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.
The current economic cycle has resulted in major development projects in St. Louis, such as The City Foundry and Armory building, with little sign of a slowdown on the horizon. As employment rushes to the urban core, multifamily units have followed. With rents expected to rise and vacancies expected to decrease, the market remains one to watch for renters and investors alike. For more on the St. Louis multifamily market, check out our Second Quarter Market Insight report here.
Market Overview Construction in the St. Louis industrial market continued to be active with over 1.0 million square feet (msf) of new inventory delivered during the third quarter of 2018, bringing year-to-date deliveries above 3.5 msf. Developers remain aggressive, as strong tenant activity accounts for 3.5 msf of positive absorbed over the same period. These strong market overview fundamentals translated to healthy rent growth, as average asking rates ticked upwards to $4.96 per square foot (psf), an increase of $0.39 over the past six months. After posting nearly 170,000 square feet (sf) of positive absorption in the third quarter, St. Louis continues to benefit from a growing local economy and an emphasis on innovation. The city’s innovation hub, Cortex Innovation District, led absorption activity with roughly 96,000 sf of positive absorption at the recently built Cortex 3.0. Given healthy activity, the market’s vacancy of 12.0% fell by 30 basis points [...]
Highlighting lifestyle trends and the millennial effect, this perspective piece compares suburban and downtown locations; focuses on attracting educated workers; and explains how a sound real estate strategy should drive location decisions. Low unemployment rates are coupled with the growing need for tech savvy employees and forward-thinking perspectives on old products and services. New ideas are the precious raw materials—creating an intense focus on labor attraction efforts in the tech sector and technology jobs in traditional companies. Employers have responded by re-evaluating their location decisions and workplace experiences.
Visualizing the workplace in 2025 starts with the realization that planning for that reality starts today. People today can work from anywhere, at any time so offices now must compete with other workplace options. When workers do go into the office, they want a work environment to complement their work-life experience—and a place where they feel valued, connected and supported. It’s all about people—and workplace 2025 is closer than you think.
Cushman and Wakefield research shows construction in the St. Louis industrial market continues to grow with over 1 million square feet (msf) of new inventory, bringing year-to-date deliveries to above 3.5 msf. Developers remain aggressive with strong tenant demand and healthy rent growth. Average asking rates increased to $4.96 per-square-foot, increasing $0.39 over the past six months. The St. Louis office market recorded nearly 170,000 square feet (sf) positive net absorption. The Cortex Innovation District led activity with roughly 96,000 sf positive net absorption. The market’s 12.0% vacancy fell 30 basis points from last quarter, supporting strong rental income potential for investors. Cushman & Wakefield Q3 2108 Market Snapshot
St. Louis Industrial Market Expands with 2.2 MSF of Positive Net Absorption in the Second Quarter New Large blocks of Suburban Office Space and Strong Leasing Activity to Continue in 2018 ST. LOUIS, July 18, 2018 – Cushman & Wakefield announced the St. Louis industrial market recorded 2.2 million square feet (msf) of positive absorption in the second quarter of 2018. For the St. Louis office market, suburban asking rates reached an average of $20.14 per square foot (psf), increasing by $0.32 psf quarter-over-quarter as tenant demand remains strong. “Development activity has been the biggest story over the past several years with 4.6 million square feet (msf) of new industrial construction and 571,000 sf of new office construction in 2017,” said Brian Ungles, Managing Principal, Cushman & Wakefield, St. Louis. “We expect that trend to continue, as we had 1.5 msf of office space and 5.8 msf of industrial space [...]
St. Louis Industrial Market Expanding with 2.2 MSF Recorded Positive Net Absorption in Q2 2018 New large blocks of suburban office space with strong leasing activity to continue in 2018