This article will help anyone looking for information pertaining to a commercial real estate and commercial lending in the State of
Missouri is located in the center of the country and has long
been thought of as a gateway, no matter which direction the traveler is going.
In Kansas City, which serves as a major distribution hub for products moving
from the south to the north, industrial companies are jumping on the property
ownership bandwagon. This is particularly true of smaller industrial companies
with extra cash that are eager to diversify their portfolios. Even though there
are fewer tenants in the industrial submarket, vacancies are still dropping.
In the last quarter, tenants absorbed more than 1.9 million square feet of industrial
space. Industrial vacancies are the lowest they've been since 2001, and space
is tightest in Executive Park and Northland Park.
The commercial office market is strong in the Kansas City area, particularly
its suburbs. Recently, out of state investors have been making pricey acquisitions
of Kansas City real estate. In the last quarter, the office submarket has generated
over $45 million, and top suburban office space is selling for anywhere between
$125 and $150 per square foot. Additionally, forecasters are predicting an increase
in the development of light industrial and flex use office space in the near
St. Louis, by no means a slouch of a city, is trying to rehab its image so
it matches the vibrancy of Kansas City. City officials have created two enhanced
enterprise zones, using tax breaks and other incentives to lure tenants of light
industrial and flex-use office space to downtown St. Louis. The city isn't
so much trying to cultivate retail developers, believing that retail and housing
will follow the light industrial users. Additionally, state and local officials
are working to shore up the flood protection system that separates St. Louis
from the Mississippi River. The chief properties that would be affected by a
devastating flood are commercial and industrial.
Another reason St. Louis officials aren't in a hurry to court retail development
is that retail real estate is strong in St. Louis. Some of
the most desirable restaurant spaces are going for $35 per square foot. These
attractive areas also feature high-end condo development and other mixed use
improvements. One interesting feature of this market is that it is starting
to be filled in by local retailers, trailing business that larger, national
retailers have generated. As a result, the market is heavy on restaurant pads
and small-scale service space. This market shows signs of heating up rather
than slowing down over the next several quarters.