Real Estate Market Studies

Industrial Real Estate Outlook

RAW DJI_0017The total vacancy rate in Southwest Missouri is currently 4.3%, a change in vacancy of -0.4 compared to the second quarter of 2016.  This decrease is due to the following transactions conducted during the third quarter.

  • The Southwest Missouri industrial market recorded 145,075 square feet of positive absorption during 3Q 2016.
  • Major occupiers of space included Buckhorn, Inc., JB Installations and Vintage Peddler.
  • The inventory contains over 950 tracked buildings with 33 million square feet of Industrial space. Several large tenants are expected to occupy new space in 4Q 2016.

The change in the vacancy rate from third quarter in 2015 was -1.5%.

Below is a list of the current Average Asking Lease Rates by class (NNN) for the industry.

Warehouse/distribution $2.95
Bulk Warehouse $3.85
 Flex/R&D  $5.16
Manufacturing $4.75
 Light Industrial  $4.10

For a full report on the health of the industrial real estate market in this area, download the complete Industrial Report here.

Office Real Estate Outlook

BKD_HammonsThe real estate market for office space in Southwest Missouri has remained quite consistent across all submarkets with a total vacancy rate for classes A, B and C of 8.8%.  During the third quarter of 2016, the office market in this area recorded 57,628 square feet of negative absorption with major occupiers of space including Jack Henry & Associates, Watts Water Technologies and Kirkland Woods & Martinsen. Weighted average asking rents for all classes increased 6.0% while Class A rents remain flat over the past year. The SW Springfield and the Central Business District markets continued to have the highest overall rental rates.

The change in the vacancy rate from second quarter in 2016 was 0.4% whereas the rate in third quarter in 2015 was 1.3%.

Below is a list of Average Asking Lease Rates (NNN) by class.

Class A $19.83
Class B $15.85
Class C $10.17

For a full report on the health of the office real estate market in this area, download the complete Office Report here.

Retail

38-3619383546-OThe Southwest Missouri retail market finished out the third quarter of 2016 with 16,069 square feet of negative absorption. The total vacancy rate is currently 4.9%, a slight decrease of -0.1 from 2Q 2016 and -0.3 compared to 3Q in 2015.

The inventory of retail space in Southwest Missouri contains over 600 tracked buildings with 16 million square feet of retail space. Weighted average asking rents increased 16.0% recording $11.74 per square foot at the close of 3Q 2016 compared to 3Q 2015.

The SE Springfield submarket reported the highest overall rental rate with $17.96 psf.

Below is a list of the current Average Asking Annual Lease Rates (NNN) for the industry.

General $6.75
Freestanding $6.85
Neighborhood Center $10.44
 Convenience/Strip Center  $13.15
 Community Center  $18.05

For a full report on the health of the retail real estate market in this area, download the complete Retail Report here.