For the first time in more than four years — and only the second time since 2007 — the St. Louis office market has seen two straight quarters of at least 100,000 square feet of positive absorption.
That’s the good news from Cassidy Turley’s third-quarter St. Louis office report.
Of course, the good news from the city’s office market does have to be tempered.
“The overall economic situation is still very fragile, and any good news should be met with cautious optimism,” said Terrence Madlinger, research analyst for Cassidy Turley’s St. Louis office, in a written statement. “Market segments should continue to recover, but slow job growth may temper the pace of recovery.”
Still, the office news for the city was undeniably good. According to Cassidy Turley’s report, the St. Louis office market saw 196,000 square feet of net absorption in the third quarter. In the second quarter, companies absorbed 285,000 square feet of office space.
More than 80 percent of the occupancy gains came in the city’s West County and downtown submarkets, and vacancy rates fell to 15.5 percent.
As far as the future? Cassidy Turley researchers say that St. Louis, because the recession hit the city hard, is still on the mend. Future growth will come from the financial, healthcare and high-tech industries, company researchers said.