KC Industrial Market Looks Strong After Positive Net Absorption in Q2

Posted July 18, 2023

In a report from the real estate company CBRE, Kansas City’s industrial market had a strong second quarter resulting in 2.6 million sq. ft. of positive net absorption, according to the company.

Vacancy rates overall increased by 10 basis points quarter-over-quarter in Q2. The overall market vacancy rate of 3.3 percent remains near an all-time low and represents 160 basis points decrease year-over-year, 4.9 percent to 3.3 percent.

Moreover, overall market average for the asking lease rate was $5.13 NNN (triple net lease) for the end of Q2, while average asking lease rates increased 4.9% year-over-year, thats $4.89 NNN to $5.13 NNN.

Approximately 3.5 million sq. ft. of new space was completed in Q2, according to CBRE. Also, approximately 748,833 sq. ft. of space broke ground in the quarter.

View the full Kansas City industrial Report, here.