downtown stl, inc. annual report - 2016

7/25/2019 Downtown STL, Inc. Annual Report - 2016

1/7

STATE OF DOWNTOWN

innovation

State of Downtown | 2016


2/7

STATE OF DOWNTinnovation

DOWNTOWN CORE:

The Downtown Core is comprise

of St. Louis City neighborhoods

Downtown and Downtown Wes

GREATER

DOWNTOWN ST. LOU

Greater Downtown St. Louis is

comprised of those U.S. Census

with the greatest concentration

employment in our urban core.

Year in Review Infrastructure &Transportation

Residential Safety Hotel &Hospitality

EducationRetail &Entertainment

ContaInforma

Jobs, Talent &Ofce Space

01

06

02

07

03

08

04

0 9

05

table of contents

GREATER DOWNTOWN ST. LOUIS

DOWNTOWN WEST

NEIGHBORHOOD

DOWNTOWN

NEIGHBORHOOD

Cole

Chouteau

Je

ff

er

son

DOWNTOWN

CORE

Downtown St. Louis is the regions hub for tourism,

dining and entertainment. Whether youre a permanent

resident or in town for a day, Downtown has plenty of

activities, lled with culture and fun for all! Downtown

is home to 200+ annual events, delicious eateries and

numerous attractions. St. Louis is a culture of diversity,

vibrancy and art; embrace our city's beauty in the

heart of itWelcome to Downtown St. Louis!


3/7


In 2015, Downtown St. Louis took a big leap forward.

Our residential population grew by 7%, the largest

increase in 10 years. The Downtown Innovation

Community continued to ourish with nearly 50 new

companies, the announcement of the opening of the

St. Louis Fashion Incubator in the fall, and a growth

target that will further establish the St. Louis region

as one of the best start-up cities in the country.

As the fastest growing neighborhood in the city

of St. Louis, we have attracted the upwardly mobile

young professionals, families and empty nesters. Many

college students have also made Downtown their home,

with numerous universities establishing or expanding

their Downtown presence.

The density of people created by a growing

residential population is critical to attracting retail

establishments and companies seeking a deep talent

pool, as well as the perception of a safe and vibrant

urban core. People who choose to live in an urban

center are often seeking a walkable and cycling-

oriented community with inspiring public spaces, such

as the beautiful Arch grounds and trails currently under

renovation. The appeal of Downtown as a neighborhood,

business district and tourist destination improves daily

as the CityArchRiver project hits major milestones.

The forward momentum in the development market

includes projects announced or underway that total

nearly $1B, such as the redevelopment of signature

buildings like Jeerson Arms and Railway Exchange.

Discussions are underway about new construction of

the rst new oce building in almost thirty years.

Now, that is momentum!

Securing the near north side as the site of the new

location for the National Geospatial-Intelligence

Agency (NGA) will likely be remembered as one of

the most signicant wins of 2016 for the St. Louis

region. Downtown stands to benet greatly from

NGA's proximity to our merchants, housing and

amenities. We look forward to being the home

and playground for NGA employees and a source

of new talent in support of their expansion.

With rapid growth comes challenges and Downtown

St. Louis has their share of both. We continue to ght

the negative perception of decline and high crime. Our

infrastructure is in need of investment. Downtown STL,

Inc. is collaborating with residents, businesses and

organizations across the region to address these issues,

some of which can be addressed relatively quickly and

others that will require long-term systemic change.

It is my privilege to work with the many people and

organizations who have stepped forward to craft

solutions for our challenges, most especially the

sta and members of Downtown STL, Inc.

Heres to another prosperous, challenging, and

energizing year in the heart of our region!

Downtown oers a unique living experience, one t hat

is in demand with both Millennials and older adults who

are seeking alternatives to the sprawl of the suburbs.

The eciency and health benets of being able to walk

or bike to work, to the grocery store, to entertainment

and back home attracts innovators and entrepreneurs.

Access to public transit, modern amenities and inspiring

public spaces are highly valued by the next generation

of home buyers and down-sizers.

In 2015, Downtowns residential housing market

continued to build momentum. Over the last ve years,

the Downtown population has grown by over 32%.

On average, Downtown occupancy rates increase by

approximately 5%, but last year Downtowns residential

population expanded 7% to include over 600 new

residents. The Arcade and Station Plaza opened their

doors and quickly lled up their array of new and unique

residential units. Recently announced residential projects

in unoccupied buildings, including the Monogram

(former CPI building), have illuminated the resiliency

of Downtowns residential market.

An increase in condominium sales also showed signs of

growth; 118 units sold in 2015, which is an 18% increase

from the year before. Average sale prices also went up

by 1% and average days on the market went down by

4% during that same period.

Downtown is theFastest GrowingNeighborhood inthe STL Region

2014

P op ul at io n To ta l 8, 28 6

12 month Population Growth 319

Growth Rate 4%

Number of Units 6,396

Total Occupancy Rate* 92.9%

Affordable Apartments 90.9%

Market Rate Apartments 91.4%

Condominiums 97.8%

Source:Downtown STL, Inc., 2016 Housing Survey*Includes only buildings open 12 months or more as of M

Population Growth Rate

Downtown Forward

Missy Kelley

President & CEO, Downtown STL, Inc.

YEAR IN REVIEW RESIDEN

Downtown Core Population

STATE OF DOWNT

10,000

9,000

8,000

7,0006,000

5,000

4,000

3,000

2,000

1,000

0

'05 '06 '07 '08 '09 '10 '11 '12

year

Source:Downtown STL, Inc., 2016 Housing Survey

Downtown STL CoreResidential Occupancy Growth

Sources:1) U.S. Census Bureau, Population Division, Annof the Resident Population: April 1, 2010 to J

2) Downtown STL, Inc., 2016 Housing Survey

10%

8%

6%

4%

2%

0%

-2%2011 2012 2013 2014

Downtown St. Louis Core St. Louis City

Downtown STLDemographics:

AGE


4/7


Convention and hotel business brings $5.4 billion in economic impact to St. Louis annually

and Downtown STLs hotel market experienced remarkable growth in the past 12 months.

Last year more than 469,000 room nights were booked at Downtown hotels. This reected

an increase of 30,000 over the prior y ear. Recent announcements of three boutique hotels

proves that the Downtown hotel market still has the capacity for growth. With the Dome at

Americas Center now available for rent year-round, the marketers at Explore St. Louis began marketing

the space to even larger conventions and planning for the next phase of renovations and development.

It will become even more important than ever to maintain and advance the quantity and quality of

hotel rooms, ballrooms and meeting spaces.

Downtown is the Gateway to theSTL Region for Millions of Visitors

Downtown Food & EntertainmentVenues are Strong and Growing Stronger

917 910

670

537

355295 295 288

255

Marriott

St.Louis

Gran

d

HyattR

egen

cy

St.Louis

Riverfr

ont

Hilto

n

St.Louis

attheB

allpa

rk

Doubletree

St.Louis

Union

Station

Hotel

DruryP

lazaH

otel

attheA

rch

Holid

ayInn

attheC

onve

ntion

Center

St.Louis

City

Center

Hotel

Westin

Hotel

HoteLu

miere

2014 2015 %Change

Total number of Rooms 7,009 7,172 2.33%

Average Daily Rate $ 131.88 $ 138.21 4.80%

nue Per Available Room $ 87.14 $ 88.86 1.97%

HOTEL & HOSPITALITY RETAIL & ENTERTAINM

The weekly outdoor concert series Lunchtime

Live attracts hundreds of residents, visitors and

workers to enjoy live music and food at the

Old Post Oce Plaza each Friday, May

through September.

Young Friends of Downtown draws from its

membership of over 200 Downtown advocates

under the age 40 to convene at Micro Mondays,

a happy hour the rst Monday of each month.

Each winter Downtown STL, Inc. and the Building

Owners and Managers Association host a luncheon

of 400+ developers, designers and occupants to

highlight trends in Downtown development.

At the end of the scal year Downtown

STL, Inc. hosts an annual event to salute the

accomplishments of the past year, focus on the

year ahead, and present the John H. Poelker

Levee Stone award for the business leader making

signicant contributions to Downtown.

Of the over 300 restaurants and bars currently located in Downtown STL, more than 20 restaurants

opened, relocated, or expanded last year. Some notable highlights include: Gioias Deli, Broadway

Oyster Bar, Shift, Test Kitchen, The Kitchen Sink, Porano, Tim Hortons, Start Bar, Sauce on the

Side and Sugarfre.

Greater density will attract more retail activity, but recent openings and reinvestments bode well for Downtown.

In the meantime, it is important to support the retailers that continue to oer supplies and services to those

who live, work and play Downtown. Commuters, residents and visi tors alike can take a dvantage of dozens of

conveniently located health care providers, jewelers, dry cleaners, boutiques, salons and more.

In 2016, the highly anticipated National Blues Museum opened to join the growing list of Downtown music

attractions. As a look forward, we anticipate the reopening of The Eugene Field House & St. Louis Toy Museum

after a full 4,000 square foot renovation and expansion. Downtown is, now more t han ever, a regional hub for

cultural institutions.

With more than 200 sporting and cultural events hosted last year, Downtown continued to be the premier

destination for visitors to our region. Downtown STL, Inc. works with event producers to help facilitate

logistics, welcome attendees and provide alerts related to the potential impact on the neighborhood.

Downtown STL, Inc. also produces a few signature events each year:

2015 Sports Attendance

Team Regular Season Games Total Attendance Average Per Game

St. Louis Blues 41 755,294 18,421

St. Louis Cardinals 81 3,520,889 43,467

Source:NHL, MLB 2015

ByRoomSize

innovation

Source:ExploreSt.

Louis,

2013

Category Impact

Visitors 23.9 mil

Visitor Spending $4.88 bil

Tourism Jobs 85,164

Tourism Wages $2.78 bil

Tou ri sm Tax Rev en ue $925 mil

Source:Explore St. Louis, 2013

Source:Explore St. Louis

Downtown Hotel Rooms & Rates St. Louis City & County Tourism Impact


5/7


Address Comp SFBuyer/Tenant

Company Lease Type

200 N. Broadway 337,088 Mariner Energy, Inc. Sold

100 N. Broadway 34,145 Crane Insuranc e Company Renewal/Expansi on

1015 Locust St. 29,191 Maune Law Firm New

100 N. Broadway 22,130 Herzog Crebs Renewal

100 N. Broadway 22,130 Nestle Purina Expansion

505 N. 7th St. 19,147 Korein Tillery LLC Renewal

308 N. 21st St. 15,000 USI Renewal

100 S. 4th St. 12,021 Regus New

900-920 Spruce St. 10,000 Asynchrony Expansion

Source:Cushman & Wakefeld Quarterly St. Louis Oce Market Reports, 2015/2016

MAJOR

OFFIC

ESPACE

TRANSACT

IONS

The Downtown STL oce market improved in 2015/2016 with the vacancy rate dropping

to 19.4% at the end of the rst quarter in 2016. Many anchor employers of Downtown,

including Accenture, Anderson & Gilbert, Bryant Group and Schlichter Bogard & Denton,

renewed their leases. Spire (formerly t he Laclede Group) opened their new headquarters

at 700 Market Street. Anders CPAs + Advisors saw continued returns on their recent

investment in a completely renovated space that was designed to attract and retain top

talent in a competitive industry. Marketing rm Momentum committed to move its 150

employees into 27,000 square feet of space at 1831 Chestnut Street.

The Downtown Innovation Community continued to attract local, national and international talent

and announced a goal of 1,000 innovative companies with 10,000 jobs Downtown by 2025. The goal

was established just as both Lockerdome and KPMG announced the addition of a total of 400+ new

jobs to Downtown. Creative coworking spaces like T-REX and Industrious continued to respond to the

growing needs of startups and innovative companies that require spaces to conduct daily business,

host meetings, share resources and network.

The Saint Louis Fashion Fund also launched its capital campaign to fund the St. Louis Fashion

Incubator, a two-year, intensive program that oers emerging designers the tools, connections, and

guidance to take their businesses to the next level. The incubator will house six designers from

across the country and will provide mentorship opportunities and business programming that

will simultaneously help re-establish the Garment District along Washington Ave.

Demand for Creative Spaceshas Extended to Even the MostTraditional Ofce Environments

JOBS, TALENT & OFFICE SPACE

Demand for a MoreConnected DowntownDrives InfrastructuralImprovements

INFRASTRUCTURE & TRANSPORTA

The years-long Arch grounds renovation project saw three

major unveilings; Luther Ely Smith Square, the new Park Over

the Highway and the newly elevated Leonor K. Sullivan Blvd

all opened after signicant investment and coordinated

construction projects.

Arcade Apartments and Webster University in the ArcadeBuilding were both completed and opened to residents and

students, respectively.

The #99 Downtown Trolley route was expanded to appeal to

bus riders needing to go to Wells Fargo, Harris-Stowe State

University, Chaifetz Arena, and Sigma-Aldrich.

The Metro Civic Center Transit Center began an expansion

that will allow the area to accommodate more buses and

provide passengers with new amenities and features.

In spring of 2016, Downtown STL, Inc., with partnership from

the City of St. Louis, St. Louis Development Corporation, and

St. Louis Economic Development Partnership, issued a Request

for Information (RFI) for the establishment of a gigabit ber

network throughout the region. Beginning with Downtown and

expanding to other business clusters, the goal of the RFI is to

encourage service providers to develop a plan for gig abit

broadband infrastructure and improved access to high-speed

Internet for residents and businesses. This process is one of

many steps required to turn St. Louis into more of a Smart City

with ecient, accessible and widely available data systems

and networks.

Over the past 12 months, more than $300 million

in development was completed in Downtown:

innovation


6/7


Over the past 12 months, Downtown has invested heavily in

security-related issues. Much time has been spent collaborating

with the City, St. Louis Metropolitan Police Department (SLMPD),

Civic leaders, businesses and community members. The result

of this investment has been continuous improvement in safety

initiatives and yet there is still much work that remains.

Another signicant investment has been in securing both funds and

community support to improve the technology available to SLMPD as they

work to prevent and ght cri me. These investments included $166K for the

purchase and installation of 16 security cameras throughout Downtown.

As a look forward, Downtown STL, Inc. is currently raising funds for

enhanced lighting and the installation of additional License Plate

Recognition (LPR) cameras in greater Downtown.

The perception of safety is another hurdle that must be approached on

an individual level in addition to systemic levels. One tool that Downtown

is investing in is the home-grown, T-REX-based SafeTrek app, which was

designed to help individuals ll the gap between doing nothing and

calling the police when they feel unsafe, anywhere. It uses a simple,

silent interface that alerts a security call center any time a user feels

unsafe. The call center stays in contact until the person feels safe again

or triggers an escalation that shares their location and situation with

police dispatchers. Downtown STL, Inc. will continue to partner with the

public and private sectors for innovative solutions for public safety.

Safety, Real and Perceived,Must Improve for All

SAFETY

Colleges and UniversitiesAre Choosing Downtown

EDUCA

The Downtown St. Louis post-secondary student population keeps on growing

and our institutions are committed to strengthening urban education! While

Webster University moved across the street from the Old Post Oce into the

newly renovated Arcade Building, Lindenwood University consolidated their

Wildwood and Downtown locations and is now taking up 32,000 square feet

inside the Old Post Oce. This move quadrupled the amount of space

Lindenwood University previously had at 1409 Washington Avenue.

Downtown has a strong history of post-secondary institutions choosing the city center

as their home. Here are all post-secondary schools that have established a presence inDowntown: Lindenwood University, Saint Louis Community College, Saint Louis University Law

School, Stevens The Institute of Business and Arts, University of Phoenix Learning Center,

Vatterott College extreme Institute by Nelly and Webster University. The energy that

college students bring to Downtown adds to the vibrancy of our neighborhood.



7/7

innovation

For More Information 314.436.6500 | downtownstl.org

Downtown STL, Inc.serves as the catalyst

for creating and promoting a

Downtown that attracts investment,

economic activity and vibrancy at the

hub of our region. We also manage

the Community Improvement District,

which supplements city services to

make Downtown St. Louis a cleaner,

safer and more inviting place.

innovation

downtown stl, inc. annual report - 2016

Documents