HIGHLIGHTS: • 2022 has started out strong with excellent momentum across virtually all property types. • Land has been on upward curve. Sales and prices outpace commercial and residential growth. • Not unlike the national trends Wichita and surrounding area land sales have been brisk. • Agricultural real estate values increase at a rapid pace across farm country. • Metaverse land…get ready.
LAND REPORT naimartens.com • (316) 262-0000 1330 E. Douglas, Wichita, KS 67214
Land has been on upward curve. Sales and prices outpace commercial and residential growth. Overall, the land market had its best year in nearly a decade in 2021. Land sales rose an average of 6%, surpassing the sales growth of other commercial and real estate sectors. Land prices rose nearly 7%, second only to the price growth of single-family rental properties, according to the Realtors® Land Institute (RLI) and the National Association of Realtors® Research Group. The increase in land sales reported by RLI and NAR members surpassed the increase in dollar sales volume of transactions for commercial real estate properties such as single-family rentals (5%), industrial properties (4%),
and apartment buildings. The strong growth in land sales clearly outperformed the decline in transactions of retail, hotel, and office properties of RLI and NAR members in 2021. The balance of 2022 is expected to remain strong even with rising interest rates. There should be sustained growth in sales and prices this year given the demand for multifamily and single-family housing. The shift from just-in-time to just-in-case inventory management amid supply chain issues will continue to drive the demand for land for new warehouses.
Recent NAI Martens Land Transactions Acres: 10
5610 E. 29th St. Wichita, KS
Acres: 80
Logistics Park Kansas City Edgerton, KS
Acres: 54
Rock Rd.
Webb Rd.
Acres: 80
Acres: 62.73
Yellow Brick Farm Land Anthony, KS
Webb Rd.
Acres: 11.57
53rd St.
Derby Corporate Park Derby, KS
Development Land Bel Aire, KS
Acres: 104
Acres: 120
45th St.
Development Land Bel Aire, KS
Acres: 2.21
SOLD SOLD SOLD
SOLD SOLD
Development Land Bel Aire, KS
Acres: 246.34
NW/s 45th St. N. & Tyler Wichita, KS
Acres: 25+
The Waterfront Land Wichita, KS
Acres: 10.21
SOLD SOLD SOLD
SOLD SOLD
Development Land Bel Aire, KS
Lakeside at the Moorings Wichita, KS
NW/S Kellogg & 135th St. W. Wichita, KS
Wichita and Surrounding Area Land Sales Have Been Brisk. During 2021 there were 117 commercial/industrial land sales reported in Sedgwick County. They totaled almost 800 acres with a sales value in excess $52 million. Thirty five percent were industrial with a value of almost $9 million. Commercial transactions totaled over $43 million. This continues a trend over the last three years as the demand for commercial and industrial land has been exceptionally strong. It is important to note that land sales for commercial and industrial uses are significantly higher than reported. There are many sales classified as unimproved farmland that are acquired and planned for commercial, industrial and residential uses. The average per acre price for reported sales in Sedgwick County increased from $60,160 in 2019 to over $104,000 in 2021. Well located development land both east and west has seen strong price appreciation with some larger parcels approaching $25,000 per acre. Developed lots in designated industrial parks, particularly northeast in and around Bel Aire and Comotara experienced exceptional sales over the last three years. There is a shortage looming for quality sites in the most desirable submarkets.
Agricultural real estate values increased at a rapid pace across farm country. Not to be outdone, agricultural real estate values continued to increase at a rapid pace through the end of 2021. Adding support to agricultural real estate markets, commodity prices, farm finances and credit conditions have improved from recent years and interest rates on farm loans remained near historic lows. Moreover, agricultural grain prices will remain elevated due to the war in Ukraine and thereby boosting demand for farmland. Despite concerns about the impact of higher input costs and intensifying drought in some regions, markets for most major commodities remained strong and producers throughout the agricultural sector were poised for sound profit opportunities in 2022. In Kansas, non-irrigated cropland values were up over 25% from 4th quarter 2020 to 4th quarter 2021. Locally, sales and transaction values for ag land far exceed those of commercial and industrial land. Sales averaged a total of 273 transactions over the last three years with the average sale price for improved farmland was almost $6,000 an acre while unimproved land averaged $9,800 per acre.
2019
2019
Sales
Value
Acres
Sales
Value
Acres
Industrial
26
$5,293,648
124
Improved Farm
124
$40,165,078
5,312
Commercial
88
$28,696,107
323
Unimproved Farm
129
$39,716,723
8,139
Total
114
$33,989,755
477
Total
253
$79,881,801
13,451
Sales
Value
Acres
2020
2020
Sales
Value
Acres
Industrial
23
$6,334,243
240
Improved Farm
149
$50,211,698
6,114
Commercial
61
$33,613,635
420
Unimproved Farm
145
$35,844,277
9,784
Total
84
$39,947,878
660
Total
294
$86,055,917
15,898
Sales
Value
Acres
2021
2021
Sales
Value
Acres
Industrial
43
$8,923,599
368
Improved Farm
132
$54,823,219
6,476
Commercial
75
$44,235,496
425
Unimproved Farm
140
$55,951,720
11,454
Total
117
$53,159,095
793
Total
272
$110,414,939
17,930
Source: Sedgwick County Transaction Report
Metaverse Land? Get ready…because it is here! Metaverse is a 3D virtual reality that allows users to own, create and monetize digital assets. Recently the metaverse has emerged as a marketplace for buying and selling land. Each Metaverse consists of a finite number of parcels of land with fixed dimensions. For example, Metaverse Decentraland consists of 90,601 (16m x 16m) plots of land. Users can build and develop their land by filling it with digital assets to create value. When you find a parcel you like that’s within your budget, you simply click on it and buy it on some platform like Decentraland or a third party platform. You can make an offer for the property within the platform, and the owner either accepts or rejects your request.
could buy lots in almost any Metaverse for a few hundred dollars. Today, you’ll need a few thousand, minimum, just to get in the door. Investing is highly speculative. That’s not to say you can’t win with virtual real estate; it’s just that it’s a very new type of asset.
It will be difficult to predict which metaverse platforms are safe and will not make you lose money. Like cryptocurrency, it’s highly volatile. A few months ago, you
Tom Johnson, CRE 316 371 7635 tjohnson@naimartens.com
naimartens.com • (316) 262-0000 • 1330 E. Douglas, Wichita, KS 67214
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