Real-Estate Values

The bad news? Kansas has been particularly hard-hit by America’s surging home prices since 2020—the state ranks No. 7 in percentage increases in home prices, at 234 percent.

The good news? The baseline for those increases was so astonishingly low that, even today, even after that surge, the Sunflower State ranks No. 42 nationwide in median home value: $242,859, as opposed to the national average of $370,523. That’s less than half of any state in the Top 10 (those with median prices of more than $500,000), and a fragment of what buyers would pay in No. 1 Hawaii ($973,555), California ($809,227), or the District of Columbia ($764,716).

Amid a pricing spiral that has reached crisis levels in America, the Kansas Value Proposition stands tall in 2025.

This dichotomy extends beyond the residential market to form the core of Kansas’ commercial real estate identity. In a post-2020 world reshaped by hybrid work, e-commerce saturation, and economic uncertainty, Kansas offers a compelling value proposition not of explosive growth but of remarkable stability, strategic advantage, and unparalleled affordability. While it lacks the headline-grabbing volatility of coastal markets, its commercial real estate landscape provides a calculated, lower-risk environment for businesses and investors, albeit with distinct challenges in its office and retail sectors.

Industrial & Logistics

The undisputed star of Kansas’s commercial real estate stage is its industrial sector. Strategically positioned at the heart of America’s logistics network, hubs like Kansas City, Wichita, and the I-35 corridor have become national powerhouses. Since 2020, consistent, robust growth in valuations has been driven by insatiable demand for warehouse, distribution, and last-mile fulfillment space. As industrial assets became the top-performing CRE class nationally, Kansas didn’t just keep pace; it often outperformed, leveraging a significant cost advantage over crowded coastal and Sunbelt logistics hubs.

The value proposition here is compelling. For logistics companies and manufacturers, Kansas offers a central geographic location that drastically reduces shipping times and costs to a vast portion of the U.S. population. This is complemented by lower land costs and development expenses compared to neighboring Colorado and key Missouri markets. For investors, this translates into strong, stable tenant demand from blue-chip firms, consistently high occupancy rates, and reliable cash flows.

The competitive disadvantage, however, is subtle but pressing. As automation accelerates, newer, taller, and technologically advanced “smart ware-houses” are becoming the standard in larger markets. Kansas faces the ongoing challenge of ensuring its industrial stock evolves to compete with state-of-the-art facilities in states like Texas and Indiana. Continuous capital investment is required to avoid functional obsolescence in an increasingly high-tech industry.

The Office Sector

In stark contrast to the industrial boom, Kansas’s office sector embodies the challenges of the new era. The full impact of hybrid and remote work models has crystallized, triggering a national “flight to quality.” Office valuations in Kansas, particularly for Class B and C properties in secondary markets like Topeka or older suburban parks, have faced significant downward pressure. Tenants are consolidating footprints, prioritizing high-quality, amenity-rich Class A spaces designed to entice employees back.

In this challenging environment, Kansas’ value proposition is one of opportunity and extreme affordability. Businesses seeking a physical presence can secure premium Class A space at a fraction of the cost of comparable properties in Denver, Chicago, or even Kansas City, MO. This allows growing enterprises and back-office operations to control overhead while providing superior amenities. For value-add investors, there is potential to acquire underperforming Class B assets at a discount and reposition them through significant upgrades or conversion to other uses, such as medical office or residential.

The competitive disadvantages, however, are pronounced. Kansas’ office market lacks the deep, dynamic tenant base of a major tech or financial hub, making it vulnerable to the downsizing of a single large employer. Compared to national trends where prime urban trophy assets are recovering, much of Kansas’ inventory is functionally obsolete. The state’s slower adoption of the “experience-driven” office model—emphasizing collaboration and community—puts it at a disadvantage in attracting top-tier companies for whom a vibrant office culture is non-negotiable.

The Retail Sector

Kansas’ retail sector occupies a resilient middle ground, defying the simplistic “retail apocalypse” narrative while navigating its very real pressures. Since 2020, valuations have bifurcated. Power centers with strong grocery anchors, open-air lifestyle centers offering experiences, and well-located neighborhood strips have maintained stable values. Conversely, enclosed malls and retail dependent on vulnerable big-box tenants continue to struggle.

The value proposition for retail in Kansas is rooted in its stable, community-oriented consumer base and low costs. For business owners, the lower cost of occupancy compared to high-growth states like Texas or Tennessee provides a crucial buffer for profit margins, allowing local entrepreneurs and regional chains to thrive where they might be squeezed out elsewhere. For investors, well-located, necessity-based retail—such as grocery-anchored centers in affluent suburbs—offers a defensive, income-producing asset class with less volatility.

The competitive disadvantage stems from a market increasingly focused on experiential and luxury retail. Kansas has a limited presence of the high-end, destination retail that drives immense foot traffic and sales volumes in major metropolitan areas. While its affordability is a core strength, it can also signal a lower growth trajectory in consumer spending compared to neighbors like Colorado. The state’s retail landscape must continuously adapt to avoid becoming over-retailed, a persistent risk in smaller markets with stagnant population growth.

Comparative Value and the Path Forward

When compared to its neighbors, Kansas’ real estate profile is one of calculated value. It lacks the explosive growth and high valuations of Colorado’s front-range markets but also sidesteps their extreme volatility and cost inflation. It offers a more diversified economic base than Oklahoma, providing greater stability. On the national stage, Kansas is not a speculative bet but a steady, reliable one.

The overarching value proposition for businesses and investors is clear: risk mitigation through affordability and stability. Companies can secure essential logistics infrastructure, functional office space, and viable retail locations at costs that actively preserve profitability. Investors can find yield in industrial assets and select retail properties with lower entry points and reliable, if unspectacular, appreciation.

This affordability is quantified beyond commercial real estate. According to ConstructionCoverage.com, Kansas ranks as the third-most affordable state nationally when comparing home prices to median household income, with a ratio of 3.2:1. Metros like Wichita (3.2:1) and Kansas City (3.6:1) rank among the ten most affordable large cities in the country, underscoring the low cost of living that supports the commercial market’s stable tenant base.

However, the competitive disadvantages born of post-2020 trends are real and demand a proactive response. Kansas must aggressively address the obsolescence in its office stock and ensure its industrial facilities keep pace with technological advancements. For retail, fostering a more vibrant, experience-oriented environment is key to competing for consumer dollars. 

The state’s future commercial real estate success hinges on a dual strategy: relentlessly leveraging its foundational strengths of location, cost, and stability while proactively investing in the quality and modernity of its built environment. In an increasingly selective and technologically driven national economy, Kansas’s path forward is to become not just the affordable alternative, but the strategically smart one.