ST. LOUIS—Until recently, speculative industrial development had vanished from the St. Louis area, but the reviving economy has lifted manufacturers and distributors, sent vacancy rates plunging, and gotten developers interested in taking risks again. PCCP, LLC, a real estate finance and investment management firm, and St. Louis-based TriStar Properties, for example, just formed a joint venture to acquire 45 acres of land for the speculative development of a 673,000-square-foot bulk warehouse building at TriStar's Gateway Commerce Center just east of St. Louis.
As reported in GlobeSt.com, research on industrial activity in the first quarter showed why speculative projects were feasible. The industrial market recorded 1,795,283-square-feet of positive absorption. “That is more than in all of 2013,” Ed Lampitt, vice president and principal of Cassidy Turley in St. Louis, told GlobeSt.com. “And 2013 was an awfully good year.”
“We haven't had that kind of absorption since 2004,” added Alex Cain, a financial analyst in Cassidy Turley's St. Louis office.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.