Case study: sale of a 3,100 SF flex industrial building with outdoor storage at 1031 Merriam Lane in Kansas City, Kansas.
When the owner of a Kansas City flex industrial property began exploring a sale, they faced several challenges. The property was older, required repairs, and had already proven more complicated than a typical owner-user transaction.
Kansas City, Kansas—particularly corridors with quick access to I-35, I-635, Highway 69, and 169—continues to attract demand from small-bay industrial users, contractors, and service businesses seeking functional space with outdoor storage.
At the same time, bringing the property to market required the right positioning. Public exposure alone was not enough; the asset needed to be framed for buyers who would value utility, frontage, and yard space more than turnkey condition.
Instead, the seller turned to our team at Midwest CRE Advisors to guide the process, market the building strategically, and help identify a buyer who understood the operational upside.
Our team leveraged local relationships, targeted outreach, and a disciplined process to keep the deal alive through two failed contracts before ultimately closing with the third buyer in just 14 days.
Following the owner’s passing, the family no longer had a need for the property and was ready to exist the asset. While the building had strong functional features, including multiple drive-in bays, a freestanding layout, and substantial outdoor storage, it was not a turnkey asset. Built in the 1920s, the property required repairs and needed the right buyer profile to see past the complexity.
At the same time, the transaction involved a trustee seller who preferred traditional communication methods. He operated by phone rather than email and was not familiar with many of the deal structures and transaction rhythms common in today’s market, which required a more hands-on process from start to finish.
Instead of treating the property as a conventional polished listing, we positioned it around function. The combination of secure yard area, drive-in access, ceiling height, and frontage made it particularly appealing for contractors, service businesses, and owner-users who prioritize usability over cosmetic perfection.
Before fully launching the building across listing platforms, we first introduced it to our internal network to test demand and identify likely buyer types. Once the listing was active, that early feedback helped us market the property more effectively and keep attention centered on its strengths.
Transactions like this depend heavily on market knowledge and buyer selection. In this case, the first two buyers were unable to get comfortable once due diligence uncovered additional issues throughout the property.
As the process evolved, it became clear that the best fit was not a buyer focused on perfect condition or cosmetic appeal. The right buyer would be an owner-user who valued outdoor storage, drive-in functionality, frontage, and the building’s immediate practical utility.
By continuing to work our local relationships and reframing the narrative from a "problem property" to a contractor-friendly asset with land upside, we were able to connect the seller with a buyer who understood exactly where the value was.
Once the property began receiving offers, the focus shifted to keeping the transaction moving through inspections, negotiations, and seller communication. What followed was anything but simple.
The property went under contract three separate times. The first two contracts fell apart during due diligence as each inspection cycle revealed new concerns, including roof issues, electrical deficiencies, structural surprises, and sewer-related problems. Rather than allowing those setbacks to kill the deal, we continued refining the positioning and resetting expectations with the next buyer pool.
We also adapted the process to match the seller’s communication style, maintaining consistent phone check-ins and explaining each step clearly so he remained comfortable and informed. Once the third buyer aligned with the property’s true use case, the transaction moved quickly from agreement to closing.
Small-bay industrial properties with outdoor storage remain one of the most sought-after product types in the Kansas City market.
For contractors, service operators, and owner-users, the ability to combine functional interior space with yard area for equipment, vehicles, or materials can be more important than cosmetic finish. Well-located properties with frontage and efficient highway access are especially attractive because they support day-to-day operations immediately.
For buyers, that combination of accessibility, utility, and outdoor storage creates strong demand even when a property needs work. Assets that may appear imperfect on paper can still offer compelling value when the layout aligns with the user’s business model.
The property at 1031 Merriam Lane fit this profile well, offering a rare mix of small-bay industrial functionality, visible frontage, and outdoor storage in a location that serves the broader Kansas City metro.
This strategy ultimately delivered what both sides needed: a successful exit for the seller and a highly functional building for a buyer who valued the property’s operational strengths.
Transaction Results
Many commercial property owners assume that older buildings or properties with inspection issues will require steep discounts or a difficult public process. In reality, the right positioning and buyer selection strategy can make a significant difference in outcome.
If you're considering selling a commercial property in the Midwest and want to explore how to position a more complex asset effectively, our team would be happy to discuss your goals and potential strategies.
Logan Freeman
Managing Broker | Midwest CRE Advisors
573-694-9669
Logan@MWCREAdvisors.com
FAQs About Selling Small-Bay Industrial Properties in Kansas City
Why do some industrial properties fall out of contract during due diligence?
Inspections can reveal structural, mechanical, site, or utility issues that were not fully understood at the time an offer was made. When those findings change the buyer’s comfort level or required investment, a transaction may fall apart during due diligence.
Why are owner-user buyers often a strong fit for small-bay industrial assets?
Owner-user buyers often focus more on layout, access, yard functionality, and operational efficiency than on cosmetic condition. That can make them a strong match for properties that are highly usable but not fully turnkey.
Why is outdoor storage so valuable in the Kansas City industrial market?
Outdoor storage allows businesses to keep vehicles, equipment, and materials on-site, which can improve operational efficiency and reduce off-site storage costs. As a result, industrial properties with usable yard space continue to attract strong interest.
Can older industrial buildings still attract qualified buyers?
Yes. Older industrial buildings can still perform well in the market when they offer the right combination of location, access, layout, frontage, and functionality for the intended user.
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