ST. LOUIS — Peabody Energy is heading to the suburbs, the latest company to leave downtown St. Louis.

Peabody, the nation’s largest private coal producer, plans to relocate next year from its eponymous building at 701 Market Street to an office off Manchester Road and Interstate 270 in Des Peres.

The impending move follows concerns from just a few years ago that the company would leave downtown after gunfire had broken several of the building’s windows.

The loss of a high-profile company like Peabody undercuts boosters’ efforts to change the narrative that downtown has not been abandoned by the business community and is, in fact, improving.

Peabody — which has been headquartered in the central business district since the 1950s, once calling it “the place we want to be” — confirmed the move Friday.

“Peabody has been a proud corporate citizen of St. Louis since the 1950s, and we look forward to our ongoing commitment as we continue to host our global headquarters in the area,” a spokesperson said.

No layoffs are planned as part of the move, the company added.

St. Louis officials thanked Peabody for its contributions to downtown.

“City leaders will continue ramping up efforts to continue to meet with downtown businesses in an effort to keep businesses downtown and attract new ones,” city and economic development officials said in a statement.

More than a handful of prominent companies have left downtown since the pandemic, including global public relations firm FleishmanHillard, the Polsinelli law firm, the state of Missouri, and television stations KSDK (Channel 5) and KMOV (Channel 4).

Downtown has been a soft market for decades. The pandemic laid bare just how soft, as remote work emptied office buildings and streets, choking a key demographic for storefronts still in the central business district.

Office occupancy fell three percentage points to 74.6% in the third quarter of this year compared to 2023, according to research from commercial real estate firm CBRE.

Boosters like Greater St. Louis Inc. had thrown their weight behind measures aimed at helping to revitalize downtown: hosting socials, hiring downtown visitor guides to “add a sense of security,” and buying the historic Wainwright Building after the state announced its departure.

It also partnered with the city’s economic development agency on a retail incentive program that gave money to about 11 businesses last year.

Greater St. Louis Inc. said it was glad to see Peabody keep its headquarters in the region.

“We are excited by the momentum we are seeing in downtown St. Louis,” the organization said in a statement. “We look forward to working with our partners and the building’s owner to attract new tenants for the space and continue downtown’s revitalization.”

In Des Peres, Peabody will lease two floors at the 270 Building, at 1245 J.J. Kelley Memorial Drive, which is part of the campus for financial services firm Edward Jones.

Edward Jones bought the building in 2021 for $47.6 million, St. Louis County records show. It has just begun leasing it to outside companies.

“As we’ve shifted to a hybrid working model over the last several years, we are seeking new ways to use the space,” a spokesperson for Edward Jones said in an email. “We are actively marketing the building to tenants looking for a first-class building in a great location in St. Louis County.”

Online marketing materials show lease rates at $28.50 a square foot, a few dollars more than average rents in west St. Louis County.

Peabody’s departure is not expected to reshape the downtown office market.

At its peak, Peabody had several offices in the central business district, most notably at 301 North Memorial Drive, near the Arch and Interstate 44.

It later moved to 701 Market Street, now known as Peabody Plaza, and occupied nine floors before downsizing.

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