vol 1 | issue 2 stories about kc’s retail market eastern ... · commercial corridor in the heart...
TRANSCRIPT
reTalevol 1 | issue 2 stories about KC’s retail market
COLLIERS INTERNATIONAL | KANSAS CITY
IN THIS ISSUE1 | East Jackson Analysis
6 | Featured Project: Independence Center
7 | Meet Jeff Haney
8 | Colliers in the Community
eastern JACKSON COUNTYThis issue highlights Eastern Jackson County, Missouri - the second most populated county in Missouri and one of Kansas City metro’s top retail trade areas. We specifically focus on the county’s three largest cities: INDEPENDENCE, LEE’S SUMMIT and BLUE SPRINGS. These cities boast a wide array of retail shopping venues, including one of only two enclosed malls (Independence Center) in the Kansas City metro. All three communities have hosted recent retail development, and are considered by retailers to be top tier markets. (continued on pages 2-3)
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NEW TENANT MOVES IN EASTERN JACKSON COUNTY
Colliers International | Kansas City | 4520 Main Street, Kansas City, Missouri | 816 531 5303 | colliers.com
KANSAS CITY, KANSAS
SHAWNEE
STANLEY
RAYTOWN
BELTON
PECULIAR
RAYMOREPLEASANT HILL
LONE JACK
GRAIN VALLEY
BUCKNER
EXCELSIORSPRINGS
LIBERTY
CLAYCOMO
GLADSTONE
KANSAS CITY
PLATTE CITY
KEARNEYSMITHVILLE
NORTHKANSAS CITY
KANSAS CITY
GREENWOOD
LENEXA
OLATHE
50
50
56
69
69
69
69
169
169
169
169
169
169
150
150
58
58
291
291
291
291
291
291
350
350
7
7
7
7
71
152
10
24 24
210
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INDEPENDENCE
The Independence, Missouri retail trade area serves as a major economic driver for not only Eastern Jackson County, but the entire Kansas City metro. Independence’s 117,000 (and growing) residents support strong retail corridors primarily located along Interstate 70 (east and west), Highway 291 and Noland Road (north and south).
Construction has started on a major housing development - New Town at Harmony. The 130-acre New Town master development is located east of the Little Blue River and north of 39th Street. The first phase of this estimated 20-year, $1 billion project, will include a 130-acre planned mixed-use neighborhood. Greg Whittaker, developer of the first phase, expects to add approximately 600 new homes and new retail initially, while later phases anticipate expanding the development to 600 acres and 3,000 new homes.
As expected, new retailers are chasing the stability and strength of the existing retail base and future population growth. Menards is building a 162,000-square-foot store at the NEC of I-70 and Little Blue Parkway, which has spurred ancillary development, including a Quik Trip and 1 or more new restaurants. Main Event, a 50,000-square-foot family entertainment venue, opened its first Kansas City metro location at the Falls at Crackerneck Creek - part of the Bass Pro development that also features the new Stoney Creek hotel and several new retailers and restaurants including Cheddar’s, Slim Chickens, Los Cabos and Pizza Ranch. Independence Center Mall continues to serve as a retail hub for all of Eastern Jackson County, and cemented its status by adding a new Dick’s Sporting Goods store as its 4th anchor. DDR’s highly successful 402,903-square-foot Independence Commons power center, located across from the Independence Center Mall, has backfilled its rare vacancies by adding Old Chicago and a freestanding Starbucks Café.
Q2 2015 Q2 2016Inventory 7,153,159 SF 7,230,609 SF
Vacancy 5.80% 6.10%
Average Rent $10.19 $10.58
Q2 2015 Q2 2016Inventory 3,065,611 SF 3,184,555 SF
Vacancy 6.00% 5.60%
Average Rent $14.99 PSF $15.09 PSF
With a current population exceeding 93,000 (projected to hit 100,000 by 2020), Lee’s Summit is one of the fastest growing communities in Missouri and the Kansas City metro. One of Lee’s Summit’s major assets – its renowned public schools – has led to population and employment growth - making the city a top Kansas City retail sub-market.
The I-470/Highway 50 intersection serves as a hub of national retail for Lee’s Summit. Summit Fair, located east of Highway 50, offers primarily main-street and lifestyle retail, while Summit Woods Crossing, located west of Highway 50, serves as a traditional (and very successful) power center. Dick’s Sporting Goods will move from a 30,000-square-foot store at Summit Woods to an expanded 50,000-square-foot store in Summit Fair, and will be joined by H&M. No tenant has been announced to backfill the DSG space at Summit Woods. Fiorella’s Jack Stack Barbeque opened at Summit Woods last year and exceeded sales projections to become one of the highest grossing restaurants in the Kansas City metro.
Summit Place will be the 3rd leg of regional retail at this interchange and will be anchored by a planned 70,000-square-foot Cabela’s and a Sam’s Club. Townsend Capital and NorthPoint Development have announced a mixed-use project - Summit Orchards – located east of Summit Fair, which will add a 90-room Holiday Inn Express Hotel along with a 300+ unit multi-family apartment project and 100,000-square-foot of retail and restaurant space. Groundbreaking is expected in Q3, 2016.
Downtown Lee’s Summit is benefiting from strong redevelopment initiatives that boost its already desirable setting for specialty retail. New downtown tenants include Third Street Social, the Exit Room and Llywelyn’s Pub, while Grains & Taps is expanding. (continued on next page)
LEE’S SUMMIT
INDEPENDENCE
BLUE SPRINGS
LEE’S SUMMIT
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Highway 291 serves as a thriving commercial corridor in the heart of Lee’s Summit, with a high level of recent grocery, retail, restaurant and convenience store activity. Sprouts Farmer’s Market, Andy’s Custard, and At Home added stores, while HyVee expanded and remodeled. Price Chopper opened its 3rd Lee’s Summit store at Todd George Road and Highway 50 with several supporting restaurants and retailers. Walmart plans to add its 2nd Lee’s Summit location near the NWC of Highway 291 and Highway 150.
Planning continues for the 300+ acre mixed-use Paragon Star development on the north side of I-470 between View High Drive and Pryor Road. The project is being developed along the 17-mile Rock Island Railroad corridor that is expected to link to Missouri’s Katy Trail State Park. The initial phase of the project will include 10 artificial-turf soccer, rugby, and lacrosse fields and a proposed village containing a 120-room hotel, a 220-unit apartment project, 100,000-square-foot of Class A office space, restaurants, bars, entertainment venues, and biking & hiking trails. The Paragon Star Soccer Village recently secured TIF and CID public incentives from the City of Lee’s Summit. Play on the fields is expected to begin in the fall of 2017.
WHITE OAK MARKETPLACEBLUE SPRINGS, MISSOURI
Blue Springs is the 7th largest city in greater Kansas City, and boosts some of the area’s strongest residential and commercial growth. This growth spurred the development of the 561,000-square-foot Adams Dairy Landing on the northeast side of the Blue Springs trade area (SEC of I-70 and Adams Dairy Parkway) in 2009. The center, anchored by Target, Kohl’s, Gordmans, TJMaxx and others, is now reaching full occupancy, with new tenants, including Payless Shoes Superstore, Lane Bryant and Bath & Body Works opening within the last year.
Some observers believed Adams Dairy Landing’s development might permanently harm Blue Springs’ traditional retail node centered around Highway 7 and Highway 40. This dense and heavily-trafficed area has seen a strong resurgence with the most notable new project being the White Oak Marketplace (SWC of Highway 7 and Highway 40). White Oak Marketplace kicks off its first phase this fall with a new 85,000-square-foot Price Chopper grocery store, and attached 10,000 square feet of retail space. Phases II and III will include additional small shop retail spaces with build-to-suit opportunities and restaurant pad sites, along with a proposed senior residential community.
Quik Trip is reportedly building one of its new generation prototype stores at the NWC of Highway 7 and Highway 40, and additional retail is expected to join this project. This will be QuikTrip’s 4th store in Blue Springs.
Downtown Alive! is a grass roots nonprofit organization, dedicated to the revitalization of downtown Blue Springs. Their initiatives include “Buy Blue Springs” promoting local retail business, an on-going beautification drive, and special events, such as a farmers’ market, Corks and Canvas, car cruise nights and the Fall Fun Festival.
BLUE SPRINGSQ2 2015 Q2 2016
Inventory 2,322,778 SF 2,332,778 SF
Vacancy 8.40% 7.60%
Average Rent $12.66 PSF $12.63
DEMOGRAPHICSEASTERN JACKSON COUNTY
KC METRO
2015 Total Population 437,433 2,087,172
Median Age 37.5 37.0
Median Home Value $131,171 $160,638
Average Home Value $160,050 $201,355
Household Income: Median $54,355 $56,986
Household Income: Average $69,159 $76,144
Unemployment 4.80% 4.10%
*Data as of latest BLS report
NEW TENANTS SF LocationTed’s Cafe Escondido 5,350 Hwy 291, Lee’s Summit
H&M 20,000 Summit Fair
CommunityAmerica Credit Union 2,500 Todd George Market
Place
Main Event 50,000 Crackerneck Creek
Slim Chicken 2,900 Crackerneck Creek
Old Chicago 5,074 The Falls
Raising Cains 3,500 Adams Dairy Landing
Hardee’s 3,037 910 MO-7
Discount Tire 7,840 Adams Dairy Landing
Jackstack BBQ 9,500 Summit Woods
Sprouts Farmers Market 26,814 800 NE Hwy 291
Bath & Body Works 3,908 Adams Dairy Landing
Lane Bryant 4,572 Adams Dairy Landing
TOP EAST JACKSON COUNTY EMPLOYERSLee's Summit School District (R-7) 2,589
Alliant Tech Systems (ATK) 2,350
Independence School District 2,200
Blue Springs School District 1,991
Centerpoint Medical Center 1,600
National Benefits Center 1,325
City of Lee's Summit 1,153
John Knox Village 1,025
St. Luke’s East 1,006
Government Employees Health Association 743
Department of Homeland Security National Records Center 550
Fike Corp. 460
The Groves 444
St. Mary's Medical Center 420
MCC-Longview 397
LEASING STATS Eastern Jackson County Q2 2015
Eastern Jackson County Q2 2016
KC MSA Q2 2015
KC MSA Q2 2016
Shopping Center Inventory 14,931,543 SF 14,933,793 SF ↑ 63,005,834 SF 63,137,589 SF
Shopping Center Vacancy Rate 7.80% 7.90% ↑ 9.30% 9.30%
Shopping Center Asking Rents $10.68 PSF $10.92 PSF ↑ $12.62 PSF $12.77 PSF
Eastern Jackson Co
Kansas City MSA
SINGLE-FAMILY HOUSING CONSTRUCTION PERMITS AROUND KANSAS CITYSource: Home Builders Association of Greater Kansas City
674
4090
715
4271
2013 2014 2015
863
4700
493
3322
2016 (through July)
76 Colliers International | Kansas City | 4520 Main Street, Kansas City, Missouri | 816 531 5303 | colliers.com
featured PROJECTINDEPENDENCE CENTERShoppers in Eastern Jackson County have made Independence Center their destination for holiday and back to school shopping since 1974, when it was built by Sears’ Homart division. Today, Independence Center is one of the two remaining super-regional enclosed malls in Kansas City (which at one time boasted 12 enclosed malls). The 867,000-square-foot center, located on the NEC of I-70 and I-470, is anchored by Macy’s, Sears, Dillard’s and a new Dick’s Sporting Goods. Simon Property Group purchased the mall in 1994 and did a major $20 million renovation in 1996. Simon added exterior-facing shop space in 2014 featuring tenants like Applebee’s and Noodles and Company.
SPG has continued to invest in Independence Center to keep it relevant with current retail trends. Today the mall is thriving with the opening of eight new tenants in 2015 and three in 2016. The recent addition of Dick’s Sporting Goods was seen as an affirmation of Independence Center’s status as a regional retail destination. According to the retailer’s
spokesperson, “Dick’s Sporting Goods was excited to move to Independence Center, a high energy mall that we felt was a great fit. We’re excited to be an anchor store in an already successful mall.“
SPG indicates that they are planning several further improvements to the mall, including adding additional square footage to the exterior of the mall by building two 8,000 sf. “pop out” buildings attached to the Macy’s. This new square footage will allow tenants to have exterior signage facing 39th street. They hope to attract fast casual restaurants and a few retailers. Construction is TBD and is based on tenant interest.
in the NEWS
Located at 777 NW Blue Parkway - 1 mile from Summit Woods and Summit Fair shopping centers, the Summit Technology Campus (STC) houses more than 5,000 employees to companies such as AT&T, Waddel & Reed, State Farm Insurance, Cerner, and CVS CareMark In addition, STC is also home to the Summit Technology Academy (STA), a learning center where high school students can attend special courses in subjects such as science, technology, engineering and math.
• Cerner recently made a $528 million investment in the north building on the STC
• STC recently broke ground on a wide variety of spinoff development activity, including multifamily, hotel and big-box retail projects
• The new STA/Missouri Innovation Campus, located on 15 acres, is underway and scheduled to open in August 2017
WHAT IS s u m m i t t e c h c a m p u s?
Married: AmandaChildren: Gracyn, 10; Saylor, 3Career: Executive Vice President of Development, RED Development
How do you enjoy spending time outside of work? I try to get as much family time as possible – we love to swim and I golf and hunt when time permits. I’m also going to Ireland in a few months!
How did you first get involved in real estate? During high school, I lived in Lakewood when the subdivision was first starting. My Mom sold real estate and I worked for a number of home builders. A buddy and I started a business, M&H Tieworks, hauling and installing railroad ties. We lugged them around in a ’54 Chevy pickup.
What was your first real estate deal? I was working at the commercial land department at Eugene D. Brown with Lath Backstrom. He hired me to investigate raw
land in Lee’s Summit, and in 1985, I found a piece of ground to list and put my sign on it. It took one year to make a deal, but back then brokers on land sales got a 10% commission!
How did you make the transition from brokerage to development? Even while I was doing brokerage, I was a jack-of-all trades. I worked with the Tutera Group while they were building shopping centers and learned from that process. I did the same thing with Jim Harpool on Hartman Heritage and on Manhattan Marketplace. I really learned a lot from Jim. At RED, I started on the leasing side at Summit Fair, but transitioned to full time development after a few years.
What’s your favorite part of the business? Definitely the networking with great people. We’re lucky in KC that even though we’re often competing, everybody really likes each other. We have a good group of developers and brokers here.
What’s the major lesson you’ve learned during your career? Two lessons: 1. Carl LaSala taught me to return every phone call, even if it seems fruitless, because you never know if it could be useful later. That’s really sound advice. 2. learn from adversity and be tenacious without going overboard. Deals that people think happened overnight have been in the works for years. I once called on a property for the first time in 1985 and sold it 17 years later!
What advice would you give somebody starting in the industry today? It can be a fun, exciting business when you meet all kinds of interesting people, but it always changes. If it’s great now, it won’t always be, so make sure you can handle the downturn. But the downturns always change too – it always comes back.
Q&A with JEFF HANEYJeff grew up and attended high school in Lee’s Summit. He now heads the development of Lee’s Summit’s largest retail projects – Summit Woods Crossing, Summit Fair and Summit Place.
Arguably Lee’s Summit’s most important business hub, with 1 million square feet of office and hi-tech space all under one roof.
8 8Colliers International | Kansas City | 4520 Main Street, Kansas City, Missouri | 816 531 5303 | colliers.com
JERRY WHITE816 556 [email protected]
JEFF BERG816 556 [email protected]
ANITA BATES816 556 [email protected]
DAN BOURK816 556 [email protected]
KIMBERLY TRANBARGER816 556 [email protected]
COLEBY HENZLIK816 556 [email protected]
MARK ARENSBERG816 556 [email protected]
Kimberly Tranbarger with her sons at the BASEBALL WORLD SERIES in Gulf Shores, Alabama. The Dodgers took 2nd place.
kc retail TEAM NEXT ISSUESouth Johnson County, Kansas
in the COMMUNITY
Colliers International | Kansas City volunteers monthly at MORNING GLORY MINISTRIES, the social services ministry of the Catherdral of the Immaculate Conception in downtown Kansas City.
Supporting Big Brothers Big Sisters at BOWLING FOR KIDS’ SAKE, an event to provide on-going support for children to build and sustain long-lasting relationships.
Enjoying a “banking reinvented” event at LEAD BANK