St. Louis Q3 2018 Market Report
In Q3, it was announced $8+ billion in projects were recently finished, underway, or planned within the City. This investment, coupled with other projects across the metro area, reflects a very positive outlook.
The industrial market showed its mettle with net absorption of over 2M SF and 6M+ SF more underway. While overall vacancy declined to 4.2%, caution remains if the economy slows or if tariffs impact commerce. However, developers remain bullish with many other large-scale projects planned across the region, including Tradepoint, a new 3.2M SF business park now underway in North County.
Office experienced an increase in large blocks of space, and with no true speculative development, these options will be in great demand. Clayton and Cortex remain the hot submarkets and command the highest rental rates. In the suburbs, this demand led to Franklin Street purchasing the former Scottrade HQs which is now available for lease.