THE FUTURE LOOKS BRIGHT

Substantial investments in the downtown sub-market, new industrial campuses, medical offices, and schools are spurring strong momentum in Wichita’s commercial real estate market. Downtown Wichita has become a thriving hub of social, professional and cultural experiences with 350 new residential units under development (adding to the over 3,200 existing units), over 120 unique retailers, and 4.1 million square feet of occupied office space. With solid manufacturing, technology, and medical job growth, Wichita has grown into a vibrant Midwestern city.

Engaging Downtown Wichita

The Wichita urban core continues to see strong growth and investment, both in the central downtown and surrounding districts. In the neighboring Delano district, the Riverfront Stadium marked over $75 million in new investment, driving increased demand in the surrounding areas for additional dining, lodging, multifamily, and office use. A primary focus in Delano and downtown development has been to engage the Arkansas River, which acts as a natural dividing line between the heart of downtown and Delano. This emphasis can be seen with the completion of the River Vista Apartment complex and surrounding projects.

SHAPING WICHITA’S MEDICAL FUTURE

As downtown office development continues to see strong momentum and lease-up from both local and national office users, medical office and educational uses are driving a flurry of new investment. The recently completed $75M Kansas College of Osteopathic Medicine welcomed its first class to campus this fall. The campus renovated five buildings to include housing, an AC by Marriott Hotel and the medical school. It is the first osteopathic school in Wichita and will create a hub of healthcare education and training programs to serve the potential growth of the healthcare field’s employment needs

Additionally, the University of Kansas and Wichita State University recently announced a planned partnership to establish and relocate a biomedical campus to downtown Wichita. The initial estimated costs of the project are more than $300 million and will bring more than 3,000 students and staff into the urban core.

In addition, a new 24-bed geriatric psychiatric hospital has been approved with a budget of $10 million. The hospital will provide long- and short-term inpatient care, as well as outpatient services, and aims to act as a resource for the region’s nursing homes and assisted living facilities.

Emerging Industrial Developments

Like other markets throughout the country, the local industrial market has experienced sharp increases in demand coupled with a lack of existing inventory, driving rents and new speculative development. ICT21, a master-planned industrial development along the I-135 corridor, finished its first speculative building and recently announced a 180,000 SF lease with JTM Foods, a new-to-market food manufacturer.

Bel Aire (a suburb of Wichita) hosts numerous planned and under-development industrial projects in the Sunflower Commerce Park, including an industrial campus owned by Occidental Management, capable of hosting 1M SF of space under one roof.

Existing companies are driving industrial growth through expansions and additions within their own campuses. Textron Aviation recently announced plans for a 180,000 SF expansion to customers worldwide. Chad Stafford, President of Occidental Management added, “With the continued capital investment that is happening in downtown Wichita and in the market overall, we will see continued growth in the coming years across all commercial real estate asset classes.”

Integra Technologies, the largest outsourced semiconductor assembly and test operation in the United States is expected to bring 2,000 jobs to the Wichita area, and another 3,000 to the Wichita metro. The announcement was the second largest economic deal in Kansas history, totaling $1.8 billion dollars in expansion for the company. It is the largest expansion in the semiconductor industry in the United States.

Looking Ahead To 2023

The Wichita area is projected to add around 8,100 jobs next year, an exciting prospect in a market that could be moderated by likely recession and labor constraints. Wichita’s economy has always been closely linked to the aviation industry.

According to the Center for Economic Development and Business Research at Wichita State University, as recently shared at the Kansas Economic Outlook Conference, the relative strength of aerospace manufacturing is expected to make the Wichita area an outlier for job growth in Kansas in 2023.

Learn more about Occidental Management at occmgmt.com.

What once was a simple pleasure and a way to relieve stress has flourished into a franchise ownership for Wichita native Stephanie Kelley-Ruedy.

Stephanie began taking classes at Jazzercise Wichita in 2012 as a way to maintain her physical health and get some added “me” time. She quickly fell in love with not only the style of the exercise classes but the social and mental benefits as well.