Wage and employment growth should drive increased demand for office space in the St. Louis office market in the near future, according to a new report from commercial real estate firm Colliers.
The company expects strong growth in the Clayton and midtown St. Louis submarkets, due to recent economic gains. Those areas have added 190,000 square feet of office occupancy just this year.
But Sarah Hakes, a Colliers researcher, warns the region’s tightening office market doesn’t necessarily mean there will be a ton of construction in the immediate future. She says big office buildings will only go up if a developer finds a major tenant.
Commercial real estate firm Jones Lang Lasalle offered a similar forecast to Colliers, saying that tenants needing more than 25,000 square feet of office space might drive new construction.