Downtown Office Occupancy/Vacancy

Downtown construction activity, including hotel projects, major renovations, office projects, streetscape improvements, etc.
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Is vacant space in the newer AT&T building included in the downtown vacancy percentage above? That tower will be completely vacant in the near future? How much public money should be spent to further increase what already is a very high downtown office vacancy rate?
No. Yes. And not a true apples to apples comparison as ATT would be difficult to divide for multiple tenants.
chaifetz10 wrote:
No. Yes. And not a true apples to apples comparison as ATT would be difficult to divide for multiple tenants.


This is constantly mentioned. But One AT&T is (was) already divided at the floor level for some units. The floor for payroll, for example, is exactly like other floors except there are card swipes at the elevator lobbies and stairways. I don't see how it would be more difficult than e.g. Met Square.
Lord & Taylor is closing the IT office it opened at 500 N. Broadway a few years back... uugh.
^Oof. This year just keeps getting worse for corporate HQs and employment.
wabash wrote:
^Oof. This year just keeps getting worse for corporate HQs and employment.


hasn't the region added >10K jobs or something over the last couple of years? in terms of DT jobs, however, it does seem to keep getting worse.
wabash wrote:
^Oof. This year just keeps getting worse for corporate HQs and employment.


Not so sure as Lord & Taylor was outside company coming into the region. A definite win at the time. But also not surprised as for brick & mortar retail especially with department stores are just not having the sales like they used too. They are going to make cuts on the periphery

On the winning side of things. Not where the jobs were placed and numbers as article is behind firewall but some good news on the same day.

http://www.bizjournals.com/stlouis/news ... owing.html

In the 12 months since French company Guerbet Group acquired Mallinckrodt PLC’s contrast media and delivery systems business, the company has nearly doubled its number of employees in the St. Louis region.
urban_dilettante wrote:
wabash wrote:
^Oof. This year just keeps getting worse for corporate HQs and employment.


hasn't the region added >10K jobs or something over the last couple of years? in terms of DT jobs, however, it does seem to keep getting worse.


Plenty of companies downtown have expanded. Purina, Stifel, and countless startups.


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^ yeah but what's been the net gain in the daytime workforce over the last five years? is it non-negative?
No mention of longer term plans and Cupples X, but WWT/Asynchrony has been taking up more space in Cupples district.

WWT Asynchrony Labs grows in downtown St. Louis
http://www.stltoday.com/business/column ... um=twitter

I'd love to hear that they are planning all new jobs for Cupples X.
I'm glad WWT is embracing downtown with Asynchrony. I'm curious what's going to happen with the building the VA just left. Looks like it's a little over 20 years old but plenty of space there. They had about 640 employees at that building. Owners are selling it so curious how long that sits vacant
^ good question on the VA building.. I suppose being built for single tenant doesn't make it any easier.

Also, Peabody extended its commitment downtown by two years to 2023 but of course it is scaled back in terms of square footage. Seems like it is doing a bit better financially but still far from secure.

http://www.stltoday.com/business/local/ ... ab2cc.html

Peabody currently occupies about seven floors of space and employs about 380 people at its St. Louis headquarters. Svec said the company had occupied a peak volume of about nine floors earlier in the decade, when it employed approximately 600 people locally.
Hopefully downtown can get to where Detroit is with office...

Downtown Detroit office vacancy lowest in years
http://www.detroitnews.com/story/news/l ... /95779796/

Class A there is under 10% and getting underway with multi-tenant, demand-driven new construction seems almost certain. I'm a broken record on this of course, but I think we get a bit similar back-to-downtown movement with office if a key company just gets the ball started. We may not get to the same point as Detroit where occupancy and rents are higher in the CBD than the burbs, but we don't really need to supplant Clayton and West County, just getting into a better position where downtown is relevant with companies as leasing time comes up and where we get clearly more wins than losses will do wonders.
Interesting moving parts on office space in this article about McClure Engineering planned purchase of Cupples I and move from Tower Grove South:
http://www.stltoday.com/business/local/ ... c8b1f.html

McClure to Cupples 1
Rodgers/Townsend from Cupples 1 to 200 N Broadway
Huvepharma expanding into current McClure space

The subsidy component continues to be frustrating, but more folks in the heart of the CBD is critical and this would also shore up Cupples 1 ("if McClure does not buy Cupples 1, the building will be only 17 percent occupied after Rodgers/Townsend leaves".) so overall it looks like a plus.
There is going to have to be a plan to repurpose the AT&T Building once it empties out. We cannot have a 45 Floor Building empty that is in literally every photo of Downtown. The Railway Exchange Building I am sure has a plan but funding needs to be secured and then we will see a plan. Maybe someone in City Hall should make some phone Calls to find someone interested in having a property in Downtown that is already built but just needs to be fixed up.
^ My gut feeling is ATT One Center owner plus their broker have been making a fair share of call along with the city. I doubt the owner wants to have an empty 45 story building to take care of.
dredger wrote:
Mon Feb 06, 2017 7:12 pm
^ My gut feeling is ATT One Center owner plus their broker have been making a fair share of call along with the city. I doubt the owner wants to have an empty 45 story building to take care of.
I hope and I also hope that soon after it goes vacant, or on the same day, hat a plan to redevelop it is announced with a TRUSTWORTHY developer.
Mayor Slay will be working for law firm Spencer Fane after his term ends. According to both Post-Dispatch and STL Business Journal articles, the KC based law firm has a local office in Clayton. However, they are opening a new law office downtown, which is where Slay will be based. The STL managing partner said that they expect "several" Clayton attorneys will relocate to the downtown office in the near term, to a new office which is still TBD. His quote in the Business Journal: "We expect, in the short term, that several other attorneys will relocate from our Clayton office, and we see significant growth potential in the city."

http://www.bizjournals.com/stlouis/news ... -adds.html
Garrick Hamilton, Executive VP of Koman Group, explains why we don't see new construction downtown.

From the 2/3 BJ article

"is there opportunity for new construction downtown?"
Image
Per BizJournal, looks like the 300 tech jobs Nestle announced earlier are indeed headed to 100 N. Broadway where they already have a presence. Nice for the CBD!
STL Today wrote:St. Louis office market looks the best it has in years, but clouds on horizon for some areas
http://www.stltoday.com/business/local/ ... 5b294.html
From the article linked above: "St. Louis is months away from a significant bump in its office vacancy rate, which at around 20 percent is already the highest in the metro area.".... "Even so, there are new office properties planned downtown. The St. Louis Cardinals and Cordish Cos. plan a new office tower as part of the second phase of Ballpark Village. Another office building near the ballpark is also being discussed. New inventory, even with high vacancy, is still important, Williams said.

“We can’t continue to have the same old class A and B and C space that is becoming obsolete,” he said....."

WOW! NUTS!
The Business Journal is reporting that St. Louis Community College is exploring putting it's downtown office up for sale. The building is at 300 S. Broadway. It says they are looking to move their offices (doesn't say where), because the downtown office "has no academic value" to them. Seems like this could be a good redevelopment opportunity for apartments/condos with ground floor retail since it is caddy corner to BPV.
[size=150]Despite city issues, office vacancy rates continue to decline[/size]

"Vacancy rates in the St. Louis office market declined in the first quarter of 2017, down to 13.2 percent compared with 14 percent for the same quarter last year, according to Colliers International.

When considering Class A buildings only, St. Charles recorded the largest vacancy rate at 19.2 percent, followed by Earth City and St. Louis city, both of which had 15 percent. The city of St. Louis, however, has the most vacant office space by far, with 820,261 square feet of total Class A office space vacant. It is also the second-cheapest area to rent office space, with an average direct rent of $19.17 per square foot.

Overall, the St. Louis market is healthy."


https://www.bizjournals.com/stlouis/new ... j=78508861








[img]https://media.bizj.us/view/img/10527953 ... hic*xx.jpg[/img]
MRNHS wrote:
Thu Apr 06, 2017 10:39 am
The Business Journal is reporting that St. Louis Community College is exploring putting it's downtown office up for sale. The building is at 300 S. Broadway. It says they are looking to move their offices (doesn't say where), because the downtown office "has no academic value" to them. Seems like this could be a good redevelopment opportunity for apartments/condos with ground floor retail since it is caddy corner to BPV.
Now THIS would have been a good tenant for the Municipal Court Building. (Full disclosure I hate the current plan for a hotel not least because i think there are way too many in the area and also because its pretty isolated from any action compared to most other hotel sites.) Putting STLCC there could make a lot of sense.

Unless they are looking for a completely new campus site for which i would say Chouteaus Landing PLEASE.

EDIT** yes i realize this was an old post but i must have missed it the first time around...