ST. LOUIS, MO/March 28, 2017 (STLRealEstate.News) Though, as a whole, St. Louis has been performing incredibly well with regards to tenants in commercial space today, there are still those “clouds” on the horizon, particularly the announced ones in 2017 for upcoming office vacancies. As part of the commercial real estate nature, vacancies are imminent, and we are going to discuss the known ones expected to rock the St. Louis region in 2017.
Since Centene has big plans this year, like opening new office space in downtown Clayton as part of its massive campus expansion, they are going to leave a big vacancy in the heart of the city of St. Louis by doing so. They also announced they are planning to consolidate about 1,000 positions to its new campus when it is complete. These consolidating plans point to a lot of previous vacancies for an exodus to Clayton.
Downtown St. Louis is going to get rocked with another big vacancy rate when the AT&T Center is scheduled to finish emptying out this fall. It will put one of the largest office buildings in the region on the market. The problem with the design of this building is that it’s going to need significant renovations to accommodate more than a single tenant. “It is a challenge and that is one of the tings we’re having discussions about,” said Otis Williams, head of the St. Louis Development Corp., the city’s economic development arm.
Additionally, Scottrade’s sale to TD Ameritrade, expected to close by the end of the year, likely points to the downsizing of about 1,000 local staff while also putting several large buildings on its Town and Country campus up on the market. There is also a chance Monsanto could offload some its Creve Coeur buildings as corporate functions are consolidated with Bayer.
It will be interesting to see how these vacancies are balanced with the 2017 St. Louis commercial real estate market.