Q2 2014 Overview
- Slow and steady positive movement is having significant impact.
- Positive absorption in the past four quarters totals +818,635 square feet, an average of +204,659 square feet per quarter.
- The total vacancy currently stands at 7.5 million square feet. This is a reduction of 9.8% in one calendar year.
- With vacancy rates at 15.3% there is still product available to support continued growth. The gap between rental rates and replacement costs needs to be reduced prior to speculative construction.
Q2 2014 Overview
- The St. Louis Industrial market finished the first half of hte year on a high note as the market absorbed over 1.5 million SF of space. Six 100,000+ SF transactions helped fuel the momentum, led by three user sales that accounted for nearly 900,000 SF.
- Space options for 100,000+ SF tenants seeking modern distribution buildings with at least 28′ clear heights are becoming more extinct by the day. This shortage of inventory is most pronounced in the Northwest and St. Charles areas.
- Speculative construction has begun on the Illinois side of the market as the 1.3 million SF Gateway Commerce Center project recently broke ground. On the Missouri side, Panattoni is expected to begin construction on their Aviator Distribution Center project in August and Duke’s Premier 370 project looks to be resolving their bond issues for a 2015 delivery.
- Although activity remains healthy, market experts are estimating that the market will end the year with roughly 2.5 million SF of positive absorption.
- While landlords continue to push asking rates int eh 100,000+ SF properties, rent concessions coupled with stabilized lease rates remain within the small product. Landlords are continuing to play it safe by minimizing their vacancy exposure by encouraging tenants to renew.
Your vote changes the landscape of the Association! Read about your candidates below and be sure to cast your vote to let us know who you want as your leaders. Voting is open to all SLAR REALTOR® members. Elections open August 19th at 9AM and close September 8th at Noon. Check your email on August 18th for log-in information and the link to vote.
Winner by Acclamation
Ben Cahill, The Maune Company
Ban Cahill brings significant brokerage experience in industrial, office, land, and investment properties as well as REO disposition to The Maune Company. He enjoys working on a multitude of assignments, including landlord representation, tenant representation and property acquisition/disposition. Ben’s thorough knowledge of the St. Louis Metro real estate market, couple with his understanding of the intricacies of a transaction, have allowed him to contribute significantly toward the success of his clients.
Ben began his real estate career at Cassidy Turley where he functioned in a number of roles: first in Cassidy Turley’s Corporate Services division and later moving to their Brokerage division. Ben’s responsibilities at Cassidy Turley varied and allowed him to build a comprehensive knowledge base that he otherwise would not have acquired had he gone directly into the Brokerage division. Ben has experience in lease administration, operating expense reconciliations, market research, site selection, lease negotiations, construction management, vendor administration services and Landlord/Seller & Tenant/Buyer Representation.
REALTOR® Director Seat:
3 Seats Available; Two 3-Year Terms and One 2-Year Term
Carl Day, Koch Development
As A member of Koch Development’s Asset Management team, Carl’s responsibilities include maintaining strong tenant relationships, leasing, portfolio strategy and ensuring Koch Development meets it short & long term strategic goals.
Prior to joining Koch Development, Carl worked as a Manager at Cassidy Turley, an industry leading commercial real estate firm specializing in tenant representation, property management & brokerage services. Carl has represented numerous clients including H&R Block, Edward Jones, Aarons & NxStage where he was responsible for their expansion strategy’s, lease negotiation, new site selection, renewal & disposition work. Carl previously worked as an Inside Sales Representative for GE Capital in St. Louis, Missouri.
Carl is a graduate of Southeast Missouri State University, with a degree in Integrated Marketing Communications. He also has his Missouri Real Estate License and is a member of the International Council of Shopping Centers.
Michael J. Hejna, Gundaker Commercial Group
Michael J. Hejna is President and Chief Executive Officer of Gundaker Commercial Group, Inc. (GCG). With a background in real estate financing and development, his responsibilities include overseeing the functions of GCG as a company, with a primary focus on organization and capital formation of developments and joint ventures. He manages all of the affiliated entities associated with GCG, consisting of 40 separate, but affiliated business entities, engaging GCG’s Asset Management, Brokerage, Construction and Development Divisions. Mike has grown GCG’s portfolio to 100 projects and $750 Million of commercial and residential real estate development in Missouri and Illinois, as well as across the United States and Puerto Rico.
Mike joined GCG in 1988 after 10 years in the banking and finance industry. His particular expertise in solving real estate-related problems has enhanced GCG’s ability to benefit from various joint ventures. Under his leadership, the company has successfully tackled tough issues involving retail, office, multi-family, and raw ground.
James W. Kaiser, Realty Advisors of America, LLC
James W. Kaiser is the Founder, Principal and Chief Executive Officer of Realty Advisors of America. James has been in commercial real estate for 14 years. Prior to his time in commercial real estate James worked in the marketing and financial services industry.
James currently serves as a Board Member for the Edward Jones Family YMCA. James is a graduate of St. Louis University, with a degree in Finance and International Business. He also is a Missouri licensed real estate broker.
David A. Morris, Colliers International
David (Dave) Morris has an immediate focus in brokerage with concentration on Tenant Representation, Landlord Representation and Investment Services. Entering into the industry in 1987, Dave has become an advisor for users, owners and occupiers of commercial real estate helping them locate the best property for their business or institution. Throughout his career, Dave’s work has enabled landlord-clients to effectively lease-up their properties and achieve top rental terms – even during difficult economies.
Dave is a 25-year industry veteran, currently serving as a Senior Vice President with Colliers. Prior to this position, Dave was the Market Leader in the St. Louis offices of Grubb & Ellis.
Dave has written many articles on commercial real estate and has been quoted in the St. Louis Business Journal, KSDK – Channel 5, the Chicago Tribune, Midwest Real Estate News, and multiple other media publications.
Dave earned his CCIM designation in 1996 and his SIOR designation in 2000.
Gary Parker, Intelica CRE
Gary Parker is a founder and the CEO of Intelica CRE, Bamboo Equity Partners, LuxLand Maintenance and Incore. Gary primarily oversees the sale and leasing brokerage activities for industrial, office and investment transactions for Intelica.
With 27 years of commercial real estate experience, Gary has used his knowledge and experience to grow Intelica from 3 employees to 30 employees in just 3 years. Intelica currently manages 5,000,000 square feet in 7 states and closed over $43 million in transactions in 2013.
Peter Pfeifer, Hilliker Corporation
I have been inspired by the Leadership of our Commercial Division and want to further the idea of keeping the brokers and our transactions the center of attention of the Commercial Division. I have been a member of the Commercial Division since 1999. I have served on various committees and Boards for the benefit of commercial real estate practitioners in St. Louis. I have served as President of the Board of CIE and a multi-term board member before being elected President. I have also previously served on the technology committee during the rapidly expanding changes and needs of the systems users.