Q4 2021 MARKET UPDATE
1330 E. Douglas | Wichita, KS 67214 | naimartens.com | (316) 262 0000
WICHITA OFFICE OVERVIEW
Vacancy Rate
Negative Absorption
Avg. Asking Rental Rate
21.21%
-34,602
1.4
in Q4
SF in Q4
compared to Q3
Year End Review The office market ended the year with a slight increase in overall vacancy compared to Q4 2020, and a slight decrease in asking rents.
%
36 Properties Sold
$
55,336,236 Total Dollar Volume
• The Wichita office market had a decent fourth quarter, despite ending the year with a slight increase in vacancy. A couple new projects were announced, and office buildings in both downtown and suburban locations completed leases to bring them to 100% occupancy. • The fourth quarter ended with nearly 35,000 square feet of negative absorption. A majority of this can be contributed to the former Credit Union of America headquarters building along West Kellogg, which was purchased and is now for lease. Credit Union of America recently moved into IMA Financial’s former building on East 32nd Street. • River Park Place at 727 N. Waco became fully leased during the fourth quarter. And in the suburban office market, the Hinkle Law building at the Waterfront is 100% occupied for the first time in its history, with the addition of Fee Insurance Group. • In construction news, local contractor Zernco is building itself a new office headquarters at Greenwich Business Park. Rezoning requests are pointing to a possible new office building at 37th and Rock, which could be between 5,000 and 10,000 square feet. Plans for land surrounding Riverfront Stadium were announced and include a six-story office building which would be next to the stadium.
WICHITA INDUSTRIAL OVERVIEW
Vacancy Rate
7.48%
3
Positive Absorption
Avg. Asking Rental Rate
18,418
0.3
SF in Q4
compared to Q3
in Q4
Year End Review Compared to Q4 2020, the industrial market closed out the year with a decrease in vacancy and an increase in asking rents.
%
32 Properties Sold
104,236,925
$
Total Dollar Volume
• The industrial market during the fourth quarter followed the same trends, as expected. A small amount of positive absorption led to a decrease in overall vacancy. Asking rents were steady for both traditional warehouse and flex space. • More preparation work has been completed on the new ICT21 Industrial Park near I-135 and 21st. The first spec building for the park is underway. It will be 180,000 square feet and sit along 21st Street just west of I-135. • At K-42 and West Street, a smaller spec building is under construction. A 30,000 square foot office warehouse will sit at the northwest corner of the intersection – the West Street corridor has seen an increase of industrial activity in recent years. • Quality warehouse space continues to be sought after in the Wichita and surrounding markets. More construction is expected as spec buildings entering the market are being quickly leased.
WICHITA RETAIL OVERVIEW
Vacancy Rate
Positive Absorption
Avg. Asking Rental Rate
12.18%
9,096
0.4
in Q4
SF in Q4
compared to Q3
Year End Review The Wichita retail market ended the year with a slight increase in vacancy compared to Q4 2020, but asking rents increased 4% overall.
%
44 Properties Sold
$
36,955,731 Total Dollar Volume
• Retail had a solid last quarter of the year, ending Q4 with 9,093 SF in positive absorption. Vacancy decreased and asking rents were relatively steady. • Brick and mortar retail remains stronger than many expected. A few new construction projects have been announced, many of which are businesses focusing on drive-thru customers; including another Dunkin’ at Central and Hillside and a new Smoothie King at Greenwich Place. Dutch Bros coffee also announced plans for at least three Wichita locations, beginning with 29th and Maize. • Towne East Square announced a multi-million dollar remodel to update the interior and exterior of the mall. Included in the improvements are the changes needed for Scheels to take over the former Spears space. Towne East was opened in 1975 and has maintained a strong occupancy. • Numerous restaurants opened during the fourth quarter, including the new Meddys at NewMarket Square, a new south side Chipotle and the reopening of California Tortilla at 2244 N. Greenwich. Mokas coffee in Delano finished construction and is expected to open soon. • Work should be starting soon on Wichita’s Topgolf, which will be over next to Greenwich Place. The driving range concept is expected to open around March 2023.
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