by Dan Rafter
What’s the state of real estate in St. Louis? According to DTZ, expect steady growth in the commercial real estate market in this city in 2015.
DTZ held its annual The State of Real Estate St. Louis yesterday. A host of DTZ experts told a big crowd that St. Louis will see more commercial sales and leases, and more commercial development, in 2015.
Jim Mosby, executive managing director with DTZ, and DJ Fuchs, an associate, told attendees that build-to-suit options will be attractive to large office tenants this year. That’s mostly because of a lack of large continguous blocks of space throughout the St. Louis market.
The St. Louis office market enjoyed a strong fourth quarter of 2014, seeing a surge of large deals that helped the market net 474,000 square feet of positive absorption. For the entire year, the St. Louis office market absorbed 680,000 square feet. Fuchs and Mosby said that the expect the office market here to enjoy another strong year in 2015.
DTZ experts predict busy times for the St. Louis industrial market, too. The metro St. Louis area has 2.3 million square feet of industrial space in construction. Another 120,000 square feet of industrial construction is set to break ground during the first quarter of 2015.
Mike Hanrahan, senior managing director for DTZ, told attendees that the total capital markets transaction volume in St. Louis rose $95 millionin 2014, jumping from $1.10 billion in 2013 to $1.21 billion in 2014. For the first time since 2010, the office sector was the most active product type in the St. Louis market.