Top 5 Commercial Real Estate Trends Shaping Kansas City in 2025

Kansas City is no longer just a housing hotspot—it’s quickly becoming one of the Midwest’s most dynamic commercial real estate markets. Whether you’re an investor, business owner, or property manager, staying on top of current trends can help you make smarter real estate decisions in 2025.

Here are the top 5 trends we’re seeing in Kansas City’s commercial real estate market this year:

1. Industrial Real Estate Remains the Powerhouse

Kansas City continues to shine in the industrial sector. Thanks to its central location and robust infrastructure, demand remains high for warehouse, distribution, and light manufacturing facilities.

Major projects—like Merck’s $895 million expansion in De Soto—highlight the region’s long-term appeal for large-scale industrial investment. Vacancy rates remain low across Johnson County, and interest in newly developed logistics hubs is only increasing.

Key Takeaway: Industrial properties remain one of the most reliable and resilient investment options in the region.

2. Suburban Office Space Is Rebounding—But Differently

While downtown office markets nationwide continue to face headwinds from hybrid work, suburban office spaces in places like Overland Park and Shawnee are showing signs of resurgence. Tenants are looking for flexible floor plans, shorter leases, and modern amenities closer to where employees live.

Professional services, healthcare, and tech firms are helping to stabilize suburban office demand.

Key Takeaway: Suburban office properties are regaining traction—if they offer flexibility and convenience.

3. Mixed-Use Development Is Redefining Retail Corridors

The rise of live-work-play environments is changing how commercial spaces are developed. Kansas City is seeing a boom in mixed-use projects, particularly in high-growth areas like Lenexa City Center and along the KC Streetcar expansion route.

Blending residential, retail, and office uses in a single walkable district not only attracts tenants—it boosts long-term property value.

Key Takeaway: Mixed-use is becoming the preferred development model, especially in rapidly growing neighborhoods.

4. Local Investors Are Becoming Major Market Players

Kansas City’s commercial market is attracting capital from across the country, but local investors are also getting more active. With affordable entry points and high return potential, many are purchasing strip centers, small industrial buildings, and multi-tenant assets across Johnson County and beyond.

Key Takeaway: You don’t need to be a national fund—Kansas City remains one of the most accessible markets for small to midsize investors.

5. Property Management Is Now a Strategic Asset

In 2025, commercial property owners are realizing that great property management isn’t just about maintenance—it’s about performance. From tenant relations to lease optimization, property management companies are playing a bigger role in asset value.

Modern property managers in Kansas City are using data, marketing, and tech tools to reduce vacancy, improve tenant retention, and enhance ROI.

Key Takeaway: Well-managed properties are commanding better tenants and stronger returns.

Final Thoughts

The Kansas City metro is full of opportunity—but navigating it takes local expertise and strategic thinking. From industrial growth to mixed-use momentum, these trends are shaping the way we buy, lease, and manage commercial real estate in 2025.

Looking for your next investment or business location?

Contact us today to schedule a consultation or view available commercial listings.

Why Kansas City’s Residential Surge Signals Opportunity for Commercial Real Estate

Kansas City has officially earned its place among the top 10 housing markets to watch in 2025, according to the National Association of Realtors. While this recognition is a win for homebuyers, developers, and investors, it also points to a less obvious—but equally important—trend: a surge in demand for commercial real estate.

As more people move into Kansas City and surrounding areas like Johnson County, Shawnee, and Overland Park, the opportunity for business growth and property investment is rapidly expanding. Here’s how this housing boom is creating fertile ground for commercial success.

1. A Growing Population Means Growing Demand for Local Businesses

With home sales climbing and new developments breaking ground across the metro, Kansas City’s population is rising. That influx of new residents creates immediate demand for goods and services—everything from grocery stores and restaurants to medical offices, fitness centers, and daycare facilities.

This trend drives new leasing activity for:

• Neighborhood shopping centers

• Standalone retail and restaurant space

• Healthcare and wellness facilities

• Service-based commercial properties

For business owners and franchise operators, this is the perfect moment to expand into high-traffic, high-growth neighborhoods.

2. Mixed-Use Developments Are on the Rise

As residential developers break ground on new subdivisions and apartment complexes, we’re also seeing increased interest in mixed-use development—properties that blend housing, retail, office, and recreational spaces.

Neighborhoods such as the Crossroads, Westport, and select areas in Shawnee are seeing this model play out with success. These developments are attractive to investors because they bring built-in foot traffic and long-term tenants.

3. Workforce Expansion Creates Office and Flex Space Demand

Kansas City’s population growth means a larger labor force—and a larger labor force means more businesses opening, expanding, or relocating. This directly translates to higher demand for office space, co-working environments, and flex-industrial properties.

Entrepreneurs, remote workers, and service-based businesses are seeking small to mid-size commercial spaces in accessible areas like Johnson County and downtown KC.

4. Infrastructure Investment Boosts Commercial Value

The housing boom is prompting the city to invest in infrastructure—new roads, public transit expansions (such as the KC Streetcar to UMKC), broadband upgrades, and enhanced public services.

These improvements increase the desirability and value of nearby commercial properties, making them more attractive to tenants, developers, and investors alike.

5. Business-Friendly Incentives Strengthen the Market

Kansas City’s development-friendly policies, including tax abatements, TIF programs, and opportunity zones, are designed to encourage commercial growth in tandem with housing expansion.

Areas seeing the most residential development—like De Soto, Lenexa, and the Northland—are also offering some of the most compelling incentives for commercial real estate investment.

What This Means for You

Whether you’re a business owner scouting your next storefront or an investor evaluating commercial properties, Kansas City’s housing boom is your signal to act. The conditions are aligning: more people, more infrastructure, more consumer demand, and a growing need for commercial space.

If you’re looking to lease, buy, or develop commercial real estate in the Kansas City area, now is the time to make your move.

Need help navigating the Kansas City commercial market?

Our team specializes in connecting businesses and investors with the right opportunities across Johnson County, Shawnee, Overland Park, and beyond.

What the New Extended Train Shuttle Means for Kansas City

Kansas City is embarking on an exciting new chapter with the extension of its train shuttle system. This expansion promises to enhance connectivity, drive economic growth, and improve quality of life for residents and businesses alike. Here's what the new development means for the city and its future.

1. Boosting Connectivity Across the Metro

The extended train shuttle will connect more neighborhoods and business hubs, making it easier than ever to get around Kansas City. Key benefits include:

• Reduced commute times: Workers and residents can enjoy faster, more convenient travel options.

• Seamless connections: Linkages to major transit lines and hubs will streamline access across the metro area.

• Accessibility improvements: Expanded coverage ensures more people can access public transport, including underserved areas.

2. Stimulating Economic Growth

Enhanced transportation systems often bring a wave of economic benefits, and Kansas City is no exception. The extended train shuttle is expected to:

• Attract new businesses: Improved transit options make the city more appealing to companies looking to relocate or expand.

• Increase property values: Areas near train stations often see a rise in demand, benefiting property owners and investors.

• Support local businesses: Easier access to retail and service hubs encourages foot traffic and customer spending.

3. Advancing Sustainability Goals

Kansas City’s commitment to sustainability gets a boost with the train shuttle extension. Public transportation plays a vital role in:

• Reducing carbon emissions: Fewer cars on the road mean cleaner air and less traffic congestion.

• Encouraging eco-friendly lifestyles: Reliable transit gives residents a green alternative to driving.

• Supporting urban development: Transit-oriented development promotes walkable communities and minimizes urban sprawl.

4. Strengthening Community Connections

Public transportation is more than just a way to get from point A to point B—it connects people to opportunities. The train shuttle will:

• Improve access to jobs and education: More routes mean more ways for residents to reach workplaces and schools.

• Foster inclusivity: A robust transit system ensures everyone, regardless of income or ability, can move around the city.

• Enhance cultural and social engagement: Easy travel to events, attractions, and neighborhoods strengthens Kansas City’s vibrant community.

Why This Matters for Businesses

For business owners, the train shuttle extension is a game-changer. It opens up new opportunities to attract customers, recruit talent, and reduce logistical challenges. Companies near shuttle stops will have a competitive edge, benefiting from increased visibility and foot traffic.

Looking Ahead

The extended train shuttle is a significant step forward for Kansas City, paving the way for a more connected, sustainable, and thriving metro area. As the system comes to life, residents and businesses alike can look forward to new opportunities and a stronger sense of community.

Get Ready for the Future
Whether you're a resident, investor, or business owner, the train shuttle extension is a project worth paying attention to. Stay tuned for updates and take advantage of the opportunities it will bring to Kansas City!

Ready to find your perfect property? Contact DLM Commercial Real Estate Advisors today for expert guidance!

Spotlight on Kansas City: The Best Areas for Business Growth in 2025

Spotlight on Kansas City: The Best Areas for Business Growth in 2025

Kansas City is on the rise, and its surrounding areas like Overland Park, Shawnee, and Johnson County are experiencing a business boom. As we look ahead to 2025, these regions offer exciting opportunities for growth. Let’s explore what makes these areas prime spots for entrepreneurs and investors.

1. Kansas City’s Urban Core: A Hub for Innovation

The downtown Kansas City area continues to thrive, attracting businesses in tech, retail, and hospitality. Factors driving its growth include:

• Infrastructure investments like the Kansas City Streetcar expansion, improving connectivity.

• Cultural vibrancy, with events, restaurants, and entertainment creating high foot traffic.

• Population trends, as young professionals flock to the city for work and urban living.

2. Overland Park: Suburban Excellence Meets Business Opportunity

Overland Park remains a top choice for businesses looking for a blend of suburban charm and robust infrastructure. Key highlights include:

• Strong local economy, bolstered by healthcare, finance, and IT sectors.

• Family-friendly amenities, attracting talent to live and work in the area.

• Office parks and coworking spaces, offering flexibility for businesses of all sizes.

3. Shawnee: A Growing Gem in Johnson County

Shawnee is quickly becoming a hotspot for small businesses and startups. Why?

• Affordable commercial properties, providing great value for entrepreneurs.

• Proximity to major highways, making it ideal for logistics and distribution.

• Community-focused growth, with city initiatives supporting local businesses.

4. Johnson County: A Business Powerhouse

Johnson County consistently ranks as one of the best places to live and work in the Midwest. Its appeal for business growth lies in:

• Rapid population growth, fueling demand for retail, office, and industrial spaces.

• Highly educated workforce, thanks to excellent schools and colleges in the area.

• Diverse property options, from modern office parks to industrial warehouses.

Factors Driving Growth in These Areas

Several overarching trends make Kansas City and its surrounding regions a great investment for businesses in 2025:

• Infrastructure advancements: Road expansions and public transport projects are enhancing accessibility.

• Economic stability: A diverse local economy with strong sectors like technology, manufacturing, and healthcare.

• Population increases: New residents are fueling demand for goods, services, and jobs.

Make the Right Move with Local Expertise

As these areas continue to boom, having the right partner is crucial to navigating the commercial real estate landscape. At DLM Commercial Real Estate Advisors, we specialize in connecting business owners and investors with the best opportunities in Kansas City, Overland Park, Shawnee, and Johnson County.

Ready to find your perfect property? Contact DLM Commercial Real Estate Advisors today for expert guidance!

How to Choose the Perfect Commercial Property in Kansas City: A Business Owner’s Guide

How to Choose the Perfect Commercial Property in Kansas City: A Business Owner’s Guide

Finding the right commercial property is a critical decision that can shape the future of your business or investment portfolio. Whether you're looking in Kansas City, Overland Park, Shawnee, or Johnson County, here’s a quick guide to help you make a confident choice.

1. Location is Key

Choose a property with proximity to your target customers, employees, and suppliers. Consider:

• Kansas City’s vibrant downtown for high visibility and foot traffic.

• Overland Park for its thriving business community and suburban charm.

• Shawnee and Johnson County for access to growing neighborhoods and infrastructure.

Evaluate traffic patterns, accessibility, and nearby amenities such as restaurants and parking.

2. Look for Amenities That Enhance Your Business

The right amenities can make your property more appealing and functional. Ask yourself:

• Does the space have the right layout for your business operations?

• Are utilities like Wi-Fi, HVAC, and security systems up to date?

• Is there room for expansion if your business grows?

3. Assess the Property’s Future Potential

Kansas City and its surrounding areas are hubs for growth. Research:

• Upcoming developments or infrastructure projects in the area.

• Zoning laws and how they might affect your plans.

• Property appreciation trends to ensure your investment holds long-term value.

4. Understand the Local Market

The Kansas City commercial real estate market is competitive yet diverse. Working with experienced brokers like DLM Commercial Real Estate Advisors can help you navigate:

• Property values and current market trends.

• Leasing vs. buying options tailored to your financial goals.

• Opportunities in sectors like retail, industrial, or office spaces.

5. Partner with Experts

Finding the perfect property isn’t just about checking boxes; it’s about aligning your vision with what the market offers. DLM Commercial Real Estate Advisors specialize in helping business owners and investors make informed decisions. From site selection to property management, we’ll guide you every step of the way.

Final Thoughts

Choosing the right commercial property in Kansas City or surrounding areas is a significant investment. By focusing on location, amenities, future growth, and market insights, you can ensure your choice supports your business's success.

Ready to find your perfect property? Contact DLM Commercial Real Estate Advisors today for expert guidance!