Downtown St. Louis Bringing in Creative Office Users

ST. LOUIS—The migration of suburban office users into downtown urban cores has become a national phenomenon, and it looks like that process is now underway in the St. Louis metro area.

The global brand experience agency Momentum Worldwide has just decided to move its St. Louis-area office and 150 employees from suburban Richmond Heights to a 27,850 square-foot space in the downtown. The agency will take a full floor with a private rooftop deck at 1831 Chestnut St.

“We have more vacancies downtown, on a percentage basis, than in any other submarket,” John Warren, a vice president in JLL's St. Louis office, tells GlobeSt.com. He represented the landlord, Oak Street Real Estate Capital, in this transaction. “It's also one of the few metro areas where the suburbs are more expensive than the CBD.”

He estimates that class A spaces downtown cost about $18 to $19 per square foot while similar spaces in the Mid-County submarket cost about $26.  

But strictly bottom-line concerns don't explain the phenomenon, he adds. Momentum Worldwide, for example, “wants to be in the downtown for the creative energy.”

Thousands of younger people have started moving into the downtown and reclaiming old loft spaces. That has in turn caused a revival of retail business, including restaurants, and all of this new activity now exerts a gravitational pull on creative office users and start-ups.    

Although Momentum Worldwide decided on a modern office building, many others from the suburbs have been choosing to renovate St. Louis' huge stock of underutilized warehouse and loft spaces. The region is unusual in that it does have two CBDs if you count suburban Clayton, which has the look and feel of a true down town. “But Clayton does not really offer the type of creative space found in St. Louis,” says Warren.

In recent months, Warren also sold two downtown office buildings to developers looking to reposition them for more creative uses. The buildings include 1501 Washington, a 140,000-square-foot former garment district building that the new owner has begun converting into a hotel and restaurant; and the CPI Building, a 270,000 square-foot building at 1706 Washington Ave. that is being converted into loft apartments.

 Momentum Worldwide expects to take occupancy of its space by January 2017.

 “As we're a company built on how the power of experience can improve brands, we're very excited for a move that demonstrates how dedicated we are to our world class talent's experience at our agency,” says Momentum Worldwide chairman and chief executive officer Chris Weil. “The growing energy and vibrancy of downtown St Louis is the perfect environment for us to create inspired, creative work that will continue to connect us and our clients with opportunities and people around the world.”

“This will probably be one of the top five office deals in St. Louis this year,” adds Warren.

Momentum Worldwide was represented by Newmark Grubb Knight Frank and Gershman Commercial Real Estate.

ST. LOUIS—The migration of suburban office users into downtown urban cores has become a national phenomenon, and it looks like that process is now underway in the St. Louis metro area.

The global brand experience agency Momentum Worldwide has just decided to move its St. Louis-area office and 150 employees from suburban Richmond Heights to a 27,850 square-foot space in the downtown. The agency will take a full floor with a private rooftop deck at 1831 Chestnut St.

“We have more vacancies downtown, on a percentage basis, than in any other submarket,” John Warren, a vice president in JLL's St. Louis office, tells GlobeSt.com. He represented the landlord, Oak Street Real Estate Capital, in this transaction. “It's also one of the few metro areas where the suburbs are more expensive than the CBD.”

He estimates that class A spaces downtown cost about $18 to $19 per square foot while similar spaces in the Mid-County submarket cost about $26.  

But strictly bottom-line concerns don't explain the phenomenon, he adds. Momentum Worldwide, for example, “wants to be in the downtown for the creative energy.”

Thousands of younger people have started moving into the downtown and reclaiming old loft spaces. That has in turn caused a revival of retail business, including restaurants, and all of this new activity now exerts a gravitational pull on creative office users and start-ups.    

Although Momentum Worldwide decided on a modern office building, many others from the suburbs have been choosing to renovate St. Louis' huge stock of underutilized warehouse and loft spaces. The region is unusual in that it does have two CBDs if you count suburban Clayton, which has the look and feel of a true down town. “But Clayton does not really offer the type of creative space found in St. Louis,” says Warren.

In recent months, Warren also sold two downtown office buildings to developers looking to reposition them for more creative uses. The buildings include 1501 Washington, a 140,000-square-foot former garment district building that the new owner has begun converting into a hotel and restaurant; and the CPI Building, a 270,000 square-foot building at 1706 Washington Ave. that is being converted into loft apartments.

 Momentum Worldwide expects to take occupancy of its space by January 2017.

 “As we're a company built on how the power of experience can improve brands, we're very excited for a move that demonstrates how dedicated we are to our world class talent's experience at our agency,” says Momentum Worldwide chairman and chief executive officer Chris Weil. “The growing energy and vibrancy of downtown St Louis is the perfect environment for us to create inspired, creative work that will continue to connect us and our clients with opportunities and people around the world.”

“This will probably be one of the top five office deals in St. Louis this year,” adds Warren.

Momentum Worldwide was represented by Newmark Grubb Knight Frank and Gershman Commercial Real Estate.