St. Louis Office Market
Absorption in the second quarter of 2023 totaled 14,131 square feet. This was the best quarter total compared to the previous six quarters, as tenant demand has decreased since the third quarter of 2020. Total net absorption during the past four quarters totaled negative 1.2 million square feet. The 107,000-square-foot construction pipeline trended downward from the first quarter of 2023 upon recent deliveries and sharply decelerating new starts. Vacancy and rent both increased year-over-year. Vacancy increased to 15.2%, as negative net absorption continued across multiple submarkets. Higher-priced space delivering to the market during the past year, combined with solid demand for prime Class A space, drove a slow but positive 12-month rent growth of 2.0%.Download St. Louis Office Market Report 2Q23
St. Louis Industrial Market
Absorption in the second quarter of 2023 totaled 1.3 million SF. This was a decent turnaround after a slow start to the year as the market realized negative 204,927 SF of absorption during the first quarter of 2023. Total net absorption during the past four quarters totaled 3.6 million SF, equating to a decrease of 34.9% compared with the average annual absorption during the pandemic period. The 2.8-million-SF construction pipeline trended upward from the first quarter of 2023 and is expected to accelerate towards 4.0 million SF throughout 2023 and 2024. Vacancy and rents both increased year-over-year. Vacancy grew to 4.6% as deliveries outpaced absorption. Higher-priced space delivered to the market and demand drove strong yet decelerating 12-month rent growth of 14.1%.