Dealing with all aspects of office real estate including Class A, B & C spaces; tenants & owners; multi-tenant or single user buildings.
Matt Hirsch and Barry Iken of NAI DESCO recently completed the lease of 1,446 square feet of office space at 3155 Sutton Avenue in Maplewood, MO. The space was leased to to CJC Transport LLC. Hirsch and Iken represented the landlord, Franco, Inc.
David Gannon, Matthew Hirsch and Barry Iken of NAI DESCO recently assisted MedNet, Inc. in the lease of 5,065 square feet of office space at 8664 Olive in University City, Mo. MedNet, which specializes in medical billing, leased the space from Clayton Olive Joint Ventures.
Overall, 2010 was a difficult year for office landlords. Sluggish demand placed downward pressure on rental rates and the limited pool of potential tenants were in a position to obtain lease concessions. Office tenants also faced a challenging year, wanting to reduce space if possible or avoid signing new long-term leases until the economy attained a greater degree of stability. Landlords and tenants reached a compromise with the “blend and extend” method, earning extended leases for landlords and rent concessions for tenants.
The office vacancy rate at the end of 2010 was 11.4%, showing a slight improvement over the 11.8% vacancy rate at the end of 2009. A bright note in the St. Louis market was Clayton’s ability to absorb most of the 485,000 SF Centene building with little change in the Clayton vacancy rate, indicating better market conditions for Class A space than in the overall office market.
Over the entire metro St. Louis market, asking rates at the end of 2010 were $18.65 compared to $18.35 at the end of 2009, suggesting the market may be starting to look brighter for landlords moving into 2011.
Click here to read our full St. Louis metro office report, featuring detailed submarket information and major transactions from the quarter.
The following is an excerpt from Principal John Sheahan’s market review & forecast article featured in the December issue of the Heartland Real Estate Business magazine:
As evidenced by data from the Federal Reserve’s October 2010 Burgundy Book, the St. Louis market area has experienced a small but steady increase in economic activity through the latter portion of the year. The St. Louis area is aided in this respect by its diversification in sectors such as bioscience, information technology, financial services, transportation/distribution and high-tech manufacturing. Local market indicators mirror an overall national trend towards improvement in these areas.