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

Roaring, but fragile, economy exceeds expectations

According to Chris Kuehl, managing partner and co-founder of Armada Corporate Intelligence, economists routinely predict things to be worse than they will be.

“If you suggest you are on the edge of recession and then you don’t hit a recession, everybody is happy,” he said.

Kuehl outlined some of his observations about the economy during a virtual presentation last week hosted by CCIM Kansas City.

Kuehl said the economic forecast for 2023 and 2024 missed the mark by approximately one-half point.

“We’ve been doing consistently better than the initial predictions,” he said.

Consumer spending, which drives 76 percent of the United States’ gross domestic product (GDP), has spurred the strong economy. Stock market gains boosted consumer spending.

“We’ve seen $900 billion in new stock wealth created, which is staggering,” Kuehl said.

The stock wealth has resulted in an estimated $288 billion in additional spending, creating a $1.3 trillion economic multiplier.

Not everyone views the economy as strong. Kuehl noted that the “radically different interpretations” about how the economy is doing are because of a rare K-shaped recovery. Those in the upper one-third (households making $100,000 or more) barely notice inflation.

“They’re buying cars and houses and recreational vehicles and all that stuff, and that is the multiplier effect. They are spending money on something that supports whole industries,” he said.

The lower third of households (those making less than $50,000) is living paycheck to paycheck and finding it more difficult under the weight of inflation. The third in the middle is holding its own as long as their jobs remain secure.

“So the economy is roaring along better than thought growth, but it’s fragile because everything hinges on the middle hanging on and the upper income continuing to spend,” said Kuehl.

Kuehl said although the rate of inflation is declining, it takes a long time for it to come down once it has risen. The two factors that can drive down inflation are a full-blown depression or competitive pressure. According to Kuehl, much of the U.S. economy is not all that competitive, with much of the competition coming from outside of the United States.

The Federal Reserve forecasts that GDP growth will rise to about 2.1 percent. Kuehl noted, however, that Scott Bessent, the newly confirmed Treasury Secretary, is targeting growth at three percent.

“So if we end up with growth even just shy of three percent, that’s pretty respectable. Our average of the last 25 years has been 2.5,” Kuehl said.

The Fed also projects that unemployment will remain stable, if not fall. Kuehl said the workforce shortage has resulted in wage growth which is fueling inflation. Historically, wage growth has been 2.5 to three percent. Currently, it’s growing at closer to 3.5 to four percent. Those making higher wages are in great shape, but households in the lower third have no leverage, he said.

Kuehl said the Fed funds rate likely will remain steady---4.4 percent this year.

Kuehl said inventory to sales ratios in most sectors are close to balanced, having recovered from the supply chain issues during the pandemic.

On a national level, nonresidential construction is still growing at a rapid rate, and even shifting a little. While much of this growth was driven for a while by warehousing and logistics support, there now is increasing development in projects like data centers.

“You’re seeing a lot of development in energy just to support the expected growth of data centers. This country is going to need to add 44 terawatts of energy production in just the next four to five years. That is mammoth. If you think you’ve seen a change in energy, you’ve not seen anything yet. The idea now is that everything is up for grabs—oil, gas, coal, solar, wind. Nuclear is going to be making a huge comeback in the next two or three years. Hamsters on wheels are probably going to be out there at some point. We need energy. We’re going to need lots of it,” said Kuehl.

The United States now is “North American independent” on oil and gas. It is the world’s largest oil exporter, and it no longer buys any from the Middle East or North Africa.

“Our production is very high. We’ve never produced this much. All-time highs,” said Kuehl.

Kuehl said office buildings are making a comeback--although not as big as they once were--with the movement to return to the office. In addition, residential construction is growing.

Kuehl said corporate investment, particularly in technology, is steady.

The tariff issue also is looming. Kuehl said the problem with tariffs (which he termed as a “tax”) is that they work only if there is a competitive market. If the United States does not make the item being imposed with a tariff, it’s not going to change the price. But, tariffs can be used to strengthen the industrial sector.

“We can use a tariff to encourage consumers to buy more expensive things that are produced here,” he said.

Reshoring is real, Kuehl said. There still are many companies coming back to the United States, and 80 percent of the jobs that are being created are in the south or the Midwest. He said Kansas City is really well-positioned, but it needs to be more aggressive about competing for the industrial projects.

“The three things that are making Kansas City competitive: One is transportation. The merger of Canadian Pacific and Kansas City Southern (CPKC) is huge because that’s a north south route that really hadn’t existed before. It really unites the Mexican industrial sector with the U.S. and Canada. That’s already attracted a lot of business interests to this region. Number two is that we have a better than average workforce situation. We have more training centers. We have more community colleges. . . . We’re pretty well fixed compared to many other states. The third thing that makes this area popular is just simply distance. No matter what side of the U.S. you come in on, the middle is easier to attract, and that’s been paying off. But, we have to be better at extolling our virtues,” he said.

The prominence of the Kansas City Chiefs also has helped put Kansas City on companies’ radar.

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Above: Dr. Chris Kuehl is a Managing Partner of Armada Corporate Intelligence and top economist keynote speaker. Image courtesy of American Supply Association

A new chapter begins for Bartlett & West

In August 2024, Bartlett & West acquired Krudwig Structural Engineers, marking a significant milestone in Krudwig’s nearly two-decade history. Founded in January 2005, Krudwig Structural Engineers initially served Kansas and Missouri, focusing on commercial buildings, including schools, libraries, churches, retail centers, and office buildings. Over time, the firm expanded its expertise to include concrete restoration and the structural strengthening of existing buildings and parking garages.

A Transition to Design-Build

In 2014, Krudwig Structural Engineers transitioned from the traditional design-bid-build delivery method to a design-build approach. This strategic shift emphasized collaboration and solutions-oriented partnerships, allowing the firm to deliver greater value to clients beyond permit drawings. The transition broadened Krudwig’s portfolio to include industrial projects such as manufacturing facilities, cold storage, and logistics parks. As a result, the firm’s client base expanded nationally, now serving projects in over 40 states.

Despite this growth, increased administrative demands often diverted focus from directly serving clients. The acquisition by Bartlett & West addresses these challenges, providing the resources and support necessary for Krudwig to focus on its core mission of delivering innovative structural engineering solutions.

The Bartlett & West Difference

A shared commitment to values and culture drove Krudwig to become part of Bartlett & West. As a 100% employee-owned (ESOP) company, Bartlett & West prioritizes shared success and employee investment—an approach that aligns seamlessly with Krudwig’s philosophy. Bartlett & West’s recognition as a “Best Small Employer” by Forbes and other organizations further underscores its dedication to fostering an exceptional workplace environment.

The partnership enables Krudwig Structural Engineers to leverage Bartlett & West’s extensive resources and expertise, ensuring continued excellence in client service and project delivery.

Looking Ahead

The integration of Krudwig Structural Engineers into Bartlett & West marks the beginning of an exciting new chapter. With the support of Bartlett & West’s resources and expertise, Krudwig is poised to continue its legacy of delivering exceptional structural engineering solutions while expanding its capabilities and reach. Together, the two companies are set to build stronger structures and partnerships, paving the way for a bright and collaborative future.

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Feature image credit: Constant Contact

2024 KCADC Annual Meeting highlights $1.8B of new investment across the region

The Kansas City Area Development Council (KCADC) hosted its 2024 Annual Meeting last week, drawing over 2,000 civic and business leaders to celebrate a year of robust regional growth and strategic industry advancements. Under the theme “FLEX,” the event underscored the region’s adaptability as a cornerstone of its success. It highlighted achievements in the Kansas City metro area, including 18 counties across Kansas and Missouri.

Record-Breaking Investments and Job Creation

This year, KCADC and its partners secured commitments from 16 companies, resulting in $1.8 billion in capital investments, nearly 1,500 new jobs, $104.7 million in wages, and 2.3 million SF of new development. These milestones reflect Kansas City’s growing prominence as a hub for innovation and opportunity.

Google’s $1 billion data center in Kansas City, Mo., was among the most notable investments in 2024. Alongside its infrastructure project, Google committed to advancing sustainability by adding 400 megawatts of carbon-free energy to the grid. The company also demonstrated a strong community focus, contributing $100,000 to the North Kansas City School District’s STEM initiatives and announcing an additional $120,000 investment to strengthen STEM programs in Kansas City Public Schools.

Strengthening Global Recognition

Increased media attention has bolstered Kansas City’s growing reputation. Over 630 stories spotlight its economic wins and quality-of-life benefits, reaching an estimated 1.25 billion people globally and enhancing the region’s visibility on the international stage.

KCADC President and CEO Tim Cowden emphasized the importance of leveraging this momentum for future growth, attributing the success to a unified regional vision.

Keynote and Awards

Lisa Bodell, CEO of FutureThink and a best-selling author, delivered the keynote address, offering actionable insights into how simplification can drive efficiency and amplify impact. Her message resonated with attendees, providing tools to help businesses streamline operations and focus on meaningful work.

KCADC has also received accolades for its efforts to promote the region. The organization earned two gold medals from the International Economic Development Council, recognizing its KC Options Magazine and the “KC Design Draft” campaign for excellence in economic development marketing.

Building for the Future

As Kansas City continues to grow, leaders across industries remain focused on fostering a resilient and inclusive economy. From groundbreaking investments in infrastructure and education to enhanced global recognition, the region is poised for sustained success.

The KCADC Annual Meeting reinforced the importance of flexibility and collaboration in shaping the future, ensuring Kansas City remains a leader in innovation and a magnet for talent and investment.

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Header image: Board of Directors incoming co-chair and Evergy President/CEO, David Campbell speaks at the 2024 KCADC Annual Meeting. Image courtesy of the Kansas City Area Development Council

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