Figures

St. Louis Office Figures Q4 2023

St. Louis office market experiences incremental improvements.

January 3, 2024 5 Minute Read

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-The average direct asking rate declined for the third consecutive quarter by $0.20 (0.88%) to $22.44 after peaking at an all time high of $22.87 in the second quarter of 2023. Although, average asking rates in prime assets (primarily located in Clayton) rose by $2.04 (5.3%) highlighting the continuing performance divide between prime assets and commodity quality office.
-Vacancy continued its slow trickle upwards adding an additional 10bps this quarter, bringing the overall rate to 16.2%.
-Direct availability fell from a record high of 10.3 MSF in the third quarter to 10.1 MSF in the fourth quarter. The large decrease is primarily attributed to the withdrawal of 1245 JJ Kelley Memorial Dr. (218,000 SF) from the market as Edward Jones now plans to reoccupy that space.
-Sublease availability contracted marginally for the third consecutive quarter by 42,000 SF. Sublease availability is likely to continue its decline as leases expire and become direct vacant space.
-The most notable deal this quarter was Energizer which finalized its lease at 8235 Forsyth Blvd in Clayton (41,000 SF). Brown and James also finalized their renewal downsize at 800 Market St (29,000 SF) and the Crane Agency expanded at 400 Chesterfield Center. (25,000 SF)
-Capital markets activity continued its recovery as pressure eased from the Federal Reserve. Total volume ($111 M) was up 37% from the third quarter ($88 M)