Scott Cordes, Josh Gabriel, Hunter Johnson and Ryan O’Rourke have all been promoted.

Cordes specializes in industrial sales/leasing, while Gabriel and Johnson both specialize in office sales/leasing. O’Rourke’s specialty is tenant representation for office, industrial and retail clients.

Piers Pritchard

Like most Midwest cities, St. Louis suffered through its share of pain during the Great Recession and its painfully slow recovery. Today, though, the city appears to be on the rebound. And that includes its commercial real estate market. Midwest Real Estate News recently spoke with Piers Pritchard, a vice president and principal at the St. Louis office of Cassidy Turley. Pritchard had plenty of positive news to share regarding this Midwest city’s commercial real estate market.

Midwest Real Estate News: This is a pretty broad question, but are you seeing things getting better in the commercial real estate market these days in St. Louis?
Piers Pritchard: Yes. We saw some good momentum at the end of 2011. In the second half of this year, that momentum has continued. Some of the good news comes from our local companies. We have several local companies, from recent start-ups to our Fortune 500 companies, who are adding jobs and committing to additional space. These companies are furthering their commitment to the St. Louis metro area.

MWREN: It’s good to see that commitment from local companies.
Pritchard: It is. We won’t see that absorption until 2012. That’s when we’ll see the space actually being occupied. But we are seeing good momentum in St. Louis right now. The total square footage that those tenants are looking for is 11 percent more space than they currently occupy. That’s a good formula. We are feeling good and optimistic about 2012.

MWREN: Why do you think you’re seeing these improvements now.
Pritchard: I think St. Louis is a pretty fundamentally sound city. We do not have the boom/bust of the bigger cities on the coasts. We don’t’ see the highest of highs or the lowest of lows. When we are seeing a recovery, as we are now across the country, St. Louis is almost always positioned well to recover because we don’t have the big swings like some of the bigger cities. We also have a good foundation of corporate citizens. Some of our largest employers are adding jobs and more space.

MWREN: What commercial sectors are performing better than others?
Pritchard: The big thing everyone is talking about is healthcare. St Louis is actually pretty heavy on healthcare. That’s a good thing from our perspective. It’s one of those segments that hasn’t slowed during the recession. We’ve seen growth. We think that will accelerate.

MWREN: What other property types are doing well right now?
Pritchard: Some property types seem to be in the last stages of the downfall. Others seem to be in the first stages of recovery. Industrial has seen the most significant recovery so far. The St. Louis area has seen a couple of large deals. Walgreen’s occupied 500,000 square feet last year. Procter & Gamble expanded in the area. There has also been a strong demand for rental units. It’s hard to purchase a home because of stricter lending standards. The multi-family market coast to coast is doing well. That is the case here in St. Louis as well.

MWREN: Multi-family seems to be doing well in all the Midwest markets that we cover.
Pritchard: From an investment perspective, there are two product types doing well now. One is core, well-leased, good-credit-tenant big retail projects that are grocery anchored. Big retail centers of that kind are doing well. And the multi-family segment is also doing well.

MWREN: What about retail? How is that segment performing today?
Pritchard: Retail is slow and steady. We have optimism going forward. What we’ve seen in the last couple of years has been a flight to quality from lesser B- and C-class properties to Class-A properties on the retail side. Those B and C type properties have been vacated or have been converted to different types of uses. An old retail center could become a church or a school or very inexpensive office space. The owners of lesser-quality retail space have had to be creative in attracting tenants, in recouping that income from tenants that have vacated.

MWREN: Since the start of the recession, we’ve seen plenty of these creative re-uses across the Midwest.
Pritchard: It is a trend that we have seen. And it’s not just on retail. You’ll also see light industrial, flex spaces and office/warehouse spaces that may have had more of a typical type of use that are now being converted into something different. From a landlord’s perspective, they just want their space leased.

MWREN: Looking ahead, what do you see occurring in the world that might actually derail the recoveries we are seeing in most Midwest markets?
Pritchard: Everyone is still on edge. We are still optimistic and we do believe that the momentum we’ve seen can carry us in the right direction. But recent history has everyone a little nervous. Everyone is very cautious in their optimism. We have political issues and the presidential election in November to worry about. There are a lot of things that are teetering in Washington. Who will be president is one of them. This could all have an impact on what happens nationally.

MWREN: Do you think the recovery in St. Louis will continue in 2012 and beyond?
Pritchard: Our economy here is pretty diverse. We are not completely dependent on any one industry. Healthcare is a growing trend in St. Louis, but we are not completely dependent on healthcare. We have manufacturing. We have IT companies here. We have a strong market with lawyers and accountants and other professionals. We are not dependent on one segment of the market. That will help our recovery. We are all about slow and steady. St. Louis is about not hitting the high highs or low lows.

The NAI Global network includes NAI companies across the Midwest, including such familiar names as Chicago’s NAI Hiffman, NAI Ruhl & Ruhl Commercial Company in Iowa, NAI DESCO in St. Louis and NAI Daus in Cleveland.

Commercial real estate services company C-III specializes in primary and special loan servicing, loan origination, fund management, CDO management, principal investment, title services and multi-family property management.

Andrew Farkas, the chief executive officer who leads C-III, was also the founder and chairman and chief executive officer of Insignia Financial Group. C-III is based in Irving, Texas, with additional offices in New York; Greenville, S.C.; McLean, Va.; Chicago; Dallas; and Nashville.

The acquisition doesn’t appear likely to change the way NAI affiliates across the Midwest will operate. NAI Global will continue to operate as a separate company under its current management. C-III officials, though, did say in a press release that the company will look to grow NAI Global by exploring business opportunities in strategic locations, including New York, London, Singapore and other primary global business centers.

“The completion of this transaction represents a significant step forward in our strategy to build a fully diversified commercial real estate services company,” Farkas said in a written statement. “With the NAI Global acquisition, we are gaining the world’s leading commercial real estate network and a tremendous foundation for future growth.”

Officials with NAI Global also expressed excitement over the new arrangement.

“We are thrilled to be joining forces with C-III and excited about the opportunity to deliver an even broader range of services to our members and add greater value to our collective corporate and investment clients,” said Jeffrey Finn, president and chief executive officer of NAI Global, in a written statement. “We look forward to tapping into their extensive resources and expertise to assist all of our clients in strategically optimizing their commercial real estate assets.”

NAI Hiffman chief executive officer Dave Petersen said that he expects the benefits of the transaction will translate to new real estate assignments for the company’s local office and will create added opportunities for existing clients and shareholders.

“The best aspect of this transaction is that its greatest value will be seen at the ground level in the form of property management, leasing and investment sales opportunities,” Petersen said.

Founded in 1977 by Gerald Finn, NAI Global has grown from covering 15 countries in 1999 to a network that now boasts 350 offices in 55 countries, with more than 300 million square feet of commercial space under management.

C-III started its operations when it purchased Centerline Capital Group’s institutional real estate debt fund management and commercial mortgage loan servicing businesses in March of 2010. Since that time, C-III has launched mortgage origination, investment sales and title insurance businesses, and expanded its principal investment, loan origination, fund management and primary and special loan servicing businesses, including acquiring the special servicing and CDO management businesses of JER Partners in August of 2011.

“Gina’s track record, knowledge of the market and work ethic coupled with the CBRE investment platform will make her a strong force in this market,” said Mike Klamm, managing director for CBRE, Kansas City.  “Gina’s current connections and ability to team with some of the top capital market professionals in the nation will elevate her game.”

Anderson is in her 25th year of commercial real estate service.  She has worked with leading institutional real estate owners such as Aetna and Travelers and on local properties Corporate Woods Office Park and The Country Club Plaza.   She serves on the local board of Goodwill Industries.

Laura Newman

Laura Newman recently joined the St. Louis office of CBRE as a senior real estate manager. She will be headquartered at The Plaza in Clayton, Mo.

Newman oversees about 326,000 square feet of Class-A office and retail space in downtown Clayton. Her responsibilities include budgeting and finance reporting, overseeing the daily operations of the building and ensuring tenant satisfaction.

The Village at Mission Farms -- a 212-unit multi-family project for the suburb of Leawood -- is just one project set to come online in the Kansas City area in 2012.

Block’s researchers said that the end of 2011 brought more than a few glimmers of hope that a slow but steady recovery is in store for Kansas City in 2012. Unfortunately, this recovery is best described as shaky. After all, there’s an economic crisis going on in Europe and unending political infighting in Washington. Both could derail improvements in 2012.

The hope, though, lies largely in the return of jobs to Kansas City, according to the Block Real Estate Services’ report. The Kansas City metropolitan area lost more than 100,000 jobs from 2001 to 2011. But the metro area is expected to add 19,100 jobs in 2012 and, in even better news, 36,700 in 2013.

Again, though, this good news comes with a healthy dose of reality. According to the Block report, even with this job growth, the Kansas City metropolitan area won’t return to its pre-recession employment level until the end of 2014. For those keeping track, that’s more than six long years after the country’s Great Recession officially began.

Still, the Block report does provide plenty of reasons for optimism. Like most Midwest markets, Kansas City is seeing activity increase in most commercial real estate sectors. Multi-family continues to outshine other sectors, but the rest of the commercial industry is slowly rebounding, too.

As the major commercial real estate players in markets across the Midwest release their own 2012 predictions, expect them to be similar to the ones made by Block Real Estate Services. The main point is this: Yes, the commercial real estate industry is recovering. But the recovery is a slow one.

It’s not the good news that we all want, but it is good news, nonetheless.

Rotty began her career with Tarlton in 2005. She was named to the St. Louis Business Journal’s 30 Under 30 Class of 2009, recognizing her professional accomplishments and community service, and is a member of the Engineers’ Club of St. Louis and the Society of Women Engineers.

Rotty became a LEED Accredited Professional in 2008.

“Sondra has played a key role in several Tarlton projects,” said Tracy Hart, president of Tarlton. “In addition to her strengths as an engineer, she is a highly motivated team member who really gets involved in everything she does. Sondra is an outstanding role model for women in construction.”

Rotty served as senior project engineer on the Hardin-Tarlton joint venture team that last year completed the new 500,000-square-foot National Personnel Records Center in St. Louis for the U.S. General Services Administration and the Molasky Group of Companies. In addition, she served as project engineer for Tarlton’s build-out of the GSA’s Rush Hudson Limbaugh Sr. U.S. Courthouse in Cape Girardeau and for construction of Seigle Hall at Washington University in St. Louis. All three are LEED certified or registered projects.

In August of 2010, Park University retained Hakes Real Estate to market and lease the vacant space in its 1-million-square-foot Parkville Commercial Underground. At the same time, Martin Properties became the property manager and is now responsible for tenant relations and management for the university’s underground asset.  Martin has worked with University employees to upgrade signage, support systems, safety and the appearance of the Parkville Commercial Underground.

Parkville Commercial Underground 1-million-square-foot business park located beneath the Park University campus.  The developed space in this underground is suitable for many uses ranging from warehouse and distribution to light manufacturing and back-office operations.

HFF marketed the property on behalf of the seller, Gulfstream Capital Partners.  Education Realty Trust purchased 3949 Lindell for an undisclosed amount free and clear of debt.

3949 Lindell is located across from St. Louis University and near Forest Park and the Washington University Medical Center.  Completed in 2008, the four-story property has studio, one- and two-bedroom furnished units that average 894 square feet each.  Street-level commercial space at the property totals 13,083 square feet.  Community amenities include a swimming pool, business center, fitness center, tanning salon and assigned garage parking.

The HFF investment sales team representing Gulfstream Capital Partners was led by managing director Sean Fogarty, executive managing director Matthew Lawton and managing director Marty O’Connell.

The Sam’s Club will be one more addition to the new 85,000-square-foot retail power center. The retailer is expected to break ground this February. The store is scheduled to open in the fall of 2012.

David Block and Becky Goodman of Block & Company represented the seller, Plaza Speedway LLC. Bob Johnson at RH Johnson represented the buyer.

The Plaza at the Speedway is already home to Walmart Supercenter, Best Buy, Kohl’s, Olive Garden and other retailers.