Springfield Commercial Real Estate Market Thrives with Crexi

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Crexi is proud to empower Springfield commercial real estate professionals with the technology tools needed to thrive in the market. Nationwide, investors and tenants look to Springfield as an attractive investment market with promising cap rates and stable returns. Crexi allows those parties to conduct market research, browse listings, and directly connect with brokers when investing in Springfield commercial properties.

Buyers and tenants encompass 92% of Crexi’s online traffic, using the platform to find the ideal property for their needs.

In Springfield and beyond, brokers take advantage of Crexi’s powerful listing and lead management and broker marketing tools. Brokers use the open marketplace to directly connect with buyers and tenants who’ve indicated an interest in Springfield commercial real estate.

To date, Crexi’s A-Z commercial real estate tools have supported transactions valued at over $300 billion. The marketplace has hosted more than 400,000 properties representing a combined $1.2 trillion since Crexi’s launch in 2016.

Crexi serves Springfield and Greene County as the fastest-growing marketplace and online commercial real estate platform.

The State of Commercial Real Estate in Springfield

Note: the current COVID-19 crisis has impacted this data. The coronavirus’ long term impact has yet to be determined, but CRE professionals should keep these developments in mind when evaluating the following information.

Springfield is situated in the southwestern part of Missouri along the Ozark Mountain Range. The metro area is only a few hours by car from the major metropolitan areas of Kansas City and St. Louis. Nicknamed “Queen City of the Ozarks” and the “Birthplace of Route 66,” Springfield is home to a dynamic population of students, millennials, and baby boomers.

Although Springfield is home to less than half a million people, the economy here is surprisingly robust. Healthcare, manufacturing, and education are among the major industry sectors helping to keep the economy growing. 

Interstate 44 connects Springfield to St. Louis and Tulsa, while the Kansas Expressway goes north to Kansas City. Atlanta, Chicago, Dallas, Denver, and Detroit are all within 1,000 miles of the Springfield metropolitan area.

Springfield Regional Breakdown

Springfield, Missouri has grown faster than other nearby cities, including the St. Louis metropolitan area. The Springfield MSA ranks 114th for population growth among the 394 metro areas in the county. Population growth in Springfield was 1.44% year-over-year, representing a gain of over 6,600 new residents. Over the last ten years, the Springfield metropolitan area population has grown by nearly 20%.

Springfield is home to nearly 170,000 people in the city and over 468,000 residents in the greater metropolitan area. The Springfield MSA comprises five counties: Greene, Christian, Webster, Polk, and Dallas counties. Springfield is the 3rd largest city in Missouri, right behind Kansas City and St. Louis, with about 700,000 people living within a 50-mile drive of the city.

Springfield’s median age is 37.4 years, a little less than the Missouri state average of 38.8 years.

Springfield’s job growth is wide-spread across all business sectors, with the professional and business service sectors growing by about 16% over the past few years. The 27-county area that spans across Missouri and Arkansas encompasses more than 1 million people and is known as the region’s economic hub.

The GDP of the Springfield MSA is over $18 billion and has grown by nearly 12% over the past ten years. Job growth in Springfield was 1.7% last year, with an unemployment rate of just 3.2%. About 18% of the total workforce in Springfield is employed in the healthcare industry. Other key industry sectors in the Springfield metropolitan area include distribution and logistics, advanced manufacturing, call centers, back-office support, and data centers. 

Major employers in Springfield are CoxHealth, Mercy Hospital Springfield, Walmart, Springfield Public Schools, State of Missouri, and Chase Card Services. Missouri State University, Ozarks Technical Community College, and Southwest Baptist University are some of the region’s local colleges and universities.

Springfield Industrial Market

The demand for warehouse space in Springfield has remained strong and will likely continue growing, as an increasing population and the use of online shopping keep the industrial industry booming.

Total industrial inventory at the close of Q2-2020 hit 37.5 million square feet, with an average asking rent of $4.55 per square foot, per the Springfield Missouri Chamber of Commerce

Vacancy rates for industrial stayed low at 3.7%, a slight increase of 0.8% from Q1-2020. Flex and logistics industrial spaces have had the highest asking lease rates, with more development entering the planning phases. The Northeast, Northwest, Southwest, and Outlying Greene County submarkets are among the fastest-growing for industrial buildings.

Learn more about Springfield industrial property for lease.

Springfield Office Market

Compared to Kansas City, just three hours to the north, the office market in Springfield, Missouri, is experiencing steady growth in 2020.

Office vacancy rates in Springfield have increased only slightly over the last few quarters, despite the impact of COVID-19. Currently, direct vacancy for Class A, B, and C office space sits at just 3.5%, or 1/4th that of nearby Kansas City. This change is only up 0.4% compared to Q1-2020 rates.

Total Springfield office inventory hit 13.5 million square feet in Q2-2020, with an average asking rent of $13.42 per square foot. The market’s been relatively stabilized during the end of Q2/beginning of Q3 thanks to Springfield’s reopening efforts. Occupancy restrictions remain in the city, which has driven businesses to seek out more satellite offices and higher square footage to meet more recent health and janitorial requirements. The submarkets with the highest demand include the Northeast, Southeast, CBD/Center City, and Medical Mile, likely driven by medical office needs.

Learn more about Springfield office property for lease. 

Springfield Retail Market

New retail inventory brought to market in Springfield over the last four quarters totaled less than 1% of the total market, keeping vacancy rates low of only 4.1% up from 3.4% in Q1-2020. Some submarkets showed little or no available space for lease.

Total retail inventory numbered at 31 million square feet by the end of Q2-2020, at a weighted average asking rent of $10.65 per square foot. General, shopping, and neighborhood retail properties have the most affordable asking rent with lease rates ranging from $14.61 to $13.50 per square foot for Triple-Net leases.

Only 9,026 square feet were added to the market in Q2 2020, compared to 165,859 square feet of new retail construction over the past 12 months. The slowed development is undoubtedly affected by COVID-19, as many current retail occupants are adjusting their business operations to meet Springfield occupancy requirements and health guidelines. 

Likely, boxed retail will be the most challenging to backfill, but the presence of only one regional mall well-positions larger retail tenants against a lack of competition. The largest retail submarkets include the Southeast, Southwest, Northeast, and Outlying Greene County.

Learn more about Springfield retail property for lease.

Springfield Multifamily Market

Springfield was recently rated as one of the top 100 real estate markets to watch in 2020. The rating was based on crucial investment metrics such as job and population growth, housing supply, and investment capital flow. In Springfield, Missouri, significant multifamily trends include the addition of 205,574 total housing units, of which 38% of renter-occupied. The average asking rent is $895, up approximately 16.89% in July 2020 from July 2019. 

Multifamily continues to perform well, with vacancy rates at 4.5% and pent-up demand to buy existing complexes and portfolios. With a low cost of living, median household income of $46,905, and a growing population, Springfield multifamily properties are likely to remain a reliable investment option. 

Learn more about Springfield multifamily property for sale.

How Crexi Connects Buyers and Tenants to Springfield CRE Properties

Crexi’s open marketplace allows buyers and tenants, no matter where they’re located, to browse a catalog of Springfield commercial property for sale or lease across various asset classes. Springfield’s fast-growing population spans demographics, attracted to the cities’ vibrant economy, nearby Lake of the Ozarks, and central location between some of the nation’s biggest metros. 

Both buyers and tenants utilize Crexi’s free search function to find the perfect Springfield property for sale and lease. Users can customize their search preferences by price/rate per square foot, asset class and property type, square footage, neighborhood, and cap rate.

After discovering their property of choice, investors and tenants can directly connect to the listing broker through Crexi. Individuals interested in Springfield property can download OMs and brochures and even submit letters of intent (LOI) via Crexi’s secure platform. 

Intelligence offers Investors’ Data, Insights and Market Knowledge 

Prospective CRE investors and property-seeking tenants use Crexi’s Intelligence offering to make the best possible decisions. Intelligence includes a database with thousands of third-party verified sales comparables and over 50 market reports of the nation’s top MSAs, including data on Springfield, Missouri. Crexi’s Intelligence simplifies commercial real estate buying and leasing decisions, helping investors and tenants make the best possible decisions when seeking Springfield commercial property.

Buyers, sellers, and tenants can access Intelligence on a subscription basis.

How Springfield Brokers Win with Crexi

Crexi features more than 370 Springfield properties for sale and over 500 listings of commercial property for lease within the city’s borders. Industrial and multifamily drive regional activity, attracting tenants, corporate buyers, and 1031 exchanges.

Throughout the Springfield MSA, brokers can easily list properties and manage pipelines across various asset classes, including:

  • Industrial units
  • Office buildings
  • Mixed-Use developments
  • Land Parcels
  • Multifamily units
  • Hospitality facilities
  • Non-traditional properties such as data centers, medical offices, etc.

Brokers utilize Crexi’s marketplace and virtual tools to manage their properties from list to close. Springfield brokers can swiftly connect with leads and observe buyer activity in a real-time feed, using these insights as they manage their transaction pipeline. Brokers can even compile due diligence paperwork and store documentation in Crexi’s encrypted file storage.

The real power of Crexi’s broker tools appears with Sale PRO, Lease PRO, and All PRO. 

Crexi PRO Dashboard 2020

Crexi All PRO

Crexi Sale PRO and Lease PRO supercharges brokers’ workflow with high-level access to lead’s contact information and marketing analytics, in addition to fully-customized, branded lead reports. PRO listings receive preferential placement at the top of Crexi search pages, immediately visible to buyers and tenants alike. 

PRO listings also are distributed weekly to Crexi’s email database and seen by thousands of relevant buyers and lessees nationwide. Using machine learning optimization, Crexi’s email blasts send highly relevant properties customized to each buyer’s search behavior. This customization achieves a highly engaged click-through rate (CTR) of 10-15% on average.

Crexi PRO subscribers also enjoy access to the Intelligence offering at no added cost. The Intelligence database features over 13 million sales comparables, more than 40 million property records, and dozens of MSA market reports to help brokers facilitate the best deals possible. 

Brokers — including those in Springfield, MO, and Greene County — utilize Crexi PRO to connect with more than 5200 leads interested in Springfield and the nationwide 3 million new leads added in 2020 alone. 

On average, PRO users win 125% more leads and close six to eight more transactions on average than non-PRO subscribers.

Contact support@crexi.com to learn more about All PRO.

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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