St. Louis Office Market
| Average Asking Rent (Price/SF) | $22.03 |
| Vacancy Rate (%) | 13.2% |
| Net Absorption (SF) | -213,654 |
The St. Louis office market realized a decrease in asking rental rates in the fourth quarter of 2021, as rents fell $0.06/SF from the record high of $22.09/SF in the third quarter of 2021. While the overall trend in asking rental rates since the second quarter of 2019 continues to rise, tenants are often seeing more concessions in the form of free rent and tenant improvement allowances to offset the increase, as well as longer lease terms to accommodate the ever-increasing construction costs. Market vacancy increased 20 basis points to 13.2% from the prior quarter and an increase of 150 basis points from one year ago. Total net absorption in the quarter measured negative 213,654 square feet, bringing the total for the past four quarters to negative 1.1 million square feet. One construction project underway during the quarter totaled 224,585 square feet. The Class A Forsyth Pointe project in Clayton is currently 42.6% pre-leased. No projects were delivered to the market during the quarter.
St. Louis Industrial Market
| Average Asking Rent (Price/SF) | $5.02 |
| Vacancy Rate (%) | 4.1% |
| Net Absorption (SF) | 636,248 |
The St. Louis industrial sector tightened in the fourth quarter of 2021. During this period, the market realized positive absorption of 636,248 square feet. Overall vacancy decreased 10 basis points from the prior quarter to 4.1%, while average quoted rents significantly increased from $4.84/SF to $5.02/SF. One property, Gateway TradePort 3, delivered 624,350 square feet of product to the market during the quarter. Developments under construction increased significantly to 6.6 million square feet, as NorthPoint Development, the Sansone Group, TriStar Properties and Panatonni Development Company, Inc. began construction on various speculative projects. The market registered the second-highest amount of total net absorption for a period of one year during the past decade. Net absorption totaled 8.2 million square feet for the past four quarters, equating to a 100% increase from the annual average net absorption of 4.1 million square feet during the previous five years.
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