Kansas City Retail Market Report
Tight Conditions Spread Across Store Types;
Renter Movement Spurs Retailer Expansion
Vacancy reaches record low. Some of the largest leases signed in the first half of the year were by Furniture Mall of Kansas, Super Dealz and Ollie's Bargain Outlet. Interest by discount stores seeking to meet local demand for lower-priced goods amid elevated inflation has enabled the multi-tenant vacancy rate to compress 30 basis points year-over-year in the second quarter to 6.0 percent, its second-lowest rate on record. Single-tenant vacancy has compressed at an even steeper rate of 110 basis points to 5.0 percent. This can partly be attributed to an uptick in restaurant leasing activity. The restaurant chain Penn Station East Coast Subs announced it is expanding in several of its current markets, including Kansas City. In January, the chain signed leases for 23 locations across the metro. Little Caesars and MOD Pizza also inked additional leases.