St. Louis Industrial Market
|Average Asking Rent (Price/SF)||$4.51|
|Vacancy Rate (%)||6.4%|
|Net Absorption (SF)||539,792|
The St. Louis industrial market was active in the second quarter of 2017 as 539,792 square feet was absorbed. Overall vacancy increased 20 basis points from the prior quarter to 6.4%, while average quoted rents increased from $4.43/SF to $4.51/SF. A total of 1.8 million square feet of space delivered to the market during the quarter, while projects under construction remained significant, with 2.9 million square feet of product planned for delivery.
St. Louis Office Market
|Average Asking Rent (Price/SF)||$18.94|
|Vacancy Rate (%)||10.6%|
|Net Absorption (SF)||147,059|
The St. Louis office market saw an increase in asking rents during the second quarter of 2017, while overall vacancy decreased, falling 20 basis points. The market experienced 147,059 square feet of net absorption during the quarter and 1.2 million square feet over the past four quarters. A total of 335,000 square feet of product is currently under construction.
St. Louis Retail Market
|Average Asking Rent (Price/SF)||$12.10|
|Vacancy Rate (%)||5.40%|
|Net Absorption (SF)||-167,461|
The overall St. Louis retail market has tightened over the past year, realizing a 30-basis-point drop in vacancy. Demonstrating the strength of the local retail market, over 1.0 million square feet of net absorption occurred during the past four quarters, with nearly 3.5 million square feet absorbed over the past two years. The average quoted rental rate measured $12.10/SF, down $0.03/SF from the prior year. Although the market is showing positive indicators including decreasing vacancy rates and substantial net absorption during the past year, the metropolitan St. Louis retail market slowed over the past two quarters. In the local retail market, Bob’s Discount Furniture and Bonobos strengthened the brick-and-mortar sector during the second quarter of 2017, while Hilton announced a new location.