St. Louis Office Market Report
2023 Investment Forecast
Medical Institutions Expand Downtown Footprints;
Regionally High Returns an Attractant
Universities scale up in the central business district. Academic institutions have shown an interest in expanding their downtown St. Louis presence. This year, Washington University will complete its Neuroscience Research Building, accounting for more than 60 percent of the office space completed metrowide. This project is complemented by the 56,000-square-foot lease Ponce Health Sciences University signed last June as part of its new medical school located in the city. These moves have the potential to attract other healthcare-related companies to surrounding areas, specifically those looking to partner with the universities. The CBD may also attract traditional office-users looking to reduce costs, as the area offers lower asking rents than most suburban areas. In suburban locales, firms continue to re-evaluate their physical requirements, often downsizing within the same submarket amid long-term hybrid work adoption. Panera is moving its corporate headquarters to a smaller building in Fenton, while Centene Corporation has placed a large chunk of its Clayton office space up for sublease. Such moves may place upward pressure on suburban vacancy in the near term.