Part-Five: 25 Reasons Why The Lou is Thriving

Development & Demographic Momentum

1. 35 projects totaling over $4.1 billion in development
2. Diversity in Developments: Office (7), Hotel (8), Multifamily (7), Mixed-Use (8), and Other (5)
3. City Foundry’s food hall is 80% preleased and the project’s office-component is 93% preleased
4. In 2016, the Millennial demographic became the largest demographic in the U.S. workforce
5. Since 2010, the millennial demographic within the City has increased by 11.9%
6. 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
7. Millennials prefer urban amenities such as Walkable Urbanism, Transit and Retail access
8. Nearly 40% of the population living within the St. Louis City limits have moved in after 2005. The median age for St. Louis City is just 35.6 years old, which is roughly 4 to 5 years younger than the average resident within the overall Metro area

Emphasis on Technology & Innovation

9. Cortex Innovation District has tracked a 171.0% increase in office leasing activity in last five years relative to prior five years
10.The Gateway Higher Education Cyber security Consortium, which was established by seven local universities in order to make St. Louis a front-runner in cyber security education and research
11. St. Louis University (SLU) signed a Collaborative Research and Development Agreement with the National Geospatial Intelligence Agency (NGA)
12. SLU announced the hiring of Robert Cardillo, the former director of the NGA, who will help oversee the research partnership with NGA and broader geospatial intelligence research initiatives
13. SLU has recently engaged in data-driven recruitment called right-fit targeting, resulting in five of the six largest freshman classes in the school’s history
14. SLU has recently invested $80 million to enhance its STEM facilities including a new, $50 million Interdisciplinary Science and Engineering Building expected to open in 2020

Multifamily Fundamentals in City Indicate Strength

15. Multifamily inventory has grown 23.3% since 2010
16. Effective Rents have grown 21.5% since 2010
17. Vacancy of 7.5% at lowest level since 2008
18. Over 3,000 units absorbed since 2010 and the current streak of positive absorption is at five consecutive years

Strong Potential for New Industry Growth

19. WeWork, the leading coworking firm in the world, recently took 60,000 square feet at the Metropolitan Square building Downtown
20. Of the estimated 1.0 msf of coworking space in St. Louis, over 60% of it falls within the City – a number that’s sure to increase in tandem with momentum seen throughout the UDC. Based on this sentiment, it’s simply a matter of “when”, not “if” the market attracts the likes of Knotel or compels further expansion from WeWork and Spaces
21. The National Geospatial-Intelligence Agency’s (NGA) new $1.7b headquarters delivering in 2023 has the potential to create a geospatial ecosystem through active university partnerships and government contracts that have totaled $5.0b since 2016

Considerable Adaptive Reuse Opportunity

22. Adaptive Reuse Projects Outpace Peers:

  • 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 since 1987 (+$460 over Avg. RPU in City)
  • The Bordeaux: Built in 1910 to house the Zittlosen Manufacturing Company, the property later became the Crown Dress Factory and then the Bouras Mop Factory in 1961. The building became vacant around 2007 (+$271 over Avg. RPU in City)
  • Steelcote Lofts: Formerly the Steelcote Manufacturing Paint building which dates back to 1922, Pier Property Group’s redevelopments look to add much-needed density to the area (+$122 over Avg. RPU in City)

23. At $11.60, the spread between top-tier Class A asking rates and average Class A asking rates are second highest in the metro, an indication that value remains to be unlocked in prospective adaptive reuse projects

Forward-Looking Infrastructure Investment

24. A new, $15 million MetroLink Station at the Cortex Innovation District recently delivered in mid-2018
25. The proposal of Choteau Greenway, a $250 million elevated pathway that will connect signature developments and growing hubs of commercial activity throughout the UDC

2019-10-28T10:49:19-05:00October 28th, 2019|News & Insights|