State of Downtown / 2014

Table of ConTenTs

03 Year in Review04 Residential06 Hotel and Hospitality07 Retail and Entertainment08 Office10 TransportationandInfrastructure11 Safety12 Education13 ContactInformation

DoWnToWn We s T ne IG HboR HooD

DoWnToWn ne IG HboR HooD

GReaTeR DoWnToWn sT. loUIs

DoWnToWn CoRe

Downtown Core:the Downtown Core is made up of the St. Louis City neighborhoods of Downtown and Downtown west.

Greater Downtown St. LouiS:Greater Downtown St. Louis is comprised of those uS Census tracts with the greatest concentration of employment in our urban core.

3BaCK to taBLe oF ContentS

f Y e a R I n R e V I e w f

aS fUtURe geneRatIonSlookbackonthestateofDowntownin2014,theyarelikelytopointtothis

astheyearofDowntown’snewbeginning.NeverinthehistoryofDowntownhasthecommunity

seenayearwithmorepublic/privateinvestment,moreeconomicactivity,moreawakeningof

nationalandinternationalrecognitionofourcommunity’sintriguingattributes,oramorepositiveand

collaborativespiritfocusedonbuildingforthefuture.

TheyearhasalsobeenaboutleavingbehindtheremnantsoftheGreatRecessionandreignitingthegrowth

andvibrancyofthedowntowncoreforthenation’s19thlargestmetropolitanarea.Steadyhousingabsorption

overthepasttwoyears,includingtheopeningandsuccessfullease-upofTheParkPacificandTheLaurel

apartments,haslednewinvestorsanddeveloperstore-enterthemarket,seekingopportunitiestocreate

newmarket-raterentalandfor-salehousingoptionstomeetthegrowing

demandforDowntownliving.

In2014,wesawtheopeningoftheToweratOPOP,thefirstnewhigh-rise

apartmentsbuiltinDowntowninmorethan50years,andtherepositioning

oftheMillenniumCenterbuildingtoprovidebothcommercialofficeand

market-rateresidentialliving,inamixed-useredevelopmentsolution.

Thefuturelooksevenbrighterwithplansunderwayformorethan750

additionalnewhousingunitsthroughoutDowntown.

PublicandprivateinvestmentswereequallycriticalindrivingDowntown

forward inthepastyear. Fromthecompletionofthe$600million

StanMusialVeteransMemorialBridge,acriticalbi-stateconnectorfor

economicdevelopment—aswellasaspectacularnewiconfortheDowntown

skyline;tothecommunity’sunprecedentedundertakingtorenovateandexpandtheJeffersonNational

ExpansionMemorialtoconnecttheCity,theArchandtheRiverintoacohesiveandinterdependent

destinationandmagnificentfrontdoorforourcommunity;andthelongawaitedopeningandsmashing

successofBallparkVillage,apremierentertainmentvenuefortheregion.

Duringtheyear,Downtowncontinuedtoevolveintoavibrantanddynamiccommunity,hostinghundreds

ofevents,leadingtheregion’sincreasingnationalacclaimasa“go-tomarket”forlocatingentrepreneurial

businesses,whileretainingandexpandingthecorporateofficesforsomeofourregion’smostestablished

andfastestgrowingcompanies.

Downtownandtheregionaremakinggreatstridesininfrastructure,corporategrowthandentrepreneurship.

Thesesuccessesandthemanyothershighlightedinthisreportareattributabletoenhancedregionaland

public/privatecollaboration.It’sanewbeginningfortheregionandDowntownisintheheartofit!

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R e S I D e n t I a L

92% Occupancy

Downtown Core Population: 7,967

Greater Downtown

Population: 17,359

ReCenTly openeD

ProPerty name totaL unitS

year oPeneD

LacassianLofts 27 2013

Gallery515atMillenniumCenter

102 2013

ToweratOPOP 128 2014

CityParcatPine 149 2014

wHIle theburstofthehousingbubbleforcedaquick,dramaticandsustainedshiftintheresidentialmarket,

demandfordowntownlivinghascontinuedtogrow. DURInG THe pasT fIve yeaRs, popUlaTIon In

THe DoWnToWn CoRe neIGHboRHooDs GReW by oveR 28%, an aveRaGe of 350 neW ResIDenTs

eaCH yeaR. THIs bRInGs THe Ten yeaR ResIDenTIal popUlaTIon GRoWTH RaTe To oveR 124%. Althoughnew

condodevelopmentstoppedin2009andaverageannualcondosalesdroppedfrom350unitstowellunder100,new

downtownapartmentpropertiescontinuetobedeveloped.Thelatestwaveofresidentialprojects-recentlyopened,

underconstructionorplanned,promisenotonlyadditionalresidentialinventorybutsubstantiallymorediverseresi-

dentialoptionsintheyearsahead.Thisincludes:The Tower at OPOP,thefirstnewconstructionresidentialtowerin

50years;TheArcade,asignificant,historicrehabthatwillhouseover200workingartists;

and The Alverne,anotherhistoricrenovationthatwilloffertwostorytownhomestyleunits.

Astheeconomyimproves,developershavebeguntestingthemarketagainforcondos,

startingwithapartmentconversionsalreadyunderwayatTheMarquetteandTheSyndicate.

Re sIDenTIal UnIT s

Apartments 4,740*

Condo 1,645

totaL 6,385

*Includes 1012 Income Restricted units

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R e S I D e n t I a L

Average St. Louis

MetrO rent:

$801/month Source: Institutional Property Advisors

ResIDenTIal GRoWTH In DoWnToWn CoRe

0

1000

2000

3000

4000

5000

6000

7000

20102000

M eR IDI a n Lof t S

toweR at oP oP

ResIDenTIal GRoWTH In DoWnToWn CoRe

0

1000

2000

3000

4000

5000

6000

7000Population

Residential Units

1312`11100908070605

p opUl aTIon

Re s IDe nTI a l UnIT s

Source: U.S. Censusp opUl aTIon

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H o t e L f H o S P I ta L I t Y

Top HoTel s by Room sIze

HoteL no.

RenaissanceGrandHotel 918

HyattRegencySt.LouisRiverfront 910

HiltonSt.LouisattheBallpark 675

St.LouisUnionStationHotel-Doubletree 539

CrownePlaza 440

DruryPlazaHotelattheArch 355

RamadaPlazaHotel 295

HoteLumiere 295

SheratonHotel 288

Westin Hotel 255

s T. loUIs CIT y & CoUnT y ToURIsm ImpaC T

CateGory imPaCt

Visitors $23.9mil

VisitorSpending $4.88bil

TourismJobs 85,164

TourismWages $2.78bil

TourismTaxRevenue $925mil

Source: IHS, D.K. Shifflet & Associates, St. Louis CVC

2013 Was an oUTsTanDInG yeaR foR HoTels In DoWnToWn sT. loUIs as key InDUsTRy benCHmaRks

—Occupancy, average Daily rate anD revpar (revenue per available rOOm) were all up

sIGnIfICanTly oveR THe pRIoR yeaR. ThatimpressiverateofgrowthcontinuesinQ12014.Inaddition,THe

St. lOuiS cOnventiOn anD viSitOrS cOmmiSSiOn (cvc) bOOkeD 553,000 future rOOm nightS During fy13,

a 10% InCRease oveR THe pRIoR yeaRwithbookingpaceforFY14againaheadoflastyear’space.Inlate2013,the

MillenniumHotelwasshutteredanditsfuturestatusisyettobedetermined.However,re-inveStment in DOwn-

ToWn HoTels WIll sURGe aGaIn In 2014asUnionStation’sDoubletreeHotel

completesamajorrenovation;MagnoliaHotelcompletesa$15millionmakeover

andre-brandingoftheformerMayfairHotel;andnewownersbegina$25million

upgradetotheRenaissanceGrandanda$20millionrenovationoftheRenaissance

Suitestoincludeare-brandingasaMarriottCourtyard.

C A Ry GR A nT SU ITe , M AGnOLIA HOTeL S T. LOU IS

U n IOn S TATIOn

Jon

ath

an

S. P

oll

ack

DoWnToWn HoTel benCHmaRks

CateGory 2013 2014-Q1

Occupancy +7.4% +4.5%

AverageDailyRate +5.5% +9.7%

RevenuePer AvailableRoom

+13.3% +14.7%

7BaCK to taBLe oF ContentS

R e ta I L f e n t e R ta I n M e n t

2013 spoRT s aT TenDanCe

team reGuLar SeaSon GameS

totaL attenDanCe

averaGe Per Game

St.LouisBlues 41 698,059 17,025

St.LouisCardinals 81 3,369,769 41,602

St.LouisRams 8 455,675 56,957

Source: eSPn

aTTRaCTInG andretainingqualityshopscontinuestobeachallengeinanevolvingdowntownwithagrowing

butlimitedresidentialpopulation.Nevertheless,oveR 30 neW ReTaIl bUsInesses openeD In THe pasT

yeaR WITH a ConsIsTenT foCUs on DInInG, seRvICes anD enTeRTaInmenT.Changesindowntown

demographicsandcharacteralongwiththecontinuingevolutionofretailarereflectedinrecentretaildevelopment

activitiesdowntown.f Macy’scloseditslandmarkOliveSt.store,continuingthetrendofdepartmentstore

closingsindowntownsthroughoutthecountryincludingHouston,Pittsburgh,Milwaukee,HonoluluandSt.Paul,among

others. TheMXDistrictopenedonWashingtonAvenuewithfournewrestaurants,athreescreenmovietheaterand

twoindependentretailers-TrovaGiftsandtheaward-winningCollectiveatMX.

Pe a BoDY oPeR a HoUS e

CardinalsNationDrunkenFishFoxSportsMidwestLIVE!HowlattheMoonJambaJuiceMajesticAthletic

PBRBarSt.LouisTedDrewesFrozenCustardTengoHambreTengoSedCantinaTheFudgery

reCentLy OPeneD:

BALLPArk ViLLAGe—

$100 million first phase

open March 2014

40 new retAiL

BuSineSSeS since

beginning of 2013.

in DeVeLOPMent:

nAtiOnAL Blues Museum—

$14 Million

Phase One of the long awaited Ballpark Village opened with great success, bringing 100,000sf of restaurants and entertainment to the Ballpark/Cupples Station District.

This summer, Schnuck’s Markets’ Culinaria, the 25,000sf downtown grocery store, will celebrate its 5th anniversary

Since opening in 2012, the Peabody Opera House has hosted some notable acts and productions: Mike Tyson, Chorus Line, Peter and the Starcatcher, Man of La Mancha, Daughtry, Blue Man group, Lewis Black, Gabriel Iglesias, Fun., Lorde, OneRepublic, Roger Daltrey, Jimmy Fallon.

t He M X DI S t R IC t

Ba L L Pa R K V IL L ag e

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o f f I C e

Downtown St. Louis

Class A Vacancy: 14.9%

Class B Vacancy: 27.3%

Source: Cassidy Turley

86,500 workers in

Greater DowntownSource: U.S. Census Bureau, Center for Economic Studies, LEHD

MAjOr 2013 trAnSACtiOnS:

aCQUIsITIon

BuiLDinG name SQ Ft tyPe PurCHaSeD By:

LammertBuilding 160,000 Acquisition TEC/T-REX

301Memorial 42,000 Acquisition 301MemorialLLC

700Market 128,000 Acquisition KomanGroup

le a se

BuiLDinG name SQ Ft tyPe tenant

St.LouisPlace 129,000 Renewal FleishmanHillard

BankofAmericaPlaza 44,000 New Anders

UnionStationPowerhouse 25,000 Renewal EmmisCommunications

GrandCentral 22,000 Renewal MissouriFoundationforHealth

10S.Broadway 110,000 Renewal GreensfelderLaw

Source: Cassidy Turley

STRonGretentionandthegrowthofexistingcompaniesdrovethesecondconsecutiveyearofsubstantial

positiveabsorptionofdowntownofficespace.a TWo yeaR ToTal of 360,000sf of posITIve absoRpTIon

ConTRIbUTeD To a 3.5%reductioninoverallvacancyandaClass a vaCanCy RaTe of 14.9%, THe loWesT

sInCe 2006.However,consistentwithnationaltrendsduringadowneconomy,tenantstendto“tradeup”fromClassB

toClassAspaceresultingintheClassBvacancyrategrowingto27.3%,andcreatingadowntownsub-markettotal

of20.1%.LookformoreClassBbuildingstoconverttoresidentialand/or“creative”officespacetoreduceClassB

inventoryandattractnewtenantstotheirdowntownlocations.

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City 2013 aBSorPtion(SQ. Ft.)

vaCanCy totaL BuiLDinGS

inventory(SQ. Ft.)

averaGe aSKinG rent

aSKinG rent CLaSS a

CincinnatiCBD 49,169 21% 54 12,941,698 $20 $24

DallasCBD 108,058 27% 22 21,583,437 $23 NotAvailable

DenverCBD 250,075 11% 341 34,392,096 $29 $31

IndianapolisDowntown -9,078 20% NotAvailable 10,553,268 $18 $19

KansasCityDowntown -120,000 30% 52 7,987,000 $17 $19

MinneapolisCBD 322,652 14% 96 27,114,572 $13 $16

St.LouisDowntown 159,248 20% 59 11,123,710 $17 $20

Source: Cassidy Turley

70 0 M a R K e t

In De velopmenT

BuiLDinG name SQ Ft tyPe tenant Date

700Market 128,000 New LacledeGroup 2015

Source: Cassidy Turley

T-REX,theregionaltechnologyentrepreneurshipcenterwaslaunched

intheRailwayExchangeBuildinginSeptember2011asavehicletogrow

thenumberoftechcompaniesandjobsdowntownandcreateabuzz

thatwouldattractyoung,highly-educatedtalent towork(andlive)

downtown.T-REXhasexceededexpectationsandisbeginningtohave

adirectimpactonthedowntownofficemarket.Inthepastyear,t-reX

acquiredandmovedintothe160,000sfLammertBuildingonWashington

Ave.,increasingoccupancythereas THe Home To oveR 100 sTaRTUp

CompanIes anD 250 enTRepReneURs,funders,mentorsandservice

providers.Perhapsevenmoreimportantly,fIve sTaRTUp CompanIes

have recently “graDuateD” frOm t-reX anD are nOw leaSing

neaRly 20,000sf in four nearby DoWnToWn bUIlDInGs .T-REX

founders,strategicpartnersandstakeholdersareworkingtoposition

moreofthesestartupstograduateandgrowasthrivingbusinesses,

leasingspaceindowntownandthroughouttheregion.

L a M M eR t BU IL DI ng

Courtesy of Matt Carpenter

10BaCK to taBLe oF ContentS

t R a n S P o R tat I o n f I n f R a S t R U C t U R e

in DeVeLOPMent:

St. Louis StreetCAr

unDer COnStruCtiOn:

CityArChriVer 2015

$380 Million investment.

COMPLeteD:

StAn MuSiAL VeterAnS

MeMOriAL BriDGe

$667 Million investment.

Completed February 2014.

oveRthepastyear,majorconstructionprojectshaveimprovedtheinfrastructureaffectingaccessandtraffic

patternsdowntown.f TheStanMusialVeteransMemorialBridgeopenedinFebruary,removingtheI-70

trafficloadfromthecrowdedPoplarStreetBridge,whichcontinuestocarryI-55andI-64.Thismajestic,cable-

stayedbridgecreatesanewandinvitingnorthernaccesspointintodowntownviaTuckerBoulevard.Thefour-lane

bridgehassiphonedapproximately40,000carsandtruckseachdayofftheotherdowntownMississippiRivercrossings.

TheDr.MartinLutherKingJr.Bridgewillberepavedinthecomingyear,andtherampsfromthePoplarStreetBridge

intodowntownwillbeimproved.f AspartoftheCityArchRiverinitiative,constructiontoextendthecurrentnational

parkoverthehighwayintodowntownwillcreateapedestrianpathwayforvisitorstomoveeasilybetweentheGateway

Archandthemanyculturalandentertainmentassetsintheheartofdowntown.

moRe on THe HoRIzon Effortstobringamodernstreetcartothestreetsofdowntownarewellunderway.

AfeasibilitystudycommissionedbyTheSt.LouisStreetcarCompanyhasbeencompleted.Nextstepsincludeanother

levelofstudyonthepotentialimpactofamodernstreetcarontheenvironment,theeconomyandthecommunity.The

streetcarwouldconnectdowntown,thecentralcorridorandnorthcity,andcouldspurdevelopmentalongtheroute

ashasbeenthecaseinothercities.f StreetscapeimprovementsalongTuckerBlvdwillenhanceournewentryway

intodowntown.WashingtonAvenue,namedoneofthe10BestStreetsinAmerica,willbeevenbetterwithstreetscape

improvementsanddedicatedbikelanesthatwillbetterconnectdowntowntotheregion’sbikesystem.

S ta n MUS I a L B R IDg e

C it ya rchRiver

S t R ee tC a R

Courtesy of MODOT and IDOT

11BaCK to taBLe oF ContentS

S a f e t Y

in DeVeLOPMent:

new POLiCe

heADquArterS—

2014: $6.3 Million /

143,000sf / 7 stories

In 2013, theDowntownCorecontinuedtobecomesafer.Thecombinedtotalnumberofcrimesfellslightlybetween

2012and2013,and38%since2007.Securitywasenhancedbysupplementalpatrolsofofficersonbicycles,ashas

beenthecaseeveryyearsince2000.In2013alone,bikepatrolsprovidednearly2,200hoursofadditionalservice

overwhatofficersinvehiclesalreadyprovide.f TheDowntownCommunityImprovementDistrictGuidescontribute

tothesenseofsafetyinDowntown.TheprimaryroleoftheseuniformedGuidesistoprovideconciergeservicesto

downtownguests,andtheirpresencesignalstovisitorsthatsomeoneisincharge.TheCIDGuidesalsomonitorthe

systemof84videocamerascoveringDowntown,Laclede’sLanding,theLocustBusinessDistrictandtheRiverfront.In

doingso,theyareoftenabletoassistlawenforcementduringandafteracrimetakesplace.

CRIme s

CombIneD CRIme ToTal foR DoWnToWn CoRe

2000

2200

2400

2600

2800

3000

2013201220112010200920082007

CRImes In DoWnToWn CoRe

DoWnToWn

DoWnToWn We s T

500

750

1000

1250

1500

1750

2000

2013201220112010200920082007

S t L P oL ICe He a DQUa R t eR S

C I t Yg a RDen

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e D U C at I o n

Dolan & Associates Photography

Over 5,000 students

and 600 Faculty

Downtown

SCHooLS LeveL

DowntownChildren’sCenter Preschool

RainbowCastlePreschool Preschool

FlanceCenter Preschool

CarrLaneVisualandPerformingArts K-8

GatewayElementary/Middle K-8

JeffersonElementary K-8

LafayettePreparatoryAcademy K-8

PatrickHenryDowntownAcademy K-8

SLLIS–FrenchSchool K-8

St.NicholasElementary/Middle K-8

ConfluencePreparatoryAcademy Secondary

LindenwoodUniversity Post-Secondary

SLULaw Post-Secondary

StevensInstituteofBusiness&Arts Post-Secondary

UniversityofPhoenixLearningCenter Post-Secondary

Vaterott-St.LouisRecordingEngineering&Arts(NellyInstitute)

Post-Secondary

WebsterUniversity Post-Secondary

DoWnToWnSt.Louishasseventeeneducationalinstitutionsofferingservicesthatrangefromdaycareto

post-graduateclasses.Nevertheless,theDowntownNext2020Visionestablishedagoaltoseekandsupport

additionaldowntowneducationalopportunitiesatalllevels.In THe pasT TWo yeaRs, DoWnToWn Has

aDDeD twO, highly regarDeD charter elementary SchOOlS (St. lOuiS french language immerSiOn

SchOOl anD lafayette preparatOry acaDemy); a State-Of-the-art early chilDhOOD eDucatiOn

center (flance early learning center); anD the natiOnally recOgnizeD Saint lOuiS univerSity

laW sCHool.WebsterUniversityhasjustannouncedplanstomorethandoubletheirdowntown“GatewayCampus”

witha54,000sfexpansionintotheArcadeBuilding.Planningisunderwayforneworexpandedpresencebyseveral

otherregionaleducationalinstitutions.

S Cot t H a L L : S LU S CHooL of L aw

fL a nCe Cen t eR

tHe PaRtneRSHIP foR Downtown

St. LoUIS SeRVeS aS a CataLYSt for

creating and promoting a downtown

that attracts investment, economic

activity and vibrancy at the hub of our

region. the Partnership also manages

the Downtown St. Louis Community

Improvement District (the CID) that

provides enhanced services to make

Downtown St. Louis a cleaner, safer

and more inviting place.

for information about membership,

please call 314-436-6500 or visit

www.downtownstl.org.

for questions about the State of

Downtown report, call 314-436-6500

or email research@downtownstl.org.