2018 Wichita Brewery Report

2018 BREWERY REPORT W I C H I T A K A N S A S

LEARN ABOUT WICHITA’S BREWERIES AND BREWERY STATISTICS

BREWERY REPORT

Serving Kansas for 70 years

435 S Broadway | Wichita, KS 67202 | 316.262.0000 www.NAIMartens.com

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435 S Broadway Wichita, KS 316.262.0000

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BREWERY REPORT

Growing Craft Beer Industry

The brewery trend is sweeping the nation--and Wichita is no exception. According to the Brewers Association, the number of breweries in Kansas went from 17 in 2011 to 31 in 2016. In that same time period the number of national breweries went from 2,047 to 5,301. The craft brewery boom presents a unique opportunity for the commercial real estate industry. There is great potential for increased industrial and retail space absorption. Brewers across the country and locally have been snatching up industrial warehouse spaces to take advantage of their square footage and, in many cases, their location. In Wichita, a number of warehouse spaces in the Delano District, the Douglas Design District and downtown have been reinvented in recent years, contributing to the renewed interest in the core of the city by opening unique and successful retail businesses. The new breweries opening are able to benefit from the older breweries by taking advantage of the aspects that work and those that do not. For example, breweries have seen great success with outdoor patio spaces. This is a trend that the latest addition to the market, Norton’s Brewing Co., picked up on. Norton’s features a large outdoor area complete with grass and swings. Many owners have

a specific idea in mind when looking for their perfect brewery space. Augustine Iacopelli, founder of Augustino Brewing which opened last November, said he first wanted to build his own space. “It took a while to find the spot I wanted to be in and to get licensing for both a restaurant and a brewery,” Iacopelli said. “I originally wanted to buy land and build a new free standing building but the cost was too high and it was hard to find a good location.” Many of Wichita’s breweries have been focused in or near downtown, presumably due to the extensive efforts that have been put toward revitalizing those parts of the city. Iacopelli noticed this trend. “I knew I definitely wanted to be out west due to the supply of breweries out here,” he said. “We came to decide this location from the good frontage on Tyler Road and a lot of traffic in this area.” As breweries continue to spread it is likely popular trends will evolve. It will be interesting to watch all businesses that serve beer as changes to Kansas laws take effect. Bars, taverns and restaurants can now begin serving alcohol at 6 a.m., as opposed to 9 a.m. Also, new regulations will allow establishments to have self- serve beer taps. Time will tell how much the loosened liquor laws will impact the local brewery scene.

Breweries have steadily opened in Wichita over the past few years and chances are more will follow. “There is not even close to an oversupply of breweries in Wichita,” Iacopelli said. “There is room for more breweries in Wichita, especially away from the core area.” Many of the local breweries were started by people with experience brewing. Iacopelli started home brewing in 1998. Norton’s Brewing co-founder Dan Norton was the head brewer at River City Brewing Co. before deciding to open his own establishment. With research, time and work nearly anyone can open a brewery. Alex Lent of Limestone Beer Co. says to start small. “Starting a brewery requires a lot of startup money,” Lent said. “There is not a lot money in starting your own brewery at first. My advice for someone new would be to keep the overheard down and grow within your means.” Iacopelli believes that with current demand and smart business practices, there are profits to be made. “People love hanging out at breweries to meet up with family and friends to drink, eat. Breweries are hard to get up and running and are very expensive but can have good margins if ran and operated correctly.”

In this report you will find craft brewery statistics, information about Wichita breweries, including space size, and a few tips for starting your own brewery. Be sure to keep an eye on NAI Martens blog and social media for more information on this topic in the future!

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Commercial Real Estate Services Worldwide.

Serving Kansas for 70 years

UNITED STATES KANSAS WICHITA

76,712+ SF *

128,000 J O B S F R O M B R E W E R I E S & B R E W P U B S

BARRELS PRODUCED PER YEAR

5 BEERS PRODUCED BY FREE STATE BREWING ACCORDING TO RATE-BEER

MICROBREWERIES

Limestone Brewing

Aero Plains

Hopping Gnome

Third Place Brewing

2,252 BREWPUBS

River City

Augustino

Wichita Brewing Co.

Central Standard

LOCAL BREWERIES

6,658 BARR E L S PRODUCED FROM WICHITA-OWNED BREWERIES IN 2017

R E G I O N A L CRAFT BREWERIES N A T I O N W I D E

36

CRAFT BREWERIES

Statistics reflect latest numbers available.

*Approximation

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435 S Broadway Wichita, KS 316.262.0000

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BREWERY REPORT

Wichita Brewery Locations

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Commercial Real Estate Services Worldwide.

Serving Kansas for 70 years

Wichita Brewery Square Footage

30,000

25,000

20,000

15,000

10,000

5,000

0

Square Footage

Aero Plains

Augustino

Central Standard Brewing Nortons Brewing Co. Wichita Brewing Co. **

Hopping Gnome Brewing Limestone Brewing Co.

River City Brewing Co.

Third Place Brewing

**Includes production facility and retail

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435 S Broadway Wichita, KS 316.262.0000

www.naimartens.com

BREWERY REPORT

QUESTIONS TO ASK WHEN LOOKING FOR BREWERY SPACE • Does your location support your company? • Will your space allow for growth? • Will your space support your equipment? • Are you able to create the atmosphere you want in your space? TIPS FOR STARTING YOUR OWN BREWERY • Explore and find your favorite brews. • Craft and perfect your product. • Bring friends along the way to try to your products. • Acquire the equipment for mass production. • Find a space that meets you target market. • Connect with the Wichita community and share your brews! • Know your local and state laws that may affect your brewery. • Don’t underestimate your demand! Wichita knows their beer!

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Commercial Real Estate Services Worldwide.

Serving Kansas for 70 years

W H E R E

T O

S T A R T

INTERESTED IN LEARNING MORE?

If starting a brewery sounds like something in which you might be interested, or if you are a property owner interested in attracting a specific kind of tenant, contact one of our knowledgeable and experienced advisors at NAI Martens.

GLENN COX Commercial Advisor 316-847-4919 gcox@naimartens.com

METHODOLOGY SOURCE: NAI Martens Research, Brewers Association, Rate-Beer PREPARED: May 2018 DISCLAIMER: The above data is from sources deemed to be generally reliable, but no warranty is made as to the accuracy of the data nor its usefulness for any particular purpose.

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435 S Broadway Wichita, KS 316.262.0000

www.naimartens.com

2018

BREWERY REPORT

Serving Kansas for 70 years

435 S Broadway | Wichita, KS 67202 | 316.262.0000 www.NAIMartens.com

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