Kansas City, MO Commercial Real Estate Market Trends
Commercial Real Estate Market Report
This page provides a high-level view of commercial real estate conditions in Kansas City, combining current pricing, property scale, and active inventory to support early market evaluation.
Explore Commercial Properties in Kansas City
Browse properties currently for sale or lease to see how local market pricing and building sizes translate into real opportunities.
Kansas City's Demographic Profile
With a population of 531,772 and a median household income of $64,541, these metrics help investors gauge whether Kansas City's pricing reflects local demand fundamentals.
| Key Demographic Metrics | Value |
|---|---|
| Population | 531,772 |
| # Households | 226,715 |
| Median age | 37 |
| Median household income | $64,541 |
| Avg household size | 2 |
| Renter-occupied housing units | 112,942 |
| 5-year population change | 3% |
Commercial Real Estate Market Snapshot in Kansas City
These market metrics outline current pricing, typical deal size, and observed cap rate ranges, giving investors a quick read on entry costs and high-level underwriting expectations.
| Key Market Metrics | Value |
|---|---|
| Avg asking sale price | $174 per SF |
| Avg asking lease rate | $39 per SF |
| Avg unit size for lease | 23,447 SF |
| Avg building size for sale | 41,446 SF |
| Average cap rate | 9.25% |
In Kansas City, commercial properties are currently listed at an average sale price of $174 per square foot, with average lease rates around $39 per square foot. Typical leased spaces are approximately 23,447 SF, while properties for sale average 41,446 SF in building size. Observed cap rates average 9.25%, offering a reference point for return expectations relative to pricing and deal scale.
Commercial Properties For Sale In Kansas City
Commercial Market Metrics by Property Type
Office Building Market Metrics Near Kansas City
Office market metrics highlight how pricing, typical deal size, and return expectations vary across submarkets, helping investors compare entry costs and yield potential efficiently.
| Nearby Office Markets | Avg Cost/SF | Typical Size | Cap Max |
|---|---|---|---|
| Kansas City | $140 | 25,611 SF | 8.00% |
| Kansas City | $139 | 23,611 SF | 6.77% |
| Shawnee | $174 | 16,644 SF | 8.00% |
| Leawood | $207 | 41,595 SF | 8.18% |
Industrial Property Market Metrics Near Kansas City
Industrial market data shows how cost per square foot and typical building size differ by submarket, supporting comparisons around deal scale and pricing alignment.
| Nearby Industrial Markets | Avg Cost/SF | Typical Size | Cap Max |
|---|---|---|---|
| Kansas City | $111 | 47,342 SF | 7.25% |
| Kansas City | $122 | 53,347 SF | 11.45% |
Retail Property Market Metrics Near Kansas City
Retail pricing varies widely across nearby markets, making this comparison useful for identifying where cost per square foot and deal size diverge most.
| Nearby Retail Markets | Avg Cost/SF | Typical Size |
|---|---|---|
| Kansas City | $310 | 23,915 SF |
| Mission | $363 | 5,566 SF |
| Kansas City | $253 | 16,313 SF |
| Overland Park | $382 | 19,254 SF |
| Lenexa | $377 | 21,014 SF |
Multifamily Property Market Metrics Near Kansas City
Multifamily metrics show how pricing and building size relate to observed cap rate ranges, helping investors evaluate income potential relative to entry cost.
| Nearby Multifamily Markets | Avg Cost/SF | Typical Size | Cap Max |
|---|---|---|---|
| Kansas City | $195 | 37,522 SF | 11.28% |
| Overland Park | $162 | 52,205 SF | 9.40% |
How Investors Evaluate Commercial Real Estate Markets in Kansas City
Nearby Commercial Markets
Comparing nearby markets helps investors see whether Kansas City pricing and building scale sit above, below, or in line with surrounding areas.
| Commercial Markets | Avg Cost/SF | Average Size |
|---|---|---|
| Kansas City | $174 | 41,446 SF |
| North Kansas City | $208 | 134,529 SF |
| Mission | $310 | 7,771 SF |
| Riverside | $96 | 137,381 SF |
| Merriam | $180 | 21,928 SF |
Multifamily For Sale In Kansas City
Regional Demographic Comparison
This comparison places Kansas City alongside nearby cities to show how population size, household counts, and income levels differ across the region. Viewing these markets side by side helps investors understand whether local demand and income characteristics are concentrated in Kansas City or distributed across surrounding areas.
| City | Population | # Households | Age | MedianHouseholdIncome | AvgHouseholdSize | RenterOccupiedHousingUnits | FiveYrPopGrowthPct |
|---|---|---|---|---|---|---|---|
| Kansas City | 531,772 | 226,715 | 37 | $64,541 | 2 | 112,942 | 3% |
| North Kansas City | 5,160 | 2,990 | 41 | $41,631 | 2 | 2,213 | 5% |
| Mission | 10,112 | 5,421 | 38 | $70,228 | 2 | 2,943 | 3% |
| Riverside | 4,500 | 1,852 | 38 | $43,316 | 2 | 1,088 | 10% |
| Merriam | 11,003 | 5,085 | 40 | $65,352 | 2 | 2,217 | 3% |
FAQs About Commercial Investing in Kansas City
Kansas City offers commercial properties across a wide range of sizes and price points. By reviewing the market data and benchmarks on this page, first-time investors can better understand what a typical commercial property looks like before committing capital and narrowing in on specific listings.
The pricing and size metrics on this page help business owners compare the cost of ownership against leasing in Kansas City. Typical building sizes and asking prices provide a starting point for evaluating space needs, budget fit, and long term occupancy costs before engaging lenders or brokers.
Conservative investors often prioritize manageable deal sizes, stable pricing ranges, and cap rate benchmarks shown for Kansas City. These metrics help assess whether current market conditions support steady income potential without relying on aggressive assumptions.
Nearby market comparisons highlight differences in pricing, building scale, and cap rate ranges relative to Kansas City. Reviewing these side by side helps experienced investors identify relative value, pricing premiums, or alternative markets that may better align with return targets.
This page provides high-level benchmarks for pricing, deal size, and observed cap rates in Kansas City, which are useful for initial market filtering. Institutional and data-driven investors often use these signals to prioritize listings that meet size, pricing, and return thresholds before deeper underwriting.
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