By Gabriel Circiog, Associate Editor
Big commercial real estate deals in the Kansas City International Airport area seem to be happening only to one side of Interstate 29. The Kansas City Star reports that private landlords were not as festive as Missouri Gov. Jay Nixon and other officials at the party announcing that Blount International will be occupying a 350,000-square-foot distribution center in the KCI Intermodal BusinessCentre.
The private owners of industrial parks and office buildings consider the Blount International deal as another example of the unfair competition that began in 2006 when the airport purchased the former Farmland Industries headquarters. Steve Karbank of Karbank Real Estate Co. described the competition of the city as predatory and stated that its prices undercut the market.
Compared to the usual market rate of $3.50 to $ 4.50 per-square-foot rent, the landlords estimate that KCI industrial park is able to knock $1 off due to no property tax payments on the city property.
In other news, the Kansas City Business Journal reports that AMC Entertainment is planning a $4 million renovation of the Ward Parkway Theater. The announcement comes after a 10-year lease renewal and it has been long-awaited by local residents. The Ward Parkway is one of the most historically important theaters, being the first multiplex to be developed by the company almost 50 years ago.
A spokesman announced that $3 million in physical renovations will be supported by the company, while $1 million in new technology will be paid by equipment vendors.