Another Strong Quarter
The St. Louis industrial market slowed down slightly this quarter but continues to show positive results. Overall vacancy dropped to 2.62%, down from 2.77% the previous quarter. Quarterly absorption reached 448,677 SF (square feet), which was low compared to historical numbers that are usually above 1 MSF (million square feet). Demand continues to outpace supply. Today, the St. Louis industrial market has 7.79 MSF under construction, which will help alleviate some of the supply pressure that the market is experiencing. This quarter saw some new inventory with the addition of Hazelwood Tradeport 9 and Aviator Distribution Center 2, totaling 604,118 SF between the two buildings. Both buildings were constructed in the fast-growing North County submarket, which is still expecting another 2.5 MSF in new construction by the end of this year.
Along with North County, the Metro East submarket is looking to get a boost from new construction, with 2.9 MSF expected to enter the market this year. These two submarkets account for 70% of the under-construction space currently on the market.