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Market Report

Kansas City Office Market Report

2024 Investment Forecast

Assortment of Smaller Tenants and Slow Development
Help Mitigate Effect of Larger Move-Outs

South Johnson County emerges as metro’s most dynamic leasing market. In 2024, the College Boulevard Corridor east of U.S. Route 69 will be the most active locale for move-ins. In addition to proximity to multiple interstate routes, this area features a diverse selection of office towers that are drawing a similarly varied tenant mix. Leases beginning this year range from 7,000 to over 36,000 square feet, and feature firms like Global Aerospace and TruHome Solutions. On a less positive note, however, roughly 340,000 square feet of sublet space listed by the recently-bankrupt logistics firm Yellow is likely to be relinquished in March. This counterbalances much of the net absorption noted in 2023, and will likely keep vacancy in the broader South Johnson County market well above pre-pandemic norms. Fortunately, supply additions across the Greater Kansas City area will exert little pressure on vacancy, as the vast majority of square feet underway is accounted for entering 2024. Corporate downsizing, however, will continue to have a particularly adverse impact on the CBD. Downtown vacancy led the metro in increases last year, rising above the suburban rate for the first time in roughly half a decade.
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