CB Richard Ellis Releases First Quarter Report

CB Richard Ellis (CBRE) has released its First Quarter 2009 MarketViews for the Office and Industrial markets. The MarketViews track multitenant space throughout the St. Louis metro area, showing trends in vacancy, construction and absorption, among other measurements.

The Office MarketView shows that the vacancy rate for the St. Louis market rose to 15.1% in the first quarter of 2009, up from 14.8% at the end of 2008. Lease renewals are the most prevalent transactions in the market, and an increasing amount of sublease space will pressure the office market in the months ahead. Despite the challenges, however, some CBRE brokers see positive signs, especially compared to other slow periods in St. Louis’ history.

On the Industrial side, the availability rate decreased slightly, from 12.1% in the fourth quarter of 2008 to 11.9% currently. The vacancy rate, however, showed an increase, ending the quarter at 8.2%. The St. Louis market’s vacancy rate remains competitive with peer cities such as Indianapolis and Kansas City.

Both the Industrial and Office markets have seen a slowdown in new construction, specifically speculative construction, which bodes well for the future, as less new space will need to be filled during a time of relatively slow deal velocity.

To download the office report, click here.

To download the industrial report, click here.

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