This report provides a comprehensive breakdown of Wichita’s retail and restaurant real estate market in Q1 2025, highlighting leasing trends, new developments, investment activity, and vacancy patterns across key submarkets. Northeast Wichita and Downtown/Delano emerged as the strongest performers, while redevelopment efforts in West and South Wichita signaled growing momentum in underserved areas.
Q1 2025 RETAIL
NAI MARTENS | Q1 RETAIL MARKET REPORT
EXECUTIVE SUMMARY Wichita’s retail and restaurant real estate sector demonstrated steady performance in the first quarter of 2025, with healthy leasing activity and several high-profile openings. Overall demand remained solid, though conditions varied widely by submarket. The strongest submarkets were Northeast Wichita – anchored by the K-96 corridor – and the Downtown/Delano urban core, both of which enjoyed low vacancy and new development. In contrast, some older retail nodes in West and South Wichita continued to face challenges (notably an aging mall property), but these areas are attracting reinvestment and new uses. Citywide, retail vacancy rates ranged roughly from the mid-single digits in the best locations to the mid-teens in the most challenged; for example, Northeast Wichita historically has had the metro’s lowest retail vacancy (around 7.2%) while the Northwest side has been highest (around 17.6%) This gap underscores the importance of location and surrounding demographics in driving performance. Leasing activity in Q1 was marked by national brands choosing Wichita for expansion, local entrepreneurs filling niche opportunities, and creative adaptive re-use of space. New big-box entrants (such as a prominent beverage retailer in the northeast) offset some lingering vacancies. Investment activity included the sale of a major regional mall property and ongoing redevelopment projects in key districts. New construction remained focused on mixed-use and entertainment-oriented developments, aligning with a national trend of experiential retail as a traffic driver
Vacancy Rate 3 of the 5 submarkets had single digit vacancy
11.39%
Net Absorption Slightly postive as move-ins kept pace with move-outs
Asking Rates Rates in Wichita have been steady, and well below the average asking rates for U.S shopping centers, indicating an affordability advantage New Deliverables Construction activity for retail/resturants in Wichtia remained modest in Q1
$12.26 PSF
NAI MARTENS | Q1 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
411,971
(8,751)
$14.04
Northwest
853,700
15,193
$12.42
Southeast
64,602
(997)
$8.47
Southwest
129,613
5,876
$9.81
Totals
1,536,172
3,419
$12.26
NORTHWEST
NORTHEAST
CBD
KELLOGG
SOUTHWEST
SOUTHEAST
NAI MARTENS | Q1 RETAIL MARKET REPORT
Construction Activity and Expansions
NAI MARTENS | Q1 RETAIL MARKET REPORT
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New Retail Projects and Developments
Construction activity for retail/restaurant properties in Wichita remained modest in Q1 2025, reflecting the national trend of limited new retail supply. However, several notable developments are in progress that will add new retail and dining options:
Downtown Wichita is seeing redevelopment of historic buildings that incorporate retail or restaurant space. For example, the Broadway Plaza building’s conversion into an AC Marriott Hotel is nearing completion, which will include a new rooftop cocktail lounge and ground-floor restaurant/retail space as part of the project. In the Delano district, the Sycamore 225 mixed-use project next to Riverfront Stadium is under construction (to deliver in 2025), bringing apartments and a hotel with retail amenities. These projects, while primarily hospitality or residential, contribute 5,000–10,000 SF of new retail/restaurant space to the market and are strategically focused on experience-driven retail (e.g., dining, entertainment) to serve residents and visitors.
NAI MARTENS | Q1 RETAIL MARKET REPORT
Construction Activity and Expansions
New Restaurants Building Out: Beyond tenant finish-outs in existing space, ground-up restaurant construction is underway. The highly anticipated Raising Cane’s involves a significant renovation of a stand-alone building (former Pizza Hut) on W. Kellogg – a roughly $1 million project per permits – slated to open by late Q3 2025. Additionally, Mokas Cafe, a regional coffee chain, broke ground on its third Wichita location on the northwest side (37th & Ridge) – a free-standing café with drive-thru planned for late 2025. These projects illustrate how fast-casual and coffee concepts are expanding to serve growing areas of the city. Retail Center Renovations: Rather than new malls or power centers, Wichita saw renovation and rebranding of existing centers. Huntley Yards (the rebranded Brittany Center at 21st & Woodlawn) is undergoing upgrades alongside the 29,000 SF Vima Church lease, aiming to attract additional tenants and modernize the façade. Similarly, West Wichita’s NewMarket Square and Bradley Fair on the east side continue to add pad sites and refresh tenant mixes, keeping those large open-air centers vibrant (recent additions include new eateries and shops opened or announced in Q1). These incremental developments add new space in small doses – for example, a multi-tenant pad building of ~8,000 SF under construction at NewMarket Square will house two restaurants by year- end.
Entertainment & Hospitality Synergy: A unique facet of Wichita’s retail development is the integration with entertainment and hospitality. A prime example is the Topgolf Wichita facility (opening occurred just before Q1, in late Dec 2024) – a 50+ bay golf entertainment center that features a full restaurant and bar. Its arrival not only created a new leisure destination but also spurred nearby retail interest along Greenwich Road. Likewise, a new 160-room hotel with convention space and restaurant near Eisenhower Airport moved toward completion in Q1 (targeting a mid-2025 opening), signaling confidence in travel- related commercial development. These projects, while not purely retail, contribute to the overall real estate ecosystem by drawing foot traffic that benefits surrounding restaurants and shops. In summary, new retail construction in Q1 2025 was limited to build-to-suit or pad-site projects, and much of the “new” supply is coming from renovations or mixed-use developments. This constrained pipeline is helping keep the market in balance: demand is focused on existing space, and any new additions are quickly absorbed given the city’s economic stability and population growth in key areas.
NAI MARTENS | Q1 RETAIL MARKET REPORT
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Market Metrics: Vacancy, Lease
Rates, and Absorption
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Market Metrics: Vacancy, Lease Rates, and Absorption Wichita’s retail market maintained a healthy occupancy level through the first quarter. Vacancy rates are mostly in the mid-single digits metro-wide, which is quite favorable – only slightly above the U.S. retail vacancy of 4.2% in Q1 (near historic lows). Net absorption (the net change in occupied space) in Q1 2025 was mildly positive, as move-ins kept pace with move-outs:
Vacancy Rates:
Stable or Improving Vacancy: Landlords report that most shopping centers and retail corridors have few empty storefronts. Popular districts (e.g., Waterfront/K-96 corridor, Downtown/Delano) are effectively fully leased aside from short-term churn. Some older properties on the south and west sides still struggle (e.g., portions of Pawnee & Broadway, or aging strip centers without renovation), but these are the exception. Importantly, Wichita did not experience any major chain bankruptcies or mass store closures in Q1 that would significantly spike vacancy. Even the announced store closures nationally in early 2025 did not impact Towne East Square Mall allowing them to maintain its anchor occupancy. As a result, the metro’s retail vacancy held around 11%, this rate is pulled upward by the Northwest and Southwest submarkets, which had vacancies in the mid-teens. This rate is considered healthy, and in fact retail is now one of the least vacant commercial sectors – behind industrial, which is at a record low. Mall and Big-Box Vacancies: The one soft spot remains older mall space. Towne West Square’s interior vacancy is very high – much of it “shadow vacant” awaiting redevelopment. However, since the mall is now slated for conversion, those empty spaces will be effectively removed from the competitive retail inventory. Meanwhile, Wichita’s other mall (Towne East) maintains occupancy with a roster of national tenants, and large-format vacancies in the city are limited. A few mid-size box vacancies (20,000–40,000 SF range) exist – for instance, a former Office Depot or JoAnn’s Fabrics in select trade areas – but active leasing efforts are underway for many of those. Wichita’s affordable rents have made it feasible for local businesses or regional chains to take on these larger spaces when subdivided or repurposed. Absorption: Q1 absorption was driven by the backfilling of second-generation spaces. The 29,000 SF Vima Church lease mentioned earlier will turn a long-vacant big box into occupied space. Several new restaurants took occupancy of vacant restaurant buildings or inline suites (e.g., a former donut shop being revived by Parlor Doughnuts). Fitness concepts and discount retailers have also expanded into existing spaces. These move-ins offset any natural churn. For example, one west Wichita restaurant’s lease ended in Q1 (causing a temporary vacancy), but that owner is already planning to reopen in a new location, keeping overall market occupancy stable. The net effect is that occupied retail square footage edged up slightly in Q1. According to reports, net absorption nationally was negative in Q1 (about –3.5 million SF) due to a slowdown in demand, but Wichita bucked that trend with its steady local expansions.
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Rental Rates:
Wichita remains a cost-effective retail market for tenants, with asking rents well below national averages Asking Rents: The average asking rent for retail space in Wichita is about $12.26 per square foot per year (triple net). This level has been steady over the past year – virtually unchanged from 2024 – reflecting a balanced market. By contrast, the average asking rent for U.S. shopping centers is roughly $24.76/SF, indicating Wichita’s affordability advantage. Even Class A lifestyle centers in Wichita top out around the high teens per SF for inline space, which is still considerably lower than prime rents in larger metros. Effective rents (after any free rent or concessions) in Q1 were generally on par with asking rents for well-located space, as landlords have had little need to offer discounts. In lesser centers, some modest free rent (e.g., one month on a 3-year lease) or finish-out allowance may be negotiated, but overall concessions remain limited. Landlords do anticipate that with inflation and higher construction costs, rent growth may be on the horizon constrained supply should lead to higher asking rents in 2025 broadly, and Wichita could see asking rates tick up 1– 3% by year-end if demand persists. Rental Rate Range: As of Q1, inline retail shop space in Wichita typically asks $9– $14/SF NNN depending on location and condition. Newer retail nodes on the east and northwest sides command the upper end (mid-teens and up), while older neighborhood centers in less dense areas may fall in the lower end (~$10–$12). Restaurant spaces (second-generation) often list in the $15–$22/SF range due to the presence of existing kitchen build-out or drive-thru infrastructure.
It’s worth noting that restaurant demand has pushed rents higher for prime pad sites . Overall, however, Wichita’s retail rents are among the most affordable for a metro its size, a fact touted by economic development officials in attracting new businesses. Effective Rent Trends: In terms of effective rents (post-incentives), most Wichita landlords achieved near ask in Q1. A few large blocks of space that had been vacant saw owners become more flexible on rate to secure occupancy – for example, the former gym space leased by Vima Church likely went for a below-market rent given its size and the adaptive reuse nature, but it provides the landlord long-term stability. In contrast, new construction or fully built-out restaurant spaces can fetch premium effective rents since tenants save on build-out costs.
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NORTHWEST
CBD/ HYDE PARK
KE
SOUTHWEST
Submarket Highlights
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Downtown & Delano
Leasing & Tenant Activity: Downtown Wichita (including the historic Delano district just west of the river) saw continued momentum in Q1. Several local food and beverage concepts expanded or adapted to meet growing demand. For instance, plans advanced for a new microbrewery in Delano – the Metropolitan Area Planning Commission approved a zoning change in March for a 0.7-acre site at 623 W. Douglas to allow a brewery development. In Union Station (a redeveloped historic hub downtown), established restaurant The Kitchen repositioned itself as “Kitchen Express” with a grab-and-go format to serve the increasing daytime workforce and tackle parking challenges downtownkwch.comkwch.com. Meanwhile, a new craft cocktail lounge (“The James & Rye”) prepared to open just after Q1, adding to the nightlife options in the core. These examples reflect how downtown tenants are adjusting to a busier district and an influx of customers. Development/Redevelopment: Downtown/Delano’s development pipeline remains active, boosting retail and restaurant space. Around Riverfront Stadium (the Delano ballpark), over $100 million in new mixed-use projects have come to fruition, driving demand for dining, lodging and services nearby. One signature project under construction is a mixed-use complex adjacent to the ballpark that will deliver 181 luxury apartments plus 10,000 sq. ft. of ground-floor retail space. In Delano, the Sycamore 225 development (opened late 2024) and other infill projects have already added new restaurant spaces. New hospitality projects are also bolstering the area: the historic Broadway Plaza building downtown is being converted into an AC Marriott hotel with 118 rooms and will feature a ground-floor bar open to the public, and the upcoming “Unscripted” hotel on the river’s west bank will include a high-end restaurant at street level.
Investment & Transactions: The quarter did not see a large number of downtown retail property trades, but ongoing public-private investments signal strong confidence. Notably, Union Station continued to attract tenants (e.g. the Koch- backed Learning Lab opened recently in a renovated wing), and several historic buildings changed hands for conversion to housing or mixed-use, which will increase foot traffic for nearby businesses. In the Delano area, a Wichita developer secured $6 million in financing for a new infill multifamily project aimed at young professionals (announced in early Q2 – while primarily residential, such projects often include ground-level commercial space or at least add a customer base for local shops. Overall, investors remain bullish on downtown’s transformation into a live-work-play district. Vacancy & Demand Drivers: Retail vacancy in the Central Business District remains relatively tight – approximately 8% in recent surveys – and tenant interest is strong for unique historic spaces. Demand is being driven by rising downtown residency and visitor traffic. Downtown Wichita’s residential occupancy hit ~95%, indicating a housing shortage in the, and about 350 more units are under development. More people living downtown (and an influx of 3,000+ students and staff anticipated with the new downtown biomedical campus in coming years) mean more consistent customers for restaurants, bars, and service retail. Additionally, the presence of major employers, events at Intrust Bank Arena, and Delano’s Riverfront Stadium (which opened in 2020) all generate foot traffic that sustains downtown retailers. In sum, Downtown/Delano was one of Wichita’s strongest-performing areas in Q1 2025, with new concepts opening and development projects laying the groundwork for future retail growth.
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Northeast Wichita
Leasing & Tenant Openings: Northeast Wichita – particularly the busy retail corridors along Rock Road, Webb Road, and Greenwich Road north of Kellogg – continued to thrive in Q1. The area attracted notable new national tenants. A headline event was Total Wine & More’s entry into the Wichita market, choosing Greenwich Place for its first local store. The large-format wine, spirits and beer retailer opened its doors in early 2025 to significant fanfare, drawing long lines of customers. (The store’s grand opening in February even featured a visit from actor-turned-brewer Kelsey Grammer, underscoring the buzz around this opening.) This addition filled a new- build space at Greenwich Place, which is now nearly fully leased with a roster of big boxes (Costco, Hobby Lobby, At Home, etc.), specialty shops, and dining venues. Elsewhere in the northeast, retail leasing skewed toward experiential and value-oriented tenants. The former Sears wing at Towne East Square (the region’s largest mall, at Kellogg and Rock) is now fully reinvented: sporting goods giant Scheels opened a 220,000 sq. ft. megastore there in mid-2023, and the mall also houses an entertainment center (Round1 Bowling & Amusement) that opened prior to 2025. These anchors significantly boosted traffic at Towne East. Development Projects: New construction in Northeast Wichita remained robust through Q1. The K-96/Greenwich development corridor in particular is **one of the city’s hottest growth area. In addition to the fully realized Greenwich Place shopping center, adjacent parcels are being filled with complementary uses. For example, Sherwin-Williams broke ground on a new 4,500 sq. ft. paint store at 2775 N. Greenwich Rd (just north of Greenwich Place, near the Topgolf site) with an expected completion by end of 2025
On the eastern fringe, The Heritage, the city of Andover’s new multimillion-dollar mixed-use development (just across Butler County line) may also draw some retail interest and has indirect influence on the outer Northeast Wichita retail market. Overall, the pipeline in this submarket includes a balance of retail build-outs (especially in proven nodes) and entertainment/dining projects that enhance its regional draw. Investment & Sales: The Northeast submarket’s stability and strong demographics make it a favorite for investors, though few marquee properties changed hands in Q1. One notable sale in late 2024 was the Walmart-anchored Junction City Shopping Center (in East Wichita on East Kellogg), acquired by out-of-state investors bullish on Wichita’s retail fundamentals (however, that transaction closed just before Q1 2025). During Q1 itself, investment activity was characterized more by new development than by trading of existing centers. For instance, local developer Wall Development Group purchased land near Greenwich & 29th for projects like the Sherwin-Williams stort. Rent growth in this submarket has been modest but positive, and high occupancy rates give landlords leverage to be selective with tenants. There is also active interest in outparcel developments – several restaurant chains and banks have acquired pad sites in front of major Northeast shopping centers (e.g. a Popeyes and a credit union branch are coming near 29th & Maize) as they seek proximity to the established retail traffic (even if land prices are premium). In summary, investors see Northeast Wichita as a low-risk, high-demand area, and new capital is flowing mainly into ground-up construction or expansion of successful retail hubs.
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Northeast Wichita
Vacancy & Demand Drivers: Northeast Wichita boasts the lowest retail vacancy in the metro, hovering in the mid-to-high single digits (approximately 7% as of Q1. Many prime properties are effectively full. Any vacated big boxes have been swiftly backfilled by new entrants (e.g. Scheels replacing Sears, Ross/Marshalls taking former Babies“R”Us spaces, etc.). The strong occupancy is fueled by the submarket’s favorable demographics and growth. The surrounding neighborhoods are among the city’s most affluent, with high disposable incomes supporting upscale retail. The area is also a regional shopping destination, drawing customers from the broader Wichita MSA and even neighboring states (especially for unique retailers like Cabela’s and Scheels). Residential expansion in northeast Wichita and nearby suburbs (Bel Aire, Kechi, Andover) is another demand driver – new subdivisions are being built, increasing the customer base. Furthermore, the concentration of class-A office parks and medical campuses in east Wichita brings daytime population that sustains lunch eateries and service retail. One trend worth noting is the rise of experiential venues in this submarket: for example, the Dave & Buster’s arcade restaurant near K- 96 and Webb has been very popular, and Topgolf’s arrival has boosted evening and weekend traffic. These attractions, alongside strong traditional retail, have made Northeast Wichita the metro’s top-performing retail submarket in Q1 2025 in terms of occupancy and sales volume.
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West Wichita Leasing & Tenant Movements: West Wichita exhibited a split performance in Q1, with newer developments on the northwest side thriving, even as some legacy properties on the west/southwest side struggled or transitioned to new uses. In the NewMarket Square area (21st Street & Maize Road in northwest Wichita), occupancy remained high and tenant mix continued to evolve. Notably, one of Towne West Square’s original tenants, Helzberg Diamonds, relocated from the mall to NewMarket Square after over 40 years at the old location. Helzberg’s new store opened in late 2024, indicating retailers’ preference for the strong foot traffic and contemporary format of NewMarket Square. Other national tenants have expanded in the 21st & Maize corridor as well – for example, Burlington Stores opened a new concept in an empty big-box space there, and several fast-casual restaurants (Chick-fil-A, Chipotle, etc.) have recently built stand-alone locations around the periphery. The west side consumer base (encompassing growing suburbs like Maize, as well as established neighborhoods) has shown appetite for more retail/dining options, and landlords are reporting stable leasing activity for quality space. Development & Repositioning: The biggest story in West Wichita this quarter was the fate of Towne West Square. In March 2025, it was confirmed that Towne West was sold to new ownership, and a dramatic change of use is on the horizon. The purchaser (Wichita Maple Company, LLC) immediately filed plans with city planners to rezone the 570,000+ sq. ft. mall from commercial to industrial use. The intent, according to planning documents, is to convert the struggling mall into a manufacturing or warehouse facility – essentially removing it from the retail inventory.
On the Northwest side, by contrast, development is oriented toward expanding retail and entertainment offerings. NewMarket Square, Wichita’s largest outdoor shopping center, is essentially fully built-out on retail, but in Q1 a local developer (Slawson Companies) put forward a proposal for a 300-person entertainment and pickleball venue on a vacant tract within NewMarket Square. The concept includes indoor/outdoor recreation (pickleball courts, possibly an event space) and would be paired with a small hotel, aiming to create a night-life anchor in this part of the city. The developer noted that West Wichita is lacking in certain amenities like entertainment venues, and the plan intends to fill that gap. This reflects a broader trend of mixing uses – adding experiential components to retail centers to drive traffic. Additionally, along Maize Road, several smaller projects are underway: new multi-tenant retail strips have been built near 29th & Maize and near 37th & Maize to cater to the growing population north of NewMarket, and Wichita’s Park Board approved plans for a large sports complex at 29th & Maize which could spur future retail (restaurants, sports shops) in that vicinity. Overall, West Wichita’s development in Q1 was a tale of two corridors: proactive growth and innovation in the newer northwest area, and transformative repositioning in the older southwest area.
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West Wichita
Investment & Sales Activity: The West submarket saw one of Wichita’s most noteworthy investment transactions of Q1 with the sale of Towne West Square. While financial terms were not public, the buyer’s redevelopment angle suggests an opportunistic purchase at a low valuation, given the mall’s condition. Other investment moves included local ownership groups buying aging strip centers along West Central and West Maple with plans to refurbish and re-tenant them; these are smaller deals but indicate that investors see upside in revitalizing neighborhood retail on the west side once the mall’s overhang is resolved. In the thriving NewMarket node, no major properties traded hands during the quarter – largely because those centers are performing well and ownership (often long-term holders or REITs) are holding onto them. There is, however, new capital investment in hospitality on the west side: a new Holiday Inn Express opened near 21st & Maize in Q1, targeting shopping visitors and tournament sports families (given the proximity to both NewMarket Square and the Maize athletic facilities). This indirectly benefits retail by increasing the volume of out-of-town shoppers.
Vacancy & Market Trends: West Wichita’s retail vacancy is bifurcated. In northwest Wichita, vacancy is very low in the primary centers – NewMarket Square and its immediate surroundings have minimal empty space. However, including all of “West Wichita” (northwest and southwest together), the vacancy rate had been the highest in the metro (around 15-17% in recent years) due to Towne West and a few other struggling complexes. With the mall likely coming off the market (being repurposed), the effective retail vacancy in the area should improve drastically, though at the cost of losing retail square footage. Demand on the west side is driven by a large and growing residential population. West Wichita (and adjoining suburbs like Goddard, Maize, and west Wichita County) has seen steady housing growth, including new apartments and single- family subdivisions, which creates demand for grocery, convenience, and dining options. For example, a new Dillons grocery store is under construction at 135th & Maple to serve expanding neighborhoods in far west Wichita. Consumer spending power is solid (household incomes in many west side ZIP codes are just slightly below northeast Wichita averages), and the absence of a traditional mall after Towne West’s conversion could actually redirect shoppers to remaining retail nodes. We are already seeing retail flight-to-quality: retailers who want a west presence opt for the 21st and Maize corridor or other modern formats, as exemplified by Helzberg Diamonds’ move from Towne West to NewMarket. In summary, Q1 showed West Wichita’s retail market in transition – shedding an obsolete asset but strengthening around its newer centers. We anticipate the Northwest sub-area continuing as the focal point for west-side retail activity, with low vacancies and rising rents, while the Southwest area reinvents itself, possibly reducing retail inventory but opening opportunities for fresh development in the coming years.
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South Wichita
Leasing & Tenant Activity: South Wichita (generally referring to retail south of Kellogg/US-54, including the I-235 corridor and south city limits) has historically been under-served by national retail, but Q1 2025 saw encouraging signs of revitalization. In late 2024 and into Q1, a few notable tenants opened or expanded in this area. Most prominently, Ollie’s Bargain Outlet – a national discount retailer – opened a new 30,000 sq. ft. store at Saddlecreek Crossing (47th St S & Broadway) in fall 2024. This was Ollie’s third Wichita location (after west and east locations) and marked a vote of confidence in the south submarket. By Q1 2025, the Ollie’s was drawing value-conscious shoppers from across South Wichita and even neighboring communities, increasing traffic at Saddlecreek Crossing (an older center formerly known as South City Mall). Additionally, several small-format restaurants and shops either opened or announced plans along the Pawnee, Seneca, and Broadway corridors – for example, a local Hispanic grocer expanded on South Broadway, and a couple of fast-food franchises began construction on pad sites near 47th Street. While leasing activity is not as fast- paced here as in other parts of the city, there is pent-up demand for retail services in South Wichita. Neighborhood shopping centers that had high vacancies (often 20%+) are beginning to lease up space to non-traditional uses: a church took over a former department store space at Pawnee & Broadway, and an e-sports arena operator is eyeing a vacant big-box on South Seneca. These adaptive re-uses, while not retail per se, bring people to the area and can indirectly support nearby restaurants and shops.
New Development & Redevelopment: The key theme in South Wichita is redevelopment catalyzed by the “CrossGate District” initiative. The CrossGate District is a massive 13-square- mile redevelopment area in southwest Wichita led by local developer Jeff Lange. Within this district, multiple projects are underway that will add or enhance retail components. One is Saddlecreek Crossing’s facelift: the city approved a new Community Improvement District (CID) to help fund upgrades to this long- time retail center at 47th & Broadway. Plans call for façade renovations, improved parking, and attracting new tenants to what was a largely vacant property. This CID was approved by the City Council in late 2023, and by Q1 2025 work was gearing up – setting the stage for more retailers to follow Ollie’s into the center. A few miles west, another major project in CrossGate is Steeple Bay, an 80-acre mixed-use development at I-235 and South Seneca. Steeple Bay, with its unique waterfront (an adjacent 14-acre lake), is anchored by Kansas’s only Camping World and Gander Outdoors stores. Those large-format outdoor recreation retailers opened as early as 2019, and now Steeple Bay is progressing on later phases that could include hotels, additional restaurants, and possibly multifamily housing. The infrastructure is visibly in place – roads and utilities have been built out, and steel is rising for new buildings, which the developer touts as evidence of the area’s transformation. This momentum continued through Q1. Another facet of CrossGate is the Iron Horse industrial park on the south end of the district, which, while industrial in focus, is attracting hundreds of jobs – and those workers increase daytime demand for nearby eateries and services. In summary, South Wichita’s development in early 2025 is less about new retail construction from scratch and more about redevelopment and mixed-use projects that incorporate retail.
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South Wichita
Investment & Transactions: The South Wichita submarket historically saw limited outside investment, but the tide is turning. The establishment of incentive districts (like the CID and STAR bond district for CrossGate) has drawn interest from both local and national investors. For instance, Jeff Lange’s $300 million CrossGate District vision has multiple investors and partners involved, addressing everything from retail to industrial to recreational uses. In Q1 2025, we saw smaller property transactions as well: a vacant former Kmart site on South Meridian was purchased by an investor group that plans to repurpose it (likely for a mix of retail and self- storage). Furthermore, the success of some south-side businesses is prompting expansion – e.g. a regional fast-food chain (Braum’s Ice Cream & Dairy) bought land at 31st & Seneca to build a new store, seeing opportunity with the increased traffic in the area. On the flip side, some traditional retail buildings remain hard to fill or sell – one example being the empty big box on South Rock Road (formerly a K-Mart), which is still on the market. However, even that site is drawing unconventional interest (rumors of a specialty flea market or public indoor bazaar concept). The CrossGate District improvements themselves aren’t a traditional “sale,” but they represent a significant capital infusion – for example, Steeple Bay’s development is being driven by Triple Crown Realty Trust and partners, and had an estimated cost of $80+ million for initial phases. As those phases complete and begin generating revenue, we anticipate more investment dollars will flow into adjacent opportunities (outparcels, new complementary businesses, etc.). Overall, Q1’s investment narrative for South Wichita is about laying groundwork: investors are betting that today’s redevelopment efforts will make the south submarket viable and profitable for retail in the near future.
Vacancy & Demand Drivers: Retail vacancy in South Wichita has been relatively high (often in double digits) but is starting to improve as space is either absorbed by new uses or removed from inventory. For instance, when Ollie’s opened at Saddlecreek, it significantly reduced vacancy in that center. Likewise, converting a dead retail property to non-retail use (e.g. part of the Kmart to a church, or potentially parts of Towne West to industrial even though Towne West is more west than south) means fewer vacant retail square feet on the books. The demand drivers for South Wichita retail are somewhat unique. Unlike the north and east sides, this area does not have high-income demographics; however, it does have growing population nodes in suburbs like Haysville and Derby. Many residents in south Sedgwick County would prefer to shop or dine closer to home if options are available. Additionally, industrial employment is strong in South Wichita – aircraft manufacturing plants (Spirit AeroSystems and others) and logistics centers are large employers on the south side, providing a daytime customer base for restaurants, convenience stores, etc. There’s also an “underserved market” factor: national retail chains have open site requirements for South Wichita (for example, Target and Home Depot have long identified south Wichita as a gap, though they haven’t pulled the trigger yet on new stores there). The success of recent entrants like Ollie’s and Dunham’s Sports (which opened a south Wichita store in 2022) demonstrates that consumer demand exists when the right value proposition is offered. Going forward, expect vacancy to trend downward as revitalization efforts continue – albeit gradually, as some projects will complete beyond Q1. In Q1 2025 specifically, South Wichita’s retail performance was modest but improving: foot traffic increased at rejuvenated centers, vacancy edged down slightly, and the groundwork was laid for transformational growth in the form of the CrossGate developments.
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Emerging Retail Corridors & Trends
Douglas Design District (East Douglas/College Hill): Another emerging area is along East Douglas Avenue roughly between Washington and Oliver, known as the Douglas Design District. This corridor, which connects downtown to the College Hill neighborhood, has become a hotbed of local boutique retail, galleries, and eclectic dining. Q1 2025 saw continued activity here. Notably, a group of entrepreneurs announced plans to convert the former Love of Character retail space at Douglas & Hillside into a new event venue, capitalizing on the proximity to the historic Crown Uptown Theater. While some nearby residents raised parking concerns, the project underscores the adaptive reuse trend in this corridor – taking old retail storefronts and giving them new life (be it as event spaces, micro- breweries, or artisanal shops). The “Revolutsia” container park, an innovative mixed-use development made of shipping containers at Central & Volutsia (just north of Douglas), continues to draw visitors and has filled its vendor slots, proving the viability of non-traditional retail formats. The Design District is also attracting investment for streetscape improvements and public art, making the area more appealing for foot traffic. This corridor doesn’t have the large square footage of big-box centers, but its importance lies in creating a niche retail destination – particularly for independent retailers and restaurateurs – that complements the mall and power center offerings elsewhere. In Q1, vacancy along East Douglas in this area was relatively low; any time a storefront goes dark, another local concept (such as a café, vintage store, or salon) seems ready to take its place. Going forward, look for the Douglas Design District to keep expanding eastward and solidifying as an “emerging corridor” for experiential and boutique retail in Wichita.
Entertainment & Recreation Hubs: Wichita is also developing retail/restaurant clusters around entertainment facilities, essentially new micro-corridors driven by recreation. For example, the North Greenwich corridor in the far northeast is evolving with the coming Topgolf and existing Wichita Sports Forum (an indoor sports complex) – this area is attracting sports bars, family restaurants, and specialty retailers (like a golf pro shop) to serve patrons before/after activities. Similarly, in northwest Wichita, the proposed NewMarket Square entertainment venue with pickleball (in Q1 planning stages) aims to create an “activity anchor” that will spin off dining and retail opportunities. Even unique concepts like Tap & Paddles, a new pickleball club and restaurant near K-96 and Oliver, are spurring adjacent retail – for instance, inside that facility a local restaurateur is opening RAHA Mediterranean, an upscale eatery targeting patrons after their pickleball matches. This trend of blending recreation with retail/restaurant is giving rise to new concentrations of commerce in locations that previously might not have been retail- heavy. While these are site-specific developments, collectively they represent emerging focal points for retail growth outside of traditional shopping centers. In Q1 2025, Wichita saw strong public interest in these projects (e.g. community excitement for Topgolf, heavy usage of existing recreational venues), indicating that as these hubs grow, the retailers and eateries around them should thrive.
NAI MARTENS | Q1 RETAIL MARKET REPORT
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Emerging Retail Corridors & Trends
CrossGate Wichita): Highlighted above in the South Wichita section, the CrossGate District merits special mention as an emerging super-corridor for development. Spanning 13 square miles in the southwest quadrant, CrossGate is **one of the largest redevelopment projects in Kansa. It’s turning underutilized land into destinations like Steeple Bay (retail, entertainment, and residential) and Iron Horse (industrial). For retail and restaurants, CrossGate is bringing in large regional draws (camping/outdoor stores, potentially restaurants with a waterfront view at Steeple Bay) and revitalizing older shopping centers (Saddlecreek Crossing). While still a work in progress, by Q1 2025 CrossGate’s impact was already being felt – for example, the removal of blight and addition of unique anchors have started to draw consumers back to this area. Over the next few quarters, as more components open (including planned hotels and dining establishments), CrossGate is expected to firmly establish itself as a new retail- entertainment corridor bridging South Wichita and the suburbs to the south. In Q1, the buzz around CrossGate helped drive interest from prospective tenants; brokers report that once-vacant big boxes in the general vicinity are now getting looks from gym operators, call centers, and discount retailers who anticipate increased traffic due to CrossGate. In summary, the CrossGate District is transforming the map of Wichita’s retail, creating an emerging corridor where little more than empty parking lots stood a few years ago. District (Southwest
Metro Area Extensions: Just outside Wichita’s city limits, fast-growing communities are effectively creating new retail corridors that feed off Wichita’s market. For example, Derby (south of Wichita) has developed an extensive retail strip along Rock Road, including a new Hobby Lobby and expansion of its dining options in early 2025. Park City and Valley Center (north) are seeing highway-adjacent commercial projects (one $150M development in Park City aims to add 2 million sq. ft. of mixed commercial space, though primarily industrial). And to the west, Goddard has opened a noteworthy regional draw with its aquatic center and ballpark complex (completed in 2024), around which hotels and restaurants are now clustering. These areas aren’t within Wichita city proper, but they influence the region’s retail dynamics – essentially creating satellite corridors that compete with or complement Wichita’s submarkets. In particular, Derby’s retail success (low vacancies and strong sales) has put pressure on South Wichita to step up its game, contributing to the CrossGate efforts. The first quarter of 2025 continued this pattern of suburban retail strength, effectively extending the map of where consumers shop and dine.
NAI MARTENS | Q1 RETAIL MARKET REPORT
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2025 Outlook
NAI MARTENS | Q1 RETAIL MARKET REPORT
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A Solid Start for Retail in 2025 Q1 2025 was a dynamic period for Wichita’s retail and restaurant real estate. Northeast Wichita and Downtown/Delano stood out as the strongest submarkets, each enjoying high demand and low vacancy – Northeast due to its established retail centers and income demographics, and Downtown/Delano thanks to urban revitalization and growing population. West Wichita had the most noteworthy transition with the Towne West mall sale signaling a major change (and highlighting the divergence between the thriving northwest vs. struggling southwest). South Wichita is on the cusp of a potential turnaround, fueled by large-scale redevelopment (CrossGate) and value retailers moving in. Across the city, landlords and developers are increasingly focusing on experiential retail and mixed-use (from entertainment venues to live- work-play projects) as key drivers of growth. The retail market overall is stable and cautiously optimistic – new developments and tenant expansions in Q1 indicate confidence in Wichita’s economy and consumer spending. While challenges remain (e.g. older property vacancies, adapting to e-commerce trends), the first quarter’s performance suggests that Wichita’s retail real estate sectors are adapting well, with each submarket carving out its role. The emergence of new corridors and redevelopment of old ones are setting the stage for a more diverse and resilient retail landscape citywide in the coming quarters.
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NAI MARTENS | Q1 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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