Tuesday, November 17, 2015

High Rent District, Office Space Nationwide and in St. Louis

Sand Hill Road tops JLL’s 2015 list of America’s most expensive streets, where office tenants pay a 165% market premium for space on the Wall Street of the West. Which other addresses command a premium? JLL’s recent study looks at 40+ markets. See the list: www.us.jll.com/expensivestreets

Tuesday, October 6, 2015

Welcome to Elasticity’s new home

Their new location is located on Locust Street in Downtown St. Louis just west of 10th Street.
From Elasticity's website:

A workplace is more than just a collection of office furniture, some conference rooms, white boards and coffee pots. At its best, it should be a physical reflection of a company’s culture and a space that inspires its employees to do their best work. Elasticity’s new company headquarters, located in a historic building in downtown St. Louis, is just that.
As one of St. Louis’ fastest-growing independent agencies, Elasticity quickly outgrew its former offices, and owners/partners Brian Cross, Aaron Perlut and Andrew Barnett began considering options for new space. The owner of the Elasticity’s previous building, with whom they had a strong relationship, was considering purchasing and renovating another nearby historic downtown property that was once the home of the Kessler Fur & Hat Co. and, later, the Bride’s House bridal shop.
“I told him that, if he bought it, we were in,” says Cross, who looked at the dilapidated third and fourth floors of the building as a blank slate upon which to design the future of the agency. The building, built in 1886, was a complete gut job, which was a lengthy and daunting process; but which also allowed for total freedom of vision.
The third floor – Elasticity’s main office space – took six months to complete. Three months later, the fourth floor was completed; and just recently, a section of the second floor, now also occupied by Elasticity, has been renovated. The result is a perfect design marriage of old St. Louis history and fresh, modern appeal.
Photography: Ryan Stiles 

Thursday, September 3, 2015

Large Employers locating and relocating to Central Business Districts

JLL in Minneapolis just extended Target’s 885,000 sf lease at 33 South Sixth St./City Center in downtown Minneapolis.  Kraft Heinz is relocating to the large AON Center building in Chicago. Will St. Louis' larger employers start to consider relocating downtown from the suburbs? Will St. Louis see this urban, relocation trend?  

Aon Center

Kraft is the latest suburban company following the siren call of downtown Chicago, a trend that underscores the importance large corporations are placing on downtown real estate in recruiting and retaining younger employees.
Reluctance by young workers to commute from their city homes to suburban locales helped companies such as Sara Lee spinoff Hillshire Brands; United Airlines' parent company; Motorola Mobility, now owned by Lenovo Group; and in-flight wireless provider Gogo choose outright moves downtown. Others entrenched in the suburbs are opening smaller offices, allowing some employees to spend part or all of their workweek in the city.

Thursday, August 20, 2015

Office Today, Apts. Tomorrow: Office-To-Residential Conversions Expanding Across More U.S. CBDs

Office Today, Apts. Tomorrow: Office-To-Residential Conversions Expanding Across More U.S. CBDs

A funny thing is happening in downtown markets where empty and obsolete office buildings are being converted into apartments. Companies that wouldn't consider a downtown location back when the space was available are coming back, drawn by the large number of millennial workers who favor a funky downtown address. While office-to-residential conversion has long been popular in revitalizing the downtowns of populous East Coast CBDs, recent proposals by developers to convert older, underutilized office buildings to multifamily housing in such markets as Kansas City, St. Louis, Milwaukee, and Cleveland show that the trend is rapidly expanding into other markets. 

Many former office buildings have already been converted to residential buildings in Downtown St. Louis including: the former General American Insurance Building on Locust, The Marquette Building on Olive, The Paul Brown Building, The Laurel, 515 Olive (partially).  A few more are underway including: the Chemical Building, 720 Olive (partially), 1509 Washington, and the Arcade.  It's possible others will be down the road such as 1706 Washington, the former CPI building, Railway Exchange (perhaps partially) and the LaSalle Buliding.

720 Olive 
1706 Washington, currently for sale
721 Olive, Chemical Building 

Monday, July 6, 2015

World's largest real estate markets and office rental growth

JLL video on global cities
What are the world’s largest real estate markets? Which cities attract the most real estate investment relative to their size? Where are office rents growing fastest? JLL Cities Research Center – uncovering opportunities in cities around the world.