Andrew Danner on why Windfield is developing and leasing The Shops at Smithville, a 30,150 SF neighborhood center on U.S. 169 north of Kansas City.
Photo: Alex Reynolds / Unsplash
I have owned and run Windfield Real Estate since February 2007. In that time I have sat on every side of the table: buyer, seller, landlord, tenant and developer. The Shops at Smithville is the project where I sit on the owner's side and the leasing side at once, and that changes how you think about every decision.
People ask me why a neighborhood center, and why on U.S. 169 north of Kansas City. The honest answer is that it is the kind of real estate I know well: small suites, service tenants, and regular visits from the people who live and work nearby. It is not glamorous. Done right, it lasts.
What is The Shops at Smithville?
The Shops at Smithville sits at 14903–14901 U.S. 169 in Smithville, Missouri. The project totals 30,150 SF. Of that, 18,680 SF is available today, in four spaces:
- Suite 400: 1,400 SF, in-line
- Suite 500: 2,100 SF, in-line
- Suite 600: 5,180 SF, in-line, the largest in-line suite
- 14901 South Building: 10,000 SF, standalone
The rest is committed, to five service businesses: a pizza shop, an AT&T store, a nail salon, an HVAC company and an accountant. Each one gives people a regular reason to stop by.
That list tells you what kind of center this is. These are businesses people visit on a weekday errand, not a once-a-year destination. That is on purpose.
Why build neighborhood retail on U.S. 169?
I am not going to quote traffic counts or population figures in an article. Numbers like that belong in a package you can check against the source, and any serious tenant should ask for them and verify them. What I can tell you is how an owner thinks about a corridor like this one.
First, access. A highway-frontage site that people can get in and out of easily does more for a small tenant than almost anything else. Second, homes and workplaces within a short drive. Third, a shortage of newer small-bay space close by. When those three line up, a modest center can serve a real need instead of fighting five other centers for the same customer.
Smithville sits north of Kansas City along that corridor. For the service businesses we talk to, the question is simple: can my customers reach me without thinking twice? That is the test I apply before I put money in the ground.
How does an owner decide a project pencils?
Before a shovel moves, I want to know what the finished project should earn against what it costs to build. That is yield on cost. It is the developer's version of a cap rate, and if it does not clear what buyers pay for a finished center by a fair margin, there is no reason to take development risk.
- Total project cost
- $2,500,000
- Yield on cost
- 8.00%
- Development spread
- 1.00%
- Value created
- $357,143
Yield on cost = stabilized NOI ÷ total project cost. The spread over the exit cap rate is the margin that pays for the risk of building. The example figures are illustrative, not the terms of any property.
Open the full calculator →Run the example and you get a yield of 8%. Whether that is good depends entirely on where a buyer would price the finished, leased center. Matthew Danner walks through that comparison in his piece on yield on cost when a project pencils. Read it before you sign anything that involves ground-up construction.
A neighborhood center does not need to be exciting. It needs to be easy to reach, easy to understand, and full of businesses people use every week.
Why lease to service tenants first?
In a small center, the first leases set the tone for every lease after. Service tenants (food, wireless, personal care, trades, professional offices) bring repeat visits. They also tend to invest in their space and stay put when the location works.
We took that approach on purpose. The committed tenants give the remaining suites a base of weekday visits that a medical office, a fitness studio or a franchise restaurant can benefit from. I write more about how we choose co-tenants in my piece on the tenant mix at The Shops at Smithville.
Who are the remaining spaces built for?
Each space suits a different user, and we have set up separate pages so you can see the fit for your business:
- Medical and dental practices that want visible, convenient space: /smithville/medical-dental
- Franchise and quick-service operators, especially for the 10,000 SF South Building: /smithville/franchise-qsr
- Fitness studios that need the room of Suite 600 at 5,180 SF: /smithville/fitness
- Sit-down and fast-casual restaurant concepts: /smithville/restaurant
- Professional services offices: /smithville/professional-services
- Specialty retail: /smithville/retail-specialty
If you are a broker with a client in the market, there is a page for you too, at /smithville/brokers. Windfield is a member of CORFAC International, with affiliates in 70+ markets, so a requirement that starts somewhere else can still find its way here.
See the site plan, the brochure and the enquiry form.
What should a tenant ask an owner before signing?
- Who else is committed, and what do they bring to the center?
- What is the total occupancy cost, not just the base rent?
- What build-out will the landlord contribute, and on what terms?
- How is the common area maintained and billed?
- What happens if my business needs to grow or shrink?
Those are the questions I would ask if I were on your side of the table, because for much of my career I have been. Ben Nelson's article on gross versus NNN occupancy cost is a good place to start on the second one.
Read Ben Nelson, CCIM, on true occupancy cost: gross versus NNN.
If you want to talk about a space, call me at 816-612-5191 or send a note through the site. I would rather spend an hour on whether the fit is right than spend years with a tenant in the wrong suite.
Ask about a suite at The Shops at Smithville.
Questions people ask
Where is The Shops at Smithville?
The Shops at Smithville is at 14903–14901 U.S. 169 in Smithville, Missouri 64089, north of Kansas City. It is a 30,150 SF neighborhood center with in-line suites and a standalone 10,000 SF South Building. Windfield Real Estate, LLC is developing and leasing the project from our office in North Kansas City.
How much space is available at The Shops at Smithville?
18,680 SF is available in four spaces: Suite 400 at 1,400 SF, Suite 500 at 2,100 SF, Suite 600 at 5,180 SF, which is the largest in-line suite, and the 14901 South Building, a 10,000 SF standalone building. The site plan and brochure are on the main Smithville page.
Who are the current tenants?
Five service businesses are committed: a pizza shop, an AT&T store, a nail salon, an HVAC company and an accountant. None is a destination store. They are everyday businesses that bring regular weekday visits to the center, and that base shapes which uses we look for in the four spaces still available.
What is the asking rent?
I do not publish rent in articles. Terms depend on the suite, the use, the length of the lease and the build-out each tenant needs. The fastest way to a real answer is to call Windfield Real Estate, LLC at 816-612-5191 or use the enquiry form on the Smithville page, and we will walk through it with you.
Andrew founded Windfield Real Estate, LLC in 2007 and has brokered and developed commercial real estate across the Kansas City metro since. He works with buyers, sellers, landlords and tenants across asset classes, and guides owners and tenants through every stage of development — including The Shops at Smithville on U.S. 169.
Windfield Real Estate, LLC · Licensed Missouri real estate broker · 816-612-5191 · info@windfieldrealestate.com
