Choosing a suitable office space is essential to your business’ success. Location, accessibility, and price are just some of the main considerations when selecting office space.
Choosing Office Space in St. Louis Metro
The right location can be determined by finding out where your key employees live, and whether or not the office will be easy for clients to find. You run the risk of losing employees if the commute to work is long and costly.
Likewise, when choosing between an urban location with heavy foot traffic and a less expensive space in suburbs, consider whether or not the lower rental rate makes up for the reduced traffic.
Your location also sends a signal about your business – having a coveted address does a better job of signaling success and professionalism to clients. This means choosing an office in a premier location, such as St. Louis’ central business district.
It is ideal to choose an office space that can accommodate a growing business. As your business expands, you’ll have to make sure that there will be enough room to be able to work effectively.
You must also determine if the price is acceptable for you and your business. Business owners are often willing to pay a premium for high-end offices that have a great location and have good infrastructure.
St. Louis’ office market ended Q4 2017 with a 7.1% vacancy rate, down from 7.4% in Q3 2017. Net absorption also totaled 803,028 square feet in Q4. Rental rates were at $18.60, up from Q3.
The market for Class A office space – that is, premiere office spaces with excellent location, accessibility, construction, and infrastructure, and which go above average rental rates – saw a net absorption of positive 526,694 square feet in Q4 2017, in comparison to 244,875 square feet in Q3 2017.
The Class B market, which consists of office spaces with prices in the average range, had a net absorption of positive 99,514 square feet in Q4 2017, while Class C office spaces, which are comprised of functional spaces below average rates, had net absorption of positive 176,820 square feet.
Class A developments saw a vacancy rate of 7.1% towards the end of Q4 2017, Class B projects had a vacancy of 8.7%, while Class C projects had a vacancy rate of 4.0%.
St. Louis’ CBD had a net absorption of positive 151,950 square feet, down from positive 296,222 square feet in Q3 2017.
The overall vacancy rate in the CBD was 12.9% in Q4, down from 13.4% the previous quarter.
Four buildings totaling 342,324 square feet were delivered in the same period, while 933,348 square feet remained under construction by the end of 2017.
The following tenants moved out of large blocks of commercial space last year: AT&T Service, Inc., Sun Edison, and Rabo Agrifinance Inc.
Meanwhile, the following tenants are poised to move in: World Wide Technology, Centene Corporation, and TriZetto.
Need more information on St. Louis commercial real estate? Cardinal Realty would be happy to assist you. Office space is a huge part of their business. Call them at 636-225-0385, send an email to Info(at)CardinalRealtyGroup(dotted)com, or visit this page.