Discover the latest trends in the Wichita, Kansas office real estate market with our Q2 2025 report. Get in-depth insights on vacancy rates, lease activity, rental averages, and notable developments across key submarkets including Downtown, Northeast, Northwest, Southeast, and Southwest Wichita. This quarter’s update highlights steady occupancy gains in Class A spaces, and strategic redevelopment shaping investor opportunities. Whether you're a tenant, broker, or investor, this report provides a data-driven snapshot of Wichita’s evolving office landscape.
Q2 2025 OFFICE
NAI MARTENS | Q2 OFFICE MARKET REPORT
EXECUTIVE SUMMARY
Continued Recovery: Wichita’s office market remained stable in the second quarter of 2025, holding a high overall vacancy of 18.1% across all submarkets. Net absorption was essentially flat, indicating that new leasing barely outpaced vacancies this quarter. Asking rents held steady, with a market-wide weighted average of $16.70 per square foot (PSF). Tenant demand was uneven geographically – Downtown (CBD) and the Northeast submarkets recorded solid occupancy gains, while the Northwest and Southeast saw pullbacks. On balance, the quarter’s results suggest a gradual recovery continuing at a modest pace, as the Wichita office sector stabilizes post- pandemic. Selective Growth: Rather than new speculative construction, activity focused on backfilling existing space and adaptive reuse. Several companies expanded or relocated into upgraded offices, fueling positive net absorption. For example, Marriott International’s lease of a large call-center office and a UK tech firm’s new Wichita location contributed to occupancy gains. Investor Interest & Repositioning: Investors showed interest in well-located office assets, particularly for repositioning opportunities. One downtown tech company listed its 10-story headquarters for sale, eyeing a potential residential or mixed-use conversion amid growing downtown momentum. Public-sector investment also featured, with Sedgwick County moving to purchase a prominent downtown office building for its new headquarters. Outlook: Heading into Q3 2025, local experts anticipate stable demand with incremental occupancy gains. New ground-up office development will likely remain limited, as most growth will come from redevelopments and renovations of existing properties. Overall sentiment is cautiously optimistic – Wichita’s office fundamentals are improving, but broader hybrid work trends keep the market in check.
Vacancy Rates Remained basically flat.
18.1%
Net Absorption (Quarterly) Nearly all came from Class A properties Net Absorption (Year to Date) Positive, driven by large leases in the CBD and Northeast Asking Rates Rates in Wichita’s office market remain competitive and steady.
$16.70 PSF
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
Office Submarkets
Total Vacant (SF)
YTD Net Absorption (SF)
Weighted Average Leasing Rate (PSF)
CBD
989,523
(8,986)
$16.35
Northeast
582,105
29,364
$19.19
Northwest
131,980
1,014
$15.25
Southeast
179,532
(7,599)
$11.34
Southwest
8,573
0
$8.66
Totals
1,891,623
14,093
$16.70
NORTHWEST
NORTHEAST
CBD/ HYDE PARK
KELLOGG
SOUTHWEST
SOUTHEAST
CLASS A
CLASS B
Total Vacant (SF)
715,497 29,836 $20.50
Total Vacant (SF)
1,176,126
YTD Total Net Absorption (SF) Weighted Average Lease Rate
YTD Total Net Absorption (SF) Weighted Average Lease Rate
(18,080) $18.03
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
Construction Activity and Expansions NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
New Office Projects and Developments
No speculative high-rise offices broke ground this quarter, but several office projects moved forward via build-to-suit and expansion activity. New development is proceeding in targeted ways – primarily build-to- suit, owner-occupied expansions, or phased office park builds, rather than speculative towers. Companies that are growing are choosing to invest in modernizing space (often with open layouts and high-end amenities) to entice employees back. At the same time, older buildings downtown are finding new life through renovations, as illustrated by Greyten’s and Bloc Digital’s projects.
Crestpoint Office Park (Northeast)
Construction progressed on the second office building at the Crestpoint development in northeast Wichita. In April, crews raised the steel frame for the new multi-story building. This follows the successful lease-up of Crestpoint’s first building last year. Uniquely, the project offers businesses the option to buy or lease portions of the building, essentially creating office condos alongside traditional leases. The developer notes strong interest from medical and professional firms seeking modern space in the K-96 corridor.
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
Kansas Leadership Center Expansion (CBD)
The Kansas Leadership Center, a major nonprofit headquartered downtown, announced plans to build out the remaining shell space in its building to accommodate growth. Following recent upgrades to the adjacent Kansas Health Foundation building, KLC will expand its footprint at 325 E. Douglas, investing in new offices, training rooms, and collaborative areas. This interior build-out (approved in June) will bring roughly 8,000 sq. ft. of new Class A office area online by year-end, allowing the organization to house additional staff and programs downtown.
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
Construction Activity and Expansions
Greyten Design Office & Showroom (Old Town/CBD): In May, Greyten (a newly merged architecture/design firm) unveiled its new combined office and showroom in Old Town. The firm renovated a historic building at Rock Island and 2nd Street into a modern space featuring large glass windows and open studios. This project not only retained a growing creative company downtown post- merger, but also activated ground-floor space as a design showroom open to clients – adding to downtown’s mixed-use vibrancy. Bloc Digital Wichita Office (CBD): U.K.-based tech company Bloc Digital held a grand opening for its new U.S. office in Wichita on April 16. The firm leased 3,400 sq. ft. on the 17th floor of the Epic Center (Wichita’s tallest office tower). Bloc Digital’s expansion underscores Wichita’s attractiveness to aerospace and tech service companies – the company cited the “hive of aviation and manufacturing” in Wichita and strong community support as key reasons it chose to invest here. This second U.S. location will initially house 10 employees, with plans to add 5–10 more positions in the next year. Wichita State, 245 N. Waco (CBD): Wichita State leased a little over 16,000 SF of space in the Farm Credit Bank Building. The space will increase their presence in Downtown Wichita and will help them towards their goal of supporting their educational, cultural, and economic development goals.
Other Tenant Improvements: A handful of notable tenant improvement projects delivered in Q2. For example, a local financial services firm completed a major renovation of 20,000 sq. ft. in its East Wichita office, updating it to a collaborative, post-Covid layout. In West Wichita, a regional healthcare provider built out a new 8,000 sq. ft. administrative office in a former retail building, reflecting continued “medtail” conversion trends. Key Construction also completed a year-long renovation project of its offices. While small in scale, such projects demonstrate how existing buildings are being repurposed to meet current office needs. Expansion of Existing Spaces: Downtown’s popular coworking hub Groover Labs completed an expansion/renovation in May to accommodate rising membership. The nonprofit tech incubator added 8 private offices, 12 dedicated workstations, 2 meeting rooms, and 2 call booths to its facility. This expansion, which also included a new outdoor work patio under a covered canopy, was quickly filled by small teams and individual professionals.
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
Market Metrics: Vacancy, Lease
Rates, and Absorption
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
Market Metrics: Vacancy, Lease Rates, and Absorption Vacancy Rates: Overall vacancy sits at 18.1%, slightly up from Q1 and still below peak pandemic levels. The vacancy rate for Class A properties is 18.1%, nearly on par with Class B’s 18.2%, reflecting broad softness across asset qualities. Lease Rates: Asking rental rates dipped slightly in Q2. The weighted average asking rent across the metro is $16.70 PSF, reflecting a mix of both high-end and lower-cost spaces. Top-tier Class A spaces average asking rents around $20.50 PSF, while Class B spaces average around $18.03 PSF. These rental rates have stayed relatively consistent, suggesting landlords are opting to maintain face rents and use concessions to court tenants. Northeast Class A continues to command the highest rents, but even suburban Class B offices are asking in the high-teens, keeping Wichita’s office rents affordable compared to larger markets. Given the elevated vacancy, rent growth is limited – tenants have ample options and negotiating leverage, keeping lease terms tenant-favorable in the near term.
Absorption:
Leasing activity in Q2 yielded a net +26,262 SF absorbed market-wide. Notably, nearly all of the quarter’s positive absorption came from Class A buildings: Class A space saw a net gain of about +25,311 SF this quarter, while Class B space gave back approximately 24,747 SF (net negative absorption). This trend hints at a continued flight-to-quality – tenants are selectively absorbing higher-grade offices and shedding some lower-tier space – even though both segments still carry elevated vacancies.Landlords, especially in aging properties, continue to invest in upgrades and amenities to attract tenants in a highly competitive environment. With many companies reassessing space needs, Wichita’s office market is in a slow stabilization mode – demand is no longer in freefall, but meaningful growth remains limited.
13
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
Investment Insights: Sales, Cap Rates & Investor Demand
Office investment activity in Wichita picked up selectively in Q2 2025. While rising interest rates have tempered some investors’ appetite for office assets nationally, local investors and public entities pursued strategic acquisitions. A headline transaction was Sedgwick County’s plan to acquire the Envision headquarters building at 610 N. Main for $11.95 million to serve as the county’s new administrative offices. This move (approved in May) not only keeps a large downtown property in use, but also frees the Envision nonprofit to expand its adjacent campus. It reflects confidence in downtown’s future and a cost-conscious alternative to ground-up construction for government needs. In the private sector, owners are re-evaluating their holdings. High Touch Technologies listed its 10-story downtown Wichita headquarters for sale at $4.3 million. The tech company cited a shift to hybrid work and strong downtown apartment momentum as factors – essentially positioning the property as a candidate for conversion or mixed-use redevelopment. This follows a growing trend of investors eyeing older office buildings for adaptive reuse. In fact, a longtime accountant’s building in downtown sold earlier this year, reportedly for a residential conversion. This is in addition to a new push to sell, one of the last remaining redevelopment oppourtunities, in Downtown, the Century Plaza building at 111 W. Douglas. The for-sale offering by High Touch signals that owners are capitalizing on the current demand for urban living and trying to repurpose underutilized office space. Investor sentiment is cautiously optimistic for Wichita: the market’s occupancy is improving, and the city’s steady economy attracts mostly local and regional investors rather than volatile institutional capital. Notable in Q2, an owner-user sale in the Northeast submarket closed as a design firm (Greyten) acquired and moved into a renovated Old Town building as its new showroom/office. Additionally, developers like Lange Real Estate have been investing in South Wichita office properties (e.g. the former Royal Caribbean call center) with plans to create modern workplaces, although some incentives for such projects have faced scrutiny. Overall, investment activity is targeted – flowing toward well-located assets, redevelopment plays, or user-driven deals – as investors adapt to the evolving use of office space.
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
NORTHWEST
CBD/ HYDE PARK
KE
SOUTHWEST
Submarket Highlights
12
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
Key Submarkets and Development Clusters (CBD & NE)
Downtown Wichita (CBD): Occupancy & Vacancy: Downtown Wichita ended Q2 2025 with a vacancy rate of 21.3%, the highest among all submarkets, yet an improvement from earlier quarters. Total vacant space sits just under 1 million square feet, out of a 4.65 million SF inventory, meaning about 3.66 million SF is occupied. , The positive net absorption of +12,299 SF this quarter signals continued stabilization in the urban core. Leasing Activity: Leasing activity in the CBD was driven primarily by smaller professional users and nonprofit or institutional tenants expanding their footprints. Several tenants took advantage of upgraded suites in Class A towers, helping reduce larger blocks of vacancy. Rents: Asking rents downtown average $16.35/SF, with Class A properties averaging $19.97/SF and Class B at $14.68/SF. These rates reflect both strong positioning of renovated towers and value options for budget-conscious tenants. Despite elevated vacancy, landlords have largely maintained face rents, relying instead on customized concessions and tenant improvement allowances to close deals. Notable Moves & Developments: Key developments this quarter included Sedgwick County’s pending acquisition of the Envision building at 610 N. Main for its new headquarters, a major move that will consolidate county operations downtown. Additionally, Wichita State compleated a lease of a little over 16,000 SF at 245 N. Waco and Greyten Design completed a creative office/showroom buildout in Old Town These projects reinforce that targeted, high-quality spaces are attracting strong tenants to the CBD.
Northeast Wichita: Occupancy & Vacancy: The Northeast submarket finished the quarter with a vacancy rate of 18.2%, almost matching the metro-wide average. Total inventory exceeds 3.34 million SF, with over 2.73 million SF currently occupied. This submarket recorded a net absorption of +10,977 SF, marking continued leasing momentum and reduced available space compared to Q1. Leasing Activity: Northeast Wichita continues to attract healthcare, financial services, and regional corporate users seeking modern office environments. Multiple small-to-mid-sized leases closed in Bradley Fair and Wilson Estates office parks. Class A buildings performed best, securing long-term deals with minimal concessions, while Class B properties saw lower churn. Rents: Northeast Wichita commands some of the highest rents in the city, with an average of $19.31/SF overall. Class A offices average $21.27/SF, supported by premium locations and newer construction, while Class B sits at $15.25/SF. Notables Moves & Development: The Crestpoint Office Park continued development in Q2, with its second building going vertical. This phased build-to-suit approach, which includes space for lease and condo-style purchase, is unique in the market and has already attracted committed users. Meanwhile, Marriott International’s recent lease at the Thorn Building is expected to bring continued activity into the corridor. Marriott leased 25,000 SF, moving it’s customer engagement center from South Wichita to the Northeast side of town.
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
Key Submarkets and Development Clusters (NW & SE/SW)
Northwest Wichita: Occupancy & Vacancy: Vacancy in Northwest Wichita increased slightly to 11.0%, still the lowest among the city’s larger office submarkets. With 1.07 million SF occupied out of 1.2 million SF total inventory, the submarket remains fundamentally tight. Net absorption, however, turned negative in Q2 at –6,043 SF, driven by a few tenant departures and consolidations. Leasing Activity: Activity was slower this quarter, with fewer new tenant commitments. Most leasing was limited to small renewals or short-term extensions. Vacancy increases were modest and tied largely to space turnover in mid-tier Class B buildings. That said, demand for owner-occupied and medical offices remains consistent, and brokers reported interest in future expansions. Rents: Average asking rents held firm at $15.25/SF, with Class A properties averaging $18.92/SF and Class B at $13.80/SF. With little new space coming online and few competitive properties, landlords in Northwest Wichita are unlikely to adjust rents significantly in the near term. Development & Notable Buildings: No major new development or tenant expansions were reported in Q2. Most of the market remains built out, with any redevelopment opportunities requiring significant reinvestment. The tight vacancy continues to benefit existing landlords, although leasing velocity remains slower than in Northeast or Downtown.
Southwest/Southeast (South) Wichita: Occupancy & Vacancy: Southeast Wichita’s vacancy rate rose to 17.8% following –16,669 SF of net absorption, the largest loss across all submarkets. With nearly 180,000 SF vacant out of just over 1 million SF in total inventory, the area reflects softening demand and tenant turnover, particularly in aging Class B buildings. By contrast, the Southwest submarket remained virtually full, with only 3.7% vacancy and 0 SF of net absorption. Its smaller inventory of approximately 233,000 SF continues to support high occupancy and minimal tenant churn. Leasing Activity: Leasing activity in the Southeast was minimal, with several small tenants exiting without immediate backfill and larger users opting for more amenity-rich or centrally located areas like Northeast Wichita or the CBD. In the Southwest, leasing velocity remained low but stable, driven by its composition of small, owner-occupied, and single- tenant buildings. While few deals were inked, brokers noted that any available space typically garners attention from local users. Across both submarkets, the limited new demand highlights the ongoing challenges in attracting tenants to older or inflexible buildings. Rents: Southeast Wichita posted an average asking rent of $11.34/SF, among the lowest in the metro, r Its affordability appeals to certain back-office or cost-sensitive users, though build-out quality often lags behind other submarkets. The Southwest averaged just $8.66/SF, the lowest in the region, due to its utilitarian inventory and absence of competitive leasing pressure. While both submarkets offer budget-friendly options, rent growth is unlikely in either area given their tenant profiles and limited transaction volume.
NAI MARTENS | Q2 OFFICE MARKET REPORT
www.naimartens.com
1330 E. Douglas Wichita, KS 67214 316-262-0000 naimartens.com
The information contained herein was obtained from sources believed reliable; however, NAI Martens makes no guarantees, warranties or represents as to the completeness or accuracy thereof.
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14Made with FlippingBook Online document maker