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Commercial Real Estate |
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Wichita’s commercial real estate marketplace
continues to grow at robust levels. The Wichita area
will see strong commercial activity for the next five to
10 years enhanced by two key factors: the passage of a
$12.6 billion comprehensive transportation bill in the
1999 Legislative session, and the passage in spring 2000
of the $284 million USD 259 school bond issue devoted in
large part to school facility improvements. According to
the Center for Economic Development and Business
Research (CEDBR) at Wichita State University, if the
school district spends this money evenly over the next
five years as planned, it alone would add $57 million
per year to the value of commercial construction
activity in Wichita, which averaged just under $80
million a year throughout the 1990s.
Strength in the retail market follows growth in
residential construction activity. Mirroring the area’s
residential expansion, retail construction activity
continues to grow in far northwest and far northeast
neighborhoods. In addition, Wichita’s focus on its core
area was spotlighted in 2001 with the opening of Eaton
Place, a residential and retail complex in downtown
Wichita.
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Prime industrial space is available at
competitive rates. Industrial vacancy rates are
just above 6% for the overall market, and at
5.5% for Class A properties.
Most of the growth comes from local
businesses expanding or moving to more modern
facilities with good access and high-tech
capabilities. The local economy is strong enough
that several speculative warehouses have been
built recently, and experts predict another year
of strong, healthy business growth. |
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