Wichita Q1 2022 Market Report

Page 1

WICHITA

Q1 2022 MARKET UPDATE

1330 E. Douglas | Wichita, KS 67214 | naimartens.com | (316) 262 0000


WICHITA, KANSAS

Q1 2022 | OFFICE OVERVIEW VACANCY

-0.4%

Δ from Q4 '21

ABSORPTION

RENTAL RATE

40k SF

-1.2%

Δ from Q4 '21

Δ from Q4 '21

OFFICE MARKET REVIEW

INVENTORY (SF)

8,969,000 CONSTRUCTION DELIVERED

14,000

NOTABLE Q1 TRANSACTIONS

The Wichita office market continued to recover through the beginning of 2022. 40,000 square feet of space filled up despite the delivery of 14,000 square feet of new space as people returned to the workplace and their normal day to day lives.

LEASED Patrick Ahern leased the 3,472 SF multi-tenant office space located at 1625 N Waterfront Place, Wichita, KS

SOLD Tom Johnson and Patrick Ahern sold the 22,000 SF free-standing office space located at 3531 N. Ridge Rd., Wichita, KS

Scan to view our office listings

LEASED Patrick Ahern leased the 5,069 SF multi-tenant office space located at 8621 E. 21st St. N., Wichita, KS

Source:

WICHITA DEMOGRAPHICS

POPULATION 639,668

HOUSEHOLDS 247,011

MEDIAN HOUSEHOLD INCOME $58,333

1330 E. Douglas Ave. | Wichita, Kansas 67214

MEDIAN AGE 36.2

UNEMPLOYMENT RATE 3.7%


WICHITA, KANSAS

Q1 2022 | INDUSTRIAL OVERVIEW VACANCY

-0.6%

Δ from Q4 '21

ABSORPTION

RENTAL RATE

-67k SF

+0.8%

Δ from Q4 '21

Δ from Q4 '21

INDUSTRIAL MARKET REVIEW

INVENTORY (SF)

10,619,000 PLANNED/UNDER CONSTRUCTION

1,646,706

NOTABLE Q1 TRANSACTIONS

Q1 2022 set a breakneck pace for Wichita's industrial real estate market in 2022. Industrial sector employment made up 800 of the 2,600 jobs added to the Wichita metropolitan area during the first quarter of 2022. This shows a major change of pace as on average the industrial sector in Wichita has averaged a loss of 868 jobs annually since the beginning of 2018.

SOLD Grant Glasgow sold the 38,900 SF general industrial space located at 4343 S West St., Wichita, KS

How does this translate into the real estate market? Rental rates are up by almost 1% and over 1.6 million square feet of space are either planned or already under construction. 2022 looks to be an even stronger year for Wichita's industrial sector than 2021.

SOLD Scott Salome sold the 25,183 SF industrial warehouse space located at 934 S West St., Wichita, KS

Scan to view our industrial listings

SOLD Ryan Hubbard and Grant Glasgow sold the 18,456 SF industrial warehouse space located at 1623 S McComas St., Wichita, KS

Source:

WICHITA INDUSTRIAL STATISTICS

REGIONAL EMPLOYMENT BASE 380K

HOUSEHOLDS 247,011

MEDIAN HOUSEHOLD INCOME $58,333

1330 E. Douglas Ave. | Wichita, Kansas 67214

ENERGY RATES COMPARED TO NAT'L. AVG. -8.5%

NAT'L MANUFACTURING JOBS RANKING #1


WICHITA, KANSAS

Q1 2022 | RETAIL OVERVIEW VACANCY

-0.01% Δ from Q4 '21

ABSORPTION

RENTAL RATE

5k SF

+0.1%

Δ from Q4 '21

Δ from Q4 '21

RETAIL EXPERT INSIGHT

INVENTORY (SF)

6,846,000 PLANNED/UNDER CONSTRUCTION

1,217,544

NOTABLE Q1 TRANSACTIONS

“National retail remained strong in Q1 ’22 despite some continued supply chain issues. Local retailers/restaurants held up in Q1, staffing remains the number 1 challenge.” - Troy Farha

SOLD Drew Gannon and Miles Osborne sold the 204,342 SF retail center located at 2120 N Woodlawn Blvd., Wichita, KS

LEASED Troy Farha and Patrick Ahern leased the 10,991 SF freestanding retail space located at 11006 E Kellogg St., Wichita, KS

Scan to view our retail listings

LEASED Grant Glasgow leased the 13,600 SF retail center located at 3570 N Woodlawn Blvd Ste 300, Wichita, KS

Source:

WICHITA RETAIL STATISTICS

MEAN ANNUAL SPENT APPAREL $1,744

MEAN ANNUAL SPENT ENTERTAINMENT $2,605

PER CAPITA INCOME $29,270

1330 E. Douglas Ave. | Wichita, Kansas 67214

MEAN ANNUAL SPENT DINNER EATING OUT $1,444

MEAN ANNUAL SPENT LUNCH EATING OUT $964


WICHITA, KANSAS

Q1 2022 | SUBMARKET BREAKDOWN

Submarket

Vacancy

Total Inventory

Asking Rent

Greenwich Retail Corridor

1.87%

1,051,257 SF

$21.29

NE Class A Office

15.94%

523,606 SF

$21.75

Core Office

19.55%

3,795,070 SF

$12.98

Core Retail

6.96%

1,575,148 SF

$12.23

1330 E. Douglas Ave. | Wichita, Kansas 67214


WICHITA, KANSAS

Q1 2022 | EXPERT INSIGHT

On the Q1 2022 Wichita Market: "The first quarter of 2022 continued the momentum of the incredibly hot market we had throughout 2021. Inventory has remained low for the amount of demand that has existed in the market, which has driven up pricing.

GRANT GLASGOW, SIOR

" -Grant Glasgow, SIOR

President

SCOPE OF EXPERIENCE

Grant has over 20 years of commercial real estate experience with a wide range of expertise in industrial and office representation. He is a graduate of Wichita State University with a Bachelor’s Degree in Entrepreneurship with an emphasis in Real Estate. Grant was named one of Wichita Business Journal’s 40 Under 40 and has been recognized as part of Wichita’s Emerging Leaders program in conjunction with the Kansas Leadership Center.

1330 E. Douglas Ave. | Wichita, Kansas 67214


WICHITA, KANSAS

Q1 2022 | FEATURED TRANSACTION SOLD SOLD:

3/11/2022

OCCUPANCY AT SALE:

64%

SF:

204,342

BRITTANY CENTER ABOUT THE DEAL: “The buyer saw great upside in the center that

DREW GANNON

was almost 40% vacant at acquisition. In the first two months since their purchase, they

CONTACT Office | 316.847.4918 Mobile | 316.680.1108 DGannon@NAIMartens.com

have leased over 20,000 SF Of space! The value-add retail market continues to be strong for landlords who are willing to be creative with their leases” - Miles Osborne

MILES OSBORNE CONTACT Office | 316.928.8613 Mobile | 316.652.5186 mosborne@naimartens.com

1330 E. Douglas Ave. | Wichita, Kansas 67214


WICHITA, KANSAS

Q1 2022 | SALE HIGHLIGHTS SOLD The Landing at Woodlawn Tower

SOLD: ADVISORS: UNITS:

1/13/2022 Nathan Farha, Jeff Englert, Trent Garman 192

SOLD RelaDyne

SOLD: ADVISORS: SF:

3/28/2022 Grant Glasgow 38,900

SOLD Berkshire Hathaway Building

SOLD: ADVISORS: SF:

1330 E. Douglas Ave. | Wichita, Kansas 67214

1/1/2022 Tom Johnson, Patrick Ahern 22,000


WICHITA, KANSAS

Q1 2022 | LEASE HIGHLIGHTS LEASED North Woodlawn Retail Center

SOLD: ADVISORS: SF:

1/1/2022 Grant Glasgow 13,600

LEASED Former Golden Corral - East Kellogg

LEASED:

3/25/2022

ADVISORS:

Troy Farha, Patrick Ahern

SF:

10,991

LEASED Stinson Building

LEASED:

2/22/2022

ADVISORS:

Patrick Ahern

SF:

1330 E. Douglas Ave. | Wichita, Kansas 67214

3,472


MEET OUR TEAM

Grant Glasgow, SIOR

Andrew Braun

President & NAI Director

CEO

Steven J. Martens, CPM, CCIM, SIOR

Thomas Johnson, CRE

Jeff Englert

Nathan Farha, CCIM

Kris Wessel

Patrick Ahern, CCIM, SIOR

Troy Farha

Scott Salome, SIOR

Ryan Hubbard

Trent Garman

Drew Gannon

Stephen Yowell

Miles Osborne

Trevor Stacy

Stephanie Wiens


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