ADVERTISEMENT Substantial investments in downtown, new industrial cam-puses, medical of ces and higher education institutions are spurring strong momentum in Wichita’s commercial real estate. Downtown Wichita has become a thriving hub of social, professional and cultural experiences with 350 new residen-tial units under development with Bob Ale-over 120 unique retailers, and 4.1 million square feet of occupied Ebrahim of ce space. Add in the solid job Occidental growth, and Wichita has become a Management vibrant Midwestern city. Downtown and surrounding districts continue to see strong investment. In the Delano district, the Riverfront Stadium marked over $100 million in new mixed-use development, driving increased demand for additional dining, lodging, multifamily living spaces and of ce spaces nearby. A primary fo-cus has been around the Arkansas River, which acts as a natural dividing line between downtown and the Delano district. The city approved the $40 mil-lion Sycamore 225 apartments and hotel next to the stadium downtown. Occidental Management Inc. is bringing new businesses to Union Station with the Koch-funded nonpro t Learning Lab of Wichita. At the Ice House building, BHC Engineering will open a satellite of ce. We’re seeing strong lease-ups from both local and national of ce users, and medical and educational uses are driving new investment. The recently com-pleted $75 million Kansas College of Osteopathic WICHITA’S CRE MARKET IS PROMISING FOR 2024 Medicine renovated ve buildings to include hous-ing, an AC by Marriott Hotel and the medical school on its campus. It’s the rst osteopathic school in Wichita and will create a hub of healthcare educa-tion and training programs. Wichita State University and the University of Kansas announced a partnership to establish a $300 million biomedical campus in the transit hub down-town that will bring more than 3,000 students and staff into the area. In addition, a new 24-bed geri-atric psychiatric hospital has been approved with a $10 million budget. The hospital will provide long-and short-term inpatient care, as well as outpatient services, and aims to act as a resource for the re-gion’s nursing homes and assisted living facilities. Like other cities, the local industrial market has experienced sharp increases in demand coupled with a lack of existing inventory, driving lease rates and new speculative development. ICT21, a master-planned industrial development along the I-135 cor-ridor, nished its rst speculative building and re-cently announced a 180,000-square-foot lease with JTM Foods, a new-to-market food manufacturer. Bel Aire, a Wichita suburb, hosts numerous planned and under-development industrial proj-ects in the Sun ower Commerce Park, including an industrial campus owned by Occidental Manage-ment, capable of hosting 1 million square feet of space. Existing companies are driving industrial growth through expansions and additions within their own campuses. Textron Aviation recently announced plans for a 180,000-square-foot expansion, while other aerospace manufacturers seek to on-shore parts suppliers to shorten completion times and lo-gistics challenges outside of the U.S. Chad Stafford, president of Occidental Manage-ment says, “I am cautiously optimistic for 2024 as we see turbulent market conditions on the rise, interest rates up and decreases in lending capital available.” Integra Technologies, the largest outsourced semi-conductor assembly and test operation in the U.S. expects to bring 1 million square feet of industrial space, 2,000 jobs to Northeast Wichita and another 3,000 to the metro. The announcement was the sec-ond largest economic deal in Kansas history, total-ing $1.8 billion and is the largest expansion in the semiconductor industry in the United States. Employment and income growth are both expect-ed to remain more competitive than it has over the previous decade. The Wichita area is projected to be stable, and unemployment is projected to be around 3.6 percent in 2024. This stability in the labor market and the expected growth in various sectors under-scores Wichita’s resilience and adaptability. According to the Center for Economic Develop-ment and Business Research at Wichita State Uni-versity, the relative strength of the aerospace man-ufacturing, semiconductor and food processing manufacturing industries are expected to make the Wichita area an outlier for job growth in Kansas in 2024. Visit occmgmt.com to learn more about Occiden-tal Management. Bob Ale-Ebrahim is the marketing director for Wichita, Kansas-based Occidental Management. CELEBRATE THE SEASON WITH US Occidental Management specializes in commercial real estate development, leasing and property management within the retail, office and industrial segments. We deliver high-quality, live-work-play oriented spaces ideally located with rich amenities. We wish you a merry and bright holiday season and a New Year filled with peace and prosperity. HISTORIC UNION STATION WICHITA, KS 316.262.3331 | OCCMGMT.COM Heartland Real Estate Business • December 2023 • 19
Heartland Real Estate Business December 2023: Page 19
