On April 23, CCIM-STL's "Crane Watch: Projects Reaching New Heights" program provided insight into the future skyline of St. Louis. The event highlighted the city's growing construction sector, featuring Colleen Nigro, managing principal/shareholder at Remiger Design, who discussed their collaborative approach and essential role as trusted advisors to clients. Michelle Biedermann from Brinkmann Constructors introduced the speakers.
The Boeing defense company is starting a $2 billion expansion. “We’re already doing a lot of construction in St. Louis,” said Randell Gelzer Jr., director of government operations. “St. Louis is one of only two production sites. We have three distinct sites in the St. Louis region: a weapons facility in St. Charles; a new assembly building in St. Clair, IL; and a $40 million expansion in St. Charles.” The company has about 16,500 employees and 600 suppliers in Missouri for a “diverse set of products.”
At Lambert Airport, Boeing is working on two tracts of ground, at 109 and 48 acres respectively, for about 1.5 million SF of new construction and 500 new jobs, Gelzer said. “It’s all for advanced manufacturing purposes.”
In St. Charles County, “2023 saw 7.2 million SF of industrial, commercial and retail projects, new or underway — the highest level ever,” said Scott Drachnik, president and CEO of the Economic Development Council of St. Charles County. “I’m jazzed!”
Projects underway include the $85 million City Centre Complex at the old Rail Car property, which will feature city hall, shops, a senior center, a “brand-new road” and more. The St. Charles Riverpointe reverses history by placing high value on the riverfront and could result in $1 billion in development that is expected to attract about 700,000 people a year, in large part thanks to Chicken & Pickle, which recently opened.
The Regional Logistics Corridor (Highway 370) should generate 15,000–20,000 jobs, Drachnik noted. MEMC in O’Fallon, Mo., is seeing $300 million in expansion of its wafer production facility. GM’s Chevy Colorado project is the company’s “largest private investment in its history,” Drachnik said. Mercy Medical Center has a $650 million hospital going up in Wentzville, Mo.
The Regional Workforce and Technical Training Center in Wentzville aims to support the training, development, and skills that workers and employers will need. Historic Cottleville is undergoing improvements that should attract tourists, shoppers, and residents.
A building going up at the Duckett Creek Treatment Plant will mean a fourth center to serve 9,000 housing units, Drachnik said. “We are starting to see a massive increase in population” — 4,000 to 6,000 new residents a year.
In response to population and real estate activity, the county is conducting a five-year strategic plan with a grant from the Economic Development Administration. “We’re the top St. Louis SBA lender if you need to buy or renovate buildings, equipment, etc.,” Drachnik noted.
The area is also seeing a booming cold storage market, according to Adam Jansen, project director with Brinkmann Constructors. “The U.S. market value was $36 billion in 2013 and grew to $95 billion by 2023,” Jansen said. New technology and recent increases in demand are creating a need for new, larger, differently designed buildings that are taller and more sophisticated than in the past.
“Contributing to that growth is the rise in on-demand logistics, (the need to update or replace) outdated facilities — many are more than 37 years old, and strategic investment opportunities,” Jansen explained. “Buildings have to be expandable as companies get more tenants and customers.” In addition, “companies in the industry are expanding from trucking to warehousing.”
A 3.3 million SF speculative refrigerated storage space has been underway as of 2022. Coastal Carriers expects to be done with a 125,000-SF facility in Foristell, Mo, by the end of this year that will create 25 to 35 jobs, Jansen said, and will move its headquarters to Foristell in the near future.
In response to questions from the audience, Randell said Boeing is back to workers “essentially being onsite five days a week,” with some flexibility for remote work. “Our labor challenge is finding workers with (the necessary) security clearance and technical skills. We have a partnership with the community college to train people and are recruiting from (area military bases).” For the company’s future, “international sales are key.”
Jansen said the average cold storage site “has been tripling all along.”
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Feature photo credit: MWM STL | Ruth Thaler-Carter