St. Louis Industrial Market – 1Q26
The market loosened with negative 1.3 MSF of net absorption recorded during the quarter, bringing the past four-quarter total to negative 3.5 MSF. Vacancy climbed 50 basis points to 6.0% in the quarter due to multiple sizeable move-outs in the Metro East submarket 2025. Although vacancy reached 6.0%, the market has enjoyed relative stability since 1Q23 which supports future rental rate growth fundamentals. Asking NNN rental rates increased 3.4% year-over-year, with current rates climbing to $6.06/SF. The construction pipeline, currently at 3.9 MSF, is 89% build-to-suit versus 11% speculative. St. Louis, the 23rd-largest MSA by population, ranks 22nd in industrial market size, fourth in lowest direct asking rental rate, 10th in lowest under construction SF and 10th in lowest overall vacancy rate among the top 30 U.S. industrial markets.
- Average Asking Rent: $6.06/SF
- Vacancy Rate: 6.0%
- Net Absorption: -1,276,910 SF
St. Louis Office Market – 1Q26
The market recorded negative 545,870 SF of net absorption this quarter, bringing the four-quarter total to negative 1.0 MSF. Vacancy increased 70 basis points in the quarter, rising 140 basis points year over year to 15.0%. Vacancy is expected to range from 14.5% to 15.2% in 2026 as the market continues to recalibrate. Tenants maintain significant leverage across most Metro submarkets, though the availability of deeply discounted deals began to narrow as multiple firms finalized leases in 2025. Average asking rental rates declined from $22.24/SF to $22.17/SF in 1Q26. Rates are projected to remain flat over the next year, with some landlords opting to reduce rents rather than expand concessions amid limited liquidity.
- Average Asking Rent: $22.17/SF
- Vacancy Rate: 15.0%
- Net Absorption: -545,870 SF
St. Louis Retail Market – 1Q26
St. Louis slightly tightened in the first quarter of 2026, but local consumer sentiment continues to remain in check. Net absorption registered negative 179,870 SF in the past four quarters 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: $14.26/SF
- Vacancy Rate: 4.0%
- Net Absorption: 67,013 SF
St. Louis Capital Markets – 1Q26
The pace of investment activity in the St. Louis market accelerated over the past four quarters, with total sales volume reaching $2.4 billion, an increase of 6.1% year-over-year. As a leading secondtier market, the St. Louis Metropolitan area ranked seventh out of the largest 13 Midwest markets in total transaction volume over the past year, with industrial and multifamily assets accounting for a combined 67.1% of activity.
- 12-Month Capitalization Rates: 7.6%
- 12-Month Total Sales Volume: $2.4 Billion