It takes just one word to summarize the Kansas City, Missouri retail market: consistent.

Greater Kansas City continues to enjoy steady retail growth with very little impact from the struggles of the national economy. According to David Block, president of Block & Co., in Kansas City, the city's market remains positive and remarkably consistent throughout the area.

"It's extremely hot throughout the entire area. Basically all areas of the suburbs are doing well and remain strong," he says.

"Mainly," he continues, "it's the big boxes and the super boxes that are still driving a lot of the new development."

Block cites Target, Super Target, Lowe's Home Improvement Centers and The Home Depot as the most visible forces in the area. And apparently it seems that residential expansion is facilitating the city's overall retail real estate boon.

"I'd say that almost all of the suburbs of greater Kansas City follow this pattern," says Block. "There's a significant amount of residential growth which tends to drive the commercial growth as well. A lot of the junior boxes are making headway with Best Buy, TJ Maxx, Dick's and Jo-Ann Fabrics."

As with any hot market, new retailers are moving into the area to aid the growth. The city's surrounding areas and attractions are the main beneficiaries.

Bass Pro Shops is in the process of completing a deal in the Bannister area and Nebraska Furniture Mart is opening a location by the Kansas Speedway, as is outdoor retailer Cabela's.

"Really, other than that, there are mainly national retailers that have entered and are trying to fill out the rest of the market where they currently don't have a presence," says Block. "Target, Lowe's, The Home Depot S¡ all are maintaining some inner city locations, but business really does filter in from the suburbs."

Block & Co.'s recent completion of a Super Target in the northern development of Liberty Town Center, which already included The Home Depot and Michael's, is one new project in the area.

"There's a 45,000-square foot Best Buy under construction in Oleika, and numerous retail buildings under construction right now with various national tenants," Block explains. "The market is incredibly hot and we'll of course keep moving along with it."

Perhaps the best example of the growth in the Kansas City retail market is that Block is hesitant to pinpoint a single growth-area that stands out above the rest.

"All of them are growing. I mean it, I simply can't pinpoint one," he says. "If you asked me a few years ago, I'd say that Johnson County was the strongest growth area, but at this point and time, it's a very competitive market out there in terms of all of the suburbs. You could point to any of them: north, south, east, west and anything in between and you'd see consistent growth. Lawrence and Topeka are starting to see a lot of activity as well."

According to Block & Co.'s recent market study, the most new construction appears to indeed be near areas such as Leawood/Overland Park and the Northland area.

And although real growth is seen in Kansas City in all 11 counties, the sub-markets of South Johnson County, andKansas City, Kansas, and the area north of the Missouri river in Missouri are leading the expansion.

Block summarized the bright forecast for the area in glowing terms: "The Kansas City retail market has performed extremely well over the past several years and we expect this to continue for the next 12 to 24 months. Furthermore, developers continue to build very little small retail space, thus avoiding increased vacancy. Overall, the retail forecast for greater Kansas City looks very sunny for the foreseeable future."

David Block is president of Block & Company.


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