2019 Core Report

2019

CORE REPORT

WICHITA, KS

435 SOUTH BROADWAY, WICHITA KS, 67202 | (316) 262-0000 | NAIMARTENS.COM

Learn more about this report or opportunities in the core....

Drew Gannon Commercial Advisor (316) 847-4918 dgannon@naimartens.com

Marshall Johnson Commercial Advisor (316) 262-4843 mjohnson@naimartens.com

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 and Topeka. NAI Martens is led by CEO Steve Martens, CCIM, CPM, SIOR and President Tom Johnson, CRE – two industry veterans with 80 years of combined commercial real estate experience. Commercial real estate services include brokerage, appraisal, property management, consulting, site selection, highest-and- best use analysis and more.

435 SOUTH BROADWAY, WICHITA KS, 67202 | (316) 262-0000 | NAIMARTENS.COM

© Copyright 2019 NAI Martens. Reproduction in whole or part is permitted only with the written consent of NAI Martens. The information contained herein was obtained from sources believed reliable; however, NAI Martens Company makes no guarantees, warranties or representations as to the completeness or accuracy thereof.

CORE REPORT 2019 INTRODUCTION Downtown Wichita is changing. For the first time in a long time the core area is attracting businesses and residents alike. Retail has hit a stride with a mix of local and national tenants finding success in the Delano District, Douglas Design District, and Old Town. In the office market, after years of notable companies relocating to northeast suburban office locations, the core has managed to attract and retain a number of high-profile businesses. The statistics reflect the apparent growth, showing an upward trend over the past few years in all categories. Rent has increased in all four submarkets of the core: Delano, Downtown, Old Town and Douglas Design. Similarly, occupancy has gotten stronger. So what’s the reason behind it all? Why are there suddenly people venturing downtown? Part of the catalyst is likely the national trend of revitalizing urban areas. Wichita has seen a renewed desire from its residents for an increased sense of community. The city has also witnessed a commitment to growing and diversifying the local economy, as well as attracting and retaining young talent. More than $1 billion has been invested in the core over the past 10 years, a majority of which was private investment. These investments have meant higher quality commercial space, improved walkability and micromobility, and increased residence downtown. More people are living downtown than ever before, and the more retailers and employers move and stay downtown, the more attractive it will become to Wichitans considering a move to the core. Downtown has become a site for events and community activities. New development and redevelopment continues to be announced on a regular basis signaling that the growth of Wichita’s core is not slowing down any time soon.

DELANO DISTRICT Delano, one of Wichita’s oldest and most established neighborhoods, is home to many unique shops, restaurants, bars and more. With the 2019 Delano Neighborhood Plan in action, the area will continue to show revitalization efforts with new infrastructures and businesses, especially on the east side of Delano. The new ballpark, new retail/ restaurant space, a new apartment complex and a new hotel are sure to bring a level of foot traffic not seen in Delano in years. DOWNTOWN There has never been a more happening time in Downtown Wichita. The increased residential population in the CBD has led to more traffic, businesses and development. Construction is wrapping on the Spaghetti Works District fetauring office, retail, apartments and restaurants. Work is underway at the former Mead’s Corner site that will soon be the headquarters for IMA Financial, who will be moving from the northeast corridor. OLD TOWN Old Town Wichita continues to expand with redevelopments in the area; most notably another phase of the Union Station redevelopment was completed. In brand-new construction, the Cargill Protein Headquarters is poised to become an iconic feature in Old Town and has helped the district expand south of Douglas Avenue. With the IceHouse redevelopment expected to be completed early next year, more employers and people will be venturing to the core. DOUGLAS DESIGN DISTRICT The Douglas Design District is a 3-mile stretch that has undergone numerous changes over the last few years. As home to Clifton Square and some of the most popular breweries and coffee shops, Douglas Design is seeing steady traffic. The district is home to over 100 locally owned businesses, consisting of great places to eat, shop and live. The new multifamily developments in the area, the expansion of breweries and the financial investments being made to repurpose buildings are all a testament to the growing popularity of the district.

CORE STATISTICS

7.1%

12.9%

0.6%

7.6%

Vacancy Rate

$11.69

$13.12

$12.47

$16.00

Rental Rate*

8.0%

16.9%

5.2%

8.7%

Vacancy Rate

$11.35

$13.71

$14.36

$10.00

Rental Rate*

*Average asking rental rate in Q3 2019. Retail numbers reflect NNN rates and office numbers reflect full service rates.

DEVELOPMENT

Delano

Downtown

Old Town

Douglas Design District

9

2

DouglasAve

10

8

3

11

6

1

12

5

4

7

1

7

Douglas & Seneca Building Renovations

FireWorx Co-Working

2

8

Delano Catalyst - Hotel & Apartments Home2 Suites & 225 Sycamore

Hilton Garden Inn

3

9

430 Redevelopment

Hutton Construction New Headquarters

4

10

Wichita Wind Surge New Stadium

Spaghetti Works District

5

11

Fidelity Bank Headquarters Project

Union Station

6

12

Kansas Health Science Center

Icehouse

GETTING INVOLVED IN WICHITA’S FUTURE

Riverfront Legacy Master Plan The Riverfront Legacy Master Plan aims to create a comprehensive vision for the east bank of the Arkansas River, with a particular focus on the future of Century II and convention and performing arts centers for the city. The group regularly asks for input from citizens. https://www.riverfrontlegacywichita.org/ Wichita Regional Chamber of Commerce The Wichita Regional Chamber of Commerce often organizes and hosts events designed to connect local businesses and advance the goals of the business community. https://wichitachamber.org/ Douglas Design District/Old Town Wichita/Historic Delano District The different divisions of the core have organizations that meet to hear input from businesses in the districts and to discuss objectives for the district. https://www.dddwichita.com/ https://www.oldtownwichita.com/ http://historicdelano.com/ Downtown Wichita Downtown Wichita is a non-profit corporation whose main goal is the growth of downtown for businesses, visitors and residents. Downtown Wichita promotes and helps coordinate events that get Wichitans to the core and connecting with each other. https://downtownwichita.org/

What to consider if thinking about... MOVING YOUR BUSINESS TO THE CORE

Most spaces are retrofitted.

Location.

Space.

Does your space accommodate your street visibility, and foot-traffic needs? What recreational or food opportunities are in the area?

What unique qualities does your building have? Will you be given an allowance to make the space yours?

Moving is tough. Are you considering your space for future growth?

Intrust Bank Arena Concerts From Garth Brooks to Metallica, the arena has new and exciting acts all the time. Wind Surge Baseball Games With a new stadium and the Wichita Wind Surge, a Triple-A franchise, baseball in Wichita is about to become a big deal. Keeper of the Plains Lights Everyone Wichitan should check out the Ring of Fire around the Keeper of the Plains. Museum of World Treasures A history museum right in Old Town featuring dinosaurs, mummies and more! First Friday An art crawl through downtown Wichita that celebrates art and creativity. Second Saturday Every second Saturday of the month Wichitans are encouraged to shop local and in return receive discounts from a number of downtown retailers. Old Town Unique establishments with a vibrant old-world atmosphere, there is always something happening in Old Town.

Photo by Merrill Thomas

DOWNTOWN WICHITA Cool things to do in

Wichita Art Museum An art museum on the river and every Saturday admission is free!

Exploration Place With everything from hands-on activities for kids to an annual exhibit dedicated to chocolate, this science museum in Delano has something for everyone.

Photo by Merrill Thomas

Tram Ngo Wichita Regional Chamber of Commerce

Jason Gregory Downtown Wichita

We are fortunate in our communities that downtown is literally the geographic center. So, the cliché you’re in the center of it all, I mean, I think it really does hold true. If I’m an employer and I’m trying to attract a talent pool from around the metropolitan area it is an advantage. But I think just the unique setting. We have 1880s building next to new construction right here in this block. You can’t recreate that environment.

I think Wichita’s definitely headed in the right direction. There’s a lot of potential just for all of theeconomicdevelopment options downtown. I think for a long time, we’ve had a lot of naysayers who were the louder voice in the community, and I think we are just now slowly beginning to think outside of the box and people are more receptive of that. There’s been an influx in variations of different restaurants and breweries and I think the community is really starting to get behind all the movements in the chains and supporting a lot of the local businesses, which has been a great addition to the economy.

Chris: You have far west and you have far east. I think Delano is just right in the middle. You get a lot of the college traffic just with Friends and Newman so that is nice. You have a lot of restaurants here to bring

Tony and Chris Abdayem La Galette

daytime traffic. A lot of new business are coming into town I think that Delano is going to be a perfect area to see growth and new stuff arrive here. Tony: You’ll find a combination of everything. That’s what people want. Besides that, we have the view of the river and the stadium. All that can be done within walking distance. This is what we like to see.

2019

CORE REPORT WICHITA, KS

435 SOUTH BROADWAY, WICHITA KS, 67202 | (316) 262-0000 | NAIMARTENS.COM

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

naimartens.com

Made with FlippingBook - Online Brochure Maker