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.