Dr. Mark Dotzour presenting the National 2018 Economic Forecast
We are proud to announce that we hosted over 500 guests Tuesday evening at our Annual Real Estate Forum! Guest speaker Dr. Mark Dotzour presented the National 2018 economic forecast with a national and global perspective. Bradley Tidemann, J.P. Weigand & Sons, Inc. Industrial Specialist, also presented The State of Real Estate, and our local economic forecast for 2018. Click HERE to view the 2018 Forecast.
2017 was another good year for Wichita! Positive feelings about the city, the economy and living in Wichita are evident throughout the area. The most obvious sign of pride is the visibility of the city’s iconic flag everywhere you look. Designed in 1937, the flag hadn’t been seen in decades but it is now being proudly displayed on buildings, coffee cups, shirts and decals across the city.
There are many reasons for our citizens to feel proud of their city. The economy continues to stabilize, helping the unemployment rate drop below 4% for the first time in years. Major employers continue to choose to stay in Wichita and expand their local operations. Last year it was Cargill, this year it was Spirit AeroSystems who made a commitment for a long term presence in the city. Spirit, the city’s largest employer, announced in December they were going to add 1,000 jobs at their east Wichita plant and make capital investments totaling $1 billion to expand and improve their facilities.
The Innovation Campus at Wichita State University continues to grow in size and importance for the city and the university. The Experiential Engineering Building opened and Airbus took occupancy in their new offices. A Law Enforcement Training Center also opened as well as a free-standing Starbucks. 2018 openings will include the second phase of The Flats apartment complex and a 20,500 square foot retail strip center.
Wichita’s real estate market is a beneficiary of the improving local and national economies. National retailers continue to look for opportunities to expand their presence in the city. The housing market was vibrant and construction activity was strong for new homes and apartment complexes.
2017 was also a very good year for J.P. Weigand & Sons. On behalf of our associates, staff and management we want to thank our clients for continuing to trust us to assist with their real estate needs. We’re proud to have been a part of the Wichita community for 116 years, and we’re more excited than ever about this great city’s future.
A Brief look at the 2018 Forecast
Tenant leasing activity will be modest.
Lack of inventory will be an issue for tenants requiring:
New modern space that in move-in ready.
Large contiguous space in excess of 10,000 sf.
Most of the new construction will be for owner occupied buildings.
Market will continue to be very active.
Retail closings will be offset by new businesses coming to the market and existing retailers expanding their presence.
The most desired locations will continue to be in the far northeast and northwest quadrants.
Investors will look for opportunities to purchase properties with credit worthy tenants.
The industrial market will stay active.
More manufacturers will consider buying land and building due to lack of inventory.
The availability of Industrial Revenue Bonds will facilitate more industrial construction.
New technical training programs will help fulfill the demand for skilled workers.
Demand for commercial real estate will be strong.
Investors will have to be flexible when looking for properties to purchase.
Multifamily projects will be especially attractive.
Rising interest rates could be a factor by the end of the year.
Farm & Ranch Forecast:
Farm income will continue to decline but at a slower rate.
Investors will increasingly look for opportunities to purchase agricultural land.
The strong national economy will create more demand for recreational land.
Declining income will put pressure on some farmers to sell their land.
Construction will start on multi-use projects in the Delano and Old Town Districts that will include multifamily units.
New complexes of various sizes will open in the Central Business District, College Hill area and the far East side of the city.
The increase in inventory will have an impact on vacancy rates and rents as landlords compete to attract tenants.
2018 will be another good year for residential sales.
Any increase in year-over-year sales will be modest due to lack of inventory.
Rising interest rates will have a limited impact on the market as long as they are not significant.