The St. Louis Commercial Real Estate Market

Shanti Ryle

December 30, 2024

Downtown St. Louis with a view of the Arch through tall buildings

St. Louis brokers, buyers, tenants, and landlords close more deals faster using Crexi's commercial real estate suite of tools . Across the US, investors and organizations eye St. Louis's commercial real estate market as a promising investment market with stable fundamentals and favorable ROI.

Crexi's technology empowers buyers and tenants to explore hundreds of St. Louis properties and quickly reach out to St. Louis-focused brokers. Most of Crexi's online traffic consists of actively-seeking principals and tenants searching for the perfect property investment.

Brokers utilize Crexi's listing, lead management, and marketing tools to win deals in St. Louis and the surrounding cities. Crexi's simple, robust marketplace allows St. Louis brokers to quickly network with buyers and tenants who've already indicated their interest in the region.

As of this writing, Crexi has supported over $610 billion in property transactions and marketed properties totaling more than $7 trillion in value.

Crexi proudly serves St. Louis, Florissant, Clayton, Ferguson, and the surrounding region as the fastest-growing online commercial real estate marketplace.

Downtown St. Louis Missouri at night, with a streetlamp-lit park in the foreground

The State of Commercial Real Estate in St. Louis

The St. Louis metropolitan area, encompassing regions of Missouri and Illinois, is a bustling hub with a population of approximately 2.8 million. It's an economic powerhouse, characterized by a diverse blend of sectors such as finance, health sciences, manufacturing, and information technology, among others. The area is home to numerous Fortune 500 companies, highlighting its significant role in the national business landscape.

St. Louis City, the heart of the metro area, is known for its vibrant community life with dozens of distinctive neighborhoods. The suburban regions also feature thriving communities such as Chesterfield, Florissant, and Kirkwood in Missouri, along with Alton, Belleville, and East St. Louis in Illinois.

The region is well-known for its cultural richness, with the iconic Gateway Arch, world-class museums, performing arts venues, and major sports teams offering a balanced lifestyle that appeals to both businesses and residents. The metro area's economic development initiatives continue to foster growth and investment, making it a dynamic region in the Midwest.

St. Louis Regional Breakdown

The St. Louis metropolitan area is home to approximately 2.8 million residents, making it the 20th largest metro area in the United States. The region includes parts of Missouri and Illinois, encompassing key counties like St. Louis County, St. Charles County, and Madison County. St. Louis County remains the largest jurisdiction, although it has seen a modest population decline in recent years, losing about 4,400 residents in 2023. Meanwhile, surrounding areas like St. Charles County and Jefferson County have experienced growth due to their affordability and family-friendly appeal.

The region’s median age is 37.2, slightly below the national average, reflecting a balanced mix of young professionals, families, and retirees. Education levels are robust, with over 90% of residents holding a high school diploma or higher, and 45.1% possessing a bachelor’s or advanced degree. The area’s median household income is $56,245 while per capita income stands at $343,830, demonstrating a competitive economic standing compared to other Midwestern metros.

St. Louis balances its historical roots with forward-looking economic initiatives. The city and its surrounding areas are home to thriving neighborhoods like Clayton, Kirkwood, and St. Charles, which offer high-quality schools, family-friendly environments, and a wide range of housing options. This blend of urban accessibility and suburban tranquility makes St. Louis a sought-after location for businesses and residents alike.

A baseball stadium with the Arch in the background

St. Louis Job Market

The metropolitan St. Louis economy is a diverse and dynamic mix of sectors, with a significant workforce contributing to its overall economic health. Despite slower growth than the national rate, the region has seen positive developments in various sectors like advanced manufacturing, biosciences, financial services, and agricultural technology.

The region’s GDP was estimated at $226 billion in 2023, reflecting a 32% growth over the past decade. Non-farm employment has shown steady improvement, with 5,400 jobs in October 2024, and the region’s unemployment rate stands at 3.8%, below the national average of 4.1%.

The city is home to several Fortune 500 companies, including Centene Corporation, Emerson Electric, and Reinsurance Group of America, which provide high-quality jobs and anchor the local economy. Major employers like BJC HealthCare, Washington University in St. Louis, and Boeing Defense offer significant opportunities across healthcare, education, and aerospace industries. Other critical sectors include logistics and distribution, bolstered by the city’s strategic location, and financial services, which benefit from a well-educated workforce and robust infrastructure.

St. Louis’s economic growth is further supported by its thriving startup ecosystem and innovation hubs. The Cortex Innovation Community, a leading biotech and technology district, underscores the city’s commitment to fostering entrepreneurship and attracting talent. These factors, combined with a relatively low cost of living, make St. Louis an attractive destination for businesses and individuals seeking economic opportunity and a high quality of life.

The city is strategically positioned as a logistics and transportation hub, supported by four major interstates (I-44, I-55, I-64, and I-70), a top-tier inland port on the Mississippi River, and Lambert International Airport, which handles both domestic and international traffic. This infrastructure provides unparalleled connectivity to major U.S. cities like Chicago, Nashville, and Kansas City within a day’s drive.

The St. Louis Arch on the riverfront with the city hall building in the background

St. Louis Industrial Market

St. Louis’s industrial sector remains a highlight, boasting a low 3.6% vacancy rate as of Q3 2024. The market recorded over 1.3 million square feet of net absorption year-to-date, supported by disciplined new supply and steady leasing activity.

Asking rents rose slightly to $5.47 per square foot, reflecting ongoing demand. Key submarkets like North County and Metro East have experienced notable activity, with new leases by major tenants such as Graphic Packaging International and Dive Bomb Industries. Speculative construction remains measured, with under 1 million square feet currently underway.

Market overview (Cushman & Wakefield Q3 2024)

Inventory: 267,323,270 SF
Vacancy rate: 3.6%
Absorption: 1,312,666 (YTD)
Key leases by tenant: Graphic Packaging International, LLC 143,600 SF, Dive Bomb Industries 128,697 SF, Epsilon Data Management 116,783 SF
New construction: 958,856 SF under construction
Largest submarkets: St. Louis City, North County, Metro East

Crexi Insights

These are the most recent lease and sales St. Louis industrial trends from Crexi Insights (as of December 2024):

For Lease (active)

Asking rate/SqFt (median): $7 per year
Median SqFt/listing: 11,000
Days on market: 136
Total listings on Crexi: 157 spaces

For Sale (active)

Median asking price: $1.2 million
Price/SqFt: $60
Days on market: 204
Total listings on Crexi: 84 listings for a total of 3.6 million SF

Sales Comps (past 12 months)

Median sold price: $347,500
Sold price/SqFt: $59
Total sales volume: $118.9 million
Median SqFt sold/transaction: 6,300
Total SqFt sold: 1 million
Days on market (median): 216

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office buildings surround St. Louis baseball stadium

St. Louis Office Market

The St. Louis office market is stabilizing, with vacancy rates dipping to 16.9% in Q3 2024, marking the first year-over-year decrease since 2020. Leasing activity reached 874,676 square feet year-to-date, with submarkets like Clayton driving demand for high-quality office spaces. Clayton reported a 290-basis-point drop in vacancy, closing the quarter at 15.8%. Average asking rents across the region stood at $22.88 per square foot, with Class A spaces commanding higher premiums at $24.49 per square foot .

Market overview (Cushman & Wakefield Q3 2024)

Inventory: 50,897,506 SF
Vacancy rate: 16.9%
Absorption: -7,249 SF YTD
Key leases by tenant: Fisher Rosemount Systems Inc. 128,107 SF, RGA 46,086 SF, Daugherty Systems 46,666 SF
New construction: 0 SF
Largest submarkets: St. Louis City, Central Business District, West County, Clayton

Crexi Insights

Crexi delivers current information on the St. Louis office market. Here are the latest leasing and sales patterns (as of December 2024):

For Lease (active)

Asking rate/SqFt (median): $17 per year
Median SqFt/listing: 2,100 SF
Days on market: 279
Total listings on Crexi: 689 spaces

For Sale (active)

Median asking price: $775,000
Price/SqFt: $110
Asking cap rate: 6.9%
Days on market: 182
Total listings on Crexi: 96 listings totaling 2.6 million SF

Sales Comps (past 12 months)

Median sold price: $250,400
Sold price/SqFt: $52
Total sales volume: $23.3 million
Median SqFt sold/transaction: 4,406 SF
Days on market (median): 260

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Office towers in St. Louis' central business district

St. Louis Retail Market

The retail sector continues to demonstrate resilience, with a 5.2% vacancy rate as of Q3 2024, a record low for the region. Net absorption reached 231,000 square feet year-to-date, driven by stable tenant demand and limited new construction.

Asking rents have climbed to $14.58 per square foot, a 5.9% year-over-year increase that reflects strong market fundamentals. Major leases by retailers like Crunch Fitness and Burlington Stores highlight ongoing activity, while tight supply suggests rents will remain elevated into 2025.

Market overview (Cushman & Wakefield Q3 2024)

Inventory: 67,458,602 SF
Vacancy rate: 5.2% overall
Absorption: 231,361 SF YTD
New construction: 3,600 SF
Largest submarkets: South County, St. Charles, West County

Crexi Insights

St. Louis retail lease and sales trends from Crexi Insights (as of December 2024):

For Lease (active)

Asking rate/SqFt (median): $16 per year
Median SqFt/listing: 2,394SF
Days on market: 279
Total listings on Crexi: 463 spaces

For Sale (active)

Median asking price: $787,000
Price/SqFt: $154
Asking cap rate: 7%
Days on market: 201
Total listings on Crexi: 133 listings for a total of 1.4 million SF

Sales Comps (past 12 months)

Median sold price: $595,100
Sold price/SqFt: $115
Total sales volume: $16.1 million
Sold cap rate: 7.4%
Median SqFt sold/transaction: 4508 SF
Days on market (median): 241

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Cars parked in front of multifamily housing in St Louis at night

St. Louis Multifamily Market

St. Louis’s multifamily market shows sustained strength, with a 9.6% vacancy rate and effective rents averaging $1.40 per square foot as of Q2 2024. Positive absorption trends continued, with over 1,000 units absorbed in Q2 alone, marking the highest quarterly figure since 2021. While development has slowed from record highs, over 2,200 units remain under construction, concentrated in high-demand submarkets like Creve Coeur and Central West End. Sales activity remains steady, with average per-unit prices reaching $252,804 in premier developments.