by Dan Rafter
The industrial market in Kansas City remains a hot one, with Cassidy Turley reporting that the region absorbed 1.83 million square feet of industrial space in the third quarter.
That’s a big number; the last time the Kansas City industrial market saw more than 1.5 million square feet of absorption in a single quarter was during the third quarter of 2008, when a sky-high 2.36 million square feet were absorbed.
The high demand for industrial space has led to spec building in this segment, good news for the area.
Michael Mayer, managing principal in Cassidy Turley’s Kansas City office, said that a total of 3.01 million square feet of bulk and modern space had been added to the industrial market so far in 2014. An impressive 77 percent of that added space has been industrial, Mayer said.
The spec development has added much to the vacancy rate in the industrial market, either. Mayer said that 84 percent of this newly built space had already been leased or sold.