Skin in the game. Pay to Play. Spend Money to Make Money. There are many euphemisms for the concept which holds something cannot be successful without first taking a risk. Without a doubt, adaptive reuse ventures within St. Louis's urban core are looking to do just that – leverage a large initial commitment, both financial and logistical, into another piece of the City’s recent urban revival. Select Multifamily Projects in City Outpace Their Peers How are current adaptive reuse projects in the City stacking up against other areas of St. Louis? Consider the following developments and Figure 1 to see how redeveloping these assets for highest and best use is a worthwhile endeavor. Woodward Lofts: Completed in 1926 and was a factory for the Woodward & Tiernan Printing Company (+$590 over Avg. Rent Per Unit (RPU) in City) The Georgian: Former hospital administration building which has been out of service [...]
In Part-One and Part-Two, we discussed the Urban Development Corridor (UDC) and some of its unique qualities that make it an ideal location for office occupiers. Figure 1: Historical Coworking Expansion Across the U.S., the coworking industry has thrived on the heels of increased demand for employee experience. St. Louis itself has seen a recent expansion into the market from the leading coworking provider in the world, WeWork, which recently took 60,000 square feet (sf) at the Metropolitan Square building Downtown. For a firm that is less than a decade old, WeWork’s many successes represent a prime example of the rise in demand for employee experience. Though coworking has existed for many years in different forms (Regus, for example, started in 1989), it was not until recently that the ramp-up of coworking became apparent. To demonstrate this exponential growth, consider Figure 1 on right: Roughly half of the [...]
Millennial Strength in the City Despite well-documented population loss in St. Louis over the past several decades, one critical generational demographic for the modern economy has recorded unprecedented growth within the City of St. Louis: Since 2010, the millennial demographic within the City has increased 11.9%. To put this in perspective, consider that between 2004 and 2014, St. Louis experienced a net population decline of over 30,000. At the same time, however, college graduates under age 35 grew by more than 14,400. Not only have millennials flocked to St. Louis in droves, but for the first time, this generation has replaced Generation X as the largest within the U.S. Labor force. This means that architects, developers, owners, and asset managers must adhere to the changing demands of a younger and more millennial workforce who prefer urban amenities at levels that far outpace that of their generational counterparts. Figure 1: [...]
Within the Urban Development Corridor (UDC), Cushman & Wakefield Research is tracking 35 development projects totaling over $4.1 billion in current or proposed developments. Though the number of developments within the UDC is impressive, the diversity of projects is perhaps most interesting. The following map displays just how variable construction activity has been across the UDC. UDC Development Overview - Figure 1 As portrayed in Figure 1, urban development in St. Louis is well-distributed within the corridor in both geography and purpose. Many of these projects represent a coordinated and long-term strategy on community development. The Lawrence Group, responsible for the City Foundry development in Midtown, recently acquired three lots along Forest Park Avenue. Smith, CEO of Lawrence Group, told the St. Louis Business Journal that he also had several parcels near the site owned by the Missouri Department of Transportation under contract. With additional office development being [...]
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In the next three years, roughly 1,300 apartment units, 1,200 hotel rooms, more than 2.5 msf of office, and over $4b of developments are expected to deliver within the Urban Development Corridor (UDC). This 3.5-square-mile area stretching from Forest Park through Central West End, Cortex, Midtown and into the heart of Downtown has attracted investment the likes of which St. Louis City has not seen in many years, changing the very fabric of our urban core. As a result of the apparent shift in consumer, occupier and investor behavior, Cushman & Wakefield is launching a five-part series on Urban Revival in St. Louis in conjunction with our very own EdgeView, an interactive development tracker that will supplement the Urban Revival discussion. The EdgeView can be found here. Check in each week as our research platform dives into the dynamics supporting this revival as well as what projects look to have [...]
St. Louis has long been considered a commuter city with its dispersed geography that required people to drive. But thanks to improvement in the local metro rail and the number of advocates who wish for walkable urban development, St. Louis ranks 16th out of the 30 when it comes “walkable” U.S. cities. The 2019 Foot Traffic Ahead report from the Center for Real Estate and Urban Analysis (CRUEA) at the George Washington University School of Business, in partnership with Cushman & Wakefield, Smart Growth America/LOCUS and Yardi Matrix, has named St. Louis the No. 16 city for walkable urbanism. The report ranks the 30 largest metros in the United States, based on the percentage of office, retail and rental multifamily space in walkable urban places. The report found that in the 30 largest metros there are 761 “regionally significant” walkable urban places, or WalkUPs. Ten of those WalkUPs are located [...]
The St. Louis retail market has continued forward at a positive pace despite an ongoing trend of national bankruptcies, which say little of local shopper patterns but left significant vacancies in its wake. Despite this, St. Louis retail vacancy was 7.2% in the second quarter, falling below the long-term average by 130 basis points and driving rents more than 5% higher year-over-year. To read more about ongoing retail trends in St. Louis, click here.
The St. Louis industrial market continues to barrel ahead according to the latest Cushman & Wakefield research. In the second quarter, more than 2 million square feet of industrial space was absorbed, pushing vacancies below 6.0% for the fourth time since 2011 and the second time this year. At 5.8%, the industrial market’s vacancy rate was slightly above last year’s 5.6% but remains well below the historical average of 7.3% vacancy. For that and more insights into the current St. Louis industrial market, check out the Second Quarter Industrial Snapshot here.
Last quarter, Downtown St. Louis recorded its lowest office vacancy in years and while the market vacancy ticked up slightly in the second quarter, signs remain encouraging throughout the metro. The recorded vacancy at the end of the quarter was 12.5%, marking 14 consecutive quarters below the long-term average of 13.5%. Utilities and bio-tech industries have driven growth in the market and rents are expected to elevate over the mid-term. For more on the market, check out the Second Quarter Office Snapshot here.