St. Louis Real Estate Market Reports

St. Louis Office Market

The market tightened during the quarter with 120,441 SF of net absorption, bringing the four-quarter total to 531,811 SF. This marks three consecutive quarters of positive absorption, as tenants continue to capitalize on favorable conditions. The Clayton and West County submarkets registered 317,143 SF and 313,271 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 53,700 SF currently under construction. Vacancy declined 10 basis points to 12.9% during the quarter and is expected to remain stable in 2025 as the market recalibrates. Year-over-year, asking rental rates held steady, dropping by $0.01 to $22.76/SF.

St. Louis Industrial Market

Net absorption in the first quarter of 2025 totaled 1.1 MSF, bringing the past four quarters’ total to 5.3 MSF. This marks four consecutive quarters of positive absorption, as tenants capitalize on favorable conditions. The construction pipeline currently stands at 3.0 MSF, with 83% consisting of build-to-suit (BTS) projects. Speculative construction is expected to remain limited in 2025. Vacancy decreased 30 basis points to 4.1%, supported by positive net absorption from various mid- and large-sized deals in the Metro East and St. Charles County submarkets. This stable vacancy rate supports rental rate growth fundamentals and is likely to encourage developers to break ground on select projects in 2025.