Q1 2021 MARKET UPDATE
435 South Broadway | Wichita, KS 67202 | naimartens.com | (316) 262 0000
WICHITA OFFICE OVERVIEW
Vacancy Rate
20.61%
Negative Absorption
- 11,306
in Q1
Avg. Asking Rental Rate
SF in Q1
Office vacancy increased to 20.61% with a negative absorption of 11,306 SF “Office space users will continue to evaluate their requirements in light of the increasing trends in remote-work environments, more flexibility in their space utilization, amenities offered by landlords or provided in owned space that aid in employee retention and recruitment, and concerns regarding the eroding of company culture and productivity.” Patrick Ahern, CCIM, SIOR Vice President - Office pahern@naimartens.com
5.2
%
compared to Q4
35 Properties Sold
$
29,829,895 Total Dollar Volume
• As the rollout of the COVID-19 Vaccine began in earnest, Wichita office users and tenants began to make the return to work or made adjustments to the “new normal.” • In February, with its staff working from home since March of 2020, the Wichita Eagle announced that it plans to vacate its offices in Old Town. Despite the Eagle’s departure, the market remains active as there are multiple new projects in the works. • TEC Systems and Cornerstone Data announced plans to renovate and share 14,000 square feet of office space in the former warehouse at 127 S. Washington. • Developers announced plans for the redevelopment of a 20,000 square foot office building in the arena district at 420 S. Emporia.
WICHITA INDUSTRIAL OVERVIEW
Vacancy Rate
7.91%
Negative Absorption
- 201,358
in Q1
Avg. Asking Rental Rate
SF in Q1
Industrial vacancy increased to 7.91% with a negative absorption of 201,358 SF. “High demand and low inventory will continue to push property value and new speculative development. Many developments are taking place along the outer edges of Wichita and in surrounding towns, but a new industrial park at I-135 and 21st Street promises to generate more activity in the city’s core.” Grant Glasgow, SIOR Senior Vice President gglasgow@naimartens.com
6.3
%
compared to Q4
36 Properties Sold
$
31,176,988 Total Dollar Volume
• Industrial continues to be the strongest sector nationally and locally. • Local developers continue to build new spec industrial buildings or prepare new sites to attract new companies. Both large warehouses, such as the one leased by Amazon near Webb Road, and smaller spaces are under construction. • The Cornejo brothers began work on a new 130-acre development called ICT21 Industrial Park, located at 21st and I-135. A travel plaza is planned for the area and the brothers plan to build three spec warehouses totaling 700,000 square feet. • A warehouse on South Hoover was the largest contributor to the negative absorption for the quarter. The 180,000+ square foot property was occupied by Triumph Structures.
WICHITA RETAIL OVERVIEW
Vacancy Rate
10.63%
Negative Absorption
- 3,529
in Q1
Avg. Asking Rental Rate
SF in Q1
Retail vacancy increased to 10.63% with a negative absorption of 3,529 SF. “The Wichita retail market is doing well and many retailers have adapted to changes brought on by the pandemic. Some of those changes seem to be here to stay. For example, even as mandates are being lifted and indoor dining has resumed, locations with drive-thru windows continue to be in high demand.” Miles Osborne Retail Specialist mosborne@naimartens.com
6.4
%
compared to Q4
26 Properties Sold
$
20,398,994 Total Dollar Volume
• The vaccine rollout also had an impact on retail as restrictions began to be lifted. Most of the restaurants which had gone to takeout only have reopened indoor dining. • During the first quarter new plans were announced for both of the former Granite City buildings. The NewMarket Square location was purchased by a group which plans to open a Walk-On’s Sports Bistreaux in the building – a Baton Rouge-based franchise with Cajun flair. The east location is also becoming a Cajun-inspired eatery; a new restaurant concept called Blue Hook Cajun Seafood & Bar. • Dollar Tree is opening another location in a portion of the former Hobby Lobby at Central Heights Shopping Center at Central and Ridge. • The owners of Wichita’s Hurts Donuts plan to bring a new franchise, Tropical Smoothie Café, to Wichita, with an initial location at 29th and Maize.
Our Team
Steven J. Martens, CPM, CCIM, SIOR
Thomas Johnson, CRE
Andrew Braun
Jeff Englert
Nathan Farha, CCIM
Grant Glasgow, SIOR
Kris Wessel
Patrick Ahern, CCIM, SIOR
Troy Farha
Scott Salome, SIOR
Ryan Hubbard
Trent Garman
Drew Gannon
Stephen Yowell
Miles Osborne