Closing Out a Strong Year
2021 was a strong year for the industrial market as record breaking numbers were reached in multiple categories. Absorption continues to climb reaching 6 million square feet (MSF) of positive absorption for the year. This is the highest annual absorption posted in recent history. As absorption rose, vacancy rates continued to fall to a historic low of 3.43% for the year. These numbers illustrate the continued demand for industrial space as well as lack of available options. New construction has not kept up with the demand for space. Construction completions for the year reached 3.8 MSF, with an additional 7.9 MSF still under construction, including over 3 MSF in the Metro East and over 2.5 MSF in North County. Most buildings currently under construction are scheduled to be completed in 2022. This will be a welcome addition to a market that saw 9.9 MSF of leasing activity last year. Sales activity also spiked with 23.1 MSF sold in 2021. Building owners are being rewarded for their investments with an average rental rate that has increased nearly $2.00 per square foot (PSF) over the last year.
The St. Louis Industrial market continues to grow and be highly successful. Much like industrial markets across the United States, St. Louis is showing very few signs of slowing down. The only question is how fast new construction can be completed to meet the demands of the market.
2021 Q4 Industrial St Louis Report Colliers