Flight to Quality, Fractional Spaces & the World Cup Effect: Key Takeaways from MetroWire’s Retail-Office Summit

Kansas City, Sept. 23, 2025 — In a packed room on a rainy fall morning, MetroWire’s Retail-Office Summit convened top voices from Kansas City’s commercial real estate community to tackle a central question: What will define successful office and mixed-use projects in the next 3–5 years?

The consensus: tenants are demanding more—better design, more flexibility, curated amenities—and developers must rethink fundamentals to deliver in a market reshaped by COVID, rising construction costs and global events like the 2026 World Cup.

From Flex to Flight: The New Office Tenant Playbook

Tom Ward (Kessinger Hunter) kicked off with a market reality check: while early pandemic shifts saw tenants push for shorter, more flexible leases, today’s rising construction costs have reversed that trend. Tenants are now locking in longer terms, especially in Class A office spaces that offer modern amenities, walkability and energy.

“Flight to quality” remains dominant. Tim Ockinga (JE Dunn) added that landlords must now build spaces better than home offices to win talent back. That means open collaboration zones, cafes, on-site fitness with active programming, and ample “third places” within the office.

Andrew Brain (Brain Group) observed growing interest in fractional-use spaces — shared training rooms, conference suites and drop-in work zones that tenants can access without paying for full-time occupancy. His Park 39 project is now 98% leased, up from 50% pre-COVID, driven by flexible usage models.

Repurposing & Suburban Shifts

Ward noted that while C-class buildings continue to struggle, B-class space remains competitive in suburban markets. Urban locations are seeing selective conversions to multifamily, especially where tax credits are available.

On the construction side, Ockinga cited JE Dunn’s pivot to prefab manufacturing as a way to combat labor shortages and inflation. “Labor is the top constraint,” he said. “We’re innovating by building offsite in controlled environments—it’s safer, more efficient, and helps balance limited skilled workforce.”

Programming, Retail Synergy & Amenity Wars

Audrey Navarro (Clemens Real Estate) highlighted the value of retail as placemaking. Coffee shops, plazas and pop-up spaces help lease-up velocity in new mixed-use developments, especially in emerging submarkets.

But she stressed that it’s not just design; it’s about programming. Landlords like Corporate Woods are hiring staff to activate common spaces with workshops and community events, borrowing tactics from multifamily to boost tenant retention.

Above: Attendees of the MWM KC RETAIL + OFFICE SUMMIT networking before the panel discussion.

Capital Stacks & Creative Financing

Brain was blunt: “Office is a four-letter word to lenders right now.” His firm is front-loading equity—75% or more—on new deals while seeking nontraditional financing paths. Navarro shared a compelling recent deal on the Plaza where a seller, driven by legacy rather than returns, offered 2% seller-financing to achieve his desired valuation.

Where Economic Development Meets Real Estate

Samantha Jefferson (Kansas City Area Development Council) emphasized that company relocation decisions are increasingly tied to culture fit. Suburban settings appeal to distributed workforces; urban neighborhoods win with lifestyle and walkability. The key, she said, is matching space to company DNA.

She also noted the KCADC’s growing role in positioning Kansas City to national and international firms, especially ahead of the 2026 FIFA World Cup, which she called a “worldwide commercial for our region.”

Looking Ahead: 2026 and Beyond

Panelists were asked to forecast the next 3–5 years in office and retail:

• Ward: Flight to quality will continue. As interest rates ease, Class A leasing and development will pick up.

• Brain: Fractional space and flexibility will be key. Landlords must add shared-use environments to compete.

• Navarro: Kansas City must avoid a one-size-fits-all approach. Success will come from diversity of inventory.

• Ockinga: Corporate buildouts are on the rise again. Large tenants are ready to reinvest in headquarters space.

• Jefferson: The key to long-term growth? Talent. Kansas City must continue producing a skilled, accessible workforce.

The final word came on market activity expectations. Most panelists predict moderate gains in leasing and transactions in 2026, spurred in part by the World Cup and improving capital conditions.

Next Up at MetroWire: The Industrial Summit, Oct. 30, will explore trends shaping KC’s booming logistics and manufacturing landscape.

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Header image: The 2025 MWM Retail + Office Summit panelists from left to right–Tom Ward, Beck Johnson (Moderator), Samantha Jefferson, Tim Ockinga, Audrey Navarro, Andrew Brain, and Russ Pearson with BoxDevCo Real Estate at the podium.

The Improve I-70 KC Project is underway and set to bolster development opportunities

Work has started on the Improve I-70 KC project, a $237 million initiative aimed at reshaping a heavily traveled corridor through the city. The improvements are expected to ease congestion, enhance freight mobility, and create ripple effects across Kansas City’s commercial real estate market.

The Missouri Department of Transportation, in partnership with the Federal Highway Administration, is leading the design-build project. Construction will stretch between The Paseo Boulevard and the U.S. 40/31st Street interchange and continue through spring 2028. Plans include adding an additional eastbound lane, replacing 15 bridges, rehabilitating seven others, and realigning multiple interchanges to improve safety and traffic capacity.

Because I-70 serves as a key freight artery, industry observers note that more reliable travel will increase the appeal of warehouse, logistics, and industrial properties near the corridor. Retail and mixed-use developers are also watching the project closely, as upgraded interchanges and pedestrian improvements could spark redevelopment and attract new investment.

The project will be carried out by Clarkson-Radmacher Joint Venture, which was awarded the design-build contract in 2024. It is part of a larger statewide program to modernize nearly 200 miles of I-70 by 2030, underscoring Missouri’s long-term commitment to infrastructure and economic growth.

For commercial real estate professionals, the construction may bring short-term challenges, but the long-term outlook is widely seen as positive. Improved access, stronger freight efficiency, and renewed infrastructure are expected to drive property value gains and open doors for new development along the corridor. As Kansas City positions itself for continued growth, the I-70 project stands as both a transportation upgrade and an investment in the region’s commercial future.

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Header image: Aerial view of the I-70 and I-435 interchange on the east side of Kansas City, Mo. Image | MODot

Future apartments set to revive the historic Moline Plow Building in Kansas City’s West Bottoms

One of the West Bottoms’ most recognizable brick landmarks—the historic Moline Plow Building—is poised for a second life as housing, signaling another step in the district’s steady transformation from industrial powerhouse to mixed-use neighborhood.

Built during the heyday of regional manufacturing and rail commerce, the Moline Plow Building has long anchored a prominent corner with its masonry façade, tall arched windows, and timber-and-steel bones. The planned conversion would adapt those historic features into modern apartments while preserving the building’s character through a combination of selective restoration and sensitive infill. Early concepts typically call for studios to two-bedroom units, with high ceilings, exposed brick, and large openings that capture daylight—hallmarks of successful warehouse-to-residential redevelopment.

Amenities under consideration align with West Bottoms living: secure entry, fitness and co-working lounges, bike storage, and street-level activation that could include small-scale retail or maker space. Given the neighborhood’s growing event and vintage markets scene, ground-floor uses are expected to complement weekend foot traffic and create an everyday “front porch” for residents and visitors alike.

The project’s broader value extends beyond new housing supply. By reusing an existing structure, the rehabilitation would leverage embodied energy, reduce construction waste, and stabilize a block that has historically seen underinvestment. It would also knit together nearby projects, adding lighting, landscaping, and safer pedestrian connections to the 12th Street Viaduct, Riverfront Heritage Trail links, and emerging transit options.

Designers are expected to follow established preservation guidelines, including window rehabilitation where feasible, masonry repair with historically appropriate materials, and the careful integration of modern building systems. Where code requires new interventions—elevators, life-safety upgrades, and ADA accessibility—the team will likely tuck them behind primary historic elevations to maintain the building’s visual rhythm.

If approvals proceed on schedule, construction would be phased to minimize disruption to adjacent businesses and weekend markets. Lease-up would follow substantial completion, with interest anticipated from renters who want proximity to the Stockyards District, Downtown, and the Crossroads while living in a building that tells a Kansas City story.

As plans advance, the Moline Plow Building stands to become a case study in adaptive reuse done right—honoring industrial heritage while meeting today’s demand for well-located urban homes.

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Above: A conceptual street view rendering of the Moline Plow Building in Kansas City's West Bottoms reimagined as apartments. Image | SomeraRoad Inc.

Kansas City Streetcar Expands Toward UMKC and the Riverfront

Kansas City’s streetcar system is entering a new phase of growth, with extensions moving forward both south toward the University of Missouri–Kansas City (UMKC) and north to the Missouri River. Together, the projects represent a significant investment in transit and urban development, transforming how residents, students, and visitors navigate the city.

The Main Street extension will add 3.5 miles of track and 16 new stops stretching from Union Station to UMKC. Construction, which began in 2022, is nearing completion and includes a Plaza transit hub to enhance connectivity between regional routes. The expansion, backed by $352 million in local and federal funding, is scheduled to open Oct. 24. Streetcar officials have already begun running full-scale tests of the system to prepare for the launch.

To the north, a separate 0.7-mile extension is advancing from the River Market to Berkley Riverfront, an area slated for new housing, offices, and entertainment venues. Track installation and bridge work have been completed, and station shelters are in place. Service to the riverfront is expected to begin in early 2026, supported in part by federal funding for infrastructure improvements that will enhance pedestrian and transit access.

The expansions build on the success of the original downtown streetcar line, which spurred billions in nearby development within just a few years of opening. City leaders and project partners say the new connections will further drive investment, particularly around the Country Club Plaza, UMKC, and the riverfront. As Kansas City continues to grow, the streetcar is being positioned as a central piece of its economic strategy, linking key neighborhoods while attracting commercial growth along the line.

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Header image: A conceptual rendering of a new KC Streetcar terminal at UMKC set to open next later this year. Image | KC Streetcar

Conexon sets sights on Crown Center with new downtown headquarters lease

Conexon, a leading rural fiber broadband design and deployment firm, has signed a lease for a new headquarters at 2300 Main St., an 11-story Class A office building near Crown Center and Union Station in Kansas City. The move underscores the area’s growing appeal as a destination for corporate tenants.

The 2300 Main building, which spans approximately 520,000 SF, recently underwent more than $7 million in upgrades, including modernized building systems, lobby improvements, landscaping, and elevator enhancements. These improvements helped raise occupancy from 76 percent to roughly 90 percent.

Conexon, founded by co-CEO Randy Klindt, will consolidate its operations in the new space, which will house network design, construction management, operations, sales, and marketing, as well as a state-of-the-art network operations center and technical support call center. Klindt said the location allows the company to stay close to partners and clients while benefiting from Kansas City’s central location in the Midwest tech and rural broadband markets.

The lease highlights Crown Center’s evolution as a walkable, amenity-rich district combining office space, hotels, restaurants, retail, cultural venues, and open green spaces. Plans for a nearby streetcar expansion, expected to begin operations in 2025, will further improve connectivity for employees and tenants.

Conexon’s headquarters is seen as a boost for downtown Kansas City, reinforcing the city’s emerging status as a hub for tech and infrastructure companies while attracting and retaining talent.

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Header image: 2300 Main Street Building near Crown Center and Union Station will be the new HQ for Conexon. Image | Van Trust Real Estate