3Q 17 Wichita Market Report
Wichita Office 3Q 2017
Wichita 3Q17 Office Office Report The Wichita Office market ended the third quarter of 2017 with a vacancy rate of 19.6%. The vacancy rate was slightly down over the previous quarter, with net absorption totaling negative (5,168) square feet in the third quarter. Net absorption for the overall Wichita office market was negative (5,168) square feet in the third quarter 2017. That compares to positive 36,160 square feet in the second quarter2017, negative 16,444 in the first quarter 2017, and negative (9,996) in the fourth quarter 2016. During the third quarter, 5,943 square feet of office space was completed in the Wichita market area. This compares to 0 square feet in the second quarter and 20,080 square feet in the first quarter. A total of 219,000 square feet of office space is under construction in the Wichita market. Recently the former Wichita Eagle building on East Douglas was knocked down to make way for the new Cargill headquarters. The $60 million headquarters is expected to be completed by late 2018. The weighted average rental rate for available office space, all classes, was $14.25 per square foot per year at the end of the third quarter 2017 in the Wichita office area. This represented an increase from the end of the second quarter 2017 when rents were reported at $13.87 per square foot. Total office sales activity in 2017 through the third quarter total $42,007,409. The price per square foot averaged $34.97. The market posted 38 transactions with a total of 1,201,386 square feet. Notable office sales in the Wichita market for 2017 include: 3207 N Cypress, 3445 N Webb, 3216 N Cypress, 2024 N Woodlawn, 245 N Waco (Farm Credit Bank Building), 2872 N Ridge (MTG Office Park), and 151 N Main (Former Cargill Headquarters). Trends for 3Q17 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RENTS SALES ACTIVITY Significant Lease Transactions: Tenant Building Size Submarket Veritas HHS DEA CoBank 659 N. Market 8415 E. 32nd Street 245 N. Waco Avenue 8,315 SF 9,223 SF 7,943 SF Northwest Northeast Central Business District
Wichita Retail 3Q 2017
Wichita 3Q17 Retail Retail Report The Wichita retail market experienced a slight drop in the overall vacancy rate for the third quarter. The vacancy rate went from 12.4% in the previous quarter to 11.8% in the third quarter. Retail net absorption was moderately positive in Wichita third quarter 2017, with positive 72,089 square feet absorbed in the quarter. In second quarter 2017, net absorption was negative (133,257) square feet, while first quarter 2017, absorption came in at positive 28,686 square feet. During the third quarter 2017, five buildings totaling 60,094 square feet were completed in the Wichita retail market. Over the past three quarters, a total of 196,566 square feet of retail space has been built in Wichita. In addition to the current quarter, 3 buildings with 19,172 square feet were completed in second quarter 2017, and 8 buildings with 117,300 square feet in first quarter 2017. The weighted average rental rates for available retail space, all classes, was $11.84 per square foot per year at the end of the third quarter 2017 in the Wichita retail area. That compares to $11.86 per square foot in the second quarter 2017, and $11.45 per square foot in the first quarter 2017. Rental rates have generally stayed the same in the last year with a slight upward trend. Total retail sales activity in 2017 through the third quarter total $73,125,313. The price per square foot averaged $97.28. The market posted 63 transactions with a total of 751,711 square feet. One of the larger retail sales through the first three quarters was 3236 N Rock Rd, a retail strip center that was sold in March 2017. Trends for 3Q17 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RENTS Significant Lease Transactions: SALES ACTIVITY Tenant Building Size Submarket Nebraskaland Tire Charming Charlie, LLC Five Below Store 3167 N. Rock Road 2684 N. Greenwich Court 2764 N. Maize 5,800 SF 5,000 SF 8,000 SF Northeast Northeast Northwest
Wichita Industrial 3Q 2017
Wichita 3Q17 Industrial Industrial Report The Wichita industrial market ended the third quarter 2017 with a vacancy rate of 7.6%. The vacancy rate remained relatively flat from the previous quarter, with net absorption totaling positive 11,985 square feet in the third quarter. Rental rates ended the third quarter at $4.70, a slight increase over the previous quarter. A total of 904,484 square feet and seven buildings were under construction at the end of the quarter. Net absorption for the overall Wichita market was positive 11,985 square feet in the third quarter 2017. That compares to positive 116,174 square feet in the second quarter 2017, and negative (17,549) square feet in the first quarter 2017. During the first three quarters of 2017 a total of five buildings were completed totaling 184,200 square feet. All Angles, Epic Sprts Inc., Etezazi Industries, Coleman Co., Kyodo Yushi Manufacturing and Cox Machine-South all have buildings under construction at the end of the third quarter. The average quoted asking rental rate for available industrial space was $4.70 per square foot per year at the end of the third quarter 2017 in the Wichita market area. For the second quarter the average quoted asking rental rate was $4.69 and $4.67 for the first quarter. Total industrial sales activity in 2017 through the third quarter total $44,060,051. The price per square foot averaged $31.80. The market posted 69 transactions with a total of 1,385,374 square feet. Notable industrial sales in the Wichita market for 2017 include: 9175 E 35th St (Nordam), 4011 E 31st St, 2901 N Mead, 2707 N Regency Park (Schimberg Bldg.), and 3151 S West (Wichita Coca-Cola Bldg.). Trends for = 3Q17 VACANCY RATE NET ABSORPTION CONSTRUCTION ASKING RENTS Significant Lease Transactions: SALES ACTIVITY Tenant Building Size Submarket Auto Craft Collision Repair 1427 E. 1st Street N. 17,360 SF Central Business District Johnson Controls 7700 N. Hayes Drive 250,000 SF Greater Kansas James L. Spencer 3515 N. Topeka 8,928 SF Northeast
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