Ivanna C. Sukkar

As published in Scotsman Guide's Commercial Edition, April 2009.

The news out of Overland Park, Kan. -- the state's second-largest city, less than 10 miles from Kansas City, Mo. -- has been dire in recent months.

What the Locals Say _____________________________________ "As a city, we've gotten used to the highs and lows that Sprint [Nextel Corp.] created in the market. From a commercial standpoint, there probably won't be much direct impact [from its layoffs]. But for the first time, Sprint is trying to sublease some of its space." -- Chad LaSala, broker, LaSala-Sonnenberg Commercial Realty Co.

Job cuts at the city's largest employer, Sprint Nextel Corp., as well as at other major employers in the city appear to be far from over. A recent IHS Global Insight report forecasts about 20,000 total job losses for the Kansas City, Mo., metropolitan area from the fourth quarter of 2008 to the fourth quarter of this year.

Area companies' downsizing likely will affect Overland Park's commercial real estate market throughout the year. For instance, research firm Colliers Turley Martin Tucker expects much fewer construction starts in Overland Park's office sector in 2009 than in previous years, in part because of the office space opening up after layoffs. Already, the largest building added to the Sprint campus in 2008 is being offered for lease.

Retailers, however, are still moving to the area, Colliers reports. Big-box stores such as Wal-Mart and Lowe's expanded there in the past year, and newcomer stores continue to be attracted by Overland Park's suburban mixed-use developments.

Vitals

↑ Population: 169,403

• Population in 2000: 149,080
• Rank (U.S.): 139th-largest
• Metropolitan-area population: 1.98 million
• Metropolitan-area rank (U.S.): 29th-largest

↑ Average commute: 19.8 minutes

• Average commute in 2000: 19.5 minutes
• U.S: 25 minutes

↑ Median household income: $70,513

• Median household income in 2000: $62,116
• U.S.: $48,451

↑ Median age: 37.4 years

• Median age in 2000: 36.3 years
• U.S.: 36.4 years

↑ Inflation (Consumer Price Index, 2nd half 2008, MSA): 2.9 percent

• Inflation (2nd half 2007): 2.2 percent
• U.S. (December): -0.1 percent

↑ Unemployment: 4.9 percent

• Unemployment in December 2007: 3.8 percent
• U.S. (December): 7.2 percent

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