MIDDLE MARKET HIGHLIGHT, FEBRUARY 2007

Manhattan, Kansas
Dan Marcec

Kansas State University has developed the KSU EquiCenter, which features an arena, a barn, educational facilities and other service for horse-related research and boarding.

Located in central Kansas, the town of Manhattan is situated conveniently with access to the rest of the state — Interstate 70, U.S. Highway 24, and Kansas highways 177, 18 and 113 all are in close proximity. In addition, the Manhattan regional airport recently completed a new $3.2 million terminal, which can support commercial aircraft as large as a B-757.

Manhattan — with its 2005 population estimated at 49,642 — also is supported strongly by Kansas State University (KSU), which houses 21,044 students and 5,896 employees that, along with visitors to the campus, spend more than $280 million annually in the local economy. Further, faculty members generated more than $100 million in outside funding for the 2004 fiscal year, and total research and scholarship activity funding is more than $186 million.

In other areas, the Manhattan economy is aided by annual retail sales of approximately $750 million, more than $200 million from major manufacturers and employers, $54 million in convention and tourism, and by Fort Riley, a local military base that employs 5,540 civilian employees. The recent unemployment rate is 3.6 percent.

In the commercial real estate market, vacancy rates are very low, as land and available building space is in great demand. Development is taking place in all areas of the city due to tremendous growth in the region. Fort Riley plans to add 9,700 troops within the next 5 to 7 years, resulting in an increase of 30,000 people to the local population.

“Being a Big XII [Conference] college town and adjacent to Fort Riley, Manhattan is a diversified economy with manufacturing, service, agricultural and educational elements,” says John Pagen, director of economic development for the city of Manhattan. “Manhattan welcomes all businesses that have a good community fit; due to KSU’s profile in animal health, food safety and biosecurity, bio- and life sciences are one source of interest at this time.”

A great deal of growth is underway, including a $160 million downtown redevelopment project, as the city was just approved for $41 million in STAR bonds. In addition, the $30 million Flint Hills Horse Park & Events Center is now under construction. One of the most significant commercial real estate projects in the area is the Manhattan Corporate Technology Park (TecPark), located adjacent to Manhattan Regional Airport. The development is a state-of-the-art, 190-acre business park located on a four-lane highway that conveniently provides access to I-70. The new business park is development-ready with all major infrastructure available.

“Retail operators in Manhattan seems to be very pleased with the sales growth,” Pagen says. “Retail sales in Manhattan have risen from about $600 million in 2001 to more than $830 million in 2006 — a gain of more than 33 percent in just 6 years.”

Looking toward the future, the Highway 24 corridor heading east to Wamego is undergoing a great deal of retail development at this time. The corridor is a logical growth area given that Manhattan is bounded by Fort Riley to the west, and the Konza Prairie to the southeast. The north area of the city is still very unpopulated, so a good deal of growth is pushing east toward existing developments in Wamego and Pottawatomie County.



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