JE Dunn

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.


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.

KC Zoo's new aquarium waves in ocean experience to Midwest

KC Zoo's new aquarium waves in ocean experience to Midwest

A world-class aquarium at the Kansas City Zoo will bring the ocean to the Midwest by enhancing visitors’ experience with new pathways to ocean conservation, education and research. Pacific Reef rendering credit: El Dorado, Inc.

'Resmercial,' blurred lines between office and home dominate Big KC Office Trend discussion

Office efficiencies and the blending of boundaries between home and work were among trends tackled by panelists at MetroWire Media's Big KC Office Trends event on March 29 at WeWork.

Check out a snapshot of talking points from the panel discussion led by JE Dunn Vice President Jon Dandurand

"Efficiency is the game now. When you have a market that is really tight like this one is, you have rents increasing. Companies are always looking for ways to keep their costs down, so I would say they are getting a lot more efficient. It used to be an average of 200-250 square feet per person, and we are now seeing 150-200 square feet per person, and I see that trend continuing as companies get a lot smarter with their space going forward." -Rollie Fors, Colliers

"Creating a living room and a more residential feeling in the office environment is completely on trend and where things are going. That living room-style space really supports workers and their activities. Sometimes those common spaces are almost an afterthought. We spend so much time thinking about the workspace and then get to the end and think, 'let's throw a sofa and couple chairs in there' ... If we start planning those common spaces and shared amenities first, then you can really create dynamic spaces." -Stacey Roth, Scott Rice

"Engagement is one of the biggest topics we discuss with clients these days. It's interesting how space really can affect positively or negatively the connection you have with people on your team and clients. So what we find is the more we can create spaces within your place and give people the choice and control of how they work and when they work then we find the engagement level can be improved." -Trevor Hoiland, Burns & McDonnell

"The demographics are not changing how we work. The difference is coming from technology. that it is proliferating the hours We work from 5 am when we wake up to midnight when we go to bed, and It means our office space is becoming more like home and our home is becoming more like office space. It's creating a different type of product." -Aaron Schlagel, Ryan Companies

"Workspace efficiency has really changed the way companies look for space. From a development landowner perspective, we try to build amenities like rooftop patios into all of our projects as well as plenty of unique spaces outside the usual tenant footprint, so for example employees can enjoy getting away from their offices with shared conference rooms versus dedicated conference rooms." -Vince Bryant, 3D Development

Check out an event slideshow below. Photos by ArchPhotoKC.

Five minutes with JE Dunn MW President Paul Neidlein

Paul Neidlein stepped into the role of Midwest region president for JE Dunn Construction on January 1. The 22-year veteran of the Kansas City construction industry succeeded Dirk Schafer, who retired from Kansas City's top construction company in December. 

MetroWire Media caught up with Neidlein to take his pulse on the 2018 market and beyond:

MWM: What do you expect from the market in the next 18-24 months?

Neidlein: We feel good about 2018. In Kansas City, as well as in every market that we have an office, the arrow is pointed straight up. It will be a record year and 2019 will be as well. I'm not smart enough to predict after that.

MWM: Where does JE Dunn see the most short-term growth potential?

Neidlein: We feel bullish about federal work because we have done a fair amount of it, and JE Dunn has even started a separate federal group to manage those projects. Government facilities are a growth area for us. Part of that is strategic from a diversity standpoint because public work can help balance things out when the corporate side slows down. Anything and everything related to health care has been steady, including medical office. 

MWM: Historically, public projects have been JE Dunn's bread and butter. Do you expect that to continue?

Neidlein: Public projects remain a leading area for us. We still think there is a fairly large program being planned in Missouri with construction of state prisons and county jails. Municipal work on civic centers and community centers still looks pretty positive for us too.

MWM: What do you see as a market headwind?

Neidlein: There is a healthy skepticism about how long this boom is going to last. We will see major players get into trouble and get overextended. It goes back to the capacity side of things. Creditworthiness becomes more important when you think everything is good. 

MWM: What is the impact of all this activity on the trade contractors?

Neidlein: Contractor supply and workforce issues are real. The biggest issue is the capacity of individual companies and labor and what that does to pricing and availability.