Molzer Development Newsletter #3

Welcome back to Molzer Development Newsletter! You should all know by now how much I love my city, so today I will dive into the downtown Kansas City market, and recent & planned developments. 

First, let’s start with a meme as promised: This photo accurately describes what I do daily as a developer: Herding Cats.

I constantly talk about why I think Kansas City is such a great place to invest, live, raise a family, and visit; but why? Let’s get into the weeds. 

First, let’s dive into recent investments & developments as well as upcoming projects in Kansas City:

The KC Streetcar in Kansas City's central business district has 10 stops and over 11.4 million passengers since 2016. An extension with eight more stops connecting downtown to neighborhoods and entertainment areas is under construction, expected to boost economic growth by 2025.

Kansas City International Airport (KCI) unveiled a $1.5-billion single terminal in February 2023, featuring 40 gates, a large parking garage, and 16 security lanes. The upgrade aims to improve nonstop flights and support airline growth.

Panasonic broke ground on a new $4 billion, 3 million SF facility that will create 4,000 new jobs manufacturing Tesla batteries by 2025

Google is set to build a $1 billion data center in Kansas City, Missouri, at the Hunt Midwest Business Center in four sequential phases, covering a vast expanse of 1.44 million square feet. Google aims to introduce the STAR program in Kansas City, focusing on offering entry-level job prospects, particularly targeting underrepresented communities.

Meta is developing an $800 million, 1 million square feet hyper-scale data center in the Golden Plains Technology Park, a 5.5 million square feet data facility set to be operational by 2025

The macro trends of Kansas City are amazing, and only expected to get stronger. 

Downtown Kansas City is a thriving hub for employment and living with various amenities like housing, offices, healthcare, education, and dining. Recent investments have brought upscale apartments, hotels, and entertainment options, totaling over $3 billion in the past five years with more developments in progress.

The pace of job growth in 2023 slowed down after a rapid rebound in previous years, with a 0.9 percent annual increase and 9,900 new workers added to payrolls.

Employers in the area are expected to continue hiring in 2024, with growth anticipated across various industries. Total employment is projected to grow by 1 percent in 2024, with approximately 11,500 new jobs being created.

Lastly, let’s touch on some major projects coming to Kansas City over the next few years, all of which I will dive into further detail in future newsletters:

Rock Island Bridge Project ($12M)

The historic railroad bridge built in 1905 is being transformed into a vibrant entertainment center in Kansas City. Once completed, it will offer music venues, dining options, bars, and more, making it a unique "destination landmark bridge" elevated 40 feet above the Kansas River, providing over 35,000 sq. ft. of functional space.

West Bottoms Redevelopment ($527M)

SomeraRoad Inc. has started its $526.7 million redevelopment in the West Bottoms area, involving apartments, hotel rooms, retail, and office space across 22 acres. Funding includes city incentives, public financing, and federal grants. Construction has begun with the demolition of the Weld Wheel building and infrastructure development. The project spans five phases over 15 years, ending in 2038

Berkeley Riverfront Development ($800M)

Kansas City Current, in collaboration with Palmer Square Capital Management, Marquee Development, and the Port Authority of Kansas City, Mo. (“Port KC”), unveiled plans for the next phase of its transformational development on the Missouri Riverfront in downtown Kansas City. The next phase will be $200M, with $800M planned in the area over the next decade.  

South Loop Project ($490M)

A significant $217 million project is nearing completion to create a park spanning 5.5 acres above a section of INTERSTATE 670.

This highly anticipated endeavor is set to transform the downtown area with a range of potential concepts, such as a green mobility hub providing access to various transportation modes, playgrounds, dog parks, arts and amphitheater events, and other social engagement opportunities. The park aims to connect popular areas within the downtown corridor, projecting an increase in nearby real estate values by over $90 million and an economic impact exceeding $490 million.

This is just SOME of the massive developments coming to Kansas City. Very exciting things ahead for this growing city, with tons more to come. 

While Kansas City may not be DFW, it is a stable midwest market that is seeing unbelievable growth & potential and I could not be more excited for my hometown. 

A huge shoutout to Yates & Yates for putting together these graphics on downtown Kansas City market trends. If you are in Kansas City and haven’t checked them out, I highly recommend Denise & Nicole.

If you have any questions regarding Kansas City, development, or have any interest in working together on a future project either as an investor or partner, don’t hesitate to reach out! 

That’s a wrap for this edition of Molzer Development Newsletter. Godspeed!