Tuesday, January 29, 2008

60,000 sf

Let's take a look back at Stinson Morrison Hecker's decision to leave downtown St. Louis for Clayton. The firm was in the market for 60,000 sf of space, but unfortunately, their options downtown were fairly limited. A quick check of downtown office space revealed the following results:

Met Square:

Met Square would have come close to meeting Stinson's requirements, with 57,951 sf available on the 6th floor at $22.00 psf.

1010 Market:

10th Floor - Full floor - 17,896 sf
11th Floor - Full floor - 17,896 sf
12th Floor - Full floor - 17,896 sf
13th Floor - 10,379 sf

That makes over 64,000 sf on four contiguous floors at just $16.50 psf.

500 N. Broadway:

8th Floor - Full floor - 18,920 sf
9th Floor - 18,844 sf
10th Floor - Full floor - 18,920 sf
11th Floor - Full floor - 18,920 sf

That's a total of 75,604 sf of contiguous space on nearly four full floors at the bargain-basement price of $14.50 psf. Not considered class A space.

A few other options include Pyramid's One City Centre (scheduled for renovation), Kevin McGowan's Ballpark Lofts at Cupples Station, although it could be a while before any of those three buildings are renovated, and the Sherwood Medical Building at 1915 Olive (143,024 sf available at $18.50 psf), but that building may be too far from the heart of the CBD for most law firms' tastes.

Could this be a sign that downtown could be ready for a new speculative office building?


JMedwick said...

If and when the Centene portion of the BPV gets started, this should address your concern, combined with whenever Pyramid moves on fixing up One City Center.

While I would like to believe downtown would be ready for a second Class A office proposal, with the specter of Centene's 2 tower potential plus the other BPV office space, the One City Center rehab and the prospect of a recession, I just don't see the demand there for another proposal.

Brian said...

I'm curious as to what impact the Centene development will have. The present plans call for them to take a significant amount of space while keeping an option on another large chunk of space, and it sounds like Armstrong Teasdale could take another significant amount of space.

It will be really interesting to see how quickly Armstrong Teasdale's current space will be absorbed if/when they move. I also can't wait to hear any kind of updates on One City Centre.

JMedwick said...

And all of this uncertainty surrounding two existing proposals for large chunks of class A space is why you won't see any other proposals.

That said, given the delays on the One City Center and Centene buildings, I guess if someone was read to go with a plan (i.e. didn't want much money from the City other than TIF or a tax abatement, already owned the land, and had the plans ready), that person could be aggressive and move forward with an office proposal with the intention of beating the big boys to the punch.

But I think we both know that such a person/ proposal does not exist.