Downtown Office Occupancy/Vacancy

STLrainbow · PostJul 07, 2017#4012017-07-07T02:33+00:00

Here's the Colliers 1Q2017 Office Market report referenced above...

http://www.colliers.com/-/media/files/u ... 017_q1.pdf

Not too bright for the CBD....

"Class A remains hot for the majority of the
region; however, the elephant in the room for office vacancy
is St. Louis City, with a current Class A vacancy rate of
20.0%. Low expectations remain for the City’s leasing climate
in 2017, more specifically downtown’s Central Business
District core with a number of large vacancies currently on
the market. Meanwhile, City areas like Midtown’s CORTEX
Innovation Community and the Central West End along I-64
are extremely active."

joelo · PostJul 07, 2017#4022017-07-07T13:04+00:00

Yea I'm not sure what downtown can really do with the office occupancy issue while the opposite is happening on the residential side. Seems like supply can't keep up with demand

dredger · PostJul 07, 2017#4032017-07-07T18:54+00:00

joelo wrote: ↑
Jul 07, 2017
Yea I'm not sure what downtown can really do with the office occupancy issue while the opposite is happening on the residential side. Seems like supply can't keep up with demand

Going back to Framer's comment on perception in downtown residential development thread and how that would relate to downtown office market.

Can't help but think that any kind of downtown commitment from say a big local hitter like Enterprise and or Express Scripts would be a huge boost, perception wise. Even more so if Enterprise/Taylor Family made that commitment. Understand that Taylor family is huge benefit to region but say Enterprise Car rental having/committing 500-600 Job IT commitment soaking up class A office space downtown this year would be a big confidence builder from a local corporate leader. Maybe not as big as Quicken's move back to downtown Detroit but St. Louis has a solid residential and hotel development track happening but needs some help on office front/jobs locally

STLrainbow · PostJul 08, 2017#4042017-07-08T02:11+00:00

^ I definitely agree that a meaningful downtown commitment by a local blue chip would lead to additional moves by the predominant country club mentality of the local biz community. Again, not necessarily HQ relocations but decent division or branch operations. Something like Square committing would also lead to additional gains, too, but not as much as say an Enterprise.

And of course the more workers downtown, the more some of those employees will choose to also live there or elsewhere in the city.... having more companies setting up downtown has a greater overall impact than a few hundred people moving downtown every year; eventually that may attract some more companies but that is slower to come.

PostJul 11, 2017#4052017-07-11T18:39+00:00

Good news for the beautiful but currently vacant Mississippi Valley Trust Building

Silicon Valley co-working concept planned in downtown building (sub article)
https://www.bizjournals.com/stlouis/new ... ed-in.html

Looks like the list of vacants in the CBD will be even more sparse.

MRNHS · PostJul 31, 2017#4062017-07-31T17:43+00:00

In a recent Business Journal talking about how tight office space is, there was an interesting little quote I thought I would share:

The market is so tight, Mosby said, that an office tenant from St. Louis County might even consider a move to downtown St. Louis.

“That wouldn’t surprise me because it could be the only place that could service their needs,” he said.

It was such a quick quote that I can't really tell if this is speculation or if this is an actual example of something that is likely to happen...anyone heard any rumblings on this?

https://www.bizjournals.com/stlouis/new ... sible.html

ImprovSTL · PostJul 31, 2017#4072017-07-31T20:31+00:00

Haha! Is that supposed to be a slight burn?

earthling · PostJul 31, 2017#4082017-07-31T21:11+00:00

Here is how STL office market compares nationally according to Colliers...

http://www.colliers.com/-/media/files/m ... report.pdf

This is Q1 report, Q2 should come out soon.

Chalupas54 · PostJul 31, 2017#4092017-07-31T21:59+00:00

Office Space is very scarce in the St Louis region at the moment. In the report earthling just provided, St Louis also has some of the most office space under construction in our region, far ahead of Kansas City and other places like Minneapolis.

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matguy70 · PostAug 01, 2017#4102017-08-01T01:14+00:00

Why isn't STL on the Top 30 Markets in the USA map? Confused on the diagrams on the report.

urban_dilettante · PostAug 01, 2017#4112017-08-01T03:42+00:00

^ guessing "top 30" means "30 lowest vacancy rates" and not "30 largest".

earthling · PostAug 01, 2017#4122017-08-01T12:34+00:00

Take a look at total inventory. This is leasable space and STL is low, maybe having more company-owned buildings. Or Colliers doesn't track as many buildings in STL.
http://www.colliers.com/-/media/files/m ... report.pdf

Here is the Q2 report for STL only...
http://www.colliers.com/-/media/files/u ... 017_q2.pdf

PostAug 01, 2017#4132017-08-01T12:42+00:00

Here is the CBRE Q2 report, which doesn't track Fed or company-owned buildings. Colliers tends to track company-owned in other markets but apparently not STL yet.

http://cbre.vo.llnwd.net/grgservices/se ... 0f2768acf0

framer · PostAug 22, 2017#4142017-08-22T17:49+00:00

US Bank's mortgage business has been growing. Another 200 local jobs to be added this year, after 150 last year. Not sure how many will be Downtown, but this is good news:

http://www.stltoday.com/business/local/ ... 92182.html

earthling · PostAug 24, 2017#4152017-08-24T15:10+00:00

Colliers' Q2 national report...
http://www.colliers.com/-/media/files/m ... lliers.pdf

dylank · PostAug 25, 2017#4162017-08-25T13:57+00:00

http://www.stltoday.com/business/local/ ... be913.html

This is good news. Office space being leased up, new coffee shop, and rooftop patio bar. Another vacant building filled!

Only thing I think is strange is that Kaldi's is doing a second location downtown. Means their location in Citygarden must be doing well...?

matguy70 · PostAug 25, 2017#4172017-08-25T19:23+00:00

Kaldi's also has a location inside Culinaria.

aprice · PostAug 25, 2017#4182017-08-25T19:53+00:00

dylank wrote: ↑
Aug 25, 2017
http://www.stltoday.com/business/local/ ... be913.html

This is good news. Office space being leased up, new coffee shop, and rooftop patio bar. Another vacant building filled!

Only thing I think is strange is that Kaldi's is doing a second location downtown. Means their location in Citygarden must be doing well...?

CityGarden is doing very well. As pointed out by matguy70 this would be their 3rd DT location. Starbucks has 4 locations, 2 within 2 blocks of this building. Unless you're really concerned about the lack of coffee options downtown, Kaldi's is a perfect fit. Somewhat recognizable name, good food, good branding (for tourists). DT Indy has 6 Starbucks, Cincy 3, Nashville 4. Some larger cities will have one per block for a few blocks in a row. Downtown Toronto has some 20+ Tim Hortons. Office districts need their coffee, brand redundancy is going to happen.

symphonicpoet · PostAug 26, 2017#4192017-08-26T03:50+00:00

I distinctly remember planning to meet a friend at a coffee shop in Seattle. This wasn't downtown and it wasn't Starbucks, or even Seattle's Best. Can't recall the brand anymore. I had spotted it in the corner of the Uwajimaya apartment building where my friend was staying with her friends. When the time came . . . we missed each other entirely, as she'd gone to another location of the same brand right across the stinking street. And this was more than fifteen years ago now.

Yes, redundancy is sadly a part of life these days. And at least Kaldi's is local, so I'm okay with more Kaldis' locations.

moorlander · PostOct 26, 2017#4202017-10-26T18:14+00:00

UGLY but there is a positive spin

the ugly: Nearly 164,000 square feet of Class A office space has been vacated in the city of St. Louis so far this year, mitigating growth made in the city’s office segment over the previous 12 months, according to market research from Colliers International.

the positive spin:Colliers Senior Vice President Tony Kennedy said it’s a blip on the radar for a market that is trending better than where it was several years ago.

https://www.bizjournals.com/stlouis/new ... arket.html

earthling · PostNov 16, 2017#4212017-11-16T18:12+00:00

Here is Colliers' Q3/2017 national office report by metro. STL stats start on page 10...
http://www.colliers.com/-/media/files/m ... lliers.pdf

STLrainbow · PostDec 11, 2017#4222017-12-11T17:41+00:00

A good pick-up albeit from THe Highlands.... AECOM moving to 20th floor of 100 N. Broadway per BizJourno.

MRNHS · PostMar 07, 2018#4232018-03-07T14:19+00:00

The Frisco Building has been sold for $4.6 million. It is currently 60% occupied. Seems like a good deal for redevelopment, since the building is on the National Register of Historic Places.

https://www.bizjournals.com/stlouis/new ... llion.html

STLrainbow · PostMar 07, 2018#4242018-03-07T15:40+00:00

^ With 60% occupancy maybe it would make sense to have a couple floors converted to residential. Also it was good to see that while it wasn't exactly a windfall for Spinnaker they did make a bit of dough off of the Eames & Young building and can concentrate on RR/X Building.

btw, does downtown have any other originally railroad-oriented office buildings besides the Frisco, RR/X and Union Pacific?

aprice · PostMar 07, 2018#4252018-03-07T15:57+00:00

STLrainbow wrote: ↑
Mar 07, 2018
btw, does downtown have any other originally railroad-oriented office buildings besides the Frisco, RR/X and Union Pacific?

Union Station

But seriously, that building behind it along 18th housed railroad offices.
The Globe Building comes to mind. It originally had an Illinois Railroad passenger terminal in the basement. Not sure if it housed railroad offices or not. Maybe the St. Louis Mart & Terminal Warehouse aka Robert A Young Federal Building? But then again a lot of those buildings had railroad connections and were therefore railroad oriented. I'm guessing you're looking for CBD Buildings that housed Railroad company offices.

Downtown Office Occupancy/Vacancy

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