MIDDLE MARKET HIGHLIGHT, JUNE 2007

Springfield
Dan Marcec

Throughout the Springfield, Missouri, commercial real estate market, solid growth is occurring. While the expansion isn’t explosive, so to speak, the breadth of development in different areas of the city and of various sectors is significant. Specifically, the Class A office market is strong, and from downtown to the suburbs, a lot of marquee projects are in the pipeline.

The two major industry categories in Springfield are the construction and mining field — as of now consisting mostly of construction activity — and professional and business services. The former sector has increased employment by more than 9 percent in the last year alone, and the latter field has seen an increase of almost 14 percent in the same time frame. Professional services such as architecture, design and engineering are a key component to supporting the commercial market.

“Springfield’s commercial sector is fairly diverse, not being dominated by one or two major employers or industries,” says Ryan Mooney, manager of business development for the Springfield Business and Development Corporation. “According to recent impact analysis of healthcare, logistics, manufacturing and higher education, we’ve determined that all of these sectors are significant, but none is dominant; this is important and a good thing for the city to keep an even keel and an upward trend.”

The Springfield Business and Development Corp. is the lead economic development organization for the community, partnering with the city and county in a common approach to engendering growth throughout the metropolitan area, which boasts a population of approximately 385,000. The main goal is to create quality jobs in all sectors, and overall, there has been solid numbers with regard to national and state trends in this area.

“Beyond the traditional business attraction and expansion, we recently started focusing on large retail development sites,” Mooney says. “Our metro area jumped by more than 250,000 in population in the 1990s, and a great wave of retail development hit at that point. Now we are seeing the next wave, and we want to encourage that growth.”

Several major developments currently underway are set to change the landscape of the Springfield market, starting with the construction of a new $120 million airport terminal at Springfield/Branson National Airport. The former terminal ran out of space to keep up with peak travel times, and the new construction will bring the airport higher capacity and efficiency.

Downtown redevelopment also is a key initiative for the city, as projects such as College Station — a $20 million, 14-screen movie theater with accompanying retail and parking — and the former Heers Building will revitalize the landscape of that area. The latter project is a 140,000-square-foot former department store that is expected to be converted to condominiums pending approval via feasibility studies. Another option would be a boutique hotel, but “either way, [the redevelopment is] a win for Springfield,” Mooney says.

The Jordan Valley Innovation Center, a partnership between Missouri State University and several private companies, recently received $30 million in federal funding for renovations.

Right next to downtown is Jordan Valley Park, where a new baseball stadium for St. Louis’ minor league baseball affiliate, the Springfield Cardinals, an ice skating rink and a conference center already exist, and more land is set aside for future development. The Jordan Valley Innovation Center (JVIC) — a partnership between Missouri State University and several private companies to produce high-tech products to research nanoscience and material science development — also has received $30 million in federal funding for renovations. John Q. Hammons, a prominent hotel developer headquartered in Springfield, has donated more than $60 million to MSU for a new sports arena.

On the retail side, developments located at James River Freeway and Campbell — one of the busiest intersections in the city — and Sunshine and West Bypass are in the development pipeline. Both projects are a significant distance from South Glenstone, which is the most vibrant retail area in Springfield.

“Looking ahead, I don’t see much of a slowdown in development across the city,” Mooney predicts. “When we look into our crystal ball, there is not much concern on the development front, and there’s plenty underway and on the pipeline to keep the market moving forward.”


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