Retail

Since 2000, the St. Joseph, Missouri, area has seen an increase in retail development interest from both developers and major retailers. “Much of this interest stems from the 2000 Census that indicated an increase in population and median incomes,” says Patt Lilly, president and CEO of the St. Joseph Area Chamber of Commerce.

The majority of retail activity is taking place on the east side of St. Joseph as a result of the growing population and easy access to Interstate 29. Wal-Mart recently constructed a second supercenter and Lowe’s Home Improvement Warehouse put up a new store. These stores are major retail draws to the area from the surrounding region.

Retailers new to the market include American Outfitters, Hastings, Lowe’s Home Improvement Warehouse, Schlotzsky’s Deli, MC Sports, Stoney Creek Inn and Hy-Vee Grocery Store.

The two corridors between St. Joseph and Kansas City — Interstate 29 and Highway 169 — are doing very well. Retail and residential development continues to spread north in the area between St. Joseph and Kansas City. This will likely continue given favorable economics and the proximity of Kansas City International Airport, which is located 30 minutes south of St. Joseph.

“Buchanan County is in the process of choosing a retail developer for a 60-acre tract of land it owns on the northeast side of St. Joseph,” Lilly says. “Developers under consideration include R.D. Johnson, Carlin Properties, Wm Grace and Dial Realty. This major retail development should be under construction by the middle of this year.”

Active retail developers in the market include Indianapolis-based Sandor Development, St. Louis-based The Sansone Group, St. Louis-based Novus Companies and Kansas City, Missouri-based Red Development. The vacancy rate is 8.2 percent.

Industrial

The community has seen a great deal of activity as a result of expansions by existing companies. According to Ray Sisson of Coldwell Banker Commercial in St. Joseph, Purina Mills has leased 49,900 square feet at 2901 S. 22nd. Sara Lee increased its investment in St. Joseph with a new $125 million food processing facility in Mitchell Woods Business Park.

Also in the business park, Progressive Moulded Products, a Canadian-based plastics manufacturer, leased 60,000 square feet at 5610 Corporate Drive from Mitchell Woods Business Park Corporation. Currently, Progressive is expanding the space to 70,000 square feet and plans to begin full production by April. Because of the success of Mitchell Woods, the community is aggressively pursuing the development of a new business park.

In addition to greenfields development on the east side of town, the community has undertaken a major brownfields redevelopment project south of downtown. They also are improving infrastructure to the heavy industrial area on the south side of the city. Both of these projects will open up sites for development.

The brownfields area south of downtown is expected to see substantial industrial activity. The former stockyards area on the south side of the city will have new sites for industrial development. Additionally, another shell building will be constructed next year. The development of a new business park also will spark significant retail activity. Life sciences has become a bigger focus for the community and efforts and resources are being geared towards that particular sector.

By welcoming Progressive Moulded Products to St. Joseph, the community now has a company that provides products for Kansas City-area automotive manufacturers. “Future recruitment of other automotive component suppliers will be a part of our marketing efforts,” Lilly says. Also, the Animal Sciences Industry has a major presence in the community, which will likely grow as a part of Missouri’s Life Sciences Initiative.

Most recently, Progressive Moulded Products, Valley Food Services, P & S Investments and Lifeline Foods have located in St. Joseph. Al J. Mueller Construction and L & L Development Co., based in St. Joseph, are two active developers in the area. The vacancy rate is 5.9 percent.

Office

Companies have recognized St. Joseph as an excellent location for back-office operations. Recently SST, a division of J.P. Morgan Chase Company, expanded its workforce to more than 1,000, through a $5.4 million expansion, becoming the fourth largest employer in the community.

The proposed new business park on the east side of town includes an area specifically zoned for office. Development continues on the east side along the Riverside Road corridor. Active office developers include St. Joseph-based Jim Larkin; Gower, Missouri-based Jim Ingle Construction Company; and Des Moines, Iowa-based The Graham Group. The vacancy rate is 11.7 percent.

Multifamily

In addition to residential development on the east side of St. Joseph, buildings in downtown are being renovated to include loft apartments. One such project is the conversion of an old dry-goods warehouse into loft apartments by Carlson Gardner, Inc.

Most recently, Benedictine Health System announced the construction of a long-term care facility for the elderly.

Columbia, Mo.-based Jeff Smith is an active multifamily developer in the area. The vacancy rate is 7.2 percent.


©2003 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.