Figures
St. Louis Industrial Figures Q1 2025
Strongest Quarter Of Net Absorption in Two Years Marred By Weak Leasing and Sales Activity.
April 2, 2025 5 Minute Read
Looking for a PDF of this content?
-Absorption experienced its strongest quarter since 2022 at 911,669 SF, ranking in the top 25% of Midwest markets, despite overall muted leasing activity in the region.
-Overall vacancy contracted to 4.9% in Q1 after flatlining for the majority of 2024 above 5%.
-Average direct asking rates grew by $0.06 to $5.62 in the first quarter.
-Demand began to ease across the metro in the first quarter and transaction volume dropped by 10% with 1.1 MSF of recorded leasing activity.
-Construction activity experienced a pickup in both speculative and industrial product, bringing the current pipeline to 3.5 MSF
-Industrial Investment sales volume totaled $19 Million in Q1, down from a robust $226 in the fourth quarter of 2024 and among the weakest on record per Real Capital Analytics.
-CBRE has updated the criteria for industrial tracked building sets to reflect buildings with a Net Rentable Area (NRA) of 30,000 square feet or higher. In addition to creating regional consistency, this change will enhance the reporting and depth of data on each market's most competitive buildings. Historical stats have been revised to reflect current industrial thresholds. Building inventories will be evaluated quarterly to ensure they remain the most comprehensive and accurate representation of each market.