Kansas City Commercial Real Estate Hasn't Recovered From COVID

We like this report because they expand definitions in order to offer a more optimistic outlook. 

As always, we pick out the negative because it's the only news that really matters.

Here's a telling stat offering a glimpse at the REAL direction of downtown momentum . . .

Older office buildings, on the other hand, have experienced a spike in vacancy rates. The Class B vacancy rate is 21.3% — for perspective, the pre-COVID-19 vacancy rate was 13.7%.* Some of these buildings are functionally obsolete, with smaller floorplates, too many columns, low ceilings or other such flaws. Owners of older buildings face difficult decisions: Renovate and invest in costly new amenities? Target medical/life science tenants? Pursue adaptive reuse such as residential or hotel conversion? Or scrap it and start anew?

Read more via www.TonysKansasCity.com link . . .

Commercial real estate annual report: Where 2022 has positioned Kansas City - Kansas City Business Journal

I learned in business school that the correct answer to almost any question is, "It depends." I've been using that answer quite a bit lately when people ask me about the state of the commercial real estate market. It depends.