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

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

Quadrant Communities moves forward with $40.9 million apartment project in Tiffany Springs

A significant residential and commercial development is set to enhance Kansas City's Northland with the introduction of Tiffany Square Apartments in the burgeoning Tiffany Springs area. Quadrant Communities has outlined plans for a 228-unit garden-style apartment complex on an 8.05-acre parcel located southwest of Ambassador Dr. and Old Tiffany Springs Rd. This $40.9 million project represents a key component of the expansive 31.3-acre master plan known as Tiffany Square. 

The proposed Tiffany Square Apartments will consist of five residential buildings offering a variety of floor plans, including studios, as well as one-, two-, and three-bedroom units. Residents will have access to 364 parking spaces featuring surface lots, carports, and garages. Amenities include a clubhouse, swimming pool, dog park, and pickleball courts. This development follows Quadrant's earlier success with the Edison at Tiffany Springs, a 243-unit complex that commenced operations nearby in 2022. 

The broader Tiffany Square master plan, primarily owned by the Longhorn Opportunity Fund based in Austin, Texas, envisions a total of 691 apartment units alongside multiple commercial pad sites. In August, the Kansas City Council approved a community improvement district to reimburse $6.3 million in anticipated public infrastructure costs associated with the site's development. 

Port KC has endorsed the Tiffany Square Apartments by approving incentives that include a 10-year partial property tax exemption and a sales tax exemption on construction materials. The tax incentive will phase out over a decade, starting with an 80% property tax reduction for the first five years, decreasing to 50% in years six and seven, and 30% for the final three years. This exemption is valued at approximately $3 million. In comparison, local jurisdictions are projected to collect $2.3 million in tax revenue during the same period, a significant increase from the $130,798 expected if the land remained undeveloped. Port officials emphasized that public financing was essential for the project's viability. 

Although the apartments will not feature designated affordable housing units, Quadrant has committed to contributing $1 million to the city's Housing Trust Fund. Based on previous allocations, this contribution could support the creation of approximately 73 affordable units elsewhere in the city. 

Construction is slated to begin by fall 2025 and be completed by mid-2027. The comprehensive master plan includes additional apartment communities to the west and commercial sites intended for retail, restaurants, and service businesses. Portions of the development are already advancing, with approvals secured for establishments such as Express Oil Change & Tire and a potential 7 Brew Coffee drive-thru. 

The site, previously owned by Sam's Club for a planned but unbuilt store, is now poised for transformation as part of Northland's ongoing expansion. This development aligns with the area's growth trajectory, offering new residential and commercial opportunities in the Tiffany Springs vicinity. 

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Header image: A preliminary rendering of what the new 228-unit garden style apartments at Tiffany Square might look like in North Kansas City, Mo. Image courtesy of Port KC