St. Louis Q1 2019 Market Report
The office market yielded mixed results. On one hand, St. Louis experienced higher vacancy rates and negative absorption suggesting a slowdown. Conversely, demand for new office product remains vibrant.
Centene's newest building is changing Clayton's skyline and is expected to be 100% pre-leased. Vacancies left by these tenants will create backfill opportunities. Urban office rehab projects like the Armory and City Foundry are also capturing their share of tenant demand. This mid-town renaissance remains active as Wexford kicks off another 300,000 SF building.
The industrial sector slowed with only 160,000 SF of net absorption, but remains healthy with a vacancy rate just below 5% for newer product. While more construction is planned, the demand is not broad-based which could result in longer lease-up periods.