^ There's speculation that 720 Olive may be in for a residential conversion.... I wouldn't mind seeing something like the Millennium Center where offices were consolidated on the lower floors and residential went on the higher floors.
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That would be pretty sweet in my opinion. I've always liked the Laclede- it's an interesting example of International style architecture and it provides an interesting contrast to the neighboring Arcade and Chemical buildings as well as the OPO.roger wyoming II wrote:^ There's speculation that 720 Olive may be in for a residential conversion.... I wouldn't mind seeing something like the Millennium Center where offices were consolidated on the lower floors and residential went on the higher floors.
I also agree with dweebe and Arch about what is wrong with downtown- specifically, our increasingly ineffective and invisible leadership- but I'll stay positive for now and save my upcoming rant for another time.
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^ that would be my preference as well... I think having as many office jobs in the core of the CBD would help the overall well-being of downtown versus having things spread out more like they've been of late. But a mix of jobs on lower floors and residents on top would be a nice second best. Union Trust is another office building that I wouldn't doubt will get a repurposing in the next few years.... not sure about Frisco Building.
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Last time I herd the Frisco Building was about 80% full.roger wyoming II wrote:^ that would be my preference as well... I think having as many office jobs in the core of the CBD would help the overall well-being of downtown versus having things spread out more like they've been of late. But a mix of jobs on lower floors and residents on top would be a nice second best. Union Trust is another office building that I wouldn't doubt will get a repurposing in the next few years.... not sure about Frisco Building.
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Not all bad news from the latest Colliers report but ATT sure is a black eye for downtown....
CENTRAL BUSINESS DISTRICT
St. Louis’ CBD currently has an overall vacancy rate of 20.3%, down slightly from 20.8% last quarter. Class A vacancy rates declined from 20.1% a quarter ago to 19.8% currently. Though the vacancy rate is the highest of all the submarkets, absorption from first quarter to second was positive - nearly 140,000 square feet - which tells us some companies continue to expand following the major departure of AT&T’s 700,000 square feet of space earlier this year. Class A rents are up from $17.96 per square foot in second quarter 2013 to a current rate of $18.06 per square foot. Despite the positive absorption this quarter, AT&T is making plans to give back another 500,000-600,000 square feet over the next 24 months meaning absorption will most likely trend downward.
CENTRAL BUSINESS DISTRICT
St. Louis’ CBD currently has an overall vacancy rate of 20.3%, down slightly from 20.8% last quarter. Class A vacancy rates declined from 20.1% a quarter ago to 19.8% currently. Though the vacancy rate is the highest of all the submarkets, absorption from first quarter to second was positive - nearly 140,000 square feet - which tells us some companies continue to expand following the major departure of AT&T’s 700,000 square feet of space earlier this year. Class A rents are up from $17.96 per square foot in second quarter 2013 to a current rate of $18.06 per square foot. Despite the positive absorption this quarter, AT&T is making plans to give back another 500,000-600,000 square feet over the next 24 months meaning absorption will most likely trend downward.
^ Meanwhile, in Pittsburgh's CBD Class A space is 93% occupied and two new office towers are going up with a third actively being pitched.
After almost 30-years, I don't see how the AT&T Tower - once unhinged by AT&T - will be considered a Class A building unless it is thoroughly renovated - inside and out.
If it is not renovated to secure multiple tenants looking for Class A space, downtown St. Louis will need new Class A space or it will continue to loose out to Clayton and Chesterfield.
My hope is the AT&T Tower will secure one major tenant for the whole building.
If it is not renovated to secure multiple tenants looking for Class A space, downtown St. Louis will need new Class A space or it will continue to loose out to Clayton and Chesterfield.
My hope is the AT&T Tower will secure one major tenant for the whole building.
St. Louis industrial market surging
21 hours ago • By Tim Bryant
St. Louis Post-Dispatch
21 hours ago • By Tim Bryant
St. Louis Post-Dispatch
St. Louis' office market also is improving, Cassidy Turley says. The scarcity of available Class A space and the absence of new construction means that vacancy rates continue to head down and landlords are less inclined to offer rent concessions to get tenants.
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Laclede Group is leasing an additional 35,000 sf at Bank of America Plaza.
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How much space did they have in their current building? Nice to see some space being absorbed but I would have rather them kept space in their current building in addition to their new one.
They're leaving behind 120,000 sq. ft. at the Laclede Gas Tower/720 Olive. Between the 128,000 they've leased at 700 Market and the 35,000 at B of A Tower, they seem to be pretty eager to be done with the LG Tower/720 Olive Street.
Great to see the net absorption. I'm sure this will help soften the blow as ConAgra downsizes in St. Louis and starts needing less space/has their leases expire.
Great to see the net absorption. I'm sure this will help soften the blow as ConAgra downsizes in St. Louis and starts needing less space/has their leases expire.
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^ I'm surprised to see that Laclede appears to be taking up more space post-720 Olive; the general trend is for having smaller square footage per employee and moves are generally a time of downsizing space if not employees. So this is a nice exception. I believe Anders also moved into BofA tower so it should be doing okay even if takes a ConAgra hit. Again, though. I'd rather see the office buildings north of Market be the ones doing well in order to gain some core density. I suppose the move increases likelihood of at least a partial residential conversion for 700 Olive.
It probably has something to do with Laclede nearly tripling its customer base in the last year. While apparently most/all of the Alagasco jobs are going to stay in Birmingham, the Missouri Gas Energy acquisition probably allows for some consolidation, but consolidation to the STL office. Regulatory compliance and government relations probably makes more sense in one office as opposed to two on either side of the state.roger wyoming II wrote:I'm surprised to see that Laclede appears to be taking up more space post-720 Olive; the general trend is for having smaller square footage per employee and moves are generally a time of downsizing space if not employees. So this is a nice exception.
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Unfortunately, I don't think that's the case. There is some job growth and some job relocations from elsewhere in the City (Forest Park Ave), but not a whole lot. The real driving force is that the Gen Am building's weird design results in a lot of space that can't (or won't) be used to house employees. Basically, they can fit significantly more employees in 120,000 square feet at 720 Olive than they can in 128,000 square feet at the Gen Am.wabash wrote:It probably has something to do with Laclede nearly tripling its customer base in the last year. While apparently most/all of the Alagasco jobs are going to stay in Birmingham, the Missouri Gas Energy acquisition probably allows for some consolidation, but consolidation to the STL office. Regulatory compliance and government relations probably makes more sense in one office as opposed to two on either side of the state.roger wyoming II wrote:I'm surprised to see that Laclede appears to be taking up more space post-720 Olive; the general trend is for having smaller square footage per employee and moves are generally a time of downsizing space if not employees. So this is a nice exception.
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I hate you Cincy! From an article on a large law firm needing more downtown space:
It’s possible that when national media comes to town for the All-Star Game in 2015, there could be cranes working on two new office buildings at the Banks, as well as a hotel and the second phase of apartments. 180 Walnut at the Banks is proposed as a 10-story, 233,500-square-foot class A office tower with typical floor plates of more than 25,600 square feet. Naming rights also are available for the building. With the amount of space Dinsmore would take, it would fill about 73 percent of the building, more than enough to get construction going....
A second office tower, with Dinsmore on board, also could be home to some Western & Southern operations. After a May meeting of the Cincinnati Planning Commission, where Western & Southern was working to reshape the Lytle Park Historic District, San Marco told me the company was “running out of space, we’re tight. We know that we have to begin thinking and planning for more space.”
If Dinsmore decides to make a move, that would leave a large block of space open in the heart of the city, but as recent activity has shown, companies such as PriceWaterhouseCoopers LLP have been shuffling to get closer to the city’s core. First Financial Center should be able to backfill the space easily with its proximity to Procter & Gamble Co., Western & Southern and Fountain Square.
http://www.bizjournals.com/cincinnati/b ... l?page=all
It’s possible that when national media comes to town for the All-Star Game in 2015, there could be cranes working on two new office buildings at the Banks, as well as a hotel and the second phase of apartments. 180 Walnut at the Banks is proposed as a 10-story, 233,500-square-foot class A office tower with typical floor plates of more than 25,600 square feet. Naming rights also are available for the building. With the amount of space Dinsmore would take, it would fill about 73 percent of the building, more than enough to get construction going....
A second office tower, with Dinsmore on board, also could be home to some Western & Southern operations. After a May meeting of the Cincinnati Planning Commission, where Western & Southern was working to reshape the Lytle Park Historic District, San Marco told me the company was “running out of space, we’re tight. We know that we have to begin thinking and planning for more space.”
If Dinsmore decides to make a move, that would leave a large block of space open in the heart of the city, but as recent activity has shown, companies such as PriceWaterhouseCoopers LLP have been shuffling to get closer to the city’s core. First Financial Center should be able to backfill the space easily with its proximity to Procter & Gamble Co., Western & Southern and Fountain Square.
http://www.bizjournals.com/cincinnati/b ... l?page=all
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^
And here, when a downtown law firm outgrows its space, it moves to Clayton. Thanks, Husch!
And here, when a downtown law firm outgrows its space, it moves to Clayton. Thanks, Husch!
Not always. Polsinelli moved from clayton to Deloitte downtown and is taking another floor. 16/30 of the regions top law firms are headquartered downtown. Anders recently combined offices downtown at BOA Plaza, that building is almost now 100% leased. 500 Broadway is a huge success story and is gaining even more tenants. The sad story are the older office buildings like 720 Olive, 515 Olive, 1015 Locust, Frisco and Shell. Oh and 1010 continues to struggle as well, mostly do to strange ownership over the last decade and weak parking options. The older inventory continues to be converted or partially converted to residential. Now if we could get companies like Rawlings and RGA to consider downtown, we will see success. I think some STL firms/companies are FINALLY realizing that younger people under 35 don't want to work in places like earth city and chesterfield. This is a national trend and STL is finally starting to wake up, I hope...otherwise millennials will flock to urban, walkable cities.
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I hate you Cincy!
http://www.bizjournals.com/cincinnati/n ... l?page=all
In addition to the company’s planned growth, Moore said the company wanted to be a part of downtown Cincinnati.
“We’re excited by all the momentum downtown and the activity,” Moore said. He said he’d love to invite clients like [San Francisco client] Sharethrough to come visit the new office downtown, but he didn’t feel the same way about Blue Ash.
“We’d love to have them stay at 21c and be close to Fountain Square and see the ballpark,” Moore said. It also will help with employee retention and attraction, Moore said. Employees and potential employees are interested in the urban lifestyle. And the streetcar stop that will be located just steps away was “absolutely a factor,” Moore said.
Not the biggest company, but it is one of just many that seem to be re-settling themselves into downtown and making it a more vibrant place... we need this desperately.
http://www.bizjournals.com/cincinnati/n ... l?page=all
In addition to the company’s planned growth, Moore said the company wanted to be a part of downtown Cincinnati.
“We’re excited by all the momentum downtown and the activity,” Moore said. He said he’d love to invite clients like [San Francisco client] Sharethrough to come visit the new office downtown, but he didn’t feel the same way about Blue Ash.
“We’d love to have them stay at 21c and be close to Fountain Square and see the ballpark,” Moore said. It also will help with employee retention and attraction, Moore said. Employees and potential employees are interested in the urban lifestyle. And the streetcar stop that will be located just steps away was “absolutely a factor,” Moore said.
Not the biggest company, but it is one of just many that seem to be re-settling themselves into downtown and making it a more vibrant place... we need this desperately.
^Real economic revitalization of downtown requires a positive feedback loop. True or false?
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^ I think so to a good extent.... there will be ups and downs, but if we someone steps up with a good-sized first move, I think we can get a bit of a wave of success and certainly more coming in to downtown than leaving. Peer cities Detroit & Cincy have had good success with companies large and small as of late but Cincy's seems to be more organic while Detroit's charge was started by a billionaire who happens to employ thousands.... I'll take either route but Cincy's seems a more likely and probably more solid model.
If we can add 3,000-5,000 good office jobs downtown per year on top of our 350-500 new residents we'd be killing it.
If we can add 3,000-5,000 good office jobs downtown per year on top of our 350-500 new residents we'd be killing it.
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Only 350-500 residents? Keep in mind Denver is adding a few thousand a year. We have to do better.
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^ I agree.... many cities are adding much more. I just don't think we can count on getting to that point anytime soon and we'll have to do a better job with jobs to accelerate our downtown growth. Personally, I want to see a strong CBD filled with employees and places like LL, DW and BPV add more residents.
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When it comes to inter regional population job/residential location do jobs follow people or do people follow jobs?
I have always determined that office locations follow where people live. Boost residential growth and jobs will follow.
I have always determined that office locations follow where people live. Boost residential growth and jobs will follow.