Colliers forecast event features CRE trends, KC’s entrepreneurial outlook
The beginning of a new year is always ripe with predictions for the coming months, and the recent Colliers 2012 Commercial Real Estate Forecast event proved no exception.
During a breakfast held at the Marriott Hotel in downtown Kansas City, hundreds of industry professionals gathered to hear what’s ahead for commercial real estate in 2012.
KC Conway addresses the crowd.
KC Conway, Executive Managing Director, Real Estate Analytics at Colliers, kicked off the event with a forecast and analysis. During his presentation, Conway said he sees “the return of intellectual property manufacturing in the U.S. as a result of our patent protection, currency and quality control in infrastructure.”
In fact, manufacturing proved to be a recurring theme during Conway’s presentation. He said that Kansas City is well positioned in the nation’s Heartland to capitalize on manufacturing growth, which, in addition to warehouse/industrial, will be the two growth sectors for 2012.
“We still have a long road to recovery on retail and housing,” he said. Yet positive indications of growth are visible, including the National Restaurant Performance Index, one of Conway’s preferred sources of information. Since people don’t go out to eat unless they can afford the expense, this metric depicts an accurate picture of the larger economic landscape. And recent data from the NRPI shows the nation is moving into recovery.
The Colliers forecast event featured a panel discussion with Unified Government Mayor Joe Reardon (left), Kansas City Mayor Sly James and Greater Kansas City Chamber of Commerce President and CEO Jim Heeter.
After Conway’s presentation, Greater Kansas City Chamber of Commerce President and CEO Jim Heeter led a panel discussion with Kansas City Mayor Sly James and Unified Government Mayor Joe Reardon.
The two mayors spent much of the time talking about their shared vision to elevate Kansas City to the greatest entrepreneurial city in the nation, part of the Chamber’s Big 5 Ideas. It’s a quest that won’t just help fuel Kansas City growth and economic development, but will also have an impact on the surrounding area.
“We want to raise the stature of the region and help people understand the rich diversity and complexity of our area,” Reardon said.
The teamwork demonstrated by both mayors has created “an extraordinary example for bistate collaboration,” Heeter said.
And it’s a message that resonated throughout the audience as commercial real estate continues to be one of the prominent industries in the Border War, or the ongoing competition between Missouri and Kansas for projects, development and deals.
“Part of being a city isn’t watching and standing by as part of the area goes down in flames,” said James, whose comments were greeted by a vigorous round of applause. “We have, for too long, thought of the different lines that divide us. We need to be focused on our region’s economy.”
Added Reardon, “We can’t get to where we need to go without working together. We need to change what we reward and celebrate.”
Lockton extends lease, expands square footage at Plaza office
Lockton just renewed its lease for 171,000 square feet at Valencia Place Office Tower on the Country Club Plaza. The company also expanded the lease by 10,000 square feet. Lockton is committed to the office space through February 2030. No exterior changes to the building are expected as a result of the extended lease, but a $3.5 million interior renovation is planned.
The deal is a significant boon for the local office market and also a triumph for Highwoods Properties, which manages the Plaza.
“Congratulations to our Kansas City team for their hard work in fortifying and expanding our relationship with Lockton,” said Ed Fritsch, president and CEO of Highwoods, in a release.
Mark Henderson, executive vice president and chief operating officer of Lockton’s Kansas City Property Casualty operations, said the lease extension demonstrates the company’s continued commitment to Kansas City.
“This remarkable community has provided Lockton with a solid foundation for more than 45 years, and we look forward to continuing our growth and watching Kansas City grow from right here on the Plaza,” Henderson said in a release.
Kansas City Mayor Sly James called Lockton a “perfect example of a Kansas City success story” and “a pillar of our claim to be the city of entrepreneurs.” James thanked Highwoods Properties for their support in helping to keep Lockton in Kansas City.
Lockton was founded in Kansas City in 1966 and has grown to be the largest privately held insurance broker in the world and ninth largest overall. Lockton employs more than 4,000 people, nearly 1,000 of whom work in Kansas City, and works with more than 15,000 clients around the world.
Downtown streetcar project design approved by City Council
A proposed downtown streetcar project moves one step forward.
The proposed downtown Kansas City streetcar project moved one step forward after the City Council approved a design contract worth nearly $700,000 that provides for additional design work and conceptual engineering on a proposed two-mile streetcar route.
Although the plan is slowly moving forward, the streetcar faces at least one major hurdle: a possible special election in which a group of voters (mostly located in downtown Kansas City) would consider the creation of a transportation development district. As part of the district, a one percent sales tax increase and property tax assessments would go into effect to help provide funding for the project, which is estimated to cost $100 million as outlined in the project proposal.
A date for the election has not been set, although the Kansas City Council has officially supported the election. Voters could head to the polls as early as April to help decide the fate of the streetcar, which is praised by city officials as a tool to help increase economic development and growth within the city’s urban core.