Multiple Office Developments Proposed for St. Louis County

The office market in St. Louis has remained very active over the past year. With very little speculative development, the St. Louis County vacancy rate for Class A office space has experienced little change but remains at a historic low of 11.1 percent. Demand remains for large blocks of space in the more desirable submarkets such as Clayton and West County, as there are limited options for existing space. This has created an opportunity for new, proposed office developments gaining securing …

September 26, 2019Market Reports, Midwest, Midwest Market Reports, Missouri, Office

Myriad Factors at Play for St. Louis Industrial Market Activity

The St. Louis industrial market continues to rally after posting 22 straight quarters of positive absorption. Record leasing activity and historically low vacancy have put the region on pace to deliver another 6.5 million square feet of Class A industrial space in 2019. This is in a market that averages deliveries of approximately 2.5 million square feet annually. Current drivers engendering this industrial activity include the following. Discipline Developers in St. Louis have long been …

September 12, 2019Industrial, Market Reports, Midwest, Midwest Market Reports, Missouri

Will a Tight Labor Market Limit St. Louis Industrial Growth?

The St. Louis industrial market is in the middle of a significant construction boom. Total square footage under construction is at a record-high 6.3 million square feet, with 2.8 million square feet of activity completed in 2018. The last two years have experienced historically high levels of overall net absorption with 4 million square feet in 2017 and 5.6 million square feet in 2016. These absorption levels are significantly higher than pre-recession market numbers. The expected 3 …

January 31, 2019Industrial, Market Reports, Midwest, Midwest Market Reports, Missouri

Grocery Stores, Restaurants Dominate Retail Development in Kansas City Market

As most that pay attention to commercial real estate know, the retail real estate market is constantly evolving. That said, with change comes opportunity, and we are both recognizing and capitalizing on that opportunity in the Kansas City market. As has been the case for the last few years, we continue to see a significant amount of “right-sizing” from big box and junior box retailers. Although e-commerce remains a prevalent means of purchasing for consumers, retail closures are not as …

September 13, 2018Market Reports, Midwest, Midwest Market Reports, Missouri, Retail

Economic Incentives Fuel Industrial Development in St. Louis Market

It has been a banner year thus far for the St. Louis industrial market with yet another milestone achieved. Mid-year absorption totaled 2.5 million square feet of space, a number more closely suited for the entire year versus the halfway point. Fueled by continued absorption, the market has more than 5 million square feet of space under construction with vacancy of approximately 4.9 percent. The continued success is no surprise. But economic incentives, often overlooked and underappreciated, …

September 6, 2018Industrial, Market Reports, Midwest, Midwest Market Reports, Missouri

Kansas City Industrial Market Ranks in Top 10 for Speculative Construction Growth

“If you build it, he will come.” Yes, you’ve heard the Field of Dreams reference before, but never has it rang truer than with the Kansas City industrial market. The construction of 500,000-square-foot buildings suddenly ignited tenants’ interest in that space size, so much so that in the past two years Kansas City has experienced a tremendous surge in growth. In fact, Kansas City is now ranked No. 6 on the list of the top 10 U.S. industrial markets for speculative construction …

May 31, 2018Industrial, Market Reports, Midwest, Midwest Market Reports, Missouri

Tight Industrial Market Encourages Large-Scale Construction in St. Louis

With what appears to be a never-ending stream of construction, the biggest source for excitement coming into 2018 for the St. Louis industrial market is new, speculative development. According to research from Colliers International, construction completions exceeded 4 million square feet in 2017. This is the second-highest year of recorded construction volume for the market due to last year’s Goliath delivery of 6 million square feet. [caption id="attachment_195665" align="alignright" …

February 22, 2018Industrial, Market Reports, Midwest, Midwest Market Reports, Missouri

Uptick in Speculative Development Bodes Well for Tenants in St. Louis Office Market

Welcome to St. Louis, Missouri. Home to nine Fortune 500 companies and the 11-time world champion St. Louis Cardinals franchise. St. Louis currently lays claim to nearly 3 million residents in the metropolitan statistical area and has exemplified economic stability and consistent growth since the Great Recession. [caption id="attachment_193937" align="alignright" width="100"] Matthew Ruck, NAI Desco[/caption] Herein we’ll explore one key indicator of the economic health of the region: …

January 18, 2018Market Reports, Midwest, Midwest Market Reports, Missouri, Office

Kansas City’s Industrial Market Shows Record Absorption in 2017

Over the last five years, Kansas City has seen a flurry of activity in the industrial sector. Since 2012, we have seen approximately 22.7 million square feet of new Class A industrial space hit the market, with speculative development and build-to-suits. Considering that Kansas City had only about 14 million square feet of Class A industrial space prior to 2012, these additions have had a huge impact on our marketplace. [caption id="attachment_193931" align="alignright" width="100"] Joe …

January 11, 2018Industrial, Market Reports, Midwest, Midwest Market Reports, Missouri

Mixed-Use Projects Breathe New Life Into Kansas City Retail Market

The overall Kansas City retail market remains very healthy and active. As retailers continue to navigate through e-commerce challenges, developers continue to get creative with the redevelopment of existing centers, adding mixed-use components and consolidation of big box vacancies. Restaurants and hospitality seem to be catalysts in helping to kick-start these redevelopments from the retail side. Over the past year, retail spending in Kansas City has continued to increase, but there remains …

January 4, 2018Market Reports, Midwest, Midwest Market Reports, Missouri, Retail