Industrial commercial real estate continues its stronghold in the St. Louis market. At nearly six million square feet in the construction pipeline halfway through the year, St. Louis continues to see companies expand and new businesses enter the market, not to mention industrial employment remains at post-recession highs, as warehouse and manufacturing levels stay elevated.
From last quarter, vacancy continued its downward trend to below 5.0 percent across the region. At the midway point in the year, absorption was just below 3 million square feet, more than double the average over the past five years through two quarters. The lion’s share of Q2’s absorption was in North St. Louis County as two building’s delivered: Davidson Surface/Air’s massive warehouse at 829,000 square feet and MiTek’s 380,000 square foot stamping plant.
Spec construction continues its ramp up as NorthPoint Development begins its new Hazelwood Tradeport project and Duke announced another warehouse project at Premier 370 after filling its previous spec buildings.
On the leasing front, Dial renewed at Gateway Commerce Center where it’s been since it was built in 1998. Nike signed a new lease for 250,000 square feet in St. Charles to expand its operations in the region.