The St. Louis industrial market closed out 2022 with a low vacancy rate of 3.85%. And it absorbed more than 6 million square feet during the year. That’s the good news from Colliers‘ fourth quarter 2022 St. Louis industrial market.
According to Colliers’ report, the St. Louis industrial market closed out 2022 on a strong note. And the future looks bright, too: Colliers said that the St. Louis industrial market is showing few signs of any slowdown in 2023.
This isn’t surprising: The industrial market has remained strong across the Midwest, even as the country faces economic uncertainty. St. Louis, it seems, is no exception.
According to Colliers’ report, the St. Louis industrial market saw 6.2 million square feet of new construction completions in the fourth quarter, a supply that is much needed as demand for warehouse space continues to rise here.
The Metro East and North County submarkets saw the biggest influx of deliveries with 2.2 million square feet and 1 million square feet. With these additions, St. Louis added 7.5 million square feet of industrial inventory for the year. All of this new inventory is warehouse space.
There is currently 1.7 million square feet of industrial space under construction in the St. Louis market, with 1.1 million square feet expected to be completed in the first quarter of 2023. As Colliers says, this new space is needed as demand has outpaced supply in the St. Louis market.
During the year, the St. Louis industrial market saw 6.1 million square feet of positive absorption, another encouraging number here.
