According to CommercialEdge’s November National Industrial Report, the new industrial development pipeline continued to expand in the third quarter, signaling that demand for space continues to outstrip the pace of new deliveries. There was 713.6 million sq. ft. of industrial space under construction in the U.S. at the end of October, representing 4% of stock. Projects currently in the planning stages are expected to add a nearly equal amount of space. Shipping, logistics and chip manufacturing are driving much of the industrial space construction throughout the U.S.

Additionally, nearly 350 million sq. ft. has already been delivered this year, reaching historic levels. Despite this, the national vacancy rate stood at 4% in October, following a steadily decreasing trend throughout the year.

At a local level, the Kansas City region had over 13.6 million sq. ft. of industrial space under construction at the end of Q3 2022, with 5.4 million sq. ft. expected to be completed before the end of the year, according to a recent CBRE report. With the volume of space under construction, development and absorption totals in 2022 are expected to exceed the record volumes from 2021. 

This CBRE report also includes that the modern bulk distribution market in the Kansas City region has increased from 14.4 million sq. ft. to 67.5 million sq. ft. since 2012, a 369% increase.

When projects currently under construction are delivered and if all planned developments materialize, Kansas City could increase its industrial footprint by over 18%.

See available industrial properties in the KC region.