Kansas City Office Figures Q1 2025

– Overall net absorption posted positive 144,801 sq. ft. for Q1 2025, marking the second consecutive quarter of positive net absorption. Positive net absorption came from both the suburban market (131,435 sq. ft.) and the downtown market (13,366 sq. ft.).

– Vacancy rates fell from 19.1% to 18.6% quarter-over-quarter in the overall market, a result of positive net absorption. Looking longer-term vacancy rates increased from 18.3% to 18.6% year-over-year, and from 17.2% to 18.6% over the previous three years.

– No new multi-tenant space was delivered in Q1 2025, with no new projects currently under construction. Over the past three years 712,984 sq. ft. of new multi-tenant space was delivered from four buildings which were 86.7% occupied as of Q1 2025.

– Asking lease rates in the overall market increased 2.0% year-over-year ($22.76 per sq. ft. to $23.22 per sq. ft.). Over the previous three years the average asking lease rate increased 7.5% ($21.59 per sq. ft. to $23.22 per sq. ft.).