Merger approved! Sprint and T-Mobile to become one
All signs point to continued stability in Johnson County.
February 17, 2020
- This week, a federal judge ruled in favor of the $26.5 billion Sprint and T-Mobile merger, shutting down anti-trust arguments brought by a group of attorneys general and clearing the way for the merger to close as early as April.
- Prior to this ruling, there were reports of concerns on the stability of Sprint as a standalone company if the merger was blocked. This created uncertainty around Sprint and T-Mobiles’ future office presence in South Johnson County. These fears are now alleviated, as the merger will pave the way for stability in the Kansas City office market and the companies’ commitment to remaining in Kansas City.
- The former Sprint Campus, now renamed “The Campus”, sold to Occidental Management in July 2019. That quarter, availability in South Johnson County increased 0.4% after several former Sprint spaces became available. Availability in South Johnson County currently stands at 13.7%, below the market average of 16.2%.
- Sprint currently occupies an estimated 2.2M sf of The Campus, with long term leases to remain in about 1M sf. Sprint has also committed to at least $25M of capital investment to improve their long term space. Occidental Management plans to invest significant capital in the campus to add amenities and attract third party tenants.
- About 1.5M square feet is currently leased by third party tenants, 120,000 sf of which was leased since Occidental acquired The Campus. About 130,000 sf is currently available and marketed for lease.
- A Place For Mom recently leased 42,000 sf at The Campus to house their first Kansas City office and has plans to hire 600 net new employees to the metro.
- Sprint currently employs 6,000 people at the campus and has shared speculative plans to hire 1,000 more.
Source: JLL Research