Find Real Estate Agents and Homes for Sale


Real Estate News --> Kansas News

Industrial Surges Outside the Hubs


KANSAS CITY—A survey among SIOR industrial professionals ... points out that it meets the fundamental requirements of real estate success, namely location, location, location. “We sit at the intersections of Interstates 80 and 29; that’s a huge ...


Archived Story

It doesn’t exactly hurt that it’s new product, built to satisfy modern requirements“Everything that’s going up is state of the art, 32-foot clear heights,” says Orschein“A lot of it is larger products, so we’re seeing a lot of 300,000-square-foot-plus buildings going up, a lot of cross-dock bulk buildingsA couple of developers will be coming on line with 200,000-square-foot single-loaded buildings to satisfy the demand from the smaller users as well.” Geographically, Omaha is “literally at the center of the country,” says Kerrigan Farther west is Omaha, which at 68 million square feet represents the smallest industrial market in the SIOR surveyYet Tim Kerrigan, CCIM, SIOR, a VP with Investors Realty Incin Nebraska’s largest city, points out that it meets the fundamental requirements of real estate success, namely location, location, location“We sit at the intersections of Interstates 80 and 29; that’s a huge advantage,” he tells GlobeSt.com“Geographically, it’s literally at the center of the countryIt puts us within a one-day delivery time of a huge part of the US market.” Although Kerrigan says there’s no evidence yet of Amazon establishing its presence in the area, he thinks it’s fair to assume that there will be, sooner or later.“There’s a lot of territory in the Plains states; if we’re truly going to do same-day deliveries to in business-to-business and consumer-to-consumer, somebody’s going to have to build facilities in Omaha and the surrounding area.” While Omaha may be best known as the home of Warren Buffet’s Berkshire Hathaway empire, Kerrigan notes that the market is “fast on its way to becoming a hotbed for data centersYou don’t see more than a handful of these huge, $200-million enterprise centers in any given year, but Omaha has had two in the past three years, and we have more in the pipeline.” Although Chicago isn’t all that far from Milwaukee, the seven-county region of southeast Wisconsin has become a key industrial market in its own right“What we’ve seen in the past seven years of recovery is remarkable strength, and I think you’re seeing it across the US,” Jeff Hoffman, SIOR, CCIM, a principal with Cushman & Wakefield/The Boerke Coin Milwaukee, tells GlobeSt.com“We have a stock of 275 million square feet, and our vacancy rate is down to 4.1%.” Cushman & Wakefield’s Jeff Hoffman cites the “remarkable strength” of the industrial recovery It’s even lower in some of the region’s submarkets, such as Mitchell Airport with vacancies of just 2.2%.  “You can’t remember a time when markets have been compressed that low,” Hoffman says One challenge has been the manufacturing sector, which has been hard-pressed recently“The state of Wisconsin jockeys back and forth with Indiana as the state with the highest dependence on manufacturing for private-sector employment,” says Hoffman“A lot of our large manufacturers since last August or September have been in flat-out recessionary enviromnentsWe supply a lot to the oil and gas industry, so your local machine shops have been hit hard.” That being said, absorption locally continues to outpace new deliveries, Hoffman saysThe gap has been filled by and large with warehouse-fulfillment, on both the business-to-business and business-to-consumer sides Another fundamental of commercial real estate, asking rents, has seen year-over-year increases nationwideHowever, Kerrigan says, “We’re seeing rental rates rise across the market, but still not keeping pace with the cost of constructionI would presume that construction costs have increased at an increasing rate everywhere, certainly in our marketSo people are trying to understand the disconnect between rental rates and construction costs.” .slideshow { padding: 0 0 15% !important;} h3.slide_caption {position:absolute; bottom:inherit;width:95%;padding: 25px 10px 5px !important;} Paul Bubny › Paul Bubny is managing editor of Real Estate Forum and GlobeSt.comHe has been reporting on business since 1988 and on commercial real estate since 2007He is based at ALM Real Estate Media Group's offices in New York City. More articles by this author › Contact Paul Bubny Most Popular Stories Longtime Cushman Pro Heads to Avison Young JBG Buys New York REIT, Forms $8.4B Company CMBS Could Be Catching a Break Breaking News Ares Capital, American Capital in $3.4B Union Exclusive Which Retail Category Will Be Most Impacted by E-Commerce? Featured Events RealShare Austin June 02, 2016 Austin , TX The area's unsurpassed CRE event spotlighting the area's trends, active areas, latest insight, industry forecasts and much more. Register Now RealShare Orange County August 16, 2016 Costa Mesa , CA Building on the success of last year's event, RealShare OC 2016 promises to cover a wider array of topics effecting Orange County. Register Now RealShare New Jersey September 14, 2016 Holmdel , NJ An in-depth look at everything affecting New Jersey's commercial real estate industry. Register Now Featured Content Irvine Company Opens 65,000-sf Office Property May 27, 2016 SAN DIEGO— With Eastgate Summit completed, the company has begun construction at 96,000-square-foot Eastgate Terrace, about a mile from its new 15-story vertical campus, One La Jolla Center in UTC. Research CRE Growth Tapers in Q1; Outlook Holds May 27, 2016 NEW YORK CITY—The sentiment indexes for occupiers and investors alike remained in positive territory in RICS’ latest US Commercial Property Monitor, although both were off from the previous quarter. Exclusive Beyond Retail Sales and Inventory May 27, 2016 LAS VEGAS—To meet strong market demand for its product, Apto has doubled its headcount in the past yearWe chat with the firm’s founder and CEO at ICSC RECon about all things retail. Exclusive A Critical Juncture in the Use of Data May 27, 2016 LAS VEGAS—As part of our ICSC RECon coverage, MasterCard’s general manager of information services tells us that not to miss a big opportunity to take advantage of analytical tools to more effectively value a retail location, and in turn, negotiate contracts. //set share tool variables var socialTitle = "Industrial Surges Outside the Hubs"; var socialDescription = "KANSAS CITY—A survey among SIOR industrial professionals shows “a continuation of healthy construction trend lines;” GlobeSt.com spoke with some of them to gauge the strengths of their own markets."; var followedArticle = "followedArticlesitespaulbubny20160527industrial-surges-outside-the-hubs"; GlobeSt.com About Us Contact Us Contributors Advisory Board Thought Leaders Events eNewsletters Advertise Terms of Service Privacy Policy [New] Markets National International Atlanta Austin Boston Chicago Dallas Houston Los Angeles All Markets › Sectors Net Lease Multifamily Retail Student Housing Healthcare Real Estate Hotels Office Industrial Real Estate Forum Real Estate Forum Current Issue Digital Edition Issue Gallery Reprints Advertise Subscribe / Renew Current Issue Follow Us Facebook Twitter Linkedin RSS Feed

Trending Kansas News:


  • Events in Kansas City cancelled for the evening due to storms
  • United® Real Estate Recognizes Top-Performing Teams for Q3 2016
  • From Paris to Kansas, with love
  • Reece Commercial Real Estate closes retail lease in Lawrence
  • Kansas City council discusses next steps for KCI
  • Top of the List: Heavy Hitters in Commercial Real Estate
  • The saddest thing about the Chiefs’ season
  • JVM Realty Acquires 309-Unit Luxury Apartment Community in Vibrant Kansas City Suburb
  • At homes for disabled, ‘pot of gold’ for private firms
  • 2017 NFL Draft: Kansas City Chiefs Select QB Patrick Mahomes
  • Multiple buyers want iconic downtown USPS building
  • JVM Starts Reno on 3 Kansas City-Area Communities
  • New Owner and a New Name for The Avenues at Overland Park
  • Kansas Juvenile Justice Reforms Cut Detentions by 34 percent
  • Converted caverns mean new real estate for cramped Hong Kong: Wired
  • LIEAP application period opens Tuesday, Jan. 17
  • Who’s news: NAI Hanson promotes Anne Remley, Bill Edwards joins Rockefeller Group
  • Gov. Brownback signs 12 bills into law
  • Deduction Elimination
  • Kansas Supreme Court weighs Mission's 'driveway tax'