St. Louis Industrial Market
|Average Asking Rent (Price/SF)||$4.20|
|Vacancy Rate (%)||6.1%|
|Net Absorption (SF)||1,018,211|
The St. Louis industrial market was active in the fourth quarter of 2016, as 1.0 million square feet was absorbed. Overall vacancy decreased 10 basis points from the prior quarter to 6.1%, while average quoted rents increased to $4.20/SF from $4.35/SF. A total of 860,800 square feet of space delivered to the market during the quarter, while projects under construction remained significant, with 5.8 million square feet of product planned for delivery.
St. Louis Office Market
|Average Asking Rent (Price/SF)||$18.92|
|Vacancy Rate (%)||11.4%|
|Net Absorption (SF)||1,079,752|
The St. Louis office market realized an increase in asking rents during the fourth quarter of 2016, while overall vacancy decreased 150 basis points. Vacancy decreased 240 basis points over the past year, from 13.8% to 11.4%. The market experienced 1.1 million square feet of net absorption during the quarter and 1.9 million square feet over the past four quarters. A total of 845,000 square feet of product is currently under construction.
St. Louis Retail Market
|Average Asking Rent (Price/SF)||$11.92|
|Vacancy Rate (%)||6.0%|
|Net Absorption (SF)||336,278|
Metropolitan St. Louis retail vacancy rate decreased to 6.0% during the fourth quarter of 2016. Following a robust fall shopping season, the overall St. Louis market has tightened over the past year, realizing a 50-basis-point drop in vacancy. Demonstrating the growing strength of the local retail market, over 1.5 million square feet of net absorption occurred during the past four quarters. The average quoted rental rate was $11.92/SF, down $0.22/SF from the previous quarter and unchanged from the prior year. With decreasing vacancy and substantial net absorption and deliveries, the metropolitan St. Louis retail market continues to show signs of improvement and is well-positioned going into 2017.