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

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

$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

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