Q3 2017 Core Report (Flipbook)

Wichita Core Report 2017 Q3

RETAIL Delano Downtown Old Town Douglas Design District

Heart of WICHITA

Though retail is expanding along the suburban areas of the city, Wichita’s downtown continues to thrive. Revitalization and reimagining of older buildings have brought more life to the core than it has seen in some years. Major factors such as preparation for hosting the 2018 and 2021 NCAA Men’s Basketball Championship first and second round have contributed to this. Restaurants dominate the market and more development is planned. However, retail shops such as boutiques and home décor stores have continued to open, particularly in the Delano and Douglas Design districts. Community inspired retail reflecting local culture and carrying local products continues to succeed. Other thriving local business include breweries and distilleries. Efforts to make the core region more “walkable” have been well-accepted. The first ICT Open Streets event in September was a huge success. The event closed traffic on Douglas from Delano to College Hill, allowing community members to run, walk or bike along the normally busy avenue. Renovations are coming to Delano; these include adding streetscapes and pedestrian paths in hopes to continue increasing foot traffic. In addition, Gallery Alley and the Pop-Up Park have contributed to the growing outdoor life in the center of the city. The city’s commitment to revitalizing the core seems to be paying off, as renewed interest and excitement has been brought to Wichita’s four central regions.

The Delano District has been put back on the map recently. The city is focusing on developing the space around the Arkansas River and sees Delano as an essential part of Wichita’s

future. The city council announced a project to remodel Lawrence Dumont Stadium and revitalize

the Delano area. EPC Real Estate out of Kansas City

plans to begin construction on a mixed-use development late next year featuring apartments, 5,000 square feet of Class A commercial space and a Marriott-flagged hotel. Construction continues on the River Vista apartments and the new Advanced Learning Library. The plan is

to use the EPC Delano development to bridge the gap between the Delano commercial district and the advanced learning library. An average Class B space in Delano is asking rates around $10 per square foot (triple net).

68 NUMBER OF SPACES

273,346 INVENTORY SQUARE FEE T

50,282 18.4% VACANC Y RATE VACANT SQUARE FEE T

DELANO PROJECTS

• Hutton Construction New Headquarters: The company announced plans to construct a 30,000 square foot office building and a parking garage near Sycamore and Oak. • Lawrence Dumont Stadium Remodel: The city council approved the designation of $29.5 million towards the renovation of the stadium and the surrounding area.

Downtown has seen numerous changes in the past year. The Douglas Luxury Apartments are finishing their lease-up phase. More apartments are coming to downtown after the conversions of the former USD 259 offices, the former Broadway Autopark and the Market Centre building. Next year a mixed-use development is expected to begin

construction across from Intrust Bank Arena. In 2018, 6,000 square feet of Class A commercial space will be coming to downtown along with the 120-room Hilton Garden Inn hotel. Residential space in the downtown area has increased significantly in the past five years and with new multifamily projects underway, it is likely to continue increasing. This expansion will likely spur further retail expansion. Older downtown spaces have asking rents around $10 per square foot, while newer properties are asking $14+ per square foot (triple net).

81 NUMBER OF SPACES

431,620 INVENTORY SQUARE FEE T

55,569 12.9% VACANC Y RATE VACANT SQUARE FEE T

DOWNTOWN PROJECTS

• Colorado Derby Lofts: The former USD 259 offices will be converted to 105 apartment units, which will be a mixture of one and two-bedroom and are expected July 2018. • Commerce Street Development: A newly formed development group purchased the lot across from Intrust Bank Arena and plans to construct a new mixed-use development.

Old Town continues to expand and thrive. The Union Station revitalization that began in 2014 entered its next phase which is estimated to be complete in about 8 to 14 months. 8 Below, a rolled ice cream shop, and Noodles To Go opened in the kiosks next

to Union Station. Events like this summer’s Taco Fest, which saw an unexpected 7,000 attendees, create interest in the area, along with businesses moving to the area like Faneuil

opening its new call center in Union Station and Cargill’s construction of its new protein division headquarters. With a vacancy rate below 8%, very few availabilities remain in Old Town. The majority of Old Town retail spaces on the market have asking rates of $12 per square foot (triple net).

54 NUMBER OF SPACES

250,983 INVENTORY SQUARE FEE T

19,659 7.8% VACANC Y RATE VACANT SQUARE FEE T

OLDTOWN PROJECTS

• Cargill New Protein Division Headquarters: The 190,000 square foot building will be located at 825 E. Douglas, the former site of the Wichita Eagle. The company projects the new campus for its 800 employees will be mostly complete in the fourth quarter of 2018. • Faneuil Call Center: Faneuil, a Virginia-based company, will occupy Union Station and employee nearly 500 people for their new Wichita call center.

The Douglas Design District is undergoing its own transformations; most notably the construction Uptown Landing, a mixed- use 190-unit apartment and retail development in College Hill. Uptown Landing will bring 18,900 square

feet of Class A commercial space to the district. Asking rents for the project range from $16 to $20 per square foot (triple net), which is higher than the normal asking rate in the Douglas Design District. Typical

average asking rates for the area are in the $12 to $14 per square foot range. The district’s Clifton Square continues to thrive, as well as businesses that have become favorites of the community, such as Tanya’s Soup Kitchen and Reverie Coffee Roasters. While the dining scene is strong, retail shops continue to open and find success in the area.

97 NUMBER OF SPACES

421,422 INVENTORY SQUARE FEE T

24,327 5.8% VACANC Y RATE VACANT SQUARE FEE T

DOUGLAS DESIGN DISTRICT PROJECTS

• Uptown Landing: Uptown Landing, a new mixed-use development, is under construction and will include 190 apartments units and commercial space. The first phase of the expected mid-2018, with 18,900 square feet of retail space available. • Avenue Art Days: Multiple businesses in the district received makeovers as a group recently painted 21 murals throughout the Douglas Design area.

LARGE PROJECTS IN THE CORE

Delano District

Oldtown

Douglas Design District

The Wichita Core Report is the product of the most comprehensive database of commercial real estate information in the Wichita retail submarket. Led by NAI Martens’ Research/GIS Specialist Drew Gannon, the Wichita Core Report database tracks commercial property in Downtown, Old Town, Delano, and the Douglas Design District. For information on survey methodology and property classification descriptions, visit our website at www. naimartens.com.

Drew Gannon 316.262.0000 dgannon@naimartens.com

435 S. Broadway Wichita, KS 67202

316.262.0000 www.naimartens.com

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