By Grant Glasgow, SIOR, NAI Martens
The industrial real estate market across the Wichita metropolitan statistical area (MSA) closed out 2025 with stable fundamentals, a healthy pipeline of projects and strong demand for large-format logistics and manufacturing space. Despite a modest increase in overall vacancy, the market continues to reflect the region’s strategic position as a logistics and manufacturing hub with lasting appeal to both regional users and national firms.
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Metrics point to equilibrium
As of the fourth quarter of 2025, Wichita’s multi-tenant industrial inventory totaled approximately 43.6 million square feet across more than 1,300 buildings. The overall vacancy rate stood at 9 percent, a tick higher than the mid-year figure.
While this figure might suggest slack in the market, it is important to note that the rise in vacancy is primarily due to smaller-bay space turning over and the inclusion of buildings actively being marketed but not yet move-in ready, such as the Wichita Business Park redevelopment at the former Towne West Square Mall.
For context, the vacancy rate for larger industrial buildings — those over 100,000 square feet — was just 2.8 percent, highlighting a persistent shortage of modern bulk space. Asking rents averaged $6.07 per square foot triple net annually, holding steady at elevated levels due to strong interest in quality warehouse and manufacturing space. Flex and R&D spaces commanded premiums, with rents well above the average in the Northeast and Southwest submarkets.
Net absorption for the fourth quarter was modestly positive at +4,584 square feet. The low figure does not signal weak demand but reflects the lack of available large, modern spaces. Several tenants have begun preleasing or exploring build-to-suit solutions for occupancy in 2026 and beyond.
Leasing, tenant activity
Significant leasing activity during the quarter underscored continued tenant confidence. One of the most notable transactions was PROtect’s long-term lease of 41,698 square feet in the Wichita Business Park. This deal is not only important for its size but also for its role as a catalyst in transforming the former mall site into a major industrial campus totaling nearly 600,000 square feet.
Smaller leases also played a key role in stabilizing multi-tenant business parks.
The Northeast submarket — already the city’s largest industrial zone — posted the strongest net absorption, driven by new tenants moving into speculative product in Bel Aire’s Sunflower Commerce Park and along Webb Road. These facilities attracted logistics firms and regional manufacturers taking advantage of proximity to K-96 and I-135.
Southwest Wichita, home to Eisenhower National Airport and many of the city’s distribution hubs, maintained the metro’s lowest vacancy at just 4.3 percent, despite a few move-outs from aging inventory.
Development pipeline
The industrial construction pipeline continues to move forward in a measured fashion. Amazon’s 176,000-square-foot last-mile delivery center in Bel Aire, a northeast suburb, reached near-completion by year-end. The project marks Amazon’s third major facility in the region and underscores the company’s commitment to expanding last-mile capabilities.
Meanwhile, construction advanced on a 102,000-square-foot spec project by W.A.M. Capital near 35th Street North and Webb Road. The Class A building is expected to attract regional distributors or light manufacturers seeking modern space with strong highway connectivity.
In terms of land activity, Aspen Funds acquired 100 acres in Park City at 53rd Street North and Hydraulic. This marks the firm’s third industrial investment in the Wichita region and sets the stage for future development along one of the metro’s emerging corridors. Park City, Maize and Bel Aire remain hotspots for future growth due to ongoing infrastructure improvements and available land zoned for industrial use.
Submarket dynamics
• Northeast: With nearly 16 million square feet of inventory, Northeast remains Wichita’s most dynamic submarket. Vacancy stood at 7.6 percent in fourth-quarter 2025. Leasing demand and ongoing development reflect sustained interest from distribution, aerospace and third-party logistics users.
• Southwest: Anchored by airport-adjacent facilities and large logistics campuses, Southwest ended the year with just over 4 percent vacancy. Virtually all modern space is spoken for, and the area is expected to absorb new supply quickly in 2026.
• Northwest: Elevated vacancy (16.4 percent) persists, driven by legacy product and large blocks of space sitting idle. However, there are signs of tenant interest in repositioned properties.
• CBD and Hyde Park: These legacy industrial zones show higher vacancy due to obsolescence but present long-term opportunities for adaptive reuse or niche tenants.
• Southeast: With 6.1 million square feet of inventory, Southeast showed moderate leasing activity and a vacancy rate of 8.5 percent, offering value-oriented space for local manufacturers.
Investment climate
Wichita’s industrial investment sales activity was subdued in fourth-quarter 2025 due to high interest rates and widening bid-ask spreads. Cap rates for stabilized industrial properties ranged from the mid-7 percent to low-8 percent range — higher than the year prior, but still attractive relative to other property types.
Investors remain interested in long-term industrial plays in the region, particularly land positions in growth corridors and newer product with credit tenants. Should borrowing costs stabilize or decline, a rebound in transaction volume is expected in 2026.
Outlook for 2026
Wichita’s industrial market is positioned for continued stability and selective growth. While macroeconomic uncertainty may impact financing and construction starts, the fundamentals remain intact: strong demand for modern warehouse space, constrained supply in key size segments and an affordable, centrally located workforce.
Developers are moving cautiously but remain confident in build-to-suit opportunities.
Meanwhile, tenants seeking high-quality space should expect tight availability for large blocks and continued competition in preferred submarkets. Wichita’s industrial real estate market remains a resilient performer in the Midwest, offering compelling opportunities for occupiers and long-term investors alike.
Grant Glasgow is president of NAI Martens. This article originally appeared in the May 2026 issue of Heartland Real Estate Business magazine.