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.

Future apartments set to revive the historic Moline Plow Building in Kansas City’s West Bottoms

One of the West Bottoms’ most recognizable brick landmarks—the historic Moline Plow Building—is poised for a second life as housing, signaling another step in the district’s steady transformation from industrial powerhouse to mixed-use neighborhood.

Built during the heyday of regional manufacturing and rail commerce, the Moline Plow Building has long anchored a prominent corner with its masonry façade, tall arched windows, and timber-and-steel bones. The planned conversion would adapt those historic features into modern apartments while preserving the building’s character through a combination of selective restoration and sensitive infill. Early concepts typically call for studios to two-bedroom units, with high ceilings, exposed brick, and large openings that capture daylight—hallmarks of successful warehouse-to-residential redevelopment.

Amenities under consideration align with West Bottoms living: secure entry, fitness and co-working lounges, bike storage, and street-level activation that could include small-scale retail or maker space. Given the neighborhood’s growing event and vintage markets scene, ground-floor uses are expected to complement weekend foot traffic and create an everyday “front porch” for residents and visitors alike.

The project’s broader value extends beyond new housing supply. By reusing an existing structure, the rehabilitation would leverage embodied energy, reduce construction waste, and stabilize a block that has historically seen underinvestment. It would also knit together nearby projects, adding lighting, landscaping, and safer pedestrian connections to the 12th Street Viaduct, Riverfront Heritage Trail links, and emerging transit options.

Designers are expected to follow established preservation guidelines, including window rehabilitation where feasible, masonry repair with historically appropriate materials, and the careful integration of modern building systems. Where code requires new interventions—elevators, life-safety upgrades, and ADA accessibility—the team will likely tuck them behind primary historic elevations to maintain the building’s visual rhythm.

If approvals proceed on schedule, construction would be phased to minimize disruption to adjacent businesses and weekend markets. Lease-up would follow substantial completion, with interest anticipated from renters who want proximity to the Stockyards District, Downtown, and the Crossroads while living in a building that tells a Kansas City story.

As plans advance, the Moline Plow Building stands to become a case study in adaptive reuse done right—honoring industrial heritage while meeting today’s demand for well-located urban homes.

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Above: A conceptual street view rendering of the Moline Plow Building in Kansas City's West Bottoms reimagined as apartments. Image | SomeraRoad Inc.

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

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

Acquisitions by Arch Street and Artemis strengthens Logistics Park KC's Position as a key distribution hub

Arch Street Capital Advisors, headquartered in New York, and Artemis Real Estate Partners, based in Washington, D.C., have made a significant move to expand their industrial real estate portfolios by acquiring four prime properties in Edgerton, Kan. This new acquisition adds 2.4 million SF of Class A industrial space to their holdings, strengthening their presence in key logistics markets.

The properties, developed by NorthPoint Development between 2014 and 2017, are located within the Logistics Park Kansas City (LPKC), a 2,352-acre industrial park that is considered a key hub for distribution and warehouse operations. This master-planned development offers businesses a strategic advantage due to its close proximity to major transportation routes, including Interstates 29 and 435, as well as its accessibility to Kansas City International Airport. These factors make the park an ideal location for logistics and distribution companies looking to optimize their operations and reach broader markets.

The newly acquired portfolio includes four high-quality facilities that are fully leased to well-established tenants, including Amazon, Walmart, and Demdaco. These buildings are strategically situated within the park and vary in size, catering to different operational needs. The properties reflect the increasing demand for modern, high-specification industrial spaces in the Kansas City area, a region that continues to attract top-tier tenants due to its central location and robust infrastructure.

These facilities, located across several prime spots within LPKC, include properties such as a large warehouse space, which serves as a critical hub for distribution, as well as additional spaces that support a variety of logistics functions. The buildings’ size and functionality make them highly desirable, supporting a range of industries from e-commerce to consumer goods, and further cementing the area’s reputation as a logistics powerhouse.

This acquisition is aligned with Arch Street and Artemis’s ongoing strategy to target institutional-quality industrial assets in prime logistics markets. It also underscores the rapid growth and investment in the Kansas City area’s industrial sector, which has seen a surge in development and interest from major corporations in recent years. Logistics Park Kansas City, with its comprehensive infrastructure and advantageous location, continues to draw large-scale companies looking for efficient, high-performance distribution solutions. With this latest investment, Arch Street and Artemis help to further solidify the park’s status as a leading destination for industrial real estate investment, signaling continued growth and opportunity in the region.

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Header image An aerial view of Logistics Park Kansas City, a 2,300-acre+ industrial park, located near Interstates 29 and 435. Image courtesy of Hunt Midwest