hausmann is behind two major developments: The Helm and Meadow Lake Apartments.

The Helm, located near downtown Kansas City, is a 224-unit luxury apartment and mixed-use project encompassing 220,000 SF. The project is set to reach full completion later this year and will feature four-story buildings, a clubhouse with a FEMA shelter, a fitness studio, a yoga room, office spaces, and a pool. With phased turnovers already underway, leasing activity has underscored strong demand.

Further south of downtown Meadow Lake Apartments is a 213-unit residential community scheduled for completion in 2026. Spanning 308,000 SF, the development includes an above-podium parking garage with 237 stalls and 4,900 SF of commercial space. Amenities such as a fitness center, pool courtyard, and outdoor living areas aim to blend luxury with functionality, further enhancing the appeal of Kansas City’s growing housing market.

Hausmann’s expertise extends beyond multi-family residential developments to senior living communities, showcasing its versatility in meeting diverse housing needs. Recent large-scale projects include The Lofts at Fox Ridge and Meadowbrook. The Lofts at Fox Ridge, a 396-unit apartment complex situated on a 30-acre site, includes 12 buildings, nine garages, and a clubhouse. High-end features like spacious balconies, a fitness center, and a resort-style pool cater to modern living preferences.

Above: One of several lounge areas at the 396-unit multi-family Lofts at Fox Ridge luxury residential complex. Photo courtesy of Hausmann Construction | photo credit: Michael Robinson Photography

On a different scale, Meadowbrook, a 385,000 SF senior living campus, includes 222 units spread across seven interconnected buildings, offering memory care, assisted living, and independent living accommodations. Shared spaces, such as dining areas, a library, and a salon, enhance the sense of community for residents. Despite the challenges of building on a tight site, the project was completed on schedule, earning praise for its resident-centered execution and seamless move-in coordination.

Hausmann stands out for its ability to navigate complex regulatory frameworks, particularly in HUD-financed projects. With expertise in zoning, permitting, and federal compliance, including Davis-Bacon wage standards and Section 3 hiring policies, the firm ensures developers meet local and federal requirements efficiently.

Hausmann’s developer-focused approach begins early in preconstruction, offering insights that balance initial costs with long-term savings. This proactive strategy delivers projects on time, within budget, and to the highest quality standards. Its multi-sector expertise also enables competitive pricing and market-driven solutions, solidifying its role as a trusted partner in Kansas City development.

Commitment to quality and innovation is central to Hausmann’s success. The firm consistently delivers projects with minimal punch list items, as seen in The Helm’s early phases, and provides reliable preconstruction budgets backed by market analysis. Close collaboration with developers and design teams minimizes delays and aligns projects with client expectations.

As Kansas City’s housing market continues its upward trajectory, Hausmann is poised to remain a key player in the region’s development. Its growing portfolio reflects a deep understanding of market demands and a dedication to delivering high-quality, innovative projects. With a focus on excellence and strong developer relationships, Hausmann is well-positioned to meet the challenges and opportunities of an evolving real estate landscape.

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Header Image: An aerial photo of the Meadowbrook Senior Living facility located in Prairie Village, Kan. Photo courtesy of Hausmann Construction | photo credit: Michael Robinson Photography