KANSAS CITY—This metropolitan area has become a real destination for both manufacturers and distributors, and it just scored another major project. Kubota Tractor Corporation, the US marketer and distributor of Kubota-engineered machinery and equipment, has decided to open a nearly 450,000-square-foot parts distribution center at Logistics Park Kansas City, a 1,500-acre master-planned distribution and warehouse development in the Kansas suburb of Edgerton.
“It's a very attractive project that comes from a world-class manufacturer and we're delighted,” Bob Marcusse, president and chief executive officer, Kansas City Area Development Council, tells GlobeSt.com. “Kubota is an internationally-known manufacturing company that is significantly growing its presence in the US.”
Kubota officials say the choice of Edgerton was a strategic decision, partially due to its central location within the US. "This new distribution center will enable us to manage our stream of parts more effectively and improve parts delivery time, including an expanded geographical area to which we can deliver parts within 24 hours,” says Earl Johnson, parts director for Kubota.
Marcusse also credits the dense network of interstate highways and railroads that converge on the city and provide outlets to the rest of the country for its appeal. “We've seen a lot of activity in the past few years from manufacturers, but we have also made our living in part by being a great area for distribution and there are a lot of pieces you need to make it work.”
Kubota plans to have the facility operational during the third quarter of 2015. Initially the new center will primarily serve Midwestern customers and employ about 75 employees. But Marcusse says it's likely that Kubota will eventually expand beyond 450,000-square-feet and boost area employment even more. “I think that's a very realistic assessment,” considering the company's plans for growth.
As reported in GlobeSt.com, many companies have plans to expand in Kansas City. Flexsteel Industries, for example, recently purchased a 500,000-square-foot building at Logistics Park Kansas City. In fact, according to a recent study published by Cassidy Turley, in the third quarter companies absorbed space at a pace not seen in years, and the industrial vacancy rate continued to fall.
The data show that the industrial market's net absorption was 1.83-million-square-feet. The last time it exceeded 1.5-million-square-feet was in the third quarter of 2008, when tenants absorbed 2.36-million-square-feet of space. And the strong demand has caught the attention of developers.
“So far this year, a total of 3.01-million-square-feet of bulk and modern space has been added to the industrial market, and 77% of that has been speculative,” says Michael Mayer, managing principal in Cassidy Turley's Kansas City office. “By the end of the third quarter, 84% of that newly constructed space already had been leased or sold.”
“Our organization is having the best year in its history,” Marcusse adds. “It's a really good time to attract businesses to the Kansas City market.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
