Q4 2018 Market Update





• The 188,000 SF Cargill Protein Headquarters located at 825 E Douglas was completed in the fourth quarter. The company is already considering expanding the $70 million downtown office building. • Office buildings currently under construction include the Spaghetti Works District office/retail complex with Martin Pringle as the lead tenant (60,000 SF), Kice Industries in Park City (6,000 SF), Hayes Co. in Delano (9,400 SF), Village Tours & Charters near K-96 & Ridge (48,000 SF), Holmes Garci Advertising located near Ridge Rd & 37th St (5,000 SF), and Icon Structures is constructing a new office building near K-96 & 13th St. • The City Council voted to allow the former Mead’s Corner coffee house building at the northwest corner of Douglas & Emporia to be demolished. Developers are planning to construct a four-story building with 60,000 SF of Class-A office space and 10,000 SF of storefront retail. The financial services firm IMA is the proposed tenant for the new building. • The former Icehouse building at 155 & 165 S Rock Island is being refurbished and expanded by Occidental Management. The Icehouse building will be 39,000 SF of Class A office space when completed. • A $2 million-plus renovation was completed on the Farm Credit Bank Building at 245 N Waco. Renovations included a new café called Roxie’s on the River, a fitness facility with locker rooms, and a new co-working space. • Office building sales activity in Q4 2018 totaled $15,207,314. The market posted 14 transactions with a total of 245,738 SF. Notable office sales in the Wichita market for Q4 2018 include the WoodSpring Office Building and Aetna Building in Wilson Estates Office Park, and the Occidental Plaza building located at 300 N Main. The Wichita office market ended 2018 on a positive note with 45,001 SF of positive absorption in the fourth quarter. Asking rates dipped slightly from the start of the year, while occupancy continued to make steady gains over the year. Class A office space finished the fourth quarter with a 13.3% vacancy rate with Class B space at 18.9%. The overall market vacancy rate for the fourth quarter was 17%, down from 19.6% at year-end 2017. The weighted average rents for available office space was $14.10/SF per year. Class A space had a weighted average of $19.13/SF and Class B was $12.23/SF. Lentz Eye Care completed their new building at 3333 N Ridge Rd. A new 20,170 SF development called Webb at 96 Plaza is currently under construction at 3161 N Webb Rd. The building has six spaces available for lease with asking rates of $21-25/SF NNN. The building is expected to be completed in early 2019. Other medical buildings under construction include the Center at Waterfront Rehab Center at 13th & Webb (70,000 SF), Mid-Kansas Ear, Nose & Throat Hearing Aid & Allergy Center at 3910 N Ridge (9,500 SF), Eye Care Associates at 3911 N Maize (6,000 SF), Dr. Montoya medical office at 8451 E Pawnee (4,319 SF), and the Rock Regional Hospital in Derby (90,000 SF). MEDICAL OFFICE ACTIVITY


15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0%

2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4


2018 Q4

2018 Q3

2018 Q2

2018 Q1

2017 Q4

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

ASKING RENTS (full service)







2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4

Class A Weighted Average Rent/Sq. Ft.

Class B Weighted Average Rent/Sq. Ft.

Source: NAI Martens Research *Full Service Leases






Thorn Building

8300 E Thorn

14,538 SF 6,713 SF

Northeast Northeast

WoodSpring Office Building

8621 E 21st St N

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