The St. Louis industrial market closed out 2025 on relatively solid footing, posting healthy leasing activity and manageable construction levels, even as rents and sales volume showed signs of cooling, according to new research from Colliers.
In its fourth-quarter 2025 industrial report, Colliers noted that vacancy rates tightened in several key St. Louis submarkets, net absorption finished the year in positive territory and investment activity rebounded late in the year. Together, these trends point to continued long-term confidence in the region’s industrial fundamentals, despite a more measured market environment.
By year’s end, the St. Louis-area industrial vacancy rate stood at 5.8%, Colliers reported, with the market recording 446,000 square feet of positive net absorption in 2025. That vacancy figure is roughly in line with the 5.2% rate posted at the end of 2024, suggesting that demand has largely kept pace with supply.
A surge of new construction isn’t expected to pressure vacancy anytime soon. Colliers said that just 3 million square feet of industrial space was under construction in the St. Louis market as of the close of 2025, a relatively modest pipeline by historical standards.
Vacancy tightened most notably in core submarkets, with St. Charles and Westport posting the strongest improvements. Those gains underscore continued tenant demand for well-located, functional industrial space.
Leasing activity also picked up steam late in the year. Fourth-quarter leasing totaled 1.86 million square feet, outpacing third-quarter totals and signaling sustained tenant interest even as the broader market adjusts to shifting economic conditions.
Rental rates, however, continued to trend downward. Average asking rents fell from $6.22 per square foot in the first quarter of 2025 to $5.93 by the fourth quarter, reflecting a cooling pricing environment as new supply comes online and tenant leverage increases.
On the investment side, industrial sales volume totaled 8.1 million square feet for the year, a 12.8% decline compared to 2024. Even so, activity improved in the fourth quarter, with 3.1 million square feet trading hands.
The Westport submarket led the region in sales volume, followed by St. Louis City and South County. Colliers also cited notable transactions in the Metro East and St. Charles County submarkets.
Looking ahead, the market is awaiting the delivery of a major industrial project: Whirlpool’s 551,200-square-foot facility, which is scheduled to come online in early 2026.
