HEARTLAND SNAPSHOT, MAY 2008

Wichita, Kansas

The 44,000-square-foot Hartman Oil Building is part of Berkely Square, a mixed-use development underway at 13th Street and Greenwich Road in Wichita, Kansas.

The Wichita market continues to be very active,” says Jerry Gray, vice president and general manager for Wichita, Kansas-based J.P. Weigand & Sons’ commercial division. “The local economy is strong and is being driven by the local aircraft manufacturers, Hawker Beechcraft, Spirit Aero Systems, Cessna Aircraft Company and Bombardier Learjet, which are doing well. The industrial sector is particularly strong and has become a landlord’s market.”

There are very few quality industrial properties available, especially in sizes above 20,000 square feet. Gray expects the area to experience some speculative development activity to meet the growing demand for larger facilities. 

The Wichita office market has also seen a new surge of activity and is one of the strongest segments of the city’s commercial market.

“Business expansions and relocations have greatly reduced vacancy levels in many areas, Gray says. “The northeast quadrant of the city continues to see the most demand, as office users are attracted to the amenities offered in the newly constructed properties in that submarket.”

Construction has started on Berkeley Square, a new office and retail development just east of Wichita’s popular Waterfront development. Locally based developer Laham Development, in a joint venture with Devlin Enterprises, is spearheading the development of the multi-use project. The team is currently building the 44,000-square-foot Hartman Oil Building, which will serve as the oil and gas exploration company’s corporate headquarters. The company will occupy 14,000 square feet within the upscale office property and lease the remaining space to additional tenants. Construction is expected to be complete by this summer.

There is a lot of momentum surrounding 13th Street in Wichita, especially at its intersection with Greenwich Road, and Laham and Devlin are at the center of the whirlwind. Berkeley Square encompasses 95 acres on the northwest corner of the intersection. In total, the development will include 250,000 square feet of office space, 130,000 square feet of retail product and a 55-acre residential component from Richie Development.

Laham is also involved in the development of the remaining three corners at the 13th Street/Greenwich Road intersection. Plazzio, located on the southeast corner, is a 350,000-square-foot dining and entertainment center. Businesses located within Plazzio include The Alley, a 42-lane bowling alley with an indoor go-cart track, a Residence Inn hotel and a collection of restaurants. The 20-screen Warren Theater is adding four screens this year. A second hotel and three new restaurants are also on the drawing board for this year.

North of the 13th Street corridor, Laham has also been busy expanding its lifestyle center located on Rock Road at 21st Street. The 280,000-square-foot Bradley Square added a 28,500-square-foot Barnes & Noble in April. J.P. Weigand & Sons is the leasing agent for the center, which also features retailers such as Ann Taylor, Banana Republic, Chico’s, Gap and Williams-Sonoma.

According to Jerry Jones, vice president of commercial development for Wichita-based developer Slawson Real Estate Company, the east 21st Street corridor is experiencing a significant amount of retail activity beyond Bradley Square. Laham Development’s Regency Lakes shopping center, which features World Market, Super Target and Chili’s, is currently adding a 102-room Hampton Inn & Suites and a KANZA Bank branch. Both projects are slated for completion this year.

In east Wichita, Slawson is developing CrossPointe on 60 acres at East 21st Street and Greenwich Road. The development is approved for 926,000 square feet of gross leasable area, and is being designed as a multi-use project offering 230,000 square feet of retail and an office park that can accommodate up to four, 10-story buildings. CrossPointe also features a site for potential hotel development and five restaurant pads. Current tenants include Arby’s, Sonic and Wichita Credit Union.

Activity along the west 21st Street corridor is gathering steam, as well; Slawson’s NewMarket Square development is in the midst of constructing a third phase. The currently 705,000-square-foot center can accommodate more than 1 million square feet of open-air retail in total.

“NewMarket Square is anchored by Super Target, Wal-Mart, Borders, and Bed, Bath & Beyond,” Jones says. “For the phase III expansion, we are very excited about the number and quality of deals we have lined up for 2009.

“There is pent-up demand for retail in the Wichita market,” he adds. “The economy is nearly the best I’ve seen it since I got into business here.”

©2008 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.