Spec Developers Forging Ahead In Kansas City

KANSAS CITY—The industrial market in the Kansas City region is experiencing a boom, and it’s not slowing down.  Hunt Midwest has been one of the most active developers in the area, and its officials report that with strong leasing activity at the Hunt Midwest Business Center, both HMBC Logistics I and II are now 100% leased. This momentum has triggered the start of construction on HMBC Logistics III and the permitting of HMBC Logistics IV.

“Our central location, scalable footprint, strong workforce, excellent highway access, and 100% real property tax abatement for 25 years have resulted in just under 200,000 square feet of leases signed in the last eight months,” says Ora Reynolds, president and chief executive officer of Hunt Midwest. “This has prompted us to move forward with 650,000 square feet of additional speculative building inventory,”

HMBC Logistics III, a 217,783 square foot, 32’ clear height building with an adjacent 3.45 acres of secured, outside storage, is under construction with occupancy planned for March 2019. And HMBC Logistics IV, a 425,000 square foot cross dock facility with 36’ clear height, will be available in May.

Hunt Midwest Business Center is within an Enhanced Enterprise Zone, offering qualified companies a 25-year, 100% real tax abatement based on investment and job creation. The following new HMBC tenants qualified for 100% real tax abatement:

• Vanguard Packaging and Great Plains Packaging are leasing 100,890 square feet in HMBC Logistics I. This is an expansion of their current facilities within the SubTropolis Business Center.
• Online Labels opened a 37,888 square foot regional manufacturing and fulfillment center in HMBC Logistics I as its first Midwest location.
• Wurth DMB opened a 27,164 square foot regional distribution center in HMBC Logistics II to expand its industrial fastener division in Kansas City.
• Voss Lighting has leased 27,257 square feet in HMBC Logistics II to expand its presence in Kansas City.

“The activity validates the Hunt Midwest/HSA partnership’s decision to invest in multi-tenant facilities geared to tenants ranging from 25,000 square feet to over 100,000 square feet,” says Mike Bell, Hunt Midwest vice president of commercial real estate. “At HMBC, we have the ability to meet the distribution and manufacturing needs of 200,000, 425,000 and 1,000,000 square foot users. As your business grows, we have the inventory and infrastructure to accommodate your lease or build-to-suit requirements within HMBC.”