Q2 2024 Industrial Market Report

MARKET OVERVIEW

12-month net absorption at the halfway point of 2024 totaled 1.3 million SF, the lowest level in over a decade, down from 2.6 million SF a year ago. The local vacancy rate has risen to 4.6%, as new supply has outpaced demand in three of the past five quarters. This has caused St. Louis’ vacancy rate to increase from 4.3% a year ago. Developers are pulling back due to higher interest rates. The construction pipeline in the region measures 3.3 million SF, only 1.0% of the total inventory, nearly half of the national average. Following the broader trend across the rest of the county, year-over-year rent growth has slowed to 3.0%, which is down by more than half from a year ago.