St. Louis Office Market
Absorption in the first quarter of 2024 totaled negative 190,589 SF. This was a retraction from the fourth quarter of 2023, which realized the largest quarter of net absorption during the previous three years. Net absorption during the past four quarters totaled 379,299 SF. The non-owner-occupied construction pipeline has trended downward since the first quarter of 2023 due to recent deliveries and sharply decelerating new starts. There is currently 41,000 SF under construction. Vacancy increased 10 basis points to 14.6% during the quarter due to a slight decrease in leasing activity. Vacancy is expected to increase to 15.0% as the market continues to recalibrate. Asking rental rate growth for the overall market year over year has been stagnant, totaling only 0.2%.
Download St. Louis Office Market Report 1Q24
St. Louis Industrial Market
Net absorption in the first quarter of 2024 totaled negative 1.1 million SF. Total net absorption during the past four quarters was 371,710 SF. The market is recalibrating as the economy slows and construction deliveries outpace net absorption, reversing the trend of the last two years. The 2.5-million-SF construction pipeline has trended downward over the past two quarters and is expected to accelerate towards 3.2 million SF in the next four quarters. Vacancy increased 60 basis points to 5.4% during the quarter as deliveries outpaced absorption. Asking rental rate growth for the overall market year over year has been below average, totaling only 1.7%.
Download St. Louis Industrial Market Report 1Q24 Download St. Louis Retail Market Report 4Q23 Download St. Louis Capital Market Report 4Q23