Kansas City Retail Market Report

Corporate investment contributes to record-low vacancy. Kansas City was home to several corporate grand openings in the final quarter of 2024 and is expecting to add Panasonic’s De Soto EV Battery Facility to that list within the next few months. Though the company has hired several hundred employees, Panasonic is aiming to grow that figure to 1,000 by summer, with roughly 4,000 total jobs anticipated as operations ramp up. In addition to increasing local consumer demand, these positions contribute to the metro’s total employment gains, which have seen historic highs in recent years and will match pre-pandemic averages this year. Attended with household income and income growth that both exceed national measures, this tailwind supports strong demand for retail. North and South Johnson counties each saw triple-digit decreases in availability last year, while rates in East Jackson County and southwestern Clay County fell 50 basis points or more. With one of the smallest local construction pipelines on record and much of the year’s new supply pre-leased as of February, 2025 is expected to close out with the metrowide rate at its lowest in at least 18 years.