Lockton Leaves the Plaza: Inside the $765M Deal Reigniting the Kansas-Missouri Border War

Guest:

Host:

Logan Freeman, Managing Broker, Midwest CRE Advisors

In this episode of The Kansas City Market Pulse, host Logan Freeman breaks down Lockton's move from the Country Club Plaza to a new headquarters campus in Leawood, Kansas: a $765 million case study in tax incentives, corporate strategy and the return of the Kansas-Missouri border war.

Lockton has been on the Plaza since 2000. Its new home, Hallbrook North, is a 34-acre mixed-use campus at State Line Road and College Boulevard, backed by a $152 million incentive package, the largest development deal in Leawood's history.

Episode Highlights:

The Project: A 12-story, 444,000 SF headquarters, an 8-story 258,000 SF expansion building, a 145-room hotel, 400 apartments, retail, child care and more, with Lockton moving in by early 2030.
How the Incentives Work: TIF, a 1.5% CID sales tax, an 8% transient guest tax and construction sales tax exemptions, all pay-as-you-go and contingent on a Lockton lease by the end of 2026.
The Border War Is Back: Missouri let its state law expire and Kansas City repealed its truce ordinance in 2025. Kansas played offense, and won.
What It Means for the Plaza: Losing a tenant that fills all 10 floors of Valencia Place removes daytime population just as the Plaza pursues a major redevelopment.
The Risks: Execution on a tight timeline, flooding concerns along Indian Creek, 20 years of diverted tax revenue and a zero-sum shift across State Line.

Whether or not this deal is good for the region, it is happening. If you are in CRE, pay attention to both sides of State Line Road.

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Key Takeaways

On December 19, 2025, Lockton announced it will leave the Country Club Plaza, where it has been since 2000, for a new headquarters campus in Leawood, Kansas.
Hallbrook North, developed by VanTrust Real Estate, is a 34-acre, $765 million mixed-use project at the northwest corner of State Line Road and College Boulevard off I-435.
Lockton will eventually have over 700,000 SF of office across a 12-story, 444,000 SF headquarters and an 8-story, 258,000 SF expansion building. The campus adds a 145-room hotel, 400 apartments, 16,000 SF of retail and dining and a 14,000 SF child care facility.
Leawood approved a $152 million incentive package, its first ever TIF deal, combining TIF, a 1.5% CID sales tax, an 8% transient guest tax and $14.6 million in construction sales tax exemptions.
The incentives are pay-as-you-go and can be revoked if Lockton does not sign a headquarters lease by December 31, 2026.
The 2019 border war truce is dead: Missouri let its state law expire and the Kansas City council repealed its local ordinance in September 2025.
Opportunity sits on both sides of State Line: supporting uses near State Line and I-435 in Leawood, and backfill, conversion and repositioning plays on the Plaza and in Midtown.

Questions Answered in this Episode

Why is Lockton leaving the Country Club Plaza?

Lockton has outgrown its Plaza headquarters, where it has 1,500 employees and a lease that expires in 2030. The Leawood campus offers over 700,000 SF with room to expand, a hotel, child care, retail, structured parking and I-435 access, plus a $152 million incentive package that Kansas City did not match.

What incentives did Leawood approve for Hallbrook North?

Leawood approved a $152 million package, the largest development deal in its history and its first TIF deal. It combines TIF on new property taxes, a 1.5% CID sales tax, an 8% transient guest tax on hotel stays and $14.6 million in construction sales tax exemptions. Everything is pay-as-you-go, so VanTrust builds first and is reimbursed as tax revenue comes in.

What does Lockton's move mean for the Plaza?

Lockton fills all 10 floors of the Valencia Place building, so its 2030 exit removes office space and daytime foot traffic that support Plaza restaurants and shops. It also creates backfill, office-to-residential conversion and repositioning opportunities as the Plaza pursues redevelopment.

Where are the CRE opportunities from the Lockton deal?

In Leawood, along the State Line corridor from 119th Street to College Boulevard, where Hallbrook North will drive demand for multifamily, retail and office. On the Missouri side, the Plaza and Midtown offer adaptive reuse and repositioning plays.

Where can I listen to "Lockton Leaves the Plaza: Inside the $765M Deal Reigniting the Kansas-Missouri Border War"?

The episode from The Kansas City Market Pulse, hosted by Logan Freeman of Midwest CRE Advisors, is on Spotify, Apple Podcasts and YouTube, and on the show page at mwcreadvisors.com.

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