On November 19^th IREM hosted its Annual Forecast Meeting at Meadowbrook Country Club in Prairie Village, KS.  Speakers included David Hickman with CB Richard Ellis, Ed Elder, SIOR, with Grubb & Ellis/The Winbury Group, Chuck Connealy, with Waterford Property Group, Rick Oddo of Oddo Development, and Bob Schock, CPM, CCIM, with The Yarco Companies.  The panel spoke to a full house on what each believes the future holds for retail, industrial, office, and multi-family real estate in the Kansas City market.

Don Lawhon and Tom Axtel of Lexington Plumbing pose for a quick picture before the luncheon got started.

Charlie Schloegel of Overhead Door and Mike Tiehen of Tiehen Realty catch up while waiting to check-in.

Sue Gravatt of Schindler Elevator, Lonnie Garrett of CTMT, and Jim Odom Jr. of Odom’s Bugs B Gone take a break from chit chatting to smile for the camera.

Monica Mallory of Lane4 Property Group and Anne Lemon of Block Real Estate Services networked away before taking their seats.

Wednesday Q & A Don Rosemann

As Founder of Rosemann & Associates, PC, Donald E. Rosemann, NCARB, AIA, DBIA brings comprehensive experience to the overall design and organization of the firm. When Don founded the firm in 1987, he had one desk, one drafting
table, one client and one burning desire to succeed. Today, Rosemann & Associates, P.C. has two offices, a professional staff of 33 people committed to achieving excellence in design solutions for real life because at Rosemann, “We
Know How People Live.”

With 32 years experience in the business, Don has learned that taking care of the client means more than just providing a service. It means exceeding the client’s needs and expectations by going the extra mile. It also means personal commitment through each step of the process. Don firmly believes that assisting the client means providing
services and assistance with such things as financing, project market analysis and assistance with legal issues that face each project. Don has remained firmly in tune with the critical issues that affect clients and provides assistance
unmatched by any other Architect.

Rosemann & Associates works on design and planning for numerous projects ranging from multi-family housing to green design.  Which projects allow you to be the most creative with your designs?

We pride ourselves on finding ways to be creative on all aspects of our projects.  It is our philosophy that good design does not have to be expensive design.  In today’s market, all of our clients are looking for value and creative ways to ensure that a project is on budget and on schedule.  Exceeding our clients’ needs, desires and visions is Rosemann & Associates’ number one priority.

Due to economic times, you have leaned heavily on government projects, how does working with the government differ from working with the private sector?  How is it similar?

Working with local, state and federal government agencies has long been beneficial and a matter of course for our firm!  We have found that once we understand the governmental rules and regulations, we are able to efficiently complete projects year after year.  The agencies that we work with are sophisticated, knowledgeable, and understand current trends applicable to their projects.  Financing for a government project is always in place prior to beginning a project, while private sector projects are currently still experiencing difficulty obtaining financing.

Your office has a ‘green’ rooftop.  What are the benefits of building a ‘green’ rooftop and how have you used it to promote sustainable solutions for your clients?

Besides the benefits to the environment, we have found that everyone loves our roof.  Our employees take advantage of it for lunches, cookouts, and after hour parties.  Our clients are reassured that Rosemann truly does practice what we preach, and the community is thankful for a business that gives back.  By installing our green roof we have seen first hand how good design in our office can be translated to benefits for our clients’ projects and our employees.

What trends do you see emerging in construction and architecture in the coming decade?

I believe that sustainability will continue to be a point of emphasis for the design and construction industries.  We will see more focus spent on the life cycle of a project, and how that affects the characteristics of a project.  I also believe that all projects going forward will really and truly need to have financing that works for all parties.  Projects must be financially viable.  This includes rent rates that are in line with the market, occupancy rates that are realistic, reasonable reserves, and affordable sale prices.  At Rosemann & Associates we also believe that Building Information Modeling (BIM) is going to be the new standard.  We have implemented REVIT as our standard design software in order to ensure that our clients have this leading technology available.

Will last Sunday’s win over the Steelers be a turning point for the Chiefs?

It was a great game to watch from the stands.  We may not have arrived yet, but we are back!

KCI Intermodal BusinessCentre

The KCI Intermodal BusinessCentre is one of three significant pillars of industrial development in the Kansas City market. For a number of years, there has been a trend for Kansas City to be perceived as an ideal, centrally located point for logistics and distribution related companies. As a result of that interest in Kansas City as an Inland Port, three intermodals are being developed in Kansas City. KCI Intermodal BusinessCentre is being developed from a mandate from the City of Kansas City and its Aviation Department to act as bothan economic engine for the development of jobs and other economic development opportunities for the region and to utilize the unique aspects of the Kansas City International Airport with over 7,000 acres of undeveloped land surrounding the airport. The project is a development of the Trammell Crow company and is being exclusively marketed by the CB Richard Ellis Kansas City Industrial Team.

Dave Long, Deputy Director of Properties and Commercial Development with the Kansas City Aviation Department, David Hinchman, SIOR with CB Richard Ellis, Mike Mitchelson, CCIM withCB Richard Ellis, Jim Didion with Trammell Crow, Teresa Campbell with Trammell Crow, Joe Oscheln with CB Richard Ellis,  and Brian Staton, CCIM, SIOR with CB Richard Ellis on site on a blustery November morning. 

David C. Hinchman, First Vice President, CB Richard Ellis said in talking of the project, “This is a once in a lifetime opportunity for our team. We are excited to be partners with the City and TrammellCrow on this first class development project. We are finding so much demand for quality locations within the Kansas City market by corporate and entrepreneurial users of industrial real estate. This park, with its unique incentives, proximity to the airport, great labor force, and easy access to the metro interstate system, is an ideal location for logistics oriented companies. We are already working on several request for proposals from national companies who are reviewing this development as a potential location for their distribution operations.”

An aerial view of KCI Intermodal BusinessCentre

BOMA Luncheon

On Novemeber 12th, BOMA  hosted a luncheon with guest speakers Sen. Julia Lynn,  Sen. Jolie Justus, Rep. Ryan Silvey, and Sen. Charlie Shields.  The panel spoke about the appeal of economic incentives to build and develop, the current state of property taxes, and the influence of regional public transportation, among other things. 

Senator Julia Lynn, Rep. Ryan Silvey, Sen. Jolie Justus, and Sen. Charlie Shields fielding questions at last week’s BOMA luncheon

‘What Is the Future of the Kansas City Real Estate Industry?’

 CBIZ & Mayer Hoffman McCann P.C. along with Polsinelli Shughart PC sponsored a real estate and economic outlook seminar titled “What is the Future of the Kansas City Real Estate Industry?” More than 150 real estate developers, investment bankers, underwriters, licensed real estate agents, investors, accountants, attorneys and government officials involved with the housing and development markets attended.  The event was beneficial for other professionals as well, offering advice for both people in the real estate industry and the general business community. The seminar was held November 13th at the Marriott in downtown Kansas City, MO.

Wednesday Q & A Tim Schaffer

Tim Schaffer joined RED Brokerage, LLC during the summer of 2005 as director of its new office division. Schaffer has earned a reputation as a problem solver during his 21-year tenure in the commercial real estate business. He was recognized by the Board of Realtors as the city’s top producer in 1999, in addition to being the recipient of the Board of Realtors Home Run Award for the city’s largest real estate transaction. Schaffer was formerly with NAI Cohen-Esrey Real Estate Services Inc. and its predecessor, Cohen & Co.for more than 20 years serving as a senior vice president, principal, and director of business development for the company.
Schaffer has served on the board of the Metropolitan Board of Realtors, the Johnson County Board of Realtors Commercial Investment Division and has been recognized by the Society of Industrial and Office Realtors. He currently serves on the Kansas City, MO Board of Zoning, which exemplifies his ongoing commitment to the revitalization of Downtown Kansas City. He also currently serves as vice president of development on the board of directors for The Society of Contemporary Photographers. Tim Schaffer earned his Bachelor’s of Science degree from the University of Kansas and is a licensed broker in Kansas and Missouri.

What’s new at Red Brokerage?

We recently hired seven brokers in our office and retail departments in anticipation for what we see as an improving market in 2010?

How would you describe the health of the Kansas City office leasing market?

The office market in Kansas City is surprisingly healthy relative to the rest of the US. Overall occupancy is 87% and although the number transactions is down there is still activity. There was a very noticeable lack of confidence by companies seeking new space the first half of this year which was evidenced by shorter term transactions. More companies today are willing to make long term commitments which is a positive indication of where the general business community sees the world going over the next year. We will actually have positive absorption this year as opposed to other cities in our comparative set that will see negative absorption.  I think this means that as the CMBS market comes back over the next year we will see new development sooner than most markets -hopefully in 2011. We still have a number of large blocks of space available in South Johnson County that need to be leased before the speculative office development business comes back to its previous pace.

What submarket is healthiest in Kansas City?

It depends on the definition of healthy, mine is the level of activity and transactions taking place at any given period of time. Based on that definition I would say that South Johnson County is the healthiest however vacancies levels and the number of options tenant have still provides a very competitive environment for owners to deal with.

What is the weakest submarket in Kansas City?

South Kansas City has some pretty major swings in vacancy rates due to the fact that it’s a fairly small submarket and it has been dominated by large tenants. When one moves out it moves vacancy up dramatically and sometimes that statistic is not representative of true existing conditions. We had some fairly major tenants in this market that where in the home lending arena that ceased operations that are responsible for such high vacancy’s. One major tenant lease in this market will move this market conversely for the positive.  This submarket experienced the same occupancy issues when Sprint consolidated into the campus and the market resolved those vacancies within a reasonable period of time so its temporary. The market provides a number of quality opportunities for the city to recruit large employers

In what direction do you see the Kansas City office market as well as the general real estate market heading in the coming years?

Given the fact that the hole we are digging out of is not that deep here (Kansas City) and its clear now that we have reached a bottom, we should see incremental improvement over the next twenty four months. We saw moderate job growth over the past 12 months which is a testament to strong fundamentals in our region’s economy. I think we have a solid foundation to lean into the next cycle especially with intermodal, and life science which hopefully will have some residual impact on our office market.

Where is the best place in Kansas City to buy a new suit?

Boomerang thrift store on 39^th Street. I typically can find a nice green three piece suit and matching top hat for a fair price.

CCIM Tyrone Flowers Signature Event

 On Thursday, November 5^th, CCIM held a Signature Event benefiting Harvesters at Mission Hills Country Club, hosting speaker Tyrone Flowers, Founder and President of Higher M-pact, a non-for-profit group that strives to impact the lives of high risk urban youth.  Mr. Flowers spoke about the hardships of growing up in a very adverse environment, elaborating on the difficulties that he, like many of today’s urban youth, faced daily.  However, the intention of Mr. Flowers’ speech was not to elicit sympathy, rather it was to inspire, motivate, and encourage his audience, just as he does with his kids in the Higher M-pact program.   Flowers stressed how crucial it is for one to define success for his or herself, how each individual must take initiative to solve problems that arise, and that maintaining a positive attitude and clarity of one’s position in the scheme of life is absolutely crucial.  For more information on Mr. Flowers and the Higher M-pact program, please visit www.higherimpact.org. 

 Jack McNett of First American Title Insurance Company, Don Gessen, CCIM, of Block Real Estate, Bill Fair of Bill Fair and Company, and Kurt Easum of SureWest take advantage of the networking opportunity prior to the start of the CCIM Signature Event. 

Jason Allen of Dean Realty Co., Chuck Connely of Butler Real Estate, and Bob Gude of Dean Realty Company are all smiles after dropping off their donations for Harvesters.

 Mike Sonnenberg, CCIM, with LaSala-Sonnenberg Commercial Realty, Paul Jokerst with CIT Small Business Lending, and Philip Crafton with Rose Companies gladly pose for a picture while awaiting Mr. Flowers’ speech to begin.

THE DOWNTOWNERS LUNCH

The Downtowners lunch on Wednesday, November 11, 2009 had a great turnout, with many of Downtown’s movers and shakers in attendance.   The feature presentation was somewhat of the ‘editor’s cut’ of the film The Next American Dream, presented by Martin Mini, the Senior VP of Marketing at the Kansas City Area Development Council.  The Next American Dream tells the success story of the revitalization of Kansas City’s downtown, from the moment the rebuilding and reconstructing of downtown began and throughout the next 5 years as the revitalized downtown took shape.  There is no doubt that many of those in attendance were directly responsible for the great success that the film depicts.

Martin Mini of the Kansas City Area Development Council

Brent Billau, P.E., of  ME Engineers and Bill Anthony of KBS Constructors catch up with each other before the screening of  The Next American Dream.

Though busy networking before Wednesday’s Downtowners Luncheon began, Stephanie Mill of Scott Rice Office Works, Bess Kessinger of Triad Capital Advisors, and Kent Rogers of Victor Ross & Co. graciously pose for a quick photo.

Paul Wagner of Prosser Wilbert Construction, John Arnold of Re/Max, Roger Summers of Key Construction, and Scott Martens of Tetra Tech smile for the camera.   

LIGHTON PLAZA VETERANS DAY EVENT

On Wednesday, November 11, 2009, CB Richard Ellis hosted a Veterans Day Celebration at Lighton Plaza in Overland Park.  The celebration was held to recognize all of the individuals that work in the Lighton Plaza buildings who are currently serving in the military or are United States Veterans.  The very thoughtful reception was well attended and paid wonderful tribute to those who have served our country.

Linda Meyersof CB Richard Ellis coordinated the Veterans Day Celebration.  She is seen here giving a reflection in honor of theose who have served in the US Armed Forces.

Employees of Lighton Plaza reflect as the National Anthem plays.

Jim Didion has more than 24 years of experience in commercial real estate covering a broad range of activities from brokerage transaction involving acquisitions/dispositions, leasing and investment sales to the development of land sites, industrial warehouses and office buildings.  Mr. Didion has expertise in site search/analysis, due diligence/acquisition, adaptive reuse analysis, rezoning/permitting, project cost estimating/proforma analysis, project financing, and development of vertical improvements. Trammel Crow Company projects include office, industrial, on-airport distribution, healthcare, retail, student housing and multi-family residential.

How would you describe the KCI Intermodal BusinessCentre?

This 800 acre project is a joint venture between Trammell Crow Company and ING Clarion. KCI Intermodal BusinessCentre will be a multi purpose business park, particularly well suited for intermodal air-cargo facilities and supply chain distribution centers. The project is located on land owned and controlled by the Kansas City Aviation Department with airside access to the airport runways.

What is the history behind KCI Intermodal BusinessCentre?

This development was seeded by studies done over a number of years about how to maximize the use of 8,000+ unimproved acres owned and controlled by the Aviation Department surrounding KCI. Determinations were made that this was an ideal inland port location as Kansas City was developing into a major distribution and logistics center. Requests for proposals were sent out nationwide to developers for proposals about how to develop this project. Trammell Crow Company was the successful bidder for this project. Master planning for the project began in March 2007, running through December 2007. The permitting process began August 2007 through October 2008. Site improvements began in October 2008 and are due to be completed in late September or early October 2009 for the initial Phase I of 183 acres.

What is the development cost? How much land is being used?

The infrastructure cost for Phase I was approximately $16 million. Phase I will accommodate approximately 1.8 million square feet of property, bringing the total projected value of Phase I to $100+/- million. The entire project will accommodate approximately 5.4 million square feet with a projected total development cost of $300+/- million. The total gross acreage assigned to the Kansas City Intermodal BusinessCentre is approximately 800 acres.

Who are the critical players in the KCI Intermodal BusinessCentre? What company and other companies contributed on this project?

The Trammell Crow project has been led by myself, Trammell Crow development partner for Kansas City and St. Louis, and Stephen Bradford, principal of Trammell Crow’s airport facilities development services team. ING Clarion is represented by Andy Lowe. The Kansas City Aviation Department has been represented on the project by Mark VanLoh its Director, and Dave Long, Deputy Director for commercial real estate at KCI. The exclusive marketing agent for the project is the CB Richard Ellis Kansas City Industrial Team, including David C. Hinchman, SIOR, Brian Staton, SIOR, CCIM, Mike Mitchelson, CCIM, Joe Orscheln and Nicki Garrett. Master planning was provided by TranSystems under the direction of Michael A. Priest, regional vice president. The grading contractor was McAninch overseen by Patrick Ruelle, vice president. Legal representation for the development has been handled by Sonnenshein under the guidance of John L. Snyder .

Have there been any setbacks, either for the development thus far or for the future?

There were some delays in completion of the infrastructure as a result of a wet summer. Initial plans for construction of a speculative building, Logistics Center 1, a 594,000+/- square foot state of the art bulk building expandable to 988,000+/- square feet have been held off due to the current real estate market and economic conditions. Trammell Crow and ING Clarion are hopeful to development vertical improvements some time in 2010 as the economy improves.

With the upcoming college basketball season about to start, which team will you be cheering for and how far do you think they can go in the tournament?  

Well, I graduated from the Engineering School at Missouri in 1976, so I am a Tigers fan.  I have full faith that the Tigers can mak a run to at least the Sweet 16.

Design Mechanical

Design Mechanical Inc., a KC-based company that opened shop in 2003, provides heating, air conditioning, and refrigeration services for the commercial and industrial markets in the metro area.  Though the company is still relatively young, it has solidified partnerships with many of KC’s major companies, among them Sprint, Shawnee Mission Medical Center, Black and Veatch, and Iron Mountain.  DMI is rooted in the belief that good business is built upon solid relationships, common sense, fairness, and fun.    This formula appears to be working in catapulting the company to success!  

As a company that strives to rise above the expected levels of service in its industry, DMI has collected several awards and distinctions in the last few years, among them the Mechanical Service Contractors Association’s Star Certification (2005) and the Kansas City Kansas Chamber ‘New Small Business of the Year’ Award (2005).  When asked what to expect from DMI in 2010, MetroWireKC was told that DMI ‘will continue to concentrate on energy efficient solutions to save our customers money.  In these tough times, building owners and managers are needing to be more creative with their budgets.  And with the current economic stimulus programs available, upgrading building HVAC makes sense now to help with equipment efficiency and building sustainability ultimately saving dollars both now and in the future.’  It is no wonder that DMI, with its unsurpassed focus on its clients’ best interest and needs, has had continued growth and great success despite the economic slowdown.

The Design Mechanical Team (L-R): Front Row-  Claudia Shoults, Mike Chieppo (VP), Bill Iler (President), Valerie Mussett- Back Row-  Steve Ricketts, Stephanie Casteel, Crystal White, Daryl Cox, Ray Arnone, Lacy Faherty, Gina Moseley, Miles Adcock, Gena Evans, Mike Hiebert, Bill Pointer, Steve Buck 

The Shops on Blue Parkway

In an area of town often overlooked by those that roam outside its parameters, William H. Jones with Swope Community Builders and Greg Patterson of Patterson and Associates are busy cultivating business opportunities in an underserved market.  At a press conference announcing new tenants last Friday, October 30^th, Mr. Jones spoke about the opportunity that exists for retailers that are coming in to The Shops on Blue Parkway, citing that he and the merchants are excited about the ability, in this location, to generate revenues  and build businesses despite the tough economic climate.  Retailers that have had success in The Shops thus far include the anchor operation, Sun Fresh, as well as Subway, Family Dollar, Foot Locker, H&R Block, and Simply Fashion.  New to The Shops, as of October 30^th, are Burger King, Boost Mobile, and Blue Parkway Cleaners, which are expected to open operations up by the end of January 2009.   

Willian H. Jones and Greg Patterson take a moment to pose for a picture despite being busy filling folks in about all that is going on at The Shops.

Lester Dean joined Dean Realty Co. in May of 2008 as the companies Chairman, President and CEO.  The eldest son of Lester Dean Sr., the companies founder, Lester grew up working with his father clearing the mine that is now the companies Downtown Underground, a 1.2 million square foot subterranean complex.  He was involved in his fathers commercial real estate pursuits assembling acreage to build Cambridge Business Park in Kansas and Missouri, the Downtown Industrial Park in Midtown Kansas City, Missouri as well as other development tracts remaining in the portfolio today.  Dean Realty Co.’s portfolio exceeds more than two million square feet of flex, office, industrial, and subterranean commercial real estate space. In 1989, Lester Dean Jr. was the youngest person in North America to receive his CCIM designation.  His largest project took him to the British West Indies, Caribbean Islands, in 1999 to commence building infrastructure for a 1,000 acre series of five-star resorts and related retail and commercial development.  He has over 25 years of experience in commercial real estate development, management, planning, and consultation.

(1)    How did it come to pass that the son of the founder of Dean Realty Co. would end up running the real estate company 50 years after its inception?

 My position as the company’s president feels very natural. Prior to my real estate career outside of the family business, I carried the dynamite and worked with the blasting crew excavating America’s first underground of its kind. I accompanied my father on weekends making offers and assembling what is today Cambridge Business Park. The 150-acre assemblage required the purchase of over 350 homes and spanned several decades. From operating heavy Caterpillar equipment before I could drive a car to frequently riding in the car with my father reading out loud real estate contracts and leases, there was, in looking back, more than osmosis.  It was boot camp and training.  He knew that, intuitively, I did, too!

(2)    How do your philosophies differ or mirror those of your father’s?

Dad passed away in 2005 within just days of my family and I having one of his favorite meals together, Kentucky Fried Chicken. I had by then developed a deep respect for him and his experiences. His story is really incredible, and through the years he inspired me in many ways. We certainly share degrees of tenacity and a bit of stubbornness in a positive sense. Neither of us gave up easily! I look for ways to get things done and concentrate more on healthy and productive relationships. For me it takes a combination of good people and creative ideas.

 (3)    What’s been happening in the past year and a half since you took over?

 So many great things have happened in the last 18 months, and a range of things accomplished. I feel very fortunate to be able to work with the most outstanding and talented group of people that I know, the Dean Team. We have developed a unified culture, one that stands for delivering an exceptional experience to our tenants, great attention to details, from marketing to the condition and appearance of our properties, our relationships with others in the industry and our community neighbors. One of the most challenging things is to change a culture. So, what’s happening everyday is a culture sharing and shift, in a clear way, company-wide.

(4)    What do you envision in the company’s future?

As for the future, we have to be clear on our vision. In developing a high level of team functioning, we already know we have come far with our shared company culture. That’s the people side. We are working on our vision and master plans for some incredible pieces of real estate. Cambridge, for example, is probably thought of as more of an industrial park. I see something different, an outstanding mixed-use development with a much higher image featuring components of office, retail, hotel, restaurants and a residential mix. The views, wooded areas, access and visibility from 360 degrees offers a very unique opportunity. Incorporating the historic Imperial Brewery building and brick mule barn will really be extraordinary. There needs to be a clear and cohesive plan communicated to the market place. Another example is the plans we are developing for Solar Business Park. It will be a technologically advanced underground and vertically integrated project. The underground component is 4.5 million square feet, and the entire surface is in excess of 130 acres in the heart of the city. There are few opportunities like this to plan in three dimensions. There is a lot to be excited about.

(5)    With the college basketball season about to begin, what team do you cheer for and how far do you think they can go in the NCAA Tournament?

With the diversity of collegiate backgrounds in our office, I think it’s best to say I will cheer for the underdog and that the best team will go the farthest!

Submit your deals for December deal sheet  info@metrowirekc.com

OFFICE

• Apria Healthcare leased 101,345 square feet at the Sprint Campus in Overland Park .   Bob Fagan and Brent Roberts of CB Richard Ellis negotiated the lease.
• CareCentrix leased 25,000 square feet at the Sprint Campus in Overland Park .  Bob Fagan and Brent Roberts of CB Richard Ellis negotiated the lease.
• Millennium Education leased 21,000 square feet at 6200 N Corporate Center Dr, in Kansas City, MO.  Jason Lewis and Bob Fagan of CB Richard Ellis represented Millennium Education.

INDUSTRIAL

• Bushnell, Inc. leased 221,800 square feet at 167th & Lone Elm in Olathe KS. Dan Jensen and Joseph Accurso of Kessinger Hunter negotiated the lease.
• Mid Continent Distributors, Inc. leased 210,000 square feet at 6201 Stillwell Kansas City, MO.   Lessee, represented by Whitney Kerr, Jr, Colliers Turley Martin Tucker and, lessor, was represented by Olen Monsees, Karbank Real Estate Co.
• FedEx Smart Port leased 126,357 square feet at 22101 w 167th st. in Olathe , KS .  Kessinger/Hunter negotiated the lease.

RETAIL

• BigLots leased 25,000 square feet at Marketplace Center in Independence, MO. Kessinger/Hunter negotiated the deal on behalf of the tenant.