Clayton fills office space as downtown vacancy rate rises
Clayton for the first quarter saw a vacancy rate of 12.3%, down from 13% in the fourth quarter but up from 11.7% a year ago, according to research by Cushman & Wakefield.
ST. LOUIS COUNTY, Mo. – Office spaces in Clayton are filling up for the first time in the pandemic. In downtown St. Louis, meanwhile, the vacancy rate is rising, more than a year ago.
St. Louis’ strongest office market, Clayton, saw a vacancy rate of 12.3% in the first quarter, up from 13% in the fourth quarter but up from 11.7% a year ago. year, according to a study by Cushman & Wakefield. Clayton’s first-quarter submarket saw positive net uptake — leased space versus vacated space — of 58,718 square feet, he said.
A notable new lease in the first quarter: the Hermann Companies expansion from 5,636 square feet to 10,590 square feet at 7701 Forsyth Blvd., Center Pierre Laclede I.
Clayton, which saw the office vacancy rate drop from 7.5% in the first months of 2020 to a pandemic high of 13.8% last year, is doing better than Saint’s other submarkets. -Louis, said Tom Bajardi, an office broker for commercial real estate firm Sansone Group.
“I’m confident that Clayton is stable and good, very successful and always will be,” along with generally strong suburban submarkets like West County, Bajardi said. “The big question mark is some sublease space, which will eventually go to landlords, and will they have enough heavy users to absorb it? That’s the question.
Jim Mosby, Cushman’s executive managing director, agreed Clayton is leading the region, but wasn’t sure the latest report indicated a sustained turnaround.
“I think we’re going to see further easing across all submarkets, including Clayton,” Mosby said.
The downtown vacancy rate hit 21% in the last quarter, higher than at any time last year, Cushman said.
It also saw a negative absorption of 88,584 square feet.
Heading into the pandemic, Downtown had posted vacancy rates below 19% for four straight quarters for the first time since 2002, Cushman said.
Read the full article on the St. Louis Business Journal website.