HEARTLAND SNAPSHOT, JANUARY 2006

St. Louis Retail Market

Presently, the retail development trend in St. Louis leans toward mixed-use and lifestyle developments, as well as the continued development of traditional community power centers and neighborhood grocery-anchored properties. According to Mike Swearngin, leasing associate with Pace Properties, the majority of new developments are taking place in western St. Charles County and southwestern St. Louis County, with selected infill redevelopments happening in the central portion of St. Louis County.

The Boulevard St. Louis, the first mixed-use lifestyle development in the metropolitan area, is one of several significant developments in St. Louis. The project, which is being developed by Pace Properties, has introduced several new upscale tenants to the market, including Crate & Barrel and Maggiano's Little Italy. Once completed, the project will encompass approximately 14 acres and 250,000 square feet of retail. In addition to the retail, Phase I has plans for 74 apartment units and Phase II is proposing 145 condominiums and a full-service hotel. “The development is adjacent to the St. Louis Galleria, the Number 1 regional mall in St. Louis, and is highly visible from both Interstates 40 and 170,” Swearngin says.

“The Shoppes at Hawk Ridge and Dardenne Town Square, [which are] both located in west St. Charles County, are changing the dynamics of this trade area,” Swearngin adds. Hawk Ridge will introduce the first Wal-Mart Supercenter in the St. Louis MSA on the Missouri side of the river and is co-anchored by Lowe's Home Improvement Warehouse. There will also be opportunities for numerous junior anchors, small shop tenants and restaurants. Dardenne Town Square, located across the highway, will include a Target, Shop ‘n Save and a Wehrenberg Theatre. “The critical mass of these two projects will challenge the current regional retail of the county that is clustered along Interstate 70,” Swearngin says. “Consumers who reside in west St. Charles County will no longer need to travel east to locate regional retailers.”

On the Illinois side of the river, the cities of Edwardsville and Shiloh are seeing multiple new retail developments. “The Dierbergs-anchored Edwardsville Crossing in Edwardsville will be creating a second, true retail node in the Metro East (Illinois) side of the market,” Swearngin says. The Dierbergs-anchored Green Mount Crossing in Shiloh and the proposed lifestyle center in front of the St. Clair Square regional mall continue to expand and improve the quality of tenants occupying the retail node in Fairview Heights, Illinois.

The proposed Manchester Highlands, a Pace Properties development on Manchester at Highway 141, will consist of approximately 400,000 square feet of first-class retail categories, such as linens, books, electronics, home furnishings, and several high-end restaurants. Manchester Highlands is slated to open second quarter 2007.

Retailers new to the St. Louis market include Carrabba's Italian Grill, Trader Joe's, Kuhlman, Crate & Barrel, Jared The Galleria of Jewelry, American TV and Appliance, Ashley Furniture, Ben & Jerry's, Kabloom, Flemmings and Ruth's Chris Steakhouse.  

Swearngin advises people to keep an eye on the Clayton/Galleria Trade Area, Manchester Road, Chesterfield Valley and west St. Charles County. “The Clayton/Galleria trade area is the strongest retail node in St. Louis,” he says. The area is centrally located and is easily accessible from both the major east/west and north/south arteries. The residential density and income levels are strong. In Chesterfield, the Chesterfield Commons power center is the largest in St. Louis, and the project continues to grow each year. The Manchester Road area has historically been the main east/west retail artery of West County. Most retailers with locations in Chesterfield and the St. LouisGalleria target Manchester Road between Interstates 141 and 270 due to its mid-point location between those two large retail corridors. West St. Charles County continues to benefit from the urban sprawl that is taking place, thus resulting in high residential growth and an increased demand for retail services.

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