KC Metro Retail Space Reports

KC topics that don't fit anywhere else.
earthling
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Re: KC Metro Retail Space Reports

Post by earthling » Sun Jul 28, 2019 7:36 pm

KC metro retail space is way overbuilt and despite a negative net absorption so far this year a significant 1.5M sqft of retail space is under construction in the burbs. I checked Denver and they also have slight negative net absorption and also have a lot of retail construction, not quite as high as KC. KC has nearly 65M sqft of rentable retail space compared to 82M in Denver, meaning KC has more retail space than Denver per capita.

Edit: Checked others...
Even more surprising, STL has 63M sqft rentable overall and does include Metro East. Minneapolis also has less retail space than KC at 64M sqft. Columbus is also high for its size at 62M sqft.

Is impressive with all that space that KC's vacancy is under 8%, comparable to Denver.


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kboish
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Re: KC Metro Retail Space Reports

Post by kboish » Sun Jul 28, 2019 8:06 pm

Sqft of retail space must be a function of sprawl.

earthling
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Re: KC Metro Retail Space Reports

Post by earthling » Mon Jul 29, 2019 7:50 am

Seems to be the case. Interesting to see East KC burbs still where the retail growth is hot.

edit: If you compare to Q1/2017 in first post metro space is actually shrinking a bit so 'construction' might be more about churn of old to new spaces, like an old KMart/Sears spot turning into something else - in addition to sprawl in KC's case.

We might be seeing just the scratch of surface with impact of online shopping. Overall retail sqft shrinking, churn of old spaces into 'experiences' (like doubling down on bars/restaurants) and fewer traditional stores.

earthling
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Re: KC Metro Retail Space Reports

Post by earthling » Mon Jul 29, 2019 9:01 am

Also note that Downtown average $/sqft is now higher than S JoCo compared to Q1/2017. And Plaza jumped from $20 to $30.

The upside to rising retail rents downtown with lowest vacancy in metro is that it may encourage more developers to include a retail element to their projects.

Costco, Target and Trader Joe's are surviving the online onslaught. Downtown should strongly pursue an urban Target and TJ's. Plaza should pursue more experiences like jazz clubs and upscale nightlife.

mean
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Re: KC Metro Retail Space Reports

Post by mean » Mon Jul 29, 2019 9:29 am

Wouldn't a downtown TJ's eat Cosentino's lunch?

earthling
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Re: KC Metro Retail Space Reports

Post by earthling » Mon Jul 29, 2019 9:38 am

About half of Cosentino's is prepared foods with a real meat/seafood counter (that will take special orders), TJ's doesn't do prepared foods or fresh meats. And TJ's doesn't carry common brands or broad range of items. TJ's is a true niche specialty store, C's is a broader services store. I think they'd complement each other. Is like asking if an extra bar/restaurant would hurt others. A Whole Foods might hurt them a bit, which is being tested now in Brookside with new WF nearby.

bobbyhawks
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Re: KC Metro Retail Space Reports

Post by bobbyhawks » Mon Jul 29, 2019 11:01 am

Cosentino's is wonderful for what it is, but they are in need of some more serious competition to keep things current. It is a nice store, but I feel like they have changed very little in 10 years. They aren't enough of any one thing to make them a destination, and I think that's partially why many people in the area still go to Whole Foods or Price Chopper. The meat and seafood situation has been meh for a while, and they have had the same exact food in the prepared section for 10+ years. I could be wrong, but I don't think their organic produce selection is very good. TJ's coming in as a more affordable and niche offering might make Cosentino's focus more on some things they can definitely separate themselves with.

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