Kansas City Industrial MarketBeat Q4 2025

Kansas City's industrial real estate market achieved 11.8 million square feet of net absorption in 2025, the highest total since 2007, with a year-end vacancy rate of 6.2% and asking rents at $5.73 per square foot. The market was characterized by a shift toward build-to-suit projects (8.3 million square feet, or 84.5% of total deliveries), including Panasonic's 2.7-million-square-foot battery manufacturing facility in De Soto, Kansas, though sustained growth will likely depend on increased leasing activity in smaller speculative buildings of 200,000 to 500,000 square feet.