Brokerage Outlook: Kansas

For a report on the Kansas City multifamily market, please click here for the Missouri section.


• Wichita Retail

• Wichita Industrial

• Wichita Office

Wichita Retail Malone Submitted by J. Douglas Malone, sales associate with the Wichita, Kan., office of J.P. Weigand & Sons/TCN Worldwide. Posted 11-07-06. What area is your expertise? • I specialize in retail sales, leasing and site selection in Kansas, primarily in the Wichita market. What trends do you see presently in retail development in your area? • As in most other cities, we see the Wal-Mart- and Target-anchored developments continuing primarily in new growth areas of the city. What type of retail product is doing well in your area? • We have one lifestyle center, Bradley Fair, that continues to be the dominant retail force. In addition, big box-anchored shopping centers with outparcel shop space do very well in this market place. What retailers are new to your area? • Retailers new to the Wichita area include Dress Barn, Ross Dress For Less, Texas Roadhouse, Sportsman's Warehouse, Slumberland Furniture, Coldwater Creek and J.Jill. Who are the active retail developers in your area? • Active retail developers are primarily local developers including Laham Development Co., Slawson Development Co. and KCBB Properties. Please name one or two significant retail developments in your area. What impact will these projects have on the market? • Significant retail developments in the Wichita area include Regency Lakes Shopping Center (Laham Development) located in northeast Wichita. Regency Lakes is a 500,000-square-foot retail development anchored by a 174,000-square-foot SuperTarget. • Plazzio Retail and Entertainment Center (Laham Development), also located in northeast Wichita, is anchored by Warren Theatre's 20-screen luxury movie theater and a 62,000-square-foot entertainment complex featuring a bowling center, indoor go-carts, sports bar and billiards. • Wichita's largest outdoor shopping center, New Market Square (Slawson Development), is anchored by SuperTarget and Wal-Mart Supercenter and is located at 21st and Maize Road in northwest Wichita. New Market's tenant list includes Old Navy, Borders Books & Music, Shoe Carnival, T.G.I. Friday's, Olive Garden, Granite City Food & Brewery and many other retail and restaurant users. Where is the majority of development taking place? Why is this area doing well? • The majority of the development is taking place on the outskirts of the city. One of the main reasons for this occurrence is the school districts outside the city of Wichita that are creating new housing and retail developments. What area do you expect to be the next big retail development market? Why? • The next big retail development will be in Derby, Kan., a submarket of Wichita, due to the recent announcement of a Kohl's store and new Wal-Mart development in the area. • Another area for a large development will be in the far northwest part of the city near the neighboring towns of Park City and Valley Center, where a new Wal-Mart is slated for development. Please describe the retail leasing activity in your area. • The retail leasing activity has been steady. The activity has occurred primarily with the national and regional tenants that have moved into the new developments described above. In addition, new restaurants and fast food operators that have come into the market place have generated activity. What major leases have been closed recently? • Major leases in the market include Sportsman's Warehouse in a 25,000-square-foot box space on East Kellogg, Sports Authority in a 20,000-square-foot space in New Market Square on Maize Road, a 9,000-square-foot Talbots in Bradley Fair Shopping Center on North Rock Road and a 40,000-square-foot Slumberland Furniture on East Kellogg. Please give a measure of retail vacancy rates. • The overall vacancy rate in the Wichita market at the end of 2005 was 13.9 percent with the vacancy rate specific to Class A retail being 6 percent. What types of retailers should look into your market in the coming year? What type of retail is needed? • We see a need for national shoe stores as well as container stores, health food stores and home specialty stores.

Wichita Industrial Tidemann Submitted by Bradley Tidemann, sales associate with the Wichita, Kan., office of J.P. Weigand & Sons/TCN Worldwide. Posted 11-07-06. What area is your expertise? • Wichita, Kan. What trends do you see presently in industrial development in your area? • Wichita's industrial market will continue to strengthen primarily due to the robust aircraft industry. What type of industrial product is doing well in your area? • Currently, any building that is listed "For Sale" or larger manufacturing buildings. Who are the active industrial developers in your area? • Primarily, local developers. No national builders/developers are in our market. Please name one or two significant industrial developments in your area. What impact will these projects have on the market? • Greenwich Business Park, located in the northeast part of Wichita at K-96 Highway and Greenwich Road. About 75 percent of the 60 acres has sold in the past 2 years. Many local users are taking advantage of lowered interest rates and a short supply of existing buildings that would be suitable for their use. Where is the majority of development taking place? Why is this area doing well? • New development is taking place in the northeast quadrant, driven primarily due to availability of land with infrastructure. What area do you expect to be the next big industrial development market? Why? • Northeast, same reason as above. Please describe the industrial leasing activity in your area. • Leasing has been slow. Our leasing market is driven by the activity of the regional and national tenants. Local users want to own. Please describe the industrial sales activity in your area. • Sales activity has been active. Supply is starting to dry up and prices have increased due to high demand and little product. Please give a measure of industrial vacancy rates. • Overall, vacancy should be around 15 percent this year. What impact do current interest rates have on the industrial market? What predictions do you have for interest rates and their effect on the industrial market? • Interest rates spurred activity with the local users to go out and buy or build a building when money was so cheap. What industries do you expect to expand in 2006 to absorb a great deal of industrial space? What areas will be affected? • Aircraft industry will be a market driver.

Wichita Office Gilchrist Submitted by Marty Gilchrist, sales associate with the Wichita, Kan., office of J.P. Weigand & Sons/TCN Worldwide. Posted 11-07-06. What area is your expertise? • Office and medical leasing and sales within the Wichita area. What trends do you see presently in office development in your area? • Suburban medical growth. Strong growth in the northeastern part of the city in prime locations. Who are the active office developers in your area? • Vantage Point Properties and Clifford Nies. Please name one or two significant office developments in your area. What impact will these projects have on the market? • Lakeside at Waterfront is currently being developed by Vantage Point Properties. The owner is Paul Jackson. The mixed-use development is located at 13th and Webb Road in northeast Wichita. The property is being anchored by tenants that are relocating from downtown and some northeast businesses looking to upgrade their current locations. Where is the majority of development taking place? Why is this area doing well? • The majority of the development is occurring in the northeast area due to the proximity to business owners' homes. In addition, businesses are competing for employees and they feel the location is helpful in recruiting the best employees. The northeast area has plenty of shopping and dining opportunities. What area do you expect to be the next big development market? Why? • The northeast area will continue to attract office users due to the amenities and proximity to decision-makers' homes. What areas are doing well in terms of office leasing? Which areas are struggling with office leasing? • The northeast area is doing well. Downtown is struggling due to the number of companies that have relocated. Please give a measure of office vacancy rates. • The vacancy rate for Class A office space market-wide is 12 percent. The vacancy rate in the northeast area — where most of the growth — is occurring is closer to 5 percent. What impact do current interest rates have on the office market? What predictions do you have for interest rates and their effect on the office market? • Currently, there is very little office inventory for sale. There is demand for offices to purchase in the northeast area and in downtown, if there is adequate parking. As interest rates rise, the demand will decrease. Is there any type of office tenant absorbing a majority of space? What industries do you expect to expand to absorb a great deal of office space? What areas will be affected? • Some space has recently been absorbed by a couple of call centers. It is possible that more call centers will take advantage of some of the large blocks of space that are available.