Colliers International Q1 report a mixed bag for St. Louis office market

By on May 8, 2019

From REJournals: Construction cranes dot the St. Louis region. But that doesn’t mean that the area’s office market doesn’t face challenges, according to the latest research from Colliers International.

Colliers recently released its first quarter St. Louis office report. And the results show a market with both strengths and weaknesses.

On the downside, the St. Louis office market began this year with negative absorption, pushing the overall office vacancy rate to 13.5 percent. In the first quarter last year, this rate stood at 12.8 percent.

On the plus side, office asking rents remain strong. Colliers reported that the average overall market rent has remained above $20 a square foot since the third quarter of 2018.

Overall, the first quarter ended with 204,009 square feet of negative office absorption. The biggest reason? TD Ameritrade’s 2017 acquisition of Scottrade. This acquisition led to Scottrade vacating its offices at Corporate Hill IV in the first quarter, adding 179,000 square feet of newly empty office space to the market in the Manchester/I-270 submarket. This submarket’s vacancy rate had dropped to only 91 percent a year ago. The addition of the Scottrade space boosted that rate to 18.8 percent.

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