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

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