Prime Location

Want to know where the real hot spots are within this sprawling region? Just follow the commercial development.

Economic diversity has long been the hallmark of the Kansas City region. While it often means that this region isn’t out front on emerging national economic bubbles—think run-up in real estate prices through 2008—it’s what cushions us when those bubbles burst.

That diversified economy, combined with a typically Midwestern, common-sense approach to doing business, means that our “ups” here tend to be less vertical, and the “downs” are always less severe.

So yes, we make cars here, with both Ford and General Motors having major presences. But not nearly on the scale of cities where those companies and their suppliers dominate the economic stage. When the nation’s auto industry stumbles, Kansas City doesn’t tremble in fear. That’s just one example of the economic diversity here, an instance in which the lack of reliance on a single industry is an asset, not a liability.

In terms of our geography, Kansas City, Mo., is by far the largest city—in terms of population, in terms of land mass (the city’s geographic reach extends into four counties), and, to be candid, in terms of challenges facing its business climate as an older, urban-core city. Still, the city boasts many of the region’s prime locations, features and attractions—a Downtown that has benefited from a $5 billion makeover, the world-renowned Country Club Plaza shopping district, the remade Truman Sports Complex for both professional baseball and football, and an international airport that is virtually unparalleled in ease of use and access.

The biggest development story in the past decade, though, has unfolded Downtown. Once a broad sweep of empty lower vacancy buildings, it began to experience development traction in the 1990s with loft conversions. And, just as Ray Kinsella discovered in “Field of Dreams,” if you build it, they will indeed come. Long a residential desert, Downtown started to earn a reputation as a great place to live for young professionals, artists and empty-nesters flee-ing their suburban mini-mansions for more manageable living spaces.

Services have followed, and a key piece of the equation has been filled in with the addition of a major Downtown grocery store to meet the needs of those residents. This area’s profile changed completely, though, with commercial development over the past few years, especially with entertainment venues. The $276 million Sprint Center arena and the $850 million, nine-block Power and Light entertainment district are bringing a level of activity—daytime and nighttime—that the area had not seen in decades.

Other cities in the region, including the larger hubs of Topeka, Kan., and St. Joseph, Mo., both about an hour away from Downtown Kansas City, are also seeing a significant urban resurgence, as are the county-seat towns that ring the metropolitan area.

Retail Magnets

The broader area, though, abounds with thriving retail centers. In this category, Johnson County, Kan., in the southwestern suburbs of Kansas City is the clear leader. An economic powerhouse in many ways, Johnson County currently has no less than four, $300-million-plus retail developments under construction or recently opened. More are being planned, along with literally dozens of smaller developments.

Johnson County’s economic status to a large degree is due to its demographics. The most affluent county per capita in the area, its economic output in most categories is the leader in Greater Kansas City. Only adjacent Jackson County, Mo., with a much larger population, matches or exceeds its Kansas neighbor in any significant areas.

In simple terms, Johnson County’s growth is headed in three directions. The most dramatic is to the south, where the largest and most affluent cities such as Overland Park, Olathe and Leawood continue to develop. Overland Park has recently succeeded in an annexation project.

Though less broad, Johnson County’s westward expansion is significant. Communities such as Lenexa and DeSoto are seeing both residential and significant commercial development, especially along the vital Kansas Highway 10 corridor. Because of its link with Lawrence and the University of Kansas, this route is being tagged as the “Smart Corridor” and promoted for development by high-tech firms, including some of the area’s life science efforts. Near DeSoto, the 9,000-acre site of the former Sunflower Army Ammunition Plant has been purchased by a partnership that includes Kessinger/Hunter for long-term, multi-use development.

In addition to Downtown Kansas City, dramatic change has come to Wyandotte County, immediately across the state line in Kansas. On the western side of Kansas City, Kan., the Village West retail district has changed the fortunes of a community long considered an economic backwater in the region. The unique, unified government of this area was a key to development of the Kansas Speedway, an eye-popping get for the county when it was first announced as this region’s home for NASCAR racing.

Momentum from that site selection helped kickstart Village West, a retail and entertainment area that quickly became the most popular tourist attraction in Kansas. And the nine-figure deals keep rolling in that corner of the region. Next came the first phase of Schlitterbahn Vacation Village, which opened in 2009, a $750 million retail and entertainment destination that will include an indoor Riverwalk. Two more mega construction projects of note are a hotel/casino complex at the Speedway and the just-completed 18,500-seat home for the Sporting Kansas City pro soccer team.

Dynamic change has come to the region’s eastern gateway, as well, with developments near the Interstate 70/Missouri 291 interchange in Independence. Although Independence Center remains one of only two successful enclosed malls still operating in the region, little else developed until the city supported extensive road-work to open large areas to intense retail development. One of those was a powerful retail magnet: the biggest Bass Pro Shop in the region. The new 5,800-seat Independence Events Center nearby raised the visibility of that development considerably and helped solidify the area as one of metro Kansas City’s hottest retail regions. Also involved is the adjacent, $117 million Stone Canyon development.

To the north, major retail hotspots include the I-29/Highway 152 area in Platte County, which includes the lifestyle center Zona Rosa, and several nearby developments.