HEARTLAND SNAPSHOT, APRIL 2005

Kansas City Retail Market

The newest trends in retail development in Kansas City are lifestyle centers, big box developments and mixed-use developments, according to David Block, senior vice president and principal of Kansas City, Missouri-based Block & Company.

The most significant development in the Kansas City area is Steiner + Associates’ Zona Rosa lifestyle center (Phase I and II) at Barry Road and Interstate 29 in Kansas City’s Northland. The expansion of the Kansas Speedway is another major development with RED Development’s The Legends shopping district, which consists of approximately 400,000 square feet of retail space. The Legends is located at Interstate 70 and Interstate 435 in Kansas City, Kansas.  State Line Station is a new conventional retail center located at 135th Street and State Line Road in Kansas City, Missouri, and features tenants such as Gordman’s and Target. “With mass consumer appeal for the new developments, older retail properties will be negatively impacted with slow sales volumes and increased vacancy rates,” Block says.

New retail development is taking place everywhere throughout the greater Kansas City metropolitan area. “Retail, restaurants, drug stores and banks continue to expand in every direction,” he says. “The continued residential growth, which is occurring throughout the Kansas City metropolitan area, drives new retail development.” Some of the more active developers in Kansas City include Block & Company, RED Development and Cormac Real Estate, as well as The R. H. Johnson Company.

 While new retail development is up, the number of new retailers to enter the Kansas City area is low.  However, Ann Taylor Loft, 3.1.0., and Forever XXI (all women’s apparel retailers), as well as Cost Plus World Market and Ultimate Electronics, are a few that have recently entered the Kansas City market.

Major leases that have closed in Kansas City’s retail market include the newest Kohl’s Department Store, which recently opened in Wilshire Plaza Shopping Center at Interstate 35 and Barry Road. Target also will be developed at 95th and Quivira in Overland Park, Kansas, and a new Wal-Mart Supercenter will serve as the anchor tenant, along with additional big box retailers, at the former Blue Ridge Mall at Interstate 70 and Blue Ridge Boulevard. The overall occupancy rate for retail in Kansas City is approximately 92 percent.

In the near future, Southern Johnson County will continue to have new development south of 135th Street to 200th Street. “Southern Jackson County will show future growth in the cities of Raymore and Peculiar, and the Northland will continue to be one of the fastest growing segments in the metropolitan area,” Block says. “The greater Kansas City market will continue to break new development records and 2005 is on track to be the biggest year ever for shopping center, retail and restaurant expansion.”

©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.