New buildings going up in Chesterfield.
What area is your expertise?
St. Louis County, Missouri — specifically the Chesterfield submarket.
What trends do you see presently in office development in your area?
In this submarket, vacancy is declining and new buildings are under construction with more being planned.
Who are the active office developers in your area?
MPD Development, Duke Realty, OPUS and Sachs Properties.
Please name one or two significant office developments in your area. What impact will these projects have on the market?
Valley Trails Center at 17401 North Outer 40 Drive, Chesterfield, MO 63005. Three 66,000-square-foot office/medical buildings (planned for near future). Located on Interstate 64/Highway 40 with great access from Boone’s Crossing interchange. Buildings will include balconies and have excellent visibility from the interstate. Adjoins a 26 mile trail system. Developer is MPD Development.
Where is the majority of development taking place? Why is this area doing well?
West St. Louis County due to access and strong demographics.
What area do you expect to be the next big development market? Why?
Development will continue in West St. Louis County/ Western Chesterfield area due to available land.
What areas are doing well in terms of office leasing? Which areas are struggling with office leasing?
Clayton, Missouri and West St. Louis County are strong. North St. Louis County is slow.
What impact do current interest rates have on the office market? What predictions do you have for interest rates and their effect on the office market in the next year?
Interest rates impact landlord’s mortgage and lease rate capabilities. Also, impacts cap rates on sales.
Is there any type of office tenant absorbing a majority of space? What industries do you expect to expand in the next year to absorb a great deal of office space? What areas will be affected?
Insurance, law offices and medical tenants are strong and will continue to absorb office space.
Would you like to make any additional observations about the office market in your area?
Businesses need to keep doing business. Indecisiveness is a self-defeating prophecy.
Submitted by Daniel Hayes, principal with the St. Louis office of NAI DESCO.