Block: Distribution business has bright future in Kansas City
July 22, 2010 | Dan Rafter | Print Article | Email this Article
Kenneth Block
In a commercial real estate market like the one we’re seeing today, it can be tough to find the bright spots. Don’t tell that to Kenneth Block, though. The managing principal of Kansas City-based Block Real Estate Services sees plenty of positive signs in the Kansas City commercial market.
He’s not naive. He knows that the economic slump and commercial real estate slowdown has hurt Kansas City, just like it’s hurt markets across the country. But he also knows that Kansas City’s commercial future looks bright.
And that’s especially true when it comes to the industrial market in this Midwest city.
Block says that Kansas City is swiftly becoming an important player in the distribution business. And that can only mean good things for this city.
“We have over the last several years become a more visible target for large distribution warehouses,” Block told me. “That’s the reason for a lot of the positive signs we see on the industrial side.”
Block points to several reasons for Kansas City’s growing role in the distribution business. New laws overseeing the truck industry have made rail in general more attractive. Truck drivers can only remain on the road for a certain number of hours. Fuel costs are continuing to raise. This all makes rail more important, and Kansas City ranks as the second-largest rail center in the country, behind Chicago.
Block also points to the increase of imports in the last few years, especially those coming through San Diego and Los Agneles. The distribution centers there have become overburdened, Block said. The product is not getting around the country soon enough. Perishables are spoiling. To combat this, efforts are underway to develop a new port in Mexico. This would allow product to come up Interstate-35. That highway, of course, comes directly through Kansas City.
Those are the positive factors. Of course, this being 2010, the news can’t all be positive. Block says there’s one big hurdle slowing the distribution business in Kansas City: the economy.
“The economy is still very slow,” Block said. “And with retail slow, distribution, obviously, is slow, too. The retailers have pulled back on distribution. The manufacturers have pulled back on new supplies. We’re in a slow period where very little new action is going on.”
Still, as Block says, the future looks good for Kansas City’s industrial and distribution business.
Tags | Block Real Estate Services, distribution, industrial, Kansas City, Kenneth Block, Missouri
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