Kansas City Retail Market Report

Metro joins high-performing cadre. Kansas City’s retail sector is on track to end 2023 with a vacancy rate 110 basis points below its year-end 2019 mark. Only seven other major U.S. markets will claim a decline of equal or greater measure, including Indianapolis and high-population growth markets like Phoenix and Salt Lake City. Strong property performance is supported by favorable wealth generation trends. Kansas City employers are adding jobs faster than in most other major Midwest markets. The metro is also in high standing among its regional peers for median income growth and single-family home value appreciation, allowing owners to build equity. At the same time that household wealth is improving, Kansas City also boasts the Midwest’s lowest-cost retail asking rent outside of Ohio, offering further encouragement for tenant expansions.