Explore the latest trends in Wichita’s retail and restaurant real estate market for Q2 2025. This report covers vacancy rates, lease rates, absorption, leasing activity, and development highlights across key submarkets including Downtown, Northeast, Northwest, Southeast, and Southwest Wichita. Get insights on new openings like Raising Cane’s, Total Wine & More, and The James & Rye, as well as redevelopment progress at Towne West Square. Whether you’re an investor, developer, or business owner, this market snapshot provides valuable, location-specific data to guide your next move in Wichita commercial real estate.
Q2 2025 RETAIL
NAI MARTENS | Q2 RETAIL MARKET REPORT
EXECUTIVE SUMMARY
Vacancy Rate
Wichita’s retail/restaurant sector remained broadly stable in Q2 2025. The citywide vacancy rate was roughly 9.9%, with a slight negative net absorption (14,300 SF) as small moves outpaced moves in. Average asking rents held around $11.51/SF. These fundamentals echo the resilience noted in Q1 (strong performance in Northeast and Downtown), even as national retail sales softened. Overall, the market showed steady demand in core areas (Downtown/Delano) and modest slack in peripheral submarkets. Key themes this quarter include major national chains entering and expanding (Cane’s, Tractor Supply), local franchise expansion (Scooter’s Coffee), and the ongoing repurposing of underused centers (Towne West redevelopment, vet clinic conversions). Leasing activity was steady but unspectacular; headline transactions were more strategic (change-of-use or small- portfolio) than trophy investments. The impact of removing Towne West from the retail statistics, had a significant impact on the Northwest sector.
9.94%
Net Absorption Small moves outpaced moves in
New Deliverables Construction activity for retail/resturants in Wichtia remained modest in Q2
Asking Rates Rates in Wichita have been steady.
$11.51
NAI MARTENS | Q2 RETAIL MARKET REPORT
Retail Submarkets
Total Vacant (SF)
YTD Net Absorption (SF)
Weighted Average Leasing Rate (PSF)
CBD
76,286
(7,902)
$14.49
Northeast
400,239
881
$14.60
Northwest
467,210
(1,370)
$10.57
Southeast
68,732
(5,127)
$8.53
Southwest
132,807
2,682
$9.91
Totals
1,133,840
(10,836)
$11.51
NORTHWEST
NORTHEAST
CBD
KELLOGG
SOUTHWEST
SOUTHEAST
NAI MARTENS | Q2 RETAIL MARKET REPORT
Construction Activity and Expansions
NAI MARTENS | Q2 RETAIL MARKET REPORT
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Construction Activity and Expansions
New builds: As noted, Tractor Supply secured approvals in Derby (summit use for rural retail). Raising Cane’s opened in West Wichita. The northeast hub at 29th & Greenwich saw permits issued this quarter for a new community bank branch and a children’s health clinic, anchoring a parcel slated for future retail. These projects will deliver space in 2026. Redevelopment and renovations: The Towne West Square mall is being rezoned and half-demo’d for the new business park. In downtown, a 70-year-old warehouse was renovated to a makerspace/market in Q2, drawing local retailers (part of the Old Town revitalization trend). In south Wichita, an old restaurant at K-42 was acquired for conversion into a $6M veterinary clinic (opening in 2026) to serve a growing west-side market. This is an example of “adaptive reuse” responding to unmet demand outside core corridors. Proposals: A mixed-use project was proposed on East Kellogg (adding restaurants and apartments) and drew city planning interest, though no approvals yet. Several small infill strip centers were announced (e.g. near Maize & Central), continuing the trend of neighborhood retail infill. Tenant Movements and Leasing Activity Local operator growth: Brew Crew Coffee (Scooter’s Coffee franchisee) expanded aggressively – acquiring three Wichita-area locations (bringing its city-wide Scooter’s count to four). (An earlier Scooter’s opened in west Wichita in Q1.) A Scooter’s kiosk also opened downtown this spring. These drive-thru coffee expansions highlight continued appetite for quick-service concepts. New retail concepts: Fashion/workwear brand Carhartt will opened its first Wichita store in spring 2025 at Bradley Fair, it will join Fidelity Bank, and Emler Swim School in the high-end center. Locally-founded concepts also grew: for example, a Wichita diner announced plans to open an east-side branch in a redeveloped strip center. Renewals/renovations: Several existing centers saw tenant reshuffling rather than big net gains. One example: the 13th & Greenwich Waterfront center lost Grimaldi’s Pizza in Q2, but brokers report several prospects for that space. A longtime Douglas Ave. eatery (The Anchor) closed and was seized over back taxes, suggesting turnover opportunities in downtown retail.
NAI MARTENS | Q2 RETAIL MARKET REPORT
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Market Metrics: Vacancy, Lease
Rates, and Absorption
NAI MARTENS | Q2 RETAIL MARKET REPORT
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Market Metrics: Vacancy, Lease Rates, and Absorption Wichita’s metro-wide retail fundamentals showed a mix of improvement and slight softening in Q2 2025. The overall vacancy rate dipped to 9.94%, down from roughly 11% in the prior quarter. This drop pushed vacancy below the 10% threshold and was aided by a major high-vacancy mall being repurposed and effectively removed from the competitive inventory. Net absorption for the quarter turned negative at –14,255 SF, indicating a modest occupancy loss as move-outs slightly outpaced new leases – a reversal from Q1’s slight gains in occupied space. In essence, the market gave back some of the space it had filled earlier in the year, even as the headline vacancy rate improved due to the inventory adjustment. Meanwhile, asking lease rates saw a mild downtick. The weighted average asking rent settled at $11.51/SF (triple net) in Q2, compared to about $12.26/SF last quarter. This decline likely reflects a greater share of lower-priced space on the market or more competitive pricing by landlords amid the quarter’s slower leasing activity. Despite the dip, Wichita’s retail rents remain well below U.S. averages (roughly half the national shopping-center average), underscoring the market’s affordability. Market sentiment remains cautiously optimistic: the sub-10% vacancy rate is still considered healthy by historical standards, and local demand drivers persist in select areas. However, the negative absorption this quarter suggests a more balanced or tentative environment, as landlords and tenants navigate a period of pausing growth after the steady momentum seen earlier in the year.
13
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NORTHWEST
CBD/ HYDE PARK
KE
SOUTHWEST
Submarket Highlights
12
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CBD (Downtown, Delano, Old Town, Douglas Design District)
The CBD retail submarket posted a steady quarter with no net absorption and a vacancy rate of 7.6%. Leasing was active but largely consisted of smaller-format tenants, particularly in Old Town and the Douglas Design District. New boutique concepts and locally-owned food operators continued to show interest in historic storefronts and adaptive reuse spaces. Asking rents across the urban core held at $14.49/SF, with Old Town continuing to command premium rates near $15.61/SF. No major new deliveries occurred during the quarter, but tenant demand remained consistent in well-located blocks, and most landlords reported stable occupancy with little turnover. Northeast Northeast Wichita remained the metro’s most active and desirable submarket during the quarter, posting positive net absorption of 9,632 SF and a vacancy rate of 7.0%. Tenant demand was concentrated along the K-96 and Greenwich corridors, where recent retail development and adjacent residential growth continued to drive leasing interest. Leasing activity was led by service and convenience retailers as well as food and beverage concepts seeking pad sites or in-line space near high-traffic centers. Rents held firm at $14.60/SF, supported by low vacancy and minimal turnover among national tenants. With construction underway on multiple new buildings near 29th & Greenwich and a mix of banks, health services, and QSR users entering the pipeline, the Northeast submarket continues to attract both tenants and developers seeking long-term stability and exposure. Northwest Northwest Wichita recorded the weakest performance of all major submarkets in Q2, with negative net absorption totaling –16,563 SF and an elevated vacancy rate of 12.0%. Several small move-outs were reported across strip and power center product types, particularly in older centers with limited visibility or deferred maintenance. Leasing activity was limited and heavily dependent on concessions, while newer construction in peripheral neighborhoods has created competition for dated inventory. The weighted average asking rent closed the quarter at $10.57/SF, reflecting a tenant-favorable environment. Although well-located assets along 21st Street continue to draw steady foot traffic, the broader Northwest corridor remains under pressure from stagnant leasing and limited redevelopment activity. Southeast Southeast Wichita remained among the most stable retail zones in the metro area during Q2, with a low vacancy rate of 3.5% and modest negative net absorption of –4,130 SF. The submarket’s mix of small-format, service-oriented centers continued to attract cost-conscious tenants, and activity was concentrated in established corridors with strong traffic counts. Although minimal leasing was recorded, occupancy remained high and most vacancies were temporary or transitional in nature. The average asking rent held at $8.53/SF, consistent with the submarket’s value-oriented positioning. With no new construction or large tenant shifts reported, Southeast continued to perform as a dependable, low-risk environment for both landlords and local
operators. Southwest
The Southwest submarket continued to underperform in Q2, posting –3,194 SF of negative net absorption and maintaining the highest vacancy rate in the city at 15.9%. Leasing activity was constrained by aging inventory and weak co-tenancy in many centers, particularly those west of I-235. While some backfilling occurred in strip centers and free-standing buildings, most leasing was concentrated in lower rent ranges. The average asking rent was $9.91/SF, with significant variation based on age and condition of space. Tenant interest in the area remained limited, though certain properties positioned for redevelopment, including those in the vicinity of South Seneca and Pawnee, have begun drawing interest for alternative uses.
NAI MARTENS | Q2 RETAIL MARKET REPORT
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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.
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