Kansas City Retail Market Report
Johnson County and the Urban Core Stand Out;
Slow Leasing in Select Areas Poses Headwinds
Vacancy still historically tight. Last year, Kansas City logged its lowest vacancy since at least 2007, but the rate will inch up in 2023. The metro expects one of the fastest paces of annual inventory expansion in the Midwest. Overland Park, one of Kansas City’s most populous suburbs, accounts for over 30 percent of the new inventory slated for this year. Space coming online here is highly sought after and was almost entirely pre-leased as of June. This could lead expanding retailers to take up existing space here or in nearby areas also located in Johnson County. Both the North and South Johnson County submarkets experienced falling vacancy annually in March. Other areas may face more challenges, skewing the overall market vacancy rate. East Jackson County, the second-largest submarket by stock, also had one of the metro’s highest multi-tenant vacancy rates in March, applying pressure to the overall market rate.