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Market Report

St. Louis Office Market Report

2Q 2021

Some Submarkets Outperform Amid Very Active Development Pipeline

Office performance varies throughout metro. Among St. Louis’ submarkets with more than 7 million square feet of inventory, fundamentals vary widely. More affordable rent and lower density drew tenants to the Illinois portion of the region. A lack of inventory additions here helped to cut vacancy 10 basis points year over year to 8.9 percent in March, the tightest level among the larger submarkets. In contrast, firms vacating space in higher-cost and denser buildings pushed vacancy up 410 basis points in North St. Louis to 15.1 percent, the highest rate in the market. This and other metro submarkets could face further challenges in 2021 as new speculative inventory and added sublease space is marketed.
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