Apr 7, 2017
Demand for commercial space through the central corridor of St. Louis County remains at a premium.
According to the St. Louis Post-Dispatch, Class A office rents have broken $30 a square foot in Clayton with vacancy rates hovering barely above five percent. Both numbers are considered remarkable for the St. Louis area as a whole where one local realtor estimated high-end vacancies at just over eight-and-a-half percent.
Still, that is the lowest figure since 2000 pointing to what many analysts feel is a hopeful close to a strong 2016.
West County is also showing strong commercial appeal. Chesterfield boasts little available space with commercial vacancy at just six-and-a-half percent.
However, enthusiasm is tempered by seeds of doubt. While Clayton and other desirable locations like Chesterfield are showing solid numbers, downtown St. Louis continues to lag a bit with commercial vacancies around 20 percent.
Moreover, the area may soon be awash in new office space putting upward pressure on vacancy rates with building projects from various corporate tenants across the area. Meanwhile, AT&T is set to vacate its massive 44-story office tower overlooking Citygarden downtown. Further west, TD Ameritrade’s acquisition of Scottrade could create additional empty space as it pares back its staff.
The Post reports that a forecast by realtors Marcus & Millichap had St. Louis bringing up the rear among large metropolitan areas on its office property index.