Job gains drive bullish Kansas City office market

Continuing job growth helped account for another successful year for the Kansas City-area office market in 2017 and promises to propel more growth in 2018.

That was the word at a 2018 commercial real estate forecast hosted Thursday by the Kansas City office of Colliers International.

Based on Mid-America Regional Council data, the metro added just more than 18,700 jobs throughout 2017, Colliers reported. A MARC economic forecast projects job creation to increase to nearly 19,700 jobs in 2018 and add an additional 18,400 jobs in 2019.

By the beginning of this year, the area’s overall office vacancy rate declined to 9.1 percent, down from 9.6 percent a year earlier. With vacancy rates on the way down and other market fundamentals improving, developers last year began to plan and build new multitenant office space on a speculative basis, meaning before tenants are landed, for the first time in many years.

By the end of 2017, Colliers reports, the area office market posted a record 1.94 million square feet of positive absorption. Absorption, which takes new occupancy, construction and vacated space into account, reflects the net change in a market’s supply for a given period.

Read more: Kansas City Business Journal

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