Case Study: Building the Future of Logistics in Kansas City
Building C is the latest addition to the massive I-35 Logistics Park, continuing Kessinger Hunter’s leadership in developing the industrial logistics market in the Kansas City area.
The Kansas City market, with its central location, reasonable property acquisition costs and access to logistics networks along interstate highways and by rail, is an ideal place for businesses that serve the region to locate. But in the early 2000s, the market had very little warehouse space available, limiting the growth of regional businesses that needed it. Kessinger Hunter’s Dan Jensen took this as an opportunity.
The market has since ignited
Kessinger Hunter, in partnership with SunLife, developed the first big box warehouse distribution space on speculation in the Kansas City market, and proved that doing so was both possible and viable. The market has since ignited and transformed Kansas City into a hub for this kind of development activity.
After the success of their first building, SunLife was so pleased with the results, they again asked Kessinger Hunter to partner in another venture – the beginning of what would become the I-35 Logistics Park. Kessinger Hunter as the developer acquired the land at a site nearby to their first project and the Logistics Park began to take shape.
Located just miles from hubs like UPS and FexEx logistics’ facilities, and from BNSF’s 1200 acre intermodal facility, the park’s prime location makes it an attractive place to locate business operations. A 10-year, 50% tax abatement makes it even more attractive.
Developing one step at time, Building B was completed first, offering 821,000 SF of space. It was quickly leased and split between two tenants.
Featuring 560,000 sq ft
The construction on the newest building, Building C, was completed in the first quarter of 2019. Featuring 560,000 SF of available space, pass thru loading with 66 loading docks, and 36 feet of available clear space, the building is appropriate for myriad uses and can be adjusted to suit the needs of each particular logistics operation. KGP Logistics pre-leased 251,873± SF prior to the construction of Building C, while the ownership brought the balance of about 315,000 SF to the market as speculative space.
The speculative space has since been leased by IT Renew who will be locating their flagship facility in Building C in the first quarter of 2020. IT Renew is based out of Silicon Valley and has continuously innovated, designed and customized solutions in collaboration with the largest hyperscale datacenters in the world.
In addition to serving as the developer of the site, Kessinger Hunter is also the site manager and leasing agent. This arrangement allows the company to seamlessly address client needs, working with a single organization to address logistical, financial and space needs.
Moving forward, the plan is to also complete buildings A, D, E and F, for a total of more than 4.75 million square feet. This much space, all managed and maintained under one brand, makes Kessinger Hunter one of the largest premier providers of bulk industrial space in the Kansas City market.
Kessinger Hunter is a Kansas City company with global reach that delivers visionary leadership in the industrial development space, among many others, for over 140 years. For more information about Kessinger Hunter, our history and the other visionary services we provide, please visit us online at kessingerhunter.com.