Rent in large class A office building in downtown St. Louis in 2008 are the same or very similar to the rent paid in 1985 twenty-five years ago. As St. Louis rollers from several large acquisitions corporate relocation left St. Louis and one rebirth of residential hip urban life, the commercial real estate housing corporations is the lowest for a big city surprisingly low occupancy costs... maybe. The question is: represent these low prices to gain a solid market value and keep tenants in St. Louis. or suggest a more sinister serious economic Realität-that there has been negative growth in commercial real estate income fall - in force revealed, downtown St. Louis commercial real estate is dead in terms of return on investment, equity appreciation or value? By any standard leasing prices, which in 2008 as you 1985 were similar or same revoke smart statement. Any attempt of positive spin - other than to express what a bargain to tenants to keep and expand your presence - would appear ridiculous.
PROBLEM OR OPPORTUNITY? It takes only a brief overview of current examples to get a barometer of the St. Louis economic positioning.(Prices are per rentable square meters per year, full service leasing) .the following list is presented in the following order: building name, rate in 2008 source: building current exchange rates, rate in 1985 source recorded: BOMA leasing from 1983-85 and past leasing Manager, and the change over twenty-five years.
1010 Market $16.50 $18,00 amounting to $1.50
Mercantile USBank $19.50 $18.00 profit of $1.50
St. Louis place $17.00 $18.50 amounting to $1.50
MCI/Delloitte $21.00 $21.00 no change
One financial Plaza $19.50 $19.50 no change
Centerre Bank at $20.00 $19.00 profit of $1.00
701 Market $22.00 $21.00 profit of $1.00
Metropolitan square $21.00 $20.00 profit of $1.00
Real estate industry market data and trends use known facts vacancy factors and rental rates to the media the "status" of the market...Actually report the status of the buildings and left for the reader to market conditions to.The areas of the vacancy, often sold to the media by real estate agents and landlords, mediated effects on the owners of real estate, investors and builders and developers while drive of the economy, the tenant not real vision than as market data their occupancy costs, opportunities and threats auswirkt.Dementsprechend if information is available, both tenant relative and a telling indicator of the underlying market conditions have no real value to überlassen.Mieter of all business types and sizes should be released this information.In the past all these data under real estate data houses like CoStar and loopnet, privately held both only building-related information are reports.It is not in the interest to convey any owner or broker, the actual efficiency of the proposed or closed lease transactions; or as the current prices compared to twenty-five years ago.
In these examples you can see that, rather than show old tracking information on not-tenant-related information (such as vacancy make factors, shadow, construction starts) tenants receive crisp one sharp, never provided real-time snapshot of the present market realities.In fact, with inflation in the last 25 years 118% (CPI, all urban consumers 1983 = 99,6 and 2008 = 216.63), more like a fly in old SAP rent in downtown St. Louis just not dead at the time.
What is something that is even worse that were built during the 1980s as a series of these buildings, with tax reduction that effectively reduce provided half the current real estate tax, which the owner consume less to tax by the tenant has now expired übergeben.Diese reduction and the buildings have been in full tax;Despite which are, the rent is still in the Reagan Administration frozen.
The bigger question is: are these data suggest, house builders and investors have no good investment in downtown St. Louis, or tenant realize the great bargain of downtown St. Louis compared to the county or even to 1985 or downtown St. Louis is simply unable to compete with other cities or St. Louis County and or income taxes this data an indicia of exposure to the city?
On this premise, in the course of the last year there are many examples of additional information, that no part of the routinely reported real estate market data, but is part of the actual market realities, auftreten.Ein listed company tenants (of lease is a part of the public record), moving within St. Louis County was successful with the new landlord tenant leasing out existing; an another tenant in St. Charles County (a vast suburban market West of St. Louis) to pay for a whole year of one year was free rent plus an extremely high tenant improvement fee as an incentive in their buildings as two examples offered leasing.
St. Louis has long tried to on changing gravity from advanced cities to manner.Allianz River old town once hard in rail rental rates to bring about, is now faces a burden of attempting to investors of commercial real estate of bargains in value and the hopeful collection the payment in the future business hat and shoe manufacturing department store company, beer producers, convince.
The immutable data for office rents suggests that 1) tenants in downtown St. Louis should thank their lucky stars 2. present owners investors have can buy no other choice than yours on the cheap and 4 new little hope of the market review 3) seller cheap but will probably face flat or negative growth and asset appreciation (based on capitalization) .Treffen your Wahl.Es is good news for tenants, bad news for owners and investors; and perhaps very disturbing for St. Louis downtown urban centre try competitive ground within their region and win with other major cities.
Christopher Desloge is a three decade veteran tenant representative office leasing, the tenant's guerilla Guide to Office leasing authoring and publishing the Web site is officetenant.com.Herr Desloge President of the tenant Rep Agency, LLC, which specializes in Office tenant representation in the entire USA.Der tenant Rep Agency, teamed LLC with HOK, the largest firm in the world to Office provide leasing tenants with tenant representation brokerage services in with spatial planning, tenant development, design drawings and construction management at no cost for the Mieter.Mieter Rep Agency website is http://www.tenantrepagency.com
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