St. Louis Real Estate Market Reports

St. Louis Office Market

The market loosened during the quarter with negative 392,241 SF of net absorption, bringing the four-quarter total to negative 65,588 SF. This marks six out of the past twelve quarters with positive absorption, as tenants continue to reassess market conditions. The West County and Clayton submarkets registered 237,894 SF and 200,984 SF of net absorption, respectively, over the past year. The non-owner-occupied construction pipeline has remained inactive since the third quarter of 2022, with just 69,000 SF currently under construction. Vacancy increased 50 basis points to 13.9% during the quarter but is expected to remain stable in 2026 as the market recalibrates. Year-over-year, asking rental rates dropped 3.3% to $22.28/SF.

St. Louis Industrial Market

Net absorption in the third quarter of 2025 totaled negative 193,343 SF, reducing the past four-quarter total to 760,670 SF. This marks the reversal of four consecutive quarters of positive absorption from 2Q24 to 1Q25, as tenants capitalized on favorable conditions. The construction pipeline currently stands at 4.4 MSF, with 94% consisting of build-to-suit (BTS) projects. Speculative construction is expected to remain limited in 2025. Vacancy climbed 20 basis points to 4.8% in 3Q25 and year over year, a decent result compared to other U.S. industrial markets which experienced 50+ bps increases during the same period. The stability in vacancy since 1Q23 supports rental rate growth fundamentals and is spurring developers to explore select development options.