Thursday, November 29, 2007

A-B: A Missed Opportunity

One of the biggest disappointments this year was Anheuser-Busch’s decision to vacate its space in One City Centre, moving its IT, corporate accounts payable, manufacturing procurement and central logistics departments to nearly 150,000 sf in Sunset Hills.

A-B already leased space in two other buildings within close proximity of its new space, forming a “mini-campus” with its newly combined operations.

A-B leaves behind six floors in One City Centre, totaling 110,000 sf. The company’s decision to leave downtown in favor of Sunset Hills instead of consolidating its space downtown is truly a missed opportunity for the city, especially at a time in which the bleeding of firms from downtown to the suburbs has largely stopped.

The planned redevelopment of the St. Louis Centre mall (which is attached to One City Centre) as part of Pyramid’s exciting Mercantile Exchange development should make One City Centre an attractive option for tenants looking for large blocks of space. What was once a liability will soon be an asset. Hopefully Pyramid, which also owns One City Centre, can capitalize on this opportunity and start landing some new tenants.

While terms of A-B’s Sunset Hills lease were not made public, the asking rates for the space it leased ranged from $19.75 to $23.50 psf, while the listing rate for One City Centre was $18.50 at the time the lease was signed.

1 comment:

Anonymous said...

In my opinion it is also a newly created problem for those employees that had to move. They feel disconnected with AB Corporate Campus that always holds employee events. Before, everyone from IT, Logistics, Purchasing could go to those speeches/events and feel like part of a culture. Now they are left out in the county only to "work" and can not longer attend those meetings.

Tisk Tisk.