Sunday, June 29, 2008

Kansas City's Retail Market Remains One of Strongest in Midwest


KANSAS CITY, MO— The historically strong Kansas City retail market is anticipated to record long-term growth this year based on favorable demographic patterns, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.
While other Midwestern metros have posted job losses, out-migration and housing market woes during the past several years, Kansas City’s economy has remained relatively stable. (Downtown Kansas City photo top left).

“Buyers with long-term holding strategies may find opportunities in the southern portion of the submarket, near Gardner, where a new intermodal transportation hub will spur job growth and attract future retail developments,” says Gary Lucas, (top right photo) regional manager of the Kansas City office of Marcus & Millichap.

Following are some of the most significant aspects of the Kansas City Retail Research Report:

· Builders are set to add more than 3.3 million square feet to local inventory in 2008, up from 1.4 million square feet last year.
· Vacancy is forecast to end the year at 12.5 percent.
· Asking rents are projected to climb 1.3 percent to $14.20 per square foot.
· Effective rents will gain 1.1 percent to $12.40 per square foot.
· The government and educational and health services sectors have each gained almost 2 percent year over year, creating 2,500 and 2,100 jobs, respectively.

For a copy of the complete Kansas City Retail Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso
Communications Department
(925) 953-1716

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