For Metropolitan Kansas City 2015

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For Metropolitan Kansas City 2015 The Real Estate Report For Metropolitan Kansas City 2015 Block Real Estate Services, LLC 700 W. 47th Street, Suite 200 | Kansas City, MO 64112 816.756-1400 | www.BLOCKLLC.com BLOCK REAL ESTATE SERVICES, LLC (BRES) Table of Contents HIGHLIGHTS OF 2014 POSITIONED FOR MORE GROWTH IN 2015 _________1 Transactions BRES completed the year with total GLOBAL, U.S., KANSAS CITY OVERVIEW ____________7 sales and leasing transactions in excess of $832 million. DOWNTOWN DEVELOPMENT ___________________20 Property Management OFFICE MARKET ______________________________22 BRES commercial management portfolio reached 33.75 million INDUSTRIAL MARKET __________________________31 square feet by year-end. RETAIL MARKET ______________________________43 Construction Block Construction Services INVESTMENT MARKET _________________________49 (BCS) completed renovation and development projects exceeding INVESTORS CHART AND SALES RECORDS __________57 $174 million in Kansas City. Additionally, BCS managed projects MULTIFAMILY MARKET _________________________58 in the St. Louis and Atlanta offices, expanding to a regional services company. BLOCK INCOME FUNDS ________________________62 Investment Syndication BLOCK CONSTRUCTION SERVICES ________________63 BRES completed over $225 million in investment sales and raised over BLOCK HEALTHCARE DEVELOPMENT _____________65 $74 million in equity funds for syndication of new acquisitions BLOCK MULTIFAMILY GROUP ___________________67 and development projects. ECONOMIC INDICATORS _______________________68 Affiliates Block Hawley Commercial Real Estate, LLC ranks as the most active industrial brokerage firm in St. Louis, with over 10.75 million square feet of listed property and nearly 6.75 million square feet under management. BRES Atlanta manages nearly 1.85 million square feet of commercial office and industrial space in the Atlanta market. Block Multifamily Group, (BMG) now manages more than 3,606 units, an increase of over 27% in one year. Projections point toward ® 5,000 units by year-end 2015. Real Estate. Real Strategies. Real Success. Positioned for More Growth In 2015 POSITIONED FOR MORE GROWTH IN 2015 POSITIONED FOR MORE GROWTH BRES Principal Michael R. Block, CPM (left) and BRES Managing Principal Kenneth G. Block, SIOR, CCIM (right), are shown with Brian Sandy, the 2014 Allen J. Block Scholarship Award recipient. The excitement created by the Kansas City Royals and retail space in the Kansas City Metropolitan area this past season was a real boost for all Kansas • #1 Most active commercial real estate firm with 715 Citians and our economy. And just as the Royals transactions • #2 Commercial real estate company with 64 real were knocking it out of the park … our local real estate agents estate industry was experiencing a banner year of • #19 Top area general contractors with $7.3 million in growth and expansion. local billings (Block Construction Services) • #18 Top area construction project: Teva For the fifteenth consecutive year, we bring to you what Pharmaceuticals ($29,505,810) has become known as the most comprehensive report on St. Louis Business Journal: the status and activity of the commercial real estate market in the Kansas City Metropolitan Area. With the pace of • #16 Largest commercial real estate firm, based on activity continuing to accelerate in the Kansas City area, our number of local active licensed agents (Block exceptionally talented teams of knowledgeable real estate Hawley) investment, sales, marketing, operations, and construction National Real Estate Investor: professionals are excited to again share how we have • Ranked 23rd for total office space developed or under leveraged our development and investment activity into construction of 600,000 square feet enhanced financial outcomes for our clients. Commercial Property Executive: Come join me for a peek into what has been an exciting year for Block Real Estate Services (BRES) and the real estate • Ranked 34th nationally for top property manager industry in Kansas City. • Ranked 27th in the most powerful owners listing As BRES continued to expand its local and national Midwest Real Estate News: reach in 2014, we consistently ranked at the top of the • Ranked 8th in top owners in the midwest following listings: • Ranked 13th in top property management in the Kansas City Business Journal: midwest 1 • #1 Commercial real estate property manager— • Ranked 17th in top brokers in the midwest 1 managing the largest portfolio of industrial, office Ingram’s: properties operated efficiently and sustainably. Leadership • #1 Top area commercial real estate company with has continually prepared their teams to take on expanded $748 million gross sales responsibilities by focusing on developing well-rounded managers with solid tenant relations, accounting, finance • #1 Top area commercial real estate company for and business skills. This team is passionate about the industry square footage managed/sold/leased and not afraid to engage in new strategies to be successful. In addition, we are proud of our agents and employees The year ahead will bring continued efforts to integrate who continue to enhance their education and qualifications energy-efficient, energy-saving projects at the properties, through professional designations such as the Society such as: LED light installations, HVAC upgrades, high speed of Industrial and Office Realtors (SIOR) and Certified fiber installations and elevator efficiency modifications. This Commercial Investment Members (CCIM). Our relationships process has been enhanced through the use of Missouri’s with these professional organizations allow us to leverage a Clean Energy Funding Program, which enables property wealth of knowledge and professional experience which, in owners to leverage bond funding for energy efficient projects. turn, enhances our business relationships and the service we With several exciting new properties being developed in provide to our clients. We currently have five CCIM members 2015, this team looks forward to more challenges, growth on staff, three SIOR members and three Certified Property and successes in the year to come. Manager (CPM) members, with several more associates Many of our property managers hold Real Property working toward these professional designations. Administrator (RPA) and Certified Property Manager (CPM) We have many employees and agents who serve as designations as well as Kansas and Missouri real estate board members and committee members in association with licenses. the following organizations: BRES is an Accredited Management Organization • Lenexa Chamber of Commerce through the Institute of Real Estate Management with an • Leawood Chamber of Commerce experienced team of qualified managers, brokers, operating • Urban Land Institute engineers and utility staff. These individuals possess industry • Kansas City Regional Association of Realtors qualifications, such as: • Broadway Westport Council • Class A Operating Engineers License – State of • Northeast Johnson County Chamber of Commerce Missouri • International Council of Shopping Centers • Building Operator Certified – KCP&L • Wyandotte Economic Development Council • Systems Maintenance Administrator (SMA), Systems • Main Street Corridor Development Corporation Maintenance Technician (SMT) – BOMI • Kansas City Area Development Council • Master Electrician • Greater Kansas City Chamber of Commerce • Certified welder • KC SmartPort • Certified bridge crane, straddle crane and forklift • Heartland MLS operator. Also certified in industrial rigging • Kansas City Direct Marketing Association • EPA Certification • Northeast Industrial Association • Certified locksmith – Associated Locksmiths of America • Corporate Volunteer Council • Certified enterprise based access control systems REAL ESTATE SERVICES TEAM The uptick in activity has significantly impacted our brokerage business. Not only has the volume of activity The BRES Property Management and Maintenance increased, but the significance of the value of the transactions Departments continued to experience portfolio growth with we are experiencing has also increased. In 2014, we added a total of approximately 25.3 million square feet of office, five new brokers to our team and with the level of activity retail and industrial real estate under management locally continuing to accelerate, we anticipate additional brokerage in the Kansas City Metropolitan area and nearly 34 million staff expansion in 2015. square feet nationally. During the past year, the Property Management BLOCK CONSTRUCTION SERVICES Department, along with Block Maintenance Solutions, After another year of record revenues, Block reorganized by creating a tiered leadership structure with a Construction Services (BCS) is celebrating its twelfth newly appointed vice president of property management and a anniversary. BCS is becoming well known for its expertise as director of maintenance. Solid, experienced staff has allowed a construction management and owners representation firm. these individuals to delegate leadership responsibilities In 2014 our construction and development team managed into teams, each led by senior staff members who work over $174 million in total projects which equated to over closely to train, supervise and ensure quality control for $65 million in construction contracts in all areas of real their individual teams. This reorganization helped enhance estate development and construction. With the return of 2 2 the one-on-one tenant experience with management, while office
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