Kansas City Industrial Figures Q3 2026

In Q3 2026, market conditions tightened as strong absorption reduced vacancy while rents edged higher. The 2.1 million sq. ft. net absorption total was the highest since Q1 2025 and was only partially offset by 0.97 million sq. ft. of vacant speculative deliveries in the quarter, resulting in vacancy decreasing from 4.5% to 4.1%.

Four new buildings were delivered in the quarter, all broke ground on a speculative basis. In total 1.0 million sq. ft. was completed in the quarter, with 94.0% of the space vacant as of the end of Q3 2026. Notably no new buildings broke ground for the quarter, resulting in under construction activity dropping to 3.8 million sq. ft. Space under construction includes 1.2 million sq. ft. of build-to-suit buildings and 2.6 million sq. ft. of speculative buildings (20.5% pre-committed as of the end of Q3 2026). Looking longer-term space under construction has declined from 6.4 million sq. ft. in Q3 2023 to 3.8 million sq. ft. in Q3 2026.

Asking rates increased 3.0% quarter-over-quarter to $5.59 per sq. ft., driven largely by the delivery of new speculative product. Over the past three years, asking rents have risen 11.8% as demand has generally outpaced new supply amid declining construction activity.