St. Louis Office Market Report

Flight-to-quality favors the suburbs. Office vacancy in St. Louis is expected to remain largely unchanged this year, rising only about 10 basis points, despite one of the steepest declines in office-using employment nationwide. This stability will be supported by a sharply reduced construction pipeline, set to halve in 2026. Net absorption, however, may soften as firms like KDSK and Caleres consolidate into more efficient footprints. Additionally, tenant demand should prioritize Class A buildings, which showed stronger momentum than B/C assets in submarkets such as Central County and West St. Louis County. These areas are expected to continue attracting tenants, supported by deeper Class A inventories and stronger connectivity to major suburban business hubs such as Clayton. By contrast, the CBD faces elevated vacancy pressure, particularly among higher-quality assets, which enter 2026 after climbing to near-decade-high levels.