St. Louis Q4 2018 Market Report
For office occupiers, 2018 culminated with record high rental rates, higher construction costs, and a lack of new, higher quality inventory in many submarkets. This, coupled with stiff competition for new hires due to a 50-year low in unemployment at 3.2%, has companies scrambling and paying higher wages.
The industrial market extended its run of positive absorption for over 2 years while maintaining a healthy overall vacancy of 4.3%. Despite the 4.2M square feet of new industrial space underway, developers remain bullish in the near term. This additional product should provide users with more choices than in prior years.