Q3 2023 MARKET OVERVIEW
Wichita Submarkets
Q3 2023 MARKET
OVERVIEW
OVERALL MARKET
Q3 2023 NEW CONSTRUCTION PERMIT VALUE
CONSTRUCTION ACTIVITY In Q3 of 2023, there were 38 permits issued, totaling around $45 million, which was a decrease compared to Q2 of 2023, which had 55 permits issued, totaling around $79 million. At the end of Q3 2022, there were 1349 permits issued, totaling $232,440,095. By the end of Q3 2023, there were 1230 permits issued, totaling $252,263,441. Despite this slowdown, there are still notable projects under construction or beginning in Wichita:
Q3 2023 MARKET
OVERVIEW
Downtown Wichita will soon see work begin on the KU-WSU biomedical campus, as the Wichita City Council approved its construction in July 2024. An $8-million 156-room airport hotel development received FAA approval and a new commercial building permit in August. Avante, Vantage Point Properties' Class A 372-unit apartment complex, is on track to be fully completed by Spring of 2024. Contractor Station, a hybrid warehouse/storage development of 30,000 SF, targeted towards contractors, is expected to begin construction soon. Liberty Gardens Apartment complex received a building permit valued at $12 million. Amber Waves Diving Co. and Wichita CPR Training Center will soon have a $3.4-million, nearly 11,000 SF facility completed by the end of this year. A $5-million permit was granted for the new Goodwill building at 11027 E. 29th.
Retail
Q2 2023: $9,621,283 Q3 2023: $10,662,061
Office
Q2 2023: $3,500,000 Q3 2023: $2,532,900
Industrial
Q2 2023: $9,671,790 Q3 2023: $2,469,424
NEW CONSTRUCTION PERMIT VOLUME 10
7.5
5
2.5
0 Retail
Office
Industrial
OFFICE
Q3 2023 .
OFFICE FUNDAMENTALS
HIGHLIGHTS
After three years of on-and-off talk about relocating its headquarters, Freddy’s Frozen Custard & Steakburgers is not only staying in Wichita but adding a National Training & Innovation Center at 3200 N. Cypress Drive. The expansion will give them more room for research and development and the training center will allow franchisees to train outside of a restaurant setting.
Vacancy
Q2 2023: 25.49% Q3 2023: 26.34%
Net Absorption
Q2 2023: (74,321) Q3 2023: (79,559)
Average Asking Rate
Q2 2023: $14.24 Q3 2023: $14.33
After being in her original space since the 1990s. Myers Studios, an interior remodeler, is making the move downtown to the historical Eaton Place, 519 E. Douglas. Citing the building's amenities and growth opportunities, Hampel Oil purchased the Berkshire Hathaway Building at 3531 N Ridge Road.
LEASED
LEASED
LEASED
Q3 2023 MARKET
OVERVIEW
10500 E. Berkeley, Wichita, KS 67206
13610 W. Maple, Wichita, KS 67235
2024 N. Woodlawn, Wichita, KS 67208
RETAIL .
Q3 2023
RETAIL FUNDAMENTALS
HIGHLIGHTS The Heritage Square development in Andover has some exciting new additions to their 110-acre site. This includes QuikTrip and Dutch Bros Coffee, situated along Kellogg, across from the YMCA. Additionally, Livingston’s Diner and Flint Hills Dental Group will be located in the commercial buildings in front of Heritage Square. Towne East Square will welcome four new businesses, with three of them arriving this year. Scheels was the first to open on July 1, and the mall is set to open Earthbound Trading Co, Dry Goods, and KPOT restaurant in the former Third Planet before the end of the year.
Vacancy
Q2 2023: 13.75% Q3 2023: 14.26%
Net Absorption
Q2 2023: 21,468 Q3 2023: (32,237)
Average Asking Rate
Q1 2023: $12.23 Q3 2023: $11.29
This quarter, 7 Brew Coffee Shops has opened two new locations: one at Douglas and Rock, and another at 21st and Greenwich.
SOLD
LEASED
SOLD
Q3 2023 MARKET
OVERVIEW
9719 E. 21st Street N. Wichita, KS 67206
517 E. Douglas Wichita, KS 67208
524 S. Seneca Retail Wichita, KS 67213
INDUSTRIAL
Q3 2023
INDUSTRIAL FUNDAMENTALS
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HIGHLIGHTS Activity on the industrial side remained high in Q3, with several new projects and tenants announced. The ICT21 Industrial District is expecting to start construction on a Love’s Travel Stop in the development. The City of Maize announced it will be the home of a new 80-acre, $80 million dollar plastics plant which Charlotte Pipe and Foundry has plans to build with construction starting in January and wrapping up early 2025. Integra Technologies' announcement of a microchip manufacturing facility in the area has sparked further development, with Michel Le unveiling plans for a large industrial complex of seven 175,000 SF warehouses near Bel Aire. Notably, the large project is expected to be completed before 2028.
LEASED
Vacancy
Q2 2023: 9.24% Q3 2023: 9.61%
Net Absorption
Q2 2023: (218,014) Q3 2023: (34,059)
Average Asking Rate
Q2 2023: $5.36 Q3 2023: $5.42
SOLD
LEASED
Q3 2023 MARKET
OVERVIEW
2544 S Leonine Wichita, KS 67213
130 N Milwood Wichita, KS 67203
2828 E Northern St Wichita, KS 67216
NAI Martens is the largest full-service commercial real estate firm in Kansas. Founded in 1948 and headquartered in Wichita, NAI Martens provides a vast array of commercial real estate services throughout south-central Kansas. President Grant Glasgow, SIOR leads a team of professionals with over 150 years of combined commercial real estate experience.
Q3 2023 MARKET
OVERVIEW
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1330 E. Douglas | Wichita, KS 67214| 316-262-0000 THE INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM SOURCES DEEMED TO BE RELIABLE, BUT NO GUARANTEE OF ITS ACCOURANCY IS MADE BY NAI MARTENS