The St. Louis industrial market was active in the fourth quarter of 2016, as 1.0 million square feet was absorbed. Overall vacancy decreased 10 basis points from the prior quarter to 6.1%, while average quoted rents increased to $4.20/SF from $4.35/SF. A total of 860,800 square feet of space delivered to the market during the quarter, while projects under construction remained significant, with 5.8 million square feet of product planned for delivery.
Following solid activity in the third quarter of 2016, the market held steady in the fourth quarter, realizing positive net absorption for the seventh consecutive quarter with nearly 4.9 million square feet absorbed during 2016. Quoted rental rates increased $0.23/SF during the past four quarters, as 3.8 million square feet of space delivered to the market.
With market vacancy hovering at a 10-year low, expect ongoing speculative construction starts, build-to-suit offerings and significant leasing and sales activity to continue for various areas of the metro.
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