In 2000, approximately 2.3 million sf of speculative office/warehouse, flex and distribution space was constructed, a dramatic increase over the 1 million sf of speculative space added the year before.

Vacancy rates climbed from 5.7& to 6.3% and the slower pace may explain the lower speculative construction predictions for this year. For the coming year, it is forecast that the total for both speculative and user construction space combined will be about 2.5 million sf.

Examples of the speculative construction sites underway for the coming year include three in the Johnson County submarket and one in the Northland. At College Boulevard and Renner Road, a 226,000-sf flex and office warehouse space is being developed by Trammell Crow Co. Also in Johnson County, the Inland Business Center is being built on speculation. It is a 76,000-sf facility with flex office and warehouse space being developed by Colliers Turley Martin Tucker.

The other speculative property being erected in Johnson County is the Nieman Business Park, a 157,000-sf distribution center being developed by Block & Co. The speculative space being constructed in the Northland is the Northland Park, a 135,000-sf distribution facility being developed by B.A. Karbank & Co.

The industrial market in Kansas City has been healthy for the last few years, with a vacancy rate ranging from 5% to 7%. Active local developers include B.A. Karbank & Co. and Block and Co. National developers active in the metropolitan area include Trammell Crow and Welsh Cos.

Instant Insights /

Colliers Turley Martin Tucker Study Shows Healthy Industrial Market Development, Occupancy

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