Thought Leadership: Mike Stromberg on Speculative Industrial Development in Kansas City, MO

Kansas City’s industrial market is showing why speculative development is beginning to make sense again. Speaking at the InterFace Kansas City Industrial Conference, Mike Stromberg, Director of Real Estate Development, pointed to the market’s low vacancy, strong historical absorption and rent growth as fundamentals that support new development, even as broader economic uncertainty remains.

Those fundamentals, however, do not mean developers are approaching the market without caution. Stromberg noted that underwriting is becoming increasingly focused on bulk industrial product, where current tenant demand is strongest. The shift reflects a more disciplined approach to speculative development as developers align new projects with the types of spaces larger users are actively seeking.

The current market is also creating different dynamics for large and small users. Larger companies have generally been able to move forward with real estate decisions and commit to significant amounts of space, while smaller users are more affected by economic uncertainty and often need to remain nimble.

The discussion underscored a market that is navigating a more measured environment without losing sight of its long-term potential. Kansas City’s strong industrial fundamentals and central location continue to position the region for growth, supporting interest from both tenants and investors as the market moves forward.