Block & Company Quarterly Review - 4th Quarter 2025

January 15, 2026

Letter from President David M. Block

This past year has been an interesting and important time for commercial real estate, particularly in terms of deal transactions and valuations. The stabilization of interest rates - combined with the outlook for future reductions - has helped solidify the investment market, reinforcing confidence in the durability of our real estate product and its long-term appreciation and value stabilization.

New construction has been significantly reduced since COVID, and the dramatic increase in building costs has further benefited existing real estate assets. These market conditions have aligned well with Block & Company's strategy, strengthening our brokerage sales and leasing activity throughout the marketplace.

Kansas City has remained resilient and strong throughout the year, and with the potential for lower interest rates, 2026 looks poised to be another excellent year for our company and our community.

During 2025, we welcomed a number of new associates, management, and operational personnel - further strengthening our long-term vision and ability to serve our clients. We sincerely appreciate the retail, restaurant, hotel, and investment communities for trusting Block & Company with all of your commercial real estate needs.

This year, we also lost two true commercial real estate icons: Larry Gaines and Rob Epstein. I had the privilege of working with both for many years, and I deeply valued their professionalism, friendship, and contributions to our industry. They will be dearly missed.

I am truly excited about what 2026 has to offer the Kansas City real estate community, our agents, and our employees. I extend my sincere thanks to all of our clients, investors, and third-party management partners for working with us throughout 2025 to enhance the value of your commercial real estate assets. Welook forward to presenting new investment opportunities to our investor base in 2026.

If we can assist you in any way, please do not hesitate to call us at your convenience. In the meantime, we wish everyone a happy, healthy, and prosperous 2026.

P.S. The word of the quarter is: Philanthropy.

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