Q2 2024 Retail Market Report

RETAIL MARKET OVERVIEW

The market has seen positive absorption in eight consecutive quarters through the first quarter of 2024. Net absorption reached 1.5 million SF over the trailing four quarters, the highest annual total since 2017. A significant factor behind the tight market conditions in St. Louis has been a lack of new supply. Over the past year, 670,000 SF has been built, and less than 40,000 SF of that space is available. With 480,000 SF under construction, the pipeline is 36% below its 10-year average. Average asking rental rates increased by 3.4% in the past year, surpassing the national average and matching markets. As a result, triple-net asking rates have reached a record high of $16.70/SF.