Kansas City Office Investment Report
Kansas City, 2017 Outlook
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Balanced Kansas City Office Fundamentals Sustain Investor Interest

Vacancy rates and rents to remain stable. Expansion of the number of financial services, tech and engineering positions will carry office-using job creation in 2017, fueling demand for space. Expansion by Cerner, Fishtech Labs and Google Fiber could encourage other tech-related firms to grow within the metro. After eclipsing 1 million square feet last year, the volume of space brought online will decrease in the year ahead. The majority of office construction downtown is pre-leased and will account for the bulk of space delivered. New buildings in Johnson County and south Kansas City complete the list of properties slated for delivery in 2017. Net absorption will slightly outpace deliveries, supporting six consecutive years of vacancy reductions as the rate sustains its lowest level in 10 years. The average rent will remain at a high over the same time period, but the rate of growth will stall due to a decline in Class A rents offset by moderate increases in the Class B/C sector.