Sam Stahnke of ARCO National Construction’s Kansas City division recently spoke at the Bisnow State-of-the-Market Conference, joining a panel of industry leaders to discuss current industry trends and today’s evolving development landscape.
Kansas City’s commercial construction landscape is shifting toward long-term, strategic growth. Industrial demand remains strong, especially for build-to-suit and logistics-focused developments, while mixed-use and urban redevelopment projects continue to gain momentum. With speculative construction slowing and infrastructure playing a larger role, industry professionals are navigating a market where timing, site readiness, and execution are increasingly critical.
Labor and Supply Chain Dynamics
In recent years, large-scale regional projects have contributed to labor shortages across the construction industry. As those projects wind down, we’re seeing a gradual increase in labor availability across several markets. On the materials side, while tariffs remain a topic of interest, they have yet to significantly affect the pricing or availability of most standard construction materials.
Emerging Construction Trends
Demand for build-to-suit developments continues to grow, driven by end-users expanding their operations across various sectors. A notable trend is the rising interest in “Micro-Flex” or small-bay industrial spaces under 50,000–60,000 square feet. With national vacancy rates for smaller industrial facilities hovering around 3.4%, this asset class is increasingly in demand, offering strong opportunities for developers and contractors alike.
ARCO is partnering with WareSpace on multiple micro-bay industrial and co-warehousing facilities nationwide.
Community Development & Regional Growth: Kansas City Spotlight
Kansas City is seeing increased investment in “third places” - community-focused spaces such as youth sports complexes and public gathering areas. These projects are enhancing regional appeal and livability. The momentum surrounding the 2026 FIFA World Cup is further accelerating investment in value-add infrastructure and amenities, setting the stage for sustained long-term growth.
ARCO is partnering with Blueprint Studios and Generator Studio to bring this world-class entertainment space to the Kansas City area.
Incentives & Competitive Positioning in KC
Construction costs in Kansas City are now comparable to major markets like Dallas, Denver, and Chicago; however, rental rates remain more competitive, offering a favorable cost-benefit balance. The region benefits from experienced local developers who understand the nuances of building across Kansas and Missouri. Incentive programs led by the Missouri Port Authority, Economic Development Corporations (EDCs), and other local agencies are helping to streamline project timelines and improve speed to market.
The ARCO Advantage
As a design-builder and leading industrial contractor, ARCO National Construction helps clients navigate early-stage decisions to develop the best overall solution for their facilities. ARCO’s design-build approach allows clients to make decisions in a project’s earliest stages with full knowledge of their impact. Because we work directly with the architect, design can be developed with budget in mind. Throughout the design process, the ARCO team is simultaneously estimating construction costs and can accurately conceptualize the completed project before significant dollars are spent. ARCO’s industry knowledge and expertise result in solutions and alternatives that save valuable development dollars while still making a space suitable for future tenants across a range of industries.
ABOUT ARCO NATIONAL CONSTRUCTION | KANSAS CITY
ARCO National Construction | Kansas City is a premier, full-service design-build general contractor with more than 30 years of experience providing clients with complete project delivery throughout the United States. Our professional, qualified team of engineers, project managers, superintendents, and architects is capable of designing and building the most demanding construction projects anywhere in the country. We pride ourselves in offering the best, most cost-effective, single-source, turnkey solutions and adding value to every project.
