Colliers St. Louis 1Q20 Office Market Snapshot

ST. LOUIS - April 23, 2020 - PRLog -- The St. Louis office sector began 2020 with positive momentum. However, the commercial real estate industry, along with the rest of the world, awaits the impact of COVID-19. The pandemic is influencing every aspect of daily life, both personal and professional. Commercial real estate advisors are working with landlords and occupiers to help them prepare and be in the best position possible when this crisis has passed. One of the big questions is, "What will be the new normal?"

Q1 Highlights:
The first quarter ended with slightly positive absorption.

Overall office rents continue to inch upward as the direct average asking rent increased year-over-year by $0.17 to $20.70 per square foot (PSF).

The St. Louis City office sector had a good quarter with both the Downtown Central Business District (CBD) and the Midtown submarkets posting healthy absorption numbers with Met Square and the Crescent accounting for most of the increase.

The Clayton submarket remains the prime area for office space demand in the St. Louis region. Clayton Class A rents have increased by $2.48 PSF year-over-year to a historic high of $31.91 PSF.

The Westport Class A submarket enjoyed the second largest gain in rental rates with an increase of $1.71 from the first quarter of 2019 to $23.39 PSF.

Tenants making moves in the market include the marketing firm of CPG which moved into 26,000 SF at 200 North Broadway. Potter Electric more than doubled in size to 24,000 SF in the Earth City submarket at Riverport Lakes East. In Midtown, Arch Oncology moved into a new 20,000-SF scientific research lab and office space at the recently completed Crescent Building within the Cortex District.

Read more at www.colliers.com/stlouis