Forecast positive for Wichita real estate

Real estate news By Lainie Rusco
10:45 AM CST Wednesday, February 28, 2007

Guest speaker Mark Dotzour kicked off the annual J.P. Weigand & Sons Inc. forecast Tuesday with an outlook of the 2007 real estate market, both nationally and in Wichita. Dotzour outlined statistics and trends on real estate absorption and property values and how that would affect the industry.

While he was positive on Wichita's real estate growth -- and noted that investors are more likely to put their money into real estate instead of stocks -- he expressed concern that low long-term interest rates could result in a national recession. Weigand Realtor Bradley Tidemann spoke in more detail about the Wichita market, saying that he expected nearly every real estate sector to be up in 2007. The office market, he said, will continue to be sparked by activity in the northeast quadrant -- especially the Waterfront -- and the Central Business District, which will grow with activity at the WaterWalk and by Minnesota group Real Development.

Retail, meanwhile, was good in 2006, but slow compared to previous years. Tidemann said that's because of slower expansion from national retailers. That could change in 2007, though, as companies such as Chili's, Starbucks and GameStop undergo major national expansions, which could result in more locations in Wichita and its surrounding communities.The industrial market in 2006 was the best Tidemann has seen in nine years, with the lowest vacancy rates -- 10.2 percent -- since 2000. The market should continue to stay strong in 2007, with construction of build-to-suit projects showing the greatest growth.

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