Downtown office vacancy

[earthling]

Colliers national office report, can compare KC to other markets. For some reason they include Plaza/Midtown as part of downtown...
http://www.colliers.com/-/media/files/m ... lliers.pdf

I bet there's some apples to apples reason for this if it's a national report

rents for urban space went up 3.2% while suburban went up 2.0% in the past year

that's a good sign for urban demand

The report also says KC burbs absorbed about 1.2M sqft space so far this year and a good amount downtown, another 500K. That's pretty high, up there with the hottest markets. Many other downtowns have negative absorption so far this year.

[missingkc]

The reason they include midtown and plaza as part of downtown is because only to locals are they separate entities. On airplane w atlantan: "where did you stay?" response: "Downtown on the Plaza." distinction only exists in your minds. Truly. Wake up. Release your minds.

[pash]

.

[earthling]

CBRE Q3/2017 office report is out...
http://cbre.vo.llnwd.net/grgservices/se ... 975c3f06be

[KCtoBrooklyn]

CBRE Q3/2017 office report is out...
http://cbre.vo.llnwd.net/grgservices/se ... 975c3f06be

That link doesn't seem to work for me

[earthling]

Hmm, probably need to be registered. Will post the lists when I get a chance.

[earthling]

Here is Colliers' Q3/2017 national report. KC is considered a top 20 market in terms of activity. Vacancy is improving across the board, causing rising rents. That should help build case for new development.

KC stats start on page 10. Keep in mind they appear to include Midtown/Plaza with downtown stats.

http://www.colliers.com/-/media/files/m ... lliers.pdf

KC metro has absorbed over 1.3M sqft suburban and 500K urban core office space first 3 quarters this year, more than any Midwest market and top 10 in country - see page 14. The vacancy is also very low, which is impressive given KC has a lot of total office space for its size.

[kboish]

Those are very interesting numbers for KCMO. A tight office market with low/moderate rents. Pretty much right where we would want to be. I've got to think we will see some movement towards a new tower DT soon. Hopefully the economy doesn't collapse first.

[flyingember]

I expect we'll see more mixed use projects adding office space before a dedicated tower. It's not hard to add a few office suites to a residential tower and add a few floors.

[earthling]

Office developers have been more interested in The Plaza with its under 5% vacancy but given not much less space left hopefully they'll redirect focus downtown. With downtown under 10% and Class A getting closer to 12% vacancy (the historical trigger for spec building), it might start to spur more speculative interest, at least with adding some space as part of residential if anything to your point. Likely no new office towers until pre-signing a large tenant.

[earthling]

CBRE Q4/2017 office report...
http://cbre.vo.llnwd.net/grgservices/se ... b17fc3213b

Downtown Class A vacancy at 11.3% according to CBRE, will be interesting to see what Collier's shows as they track more space. In the past developers might pull trigger on large speculate office buildings when Class A vacancy hits below 12%, but downtown may still not have enough momentum of demand. We could see more small/mid-sized spec buildings though.

Plaza vacancy is below 4%.

South KC shows nothing under construction, implying Cerner hasn't started next phase yet.

[loftguy]

CBRE Q4/2017 office report...
http://cbre.vo.llnwd.net/grgservices/se ... b17fc3213b

Downtown Class A vacancy at 11.3% according to CBRE, will be interesting to see what Collier's shows as they track more space. In the past developers might pull trigger on large speculate office buildings when Class A vacancy hits below 12%, but downtown may still not have enough momentum of demand. We could see more small/mid-sized spec buildings though.

Plaza vacancy is below 4%.

South KC shows nothing under construction, implying Cerner hasn't started next phase yet.

Link is not active.

[earthling]

You might need an account...
https://www.cbre.us/research-results?k=kansas%20city

[normalthings]

Location West of HR Block being looked at for Class A office building. Guess this means no 5 Light :/

[earthling]

Would be interesting to hear if they are targeting speculative (no leases lined up) or build to suit lease, Could fizzle quickly if the latter. Would be a big boost of confidence if the former, especially if a tall building.

[normalthings]

Yes it would be. I think they are referring to the empty portion of the PL block just west of HR Block. Seems like a pretty small parcel though(small floor plates).

[earthling]

And unfortunately access to parking will probably dictate its size.

[Critical_Mass]

Location West of HR Block being looked at for Class A office building. Guess this means no 5 Light :/

Isn't that the exact location discussed in the Five Light thread? I also thought it was mentioned that the "# Light" branding may not apply to 5 and 6, and that they were looking at office for these developments.

So...I'm saying it sounds exactly like 5 Light...just maybe coming before 4 Light and with a different name.

[beautyfromashes]

H&R Block had an option for another tower the same size as their current one on top of the retail spaces just west of Main. The piers were built into that location when they built P&L. I would much rather have commercial space there than 5 Light.

[Pork Chop]

H&R Block had an option for another tower the same size as their current one on top of the retail spaces just west of Main. The piers were built into that location when they built P&L. I would much rather have commercial space there than 5 Light.

Same here. I believe downtown is doing well on the residential building front, as well as hotel development, and based on earthings data; it looks like we can start building office space. It seems to me the missing positive in downtown is job growth. We have seen businesses move downtown and a smattering of job announcements, but nothing like the residential/hotel announcements in the past several years.