Q2 2023 MARKET OVERVIEW
Wichita Submarkets
Q2 2023 MARKET
OVERVIEW
OVERALL MARKET
Q2 2023 NEW CONSTRUCTION PERMIT VALUE
CONSTRUCTION ACTIVITY Despite reports on stabilization of the costs of building materials, commercial permit activity slowed in Wichita in the second quarter. The value of permits issued was down in all sectors compared to Q1 2023, and the number of permits issued was lower (84 permits issued in Q1 2023 vs 43 permits issued in Q2 2023). Despite this slow down, there were notable projects announced and permits issued including:
Q2 2023 MARKET
OVERVIEW
A permit was pulled for 270,000 SF for a new multifamily project in the Plazzio Development. 7 Brew coffee is expanding it's footprint with two new sites: one on N Rock Rd and one at E. 21st St. N. Construction is underway for Wesley's new 41 bed rehab hospital, estimated to cost $30,517,069. A 9,800 SF strip center in the District 96 center broke ground. Deano's announced a new location overlooking the lake at Ridge and 37th St. Cedarhurst of Wichita is under construction at the NE/c of 29th and 119th St. The permit is valued at $10 million. The facility plans to have 76 units split between memory care and assisted living. Several new strip centers are in the works across Wichita. District 96 is at Oliver & Kansas HWY-96. Across the street from Top Golf on N Greenwich road, a permit was pulled on multi-tenant strip center.
Retail
Q1 2023: $13,930,534 Q2 2023: $9,621,283
Office
Q1 2023: $36,918,678 Q2 2023: $3,500,000
Industrial
Q1 2023: $42,078,248 Q2 2023: $9,671,790
NEW CONSTRUCTION PERMIT VOLUME 20
15
10
5
0 Retail
Office
Industrial
OFFICE
Q2 2023 .
OFFICE FUNDAMENTALS
HIGHLIGHTS
After leasing space in property for two years, McCownGordan Construction purchased the 23,000 square-foot at 255 N. Mead from Old Town developer Dave Burk. They will continue to share space with Signal Theory, Associated General Contractors of Kansas and Ad Astra Financial Group. The national accounting firm of Jorns & Associates launched its flagship office in Wichita, occupying the 21,000 square-foot former Pixus building at 301 N. St. Francis in downtown Wichita. Citing the building's amenities, Slawson Companies moved from River Park Place at 727 N. Waco to the Farm Credit Bank Building at 245 N. Waco.
LEASED
Vacancy
Q1 2023: 22.63% Q2 2023: 25.34%
Net Absorption
Q1 2023: (126,363) Q2 2023: (74,321)
Average Asking Rate
Q1 2023: $13.62 Q2 2023: $14.24
LEASED
LEASED
Q2 2023 MARKET
OVERVIEW
430 E. Douglas Ave. Wichita, KS 67202
800 E. 1st St N. Wichita, KS 67202
245 N. Waco Ave. Wichita, KS 67207
RETAIL . Q2 2023
RETAIL FUNDAMENTALS
HIGHLIGHTS Construction continued on several new restaurants near and in Greenwich Place. Wendy's and Dunn Brother's Coffee are now open, and Panda Express is near completion. Down the road on Greenwich, 7 Brew Coffee is under construction and construction is also underway on a retail center just to east of HTeaO. The announcement that Bed, Bath and Beyond is closing all its remaining stores is having an impact on both the East and West side of Wichita, with both New Market Square and Greenwich Place locations closing their doors and Greenwich Place also losing its Buy, Buy Baby. At this time there are no new tenants announced for the spaces.
LEASED
Vacancy
Q1 2023: 13.29% Q2 2023: 13.75%
Net Absorption
Q1 2023: (56,688) Q2 2023: (21,468)
Average Asking Rate
Q1 2023: $12.23 Q2 2023: $11.29
LEASED
SOLD
Q2 2023 MARKET
OVERVIEW
501-523 E. Douglas Ave. Wichita, KS 67202
3234 E. Douglas Ave. Wichita, KS 67208
110-140 N. Rock Rd. Wichita, KS 67206
INDUSTRIAL
Q2 2023 .
INDUSTRIAL FUNDAMENTALS
HIGHLIGHTS
Activity did not slow down in Q2 on the industrial side as more projects and tenants continue to be announced. The ICT21 Industrial District added another tenant with CNH, an internal agriculture and construction services company expanding its Wichita presence by leasing an 180,000 square-foot warehouse in the park. In May, the City of Maize announced it will be the home of a new a 80-acre, $80 million dollar plastics plant which Charlotte Pipe and Foundry has plans to build. The announcement of the Integra Technologies microchip manufacturing facility continues to impact the Bel Aire area with the announcement by developer Michel Le of the Bayside industrial development which will be made up of 7 175,000 square-foot warehouses.
SOLD
Vacancy
Q1 2023: 8.71% Q2 2023: 9.24%
Net Absorption
Q1 2022: (673,437) Q2 2023: (230,014)
Average Asking Rate
Q1 2022: $5.33 Q2 2023: $5.36
LEASED
SOLD
Q2 2023 MARKET
OVERVIEW
346 S Lulu St Wichita, KS 67211
4055 N Toben St Wichita, KS 67226
404 N. Greenwich Rd. Wichita, KS 67206
NAI Martens is the largest full-service commercial real estate firm in Kansas. Founded in 1948 and headquartered in Wichita, NAI Martens provides a vast array of commercial real estate services throughout south-central Kansas. President Grant Glasgow, SIOR leads a team of professionals with over 150 years of combined commercial real estate experience.
Q2 2023 MARKET
OVERVIEW
FOLLOW US!
Member of NAI Global with 300 + Offices Worldwide
1330 E. Douglas | Wichita, KS 67214| 316-262-0000 THE INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM SOURCES DEEMED TO BE RELIABLE, BUT NO GUARANTEE OF ITS ACCOURANCY IS MADE BY NAI MARTENS