St. Louis Office Market Report says Clayton is Market Leader
Colliers recently released its St. Louis Office Market Report for the final quarter of 2012. The general theme of the guide seems to be a slow but steady increased absorption rate for all submarkets. 2012 ended with 667,000 sq. ft. of positive absorption, with a little over 210,000 sq. ft. in the fourth quarter alone. This trend is largely a result of falling unemployment rates which is currently 3.1 percentage points lower than its peak in December 2009 at 10.4 percent. If job growth continues as predicted, the Technology and Financial Service industry sectors will set the pace in office space demand during the first quarters of 2013.
Clayton continues to be the clear market leader, but St. Charles will definitely be an area to watch during 2013. Its vacancy rate of 9.1% is second only to that of Midtown.
Although tenants continue to remain in the driver’s seat, we may see a change in this trend over the next couple of years. Locking in long term leases during 2013 will allow tenants to capture more favorable occupancy cost and tenant concessions.