46 Penn Centre and the Class A Demand
Kansas City’s thriving technology sector has the office market remaining strong for the first quarter of 2015. Occupancy rates and average rents have risen compared to lasts years figures. A combination of tech focused employers and lower office vacancies have fueled the demand for Class A office space. These employers are demanding that their new office space offer up vibrant areas that will cater to the changing needs and desires of rising professionals.
On an overall national basis, the office market landscape has seen an increase in rental rates and absorption. National rental rates increased from $21.75 PSF in 2013 to $22.38 PSF at the end of 2014. In March 2015, the demand for open jobs in the Kansas City area had over 11,000 postings, with 7,700 being full time. Garmin, Cerner and BIME Analytics are all companies that have expanded in the Kansas City area, helping push the need for more Class A office space.
The Millennial Demand
With companies continuing to hire Millennials as they enter into the workforce, the office layout has seen a change. Office spaces are increasingly moving to the more open and creative work space Millennials prefer. Forbes projects that three out of four workers to be Millennials by 2025 further impacting the office landscape. Millennials are tech savvy and ambitious workers who have taken on a variety of different working styles and preferences than generations before. Studies have shown that Millennials are more productive when sitting in cafes or lounge style areas than at a traditional workstation. High tech companies, such as Facebook and Google, have incorporated these style trends into their newest office buildings. With Kansas City turning into the Silicon Valley of the Midwest office developers need to keep this new style in mind.
Meeting the Demand
Block Real Estate Services, LLC (BRES) is meeting the Kansas City demand with our newest Class A office re-development, 46 Penn Centre. 46 Penn Centre will be an eight story high-rise office tower development on the prestigious Country Club Plaza, featuring approximately 200,000 RSF of office space, 6,456 +/- restaurant space and secure, covered parking. This development will have private tenant balconies on all floors and will be constructed with only four columns to maximize space-plan efficiency.
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