St. Louis Industrial Market – 4Q25
The market loosened with negative 2.1 MSF of net absorption recorded during the quarter, bringing the total for 2025 to negative 2.2 MSF. The negative absorption was primarily due to Proctor & Gamble’s 806,400-SF move-out at 3 Gateway Commerce Center East and Save-A-Lot’s exit from 420,000 SF at 29 W Gateway Commerce Dr. The construction pipeline currently stands at 4.5 MSF, with 89% consisting of build-to-suit (BTS) projects. Speculative construction is expected to remain modest in 2026. Vacancy climbed 100 basis points to 5.4% in 2025, on par compared to other U.S. industrial markets which experienced 70+ bps increases during the same time period. Although vacancy recently peaked above 5%, the market has enjoyed relative stability since 1Q23, supporting future rental rate growth fundamentals and spurring developers to explore select development options.
- Average Asking Rent: $6.03/SF
- Vacancy Rate: 5.4%
- Net Absorption: -2,115,927 SF
St. Louis Office Market – 4Q25
The market loosened during the quarter with negative 486,900 SF of net absorption, bringing the 2025 total to negative 616,607 SF. This marks eight out of the past twelve quarters with negative absorption, as tenants continue to reassess market conditions. The construction pipeline has remained inactive since the third quarter of 2022, with 231,870 SF currently under construction. Vacancy increased 70 basis points to 14.2% in the quarter due primarily to Anthem Blue Cross and Blue Shield in Missouri’s 330,000-SF exit from 1831 Chestnut St. in Downtown West. Vacancy is expected to range from 14.0% to 14.5% in 2026. Average asking rental rates declined to $22.25/SF in the quarter. Rates are projected to remain flat in 2026.
- Average Asking Rent: $22.25/SF
- Vacancy Rate: 14.2%
- Net Absorption: -486,900 SF
St. Louis Retail Market – 4Q25
St. Louis faced headwinds in the fourth quarter of 2025 as local consumer sentiment continued to drop. Net absorption registered negative 566,290 SF in 2025 as tariff-driven uncertainty continues to affect leasing activity, particularly in discretionary retail categories. Regional tenants have become more cautious, lengthening deal timelines and demanding additional landlord concessions. Retail landlords in St. Louis are navigating a more restrained climate. Construction and operating costs continue to climb, and tenants are requesting shorter lease terms or increased flexibility to manage potential slowdowns.
- Average Asking Rent: $14.10/SF
- Vacancy Rate: 4.0%
- Net Absorption: -357,166 SF
St. Louis Capital Markets – 4Q25
The pace of investment activity in the St. Louis market slowed in 2025, with sales volume totaling $2.0 billion, a decrease of 36.5% compared with the prior five-year average. As a leading second-tier market, the St. Louis Metropolitan area ranked eighth out of the largest 13 Midwest markets in total sales volume during the past 12 months, with multifamily and industrial assets combining for 63.5% of the Metro’s activity.
- 12-Month Capitalization Rates: 7.65%
- 12-Month Total Sales Volume: $2.0 Billion