St. Louis Real Estate Market Reports

St. Louis Office Market

The market tightened during the quarter with 33,245 SF of net absorption, bringing the four-quarter total to 393,671 SF. This marks six out of the past nine quarters with positive absorption, as tenants continue to capitalize on favorable conditions. The West County and Downtown submarkets registered 341,630 SF and 130,484 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 41,000 SF currently under construction. Vacancy declined 10 basis points to 13.0% during the quarter and is expected to remain stable in 2025 as the market recalibrates. Year-over-year, asking rental rates dropped by $0.26 to $22.62/SF.

St. Louis Industrial Market

Net absorption in the second quarter of 2025 totaled negative 880,985 SF, bringing the past four quarters’ total to 3.7 MSF. This marks the reversal of four consecutive quarters of positive absorption, as tenants capitalized on favorable conditions. The construction pipeline currently stands at 3.7 MSF, with 69% consisting of build-to-suit (BTS) projects. Speculative construction is expected to remain limited in 2025. Vacancy increased 30 basis points to 4.5% in 2Q25 but has decreased 80 bps year over year, driven by positive net absorption from various mid- and large-sized deals in North County, 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 during the next four quarters.