The Imporve 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

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

Swope Health breaks ground on new 'Village' project

Swope Health has broken ground on Swope Health Village, a 12-acre, multi-phase campus designed to knit affordable housing, behavioral health, primary care, and community amenities into one destination along Swope Parkway in southeast Kansas City. Early site work followed demolition that started in January 2024; a ceremonial groundbreaking was held Aug. 7, 2025.

Planned in phases, the $126 million initiative will introduce senior housing, residential behavioral health care, a health clinic, and supportive services, with outdoor and community spaces that encourage wellness. Public support includes $5 million from the City of Kansas City, Mo., and $7.5 million in state American Rescue Plan Act dollars, alongside a capital campaign to complete funding.

Design and construction partners include Perkins Eastman, HFG Architecture, and Moody Nolan, with McCownGordon serving as general contractor. Perkins Eastman’s plan envisions senior apartments and behavioral-health rooms anchored by health and community buildings; subsequent phases contemplate additional services and adaptive reuse elements. Swope Health has indicated it will add a development partner for later phases.

Above: A conceptual street view rendering of Swope Health Village in Kansas City, Mo. Image | Perkins Eastman

The Village advances Swope Health’s 55-plus-year mission to expand access for patients regardless of ability to pay. The organization opened in 1969 as Model Cities Health Corporation—part of President Lyndon Johnson’s Model Cities program—in the basement of Metropolitan Missionary Baptist Church. From serving about 2,000 patients with a $100,000 budget in its first year, Swope Health now provides integrated primary care, dental, and behavioral health to more than 50,000 patients annually across western Missouri and eastern Kansas as a federally qualified health center.

Local leaders describe the Village as a health-forward neighborhood model intended to reduce barriers to care on the city’s East Side. Early concepts have called for affordable senior apartments, residential behavioral-health units, expanded substance-use recovery services, community gardens, and space that could house civic and retail uses—bringing everyday services closer to residents.

As construction begins, Swope Health and its partners say the project will generate construction employment and, upon opening, new clinical and support roles. The campus is also planned to prioritize local hiring and participation from minority-owned firms, aligning the physical build-out with the organization’s long-standing equity mission.

With planning led by a national design team and backed by city and state support, Swope Health Village marks a significant reinvestment in a historic corridor—and a tangible step toward affordable, accessible health care and housing for Kansas Citians from all walks of life.

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Header image: A conceptual rendering of the mixed-use campus of Swope Health Village in Kansas City, Mo. Image | Perkins Eastman

Kansas City industrial experts tackle land scarcity, utility access and market opportunities

There may be a perception that land is scarce for industrial projects, but according to Morgan Mutert, director of business development and governmental affairs at Hunt Midwest, land is available. Still, it may not be development-ready to meet the tight timelines demanded by users.

Mutert, a panelist at MetroWire Media’s Kansas City Industrial Summit held last week, was joined by Michael Dustman, senior project manager at SCS Engineers; Kurt Jensen, SIOR, principal/industrial brokerage at Kessinger Hunter; Sam Stahnke, P.E., vice president at ARCO National Construction; and Sean Washatka, assistant vice president at Emery Sapp & Sons, Inc., to discuss the state of the industrial market and its challenges and opportunities. Joe Perry, vice president of real estate at Port KC, moderated.

“I think the users that we are seeing are really focused on speed to market. A lot of the projects that we’ve seen in the last year, two years, maybe even before that, when we receive the request, they want to be operational within 12 to 18 months, so they’re really looking for sites that check the box and that have the utilities and meet the labor force requirement. . . . Being able to meet their timeline is incredibly important,” Mutert said.

Mutert said projects used to be led by the availability of the labor force. While that remains a top requirement when users look for industrial sites, the availability of utilities is also vitally important.

“Utilities have become a big factor for any client right now. With some of the utilities, especially in Kansas City, having certain areas where they’re stretched as far as capacity is concerned, that becomes a big issue,” said Stahnke.

Jensen agreed that the availability of utilities is key to landing new industrial projects.

“I think utility nationally is really the conversation, and Kansas City, I think, can be well positioned to accommodate that. I think that as long as we can keep getting heavy power and the proper water to facilities, we’re going to see a lot of good activity in the next handful of years,” he said.

Mutert said if a site does not support the utility demand, it could add three years to the development timeline, which the project does not have.

According to Dustman, alternative power sources like solar could help solve utility shortages.

“We are putting solar on top of landfills. We are cleaning that solar and selling it back to the grid. . . . I think solar and utility usage is a big player, and we just need to find the sites,” Dustman said.

Above: Moderator Joe Perry of Port KC addresses the 2024 MWM Industrial Summit KC panelists at JCCC in Overland Park, Kan. Panelists from left to right: Sean Washakta, Kurt Jensen, Morgan Mutert, Sam Stahnke, and Michael Dustman. Photo credit: Jacia Phillips | Arch Photo KC

Another big factor in the site selection process for an industrial project is the availability of incentives, Mutert said.

Perry said that in the second quarter of 2024, there was a hyper-supply of industrial products with 2.3 million SF on the market in Kansas City. By the third quarter, that shrank to 700,000 SF.

Although industrial development projects have slowed down this year, Jensen said that has protected the Kansas City market from skyrocketing vacancies.

According to Jensen, demand from smaller operators in Kansas City remains strong.

“We’re starting to see a lot of clients who want to go to a building that’s just for them, so that becomes that 100,000, 150,000, maybe up to 300,000 SF building,” said Stahanke.

Perry said Kansas City currently has approximately 10.6 million SF under construction, with more than nine million of that being build to suit.

“It’s all preleased. So, we’re not really bringing a lot for next year. We just talked about 2.3 million SF hitting the market in Q2. Next year, we may only have 1 million SF for the whole year,” said Perry.

Reshoring nationally will be a big emphasis for the industrial market, especially in Kansas City, Jensen said.

Perry said in the last three years, manufacturing construction in the United States due to reshoring has nearly tripled from $100 billion in 2022 to just shy of $240 billion by the end of this year.

“We are genuinely just at the cusp [of reshoring]. We aren’t even prepared for what’s going to come in the next three, five, 10 years. So there’s a lot of opportunity out there, but also a lot of pressure to be able to deliver and make sure that we can reshore and bring things home. . . . I’m optimistic we’re headed toward a healthy 2025 where we’re going to see a lot of activity from reshoring, and a lot of build to suit activity will maintain that,” said Jensen.

Dustman said developers might look at repurposing existing buildings to create industrial space, citing a St. Louis client taking steps to convert an old 14-story health department building into a data center.

“The property sits at the juncture where the power comes in. . . . Maybe developers doing a little bit of utility research up front where those resources are already laid will expedite a little bit of timing,” he said.

Washatka said construction costs on industrial projects have not increased substantially in at least the last 12 months.

“I’ve got a feeling that 2025 is going to be about a flat year as far as growth in construction costs. So if lease rates are moving, it’s a good time to build, in my opinion,” Stahnke said.

Perry said that year over year, the industrial market is looking at an approximately five percent rent growth for the last quarter of this year.

“That’s pretty healthy,” said Perry.

New industrial projects create new jobs but can also result in a housing shortage. If there is increased residential construction activity in Kansas City and other markets, that could negatively impact available resources and drive

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Header image: MWM Industrial Summit KC attendees listen in on discussions related to the Kansas City Industrial sector landscape. Image credit: Jacia Phillips | Arch Photo KC

Mixed-use demand fuels Drake Development’s project surge

“You’ve got to be willing to adapt and listen to the market and listen to your users as well,” said Ian Mussman, director of sales & leasing, at Drake Development LLC.

Mussman spoke at the September breakfast meeting hosted by CCIM Kansas City. He highlighted three of Drake’s current projects in the metro area.

Merriam Grand Station, located at the southeast corner of Shawnee Mission Parkway and I-35 in Merriam, Kansas, is nearing completion. The site once housed a Kmart, which sat vacant for more than a decade.

Drake completed its first site plan for the site in July 2020. It took Drake over 2 ½ years to work through the assemblage and entitlement processes. Drake acquired the five-parcel site from three different property owners.

The 50-foot grade change from the northeast corner to the southwest corner of the site presented the most significant challenge to redeveloping the site.

“One of the reasons that it sat available for so long is that it was in a hole. It sat almost 20 feet below Shawnee Mission Parkway grade, and none of the high-profile tenants of the city who would want to go into a project like this would ever accept a site like that. We came up with a creative solution and ended up raising the site just under 15 feet. So almost the roof of Kmart, more or less, became the finished floor of the new project,” Mussman said.

The original site plan featured a power center lineup. Mussman said there was little lending appetite for big box, and Drake’s attempt to add a hotel was not a winner in those early months of COVID.

After many site plan revisions and the expenditure of a hefty amount of architectural engineering dollars, the nearly completed project features 361 multifamily units with underground parking, retail space and a civic activity space. Mussman said all but one retail space has been leased.

The City of Merriam wanted an environmentally and green friendly civic space which, Mussman said, was never part of the original plan. However, through a public-private partnership with the city, Drake is constructing a canopied space that will have solar panels to help power the project’s common area parking lots.

A second project, on which construction is just starting, is Cocina 47, located at 604 W. 47th Street in Kansas City, Missouri. The project on the north side of the

Country Club Plaza is adjacent to another of Drake’s redevelopment projects, the Jack Henry building.

Cocina 47 on the Country Club Plaza , where the Seventh Church of Christ, Scientist used to be, is set to open in 2026. Image Credit: TR i Architects

Mussman said when Drake acquired the Jack Henry building, it learned that the neighboring Seventh Church of Christ, Scientist building had become too large for its shrinking congregation and too expensive to operate.

“So quickly we realized there was an opportunity to modernize their space in a way that better fits their needs. This is a super complex deal that we had to come up with a way to let them ‘condo-out’ their space,” said Mussman.

The church is reducing its footprint by approximately one-half and is acquiring the condo space at no cost to them. Until construction of Cocina 47 is complete, the church is housed in the Jack Henry building.

Mussman said it took 54 months between the time it acquired the property until it began construction on Cocina 47.

“We’ve completed demolition and now we’re working on everything that goes below grade before we go vertical,” he said.

According to Mussman, the tenants, who he was unable to disclose yet, will be high end restaurant groups on the second and third floors of the three-story building, with first floor space still available.

Mussman said Drake anticipates completing the building shell by late 2025 or early 2026 and having tenants open in 2026.

The third project Mussman discussed is located at the southwest corner of Highways 50 and 291 in Lee’s Summit, Missouri, the municipality where Drake has made its most investment. The project is in its planning stages.

Oldham Village, in Lees Summit, Mo., would include 15 retail pad sites, 300+ apartments and, potentially, a field house and fitness center. Image courtesy of Drake Development

Mussman said this project started in 2020. Drake initially purchased one parcel with the intent of developing it as industrial. Then Drake considered big box, which the city did not want. Drake settled on apartments with retail pads. According to Mussman, tenant recruitment is not an issue because currently 92,000 cars a day pass in front of the site.

“As the plan evolved, we ended up growing the scope and growing the property assemblage,” he said.

The project, which Mussman called a “monumental undertaking”, now involves 15 parcels from 12 different property owners and more than 46 acres.

“This one is especially hard because these businesses you see here, these are owner-occupied businesses. They don’t care what your appraisal says. They don’t care what your pro forma says. This is their livelihood. This is where they fed their family for decades. It’s a very emotional decision, and it requires a lot of creativity,” said Mussman.

Mussman said Drake purchased nearly half of the parcels on a sale-leaseback which allowed the sellers to raise capital to relocate, find a new home and continue to operate their businesses.

Besides tackling the assemblage issues, Mussman said the biggest challenge on this project is the sanitary sewer. He said there are approximately $3.5 million of offsite sanitary sewer upgrades needed to allow new businesses to open and operate at the site. This has discouraged other developers, but Drake will make the improvements which will benefit an 835-acre area. In addition, Drake must relocate a perimeter ring road.

Mussman said Lee’s Summit has been looking for a site for a fieldhouse for several years. In place of one of the three apartment phases Drake had planned, the city will construct a 120,000 SF fieldhouse facility.

“When we bought this site, if you would have told me we were doing a 120,000 SF fieldhouse with the city, I would have laughed. And here we are. It just went to council last week, and they approved the contract,” he said.

Mussman said he anticipates construction of the project will begin before the end of the year. The city’s planning commission approved Drake’s plan last week, and it is headed to the city council shortly.

Mussman noted that all three projects are located in core areas.

“We’re not trying to shift the center of gravity and go out in a cornfield and make everyone go somewhere. These already have an insane amount of traffic. They’re highly desirable areas for tenants and residents. And then we just figure out how do we solve the puzzle and make something economically feasible that also meets the city’s and residents’ demands,” said Musssman.

Header Image: The long-vacant Kmart site at the intersection of Antioch Rd. and Shawnee Mission Pkwy. is set to come back to life. Drake Development has submitted plans for a $136 million project, named Merriam Grand Station. Rendering courtesy of Drake Development