KANSAS CITY—Trammell Crow Co., and Clarion Partners have just started construction on a speculative building at the KCI Intermodal BusinessCentre. Called LogisticsCentre IV, the class A structure will have a total of 432,640 square feet for either light manufacturing or as a warehouse/distribution space. The developers say they will finish the project, one of several significant spec buildings underway in the Kansas City region, by March 2016. LogisticsCentre IV will accommodate up to three tenants.
“Large scale bulk/modern spaces are fueling the market in Kansas City right now, both in terms of new construction and absorption,” according to a second quarter snapshot by DTZ. The market saw just over 1 million square feet of absorption in the modern bulk sector. And new deliveries pushed the vacancy rate up to 7.97%, roughly equal to where it was last year, even though 5.6 million square feet of inventory had been added to the market.
In the second quarter officials from NorthPoint Development announced they would begin construction on the 822,104 square foot Inland Port XIV at Logistics Park Kansas City, which DTZ calls the largest speculative building ever in Kansas City.
Furthermore, the economic outlook, especially for industrial jobs, looks rosy for Kansas City. The Bureau of Labor Statistics found that through the end of May the manufacturing sector, trade, transportation, and utilities, and the goods producing sector combined to add 8,900 jobs over the previous 90 days.
KCI Intermodal BusinessCentre is a 687-acre master-planned business park located on KCI Airport property with runway access. The first phase will have about 182 acres with up to 1.8 million square feet of warehouse/distribution centers, office/warehouses, and light manufacturing facilities. Aviation officials say the center will eventually have a total of about 5.4 million square feet and perhaps include air cargo and air freight facilities adjoining the airport runways.
“The launch of LogisticsCentre IV is needed to meet the demand for new distribution/warehouse space from tenants that don't have the time to wait for a build-to-suit facility,” says Andy Lowe, senior vice president of Clarion Partners. “You have to have product available for tenants that may need to move in within a few months after selecting a location.”
CBRE is providing marketing and property management services for the KCI Intermodal BusinessCentre.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
