St. Louis Office and Industrial Reports

St. Louis Office Market Report

As we move into the latter half of 2024, the office market in St. Louis is showing signs of stabilization. Over the past year, demand for office space has reached 860,000 square feet, marking a significant increase after a prolonged period of occupancy decline. This positive change is primarily due to increased owner occupancy. However, this alone may not be sufficient to counter the overall trend of shifting office usage patterns, as the first two quarters of 2024 have seen negative absorption rates. Consequently, the leasing market’s outlook remains uncertain, with job growth in the three main office-occupying sectors continuing to decline through the end of May, according to data from the Bureau of Labor Statistics.

St. Louis Industrial Market Report

Industrial tenant demand in St. Louis has slowed over the past year, but space availability remains slightly below the long-term average, avoiding the supply pressures seen elsewhere in the country. The St. Louis industrial market has resisted the national trend of rising vacancy rates over the past 18 months. The local tenant base has grown, yet softer macroeconomic conditions have impacted leasing. Leases signed have been smaller, mainly between 50,000 and 150,000 square feet, with tenants from the auto, consumer products, and packaging industries, primarily along the I-270 corridor.