KC RANKS AMONG TOP MARKETS FOR NET ABSORPTION
The industrial market in Kansas City continues to climb the ranks, coming in at 12th in the U.S. for net absorption according to Newmark Zimmer.
In 2023 with its partners, KC SmartPort and the Kansas City Area Development Council attracted $649 million in capital investment to the KC region. These new companies will occupy 3.9 million sq. ft. of industrial space and invest $100 million in new payroll.
With a strong list of active deals in the pipeline and a steady pace of new opportunities opening weekly, the KC industrial sector is well positioned for continued growth in 2024. Boasting a diverse portfolio of move-in ready buildings and development-ready sites, a skilled workforce, and a business friendly environment, the Kansas City market is on the radar for industrial projects of all size and scope across a broad set of industries.
>> Check out which projects landed in KC in 2023.
CONSTRUCTION COSTS STABILIZE, BUT RECOVERY REMAINS GRADUAL
Recovery in the construction sector continued in 2023 as costs of materials stabilized, according to McCownGordon’s newest Construction Economic Insights report. Since the end of 2020, overall spending has increased on average by almost 10% per year, with private sector spending being driven primarily by manufacturing and re-shoring efforts.
Procurement delays continue to improve, and coupled with the predicted deceleration of inflation over the next 12 months, the 2024 outlook for the construction market is strong.
OPTIMISM RISING AS ECONOMIC UNCERTAINTY FOR 2024 FADES
Supported by positive economic forecasts from company executives and indications that the Federal Reserve will likely cut interest rates multiple times, widespread confidence in a strong economy in 2024 is on the rise.
Manufacturers’ average revenue increase will increase by 5.6%, according to the Institute for Supply Management — significantly higher than the 0.9% increase in 2023 — and North American leaders are predicting lower risk overall than the last two years.
The Kansas City region’s active pipeline of deals, coupled with the positive nationwide economic outlook, sets KC up for another year of robust industrial growth.