ST. LOUIS—The economy of this region seems to have turned a corner, and as reported in GlobeSt.com, the office and industrial markets, including the suburbs, have responded by perking up a bit. And KBS Real Estate Investment Trust II has just helped tighten the market a bit more by completing 41,431-square-feet in leases at its Pierre Laclede Center, a two-building office complex in the key suburb of Clayton, just outside the city.

Morgan Stanley Smith Barney signed a new lease for 30,380-square-feet in the 579,846-square-foot complex located at 7701 and 7733 Forsyth Blvd. Mark Palmer and Art Kerckhoff of CBRE represented KBS, a Newport Beach, CA-based public non-traded trust, in the transaction.

In the first quarter, the most significant lease signed in Clayton was by Post Foods for 18,283-square-feet at 1699-1701 S. Hanley Rd., according to Colliers. “Struggling throughout 2013, the Clayton submarket rebounded in first quarter 2014 with over 19,500-square-feet of positive absorption,” the firm noted in its recent quarterly report. “Year-over-year, vacancy rates have remained the same currently at 9.9%, down slightly from last quarter's rate of 10%.”

Capes Sokol Goodman & Sarachan PC also recently signed up at Laclede Center for a 1,940-square-foot expansion; Desai Eggman Mason, LLC took an extra 5,848-square-feet; and Unum Life Insurance Company of America signed a new, 5,241-square-foot lease. Palmer and Kerckhoff handled these deals as well.

A spokesman for KBS told GlobeSt.com that the center, built in 1964 and 1970, is now 95% occupied. This compares favorably with other properties in the neighborhood, such as 7700 Forsyth, a 465,000-square-foot tower built in 2010, and now 100% occupied, according to data from JLL.

“We believe that Pierre Laclede Center features the right mix of amenities and a great location in a highly desirable St. Louis submarket,” said KBS Capital Advisors senior vice president Brett Merz, in a prepared statement. He was not available for further comment. “The complex also benefits from its location at the prominent intersection of Hanley Rd. and Forsyth Blvd., as well as near the heart of the St. Louis government center, several major hotels and more than 50 restaurants.”

KBS-affiliated companies own two other St. Louis assets: Plaza in Clayton, a 325,172-square-foot office tower and the Lofts at the Highlands, a 200-unit mid-rise apartment community. KBS REIT II does not own an interest in these properties.

Although AT&T recently moved out of about 700,000-square-feet in the downtown's One AT&T Center, opening up a big vacancy in the CBD, most analysts remain hopeful about the metro area's prospects. “Metro unemployment remains at a post-recession low of 6.5%,” noted JLL in a recent report, “while professional and business services posted the highest year-over-year job growth since mid-2011 and financial services employment is as its highest level since 2000.”