The St. Louis Commercial Real Estate Market

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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 the St. Louis 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 $540 billion in property transactions and marketed properties totaling more than $5 trillion in value.

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

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 metro area has observed a modest increase in population growth, influenced by various factors, including economic challenges such as the loss of manufacturing jobs and natural population changes like births and deaths. 

However, trends vary across different parts of the metro area, with some experiencing growth and others declining. A mix of economic opportunities, demographic shifts, and regional development strategies will likely influence the region’s future population growth.

  • Over 2.8 million reside in the metropolitan area, making St. Louis the 20th largest MSA in the US.
  • St. Louis is the largest metropolitan area in Missouri and the second largest in Illinois.
  • The largest cities include O’Fallon, St. Charles, St. Peters, and Florissant.
  • The population of St. Louis County has decreased by about 9,000 since 2010, according to the most recent census.
  • Counties in the metro area include Bond, Calhoun, Clinton, and Madison in Illinois; and Franklin, Jefferson, Lincoln, and St. Charles in Missouri.
  • The median age is 40, a little higher than the figure in the US.
  • Over 90% of residents are high school grads or higher, while more than 37% hold bachelor’s or advanced degrees.
  • Per capita income is $39,791, and median household income is $70,189.

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. 

St. Louis stands out as one of the nation’s leading financial service centers and is globally recognized for its role in health science and services.

  • GDP is nearly $187.6 billion, growing by about 32% over the past decade, according to the St. Louis Federal Reserve.
  • The unemployment rate is 3.0% (May 2023), with the manufacturing, professional and business services, leisure and hospitality, and education and health services sectors reporting the most substantial growth.
  • Key industries include advanced manufacturing, bioscience, and health innovation, financial and business services, agricultural tech, and fintech.
  • The largest employers (ranked by local employees) are BJC HealthCare, Washington University in St. Louis, Mercy, Boeing Defense, Space & Security, and SSM Health.
  • Local Fortune 500 companies include Centene, Emerson Electric, Reinsurance Group of America, and Edward Jones.
  • The best colleges and universities are Washington University in St. Louis, Saint Louis University, University of Missouri-St. Louis, and Maryville University of St. Louis, according to US News & World Report.

Major metros within a day’s drive of St. Louis include Chicago, Nashville, Indianapolis, Kansas City, and Louisville, making St. Louis a strategic hub in the Midwest. The St. Louis metro area road transportation includes Interstates 44, 55, 64, and 70, along with US Routes 40, 61, and 67, providing extensive connectivity.

St. Louis Lambert International Airport (STL) handles domestic and international flights. At the same time, the Port of Metropolitan St. Louis, one of the largest inland ports in the US, utilizes the Mississippi River for shipping and freight services.

Louis Industrial Market

The industrial market in the St. Louis metropolitan area has seen some significant changes in 2023. The market experienced a slowdown in the first quarter, with increased vacancy rates. 

However, there are promising signs as new spaces are expected to be completed and brought into the market, indicating potential growth. There’s an ongoing trend of industrial activity in specific corridors linking Missouri and Illinois, which is expected to boost demand. 

Market overview (Colliers Q1 2023

  • Inventory: 261,600,300,000 SF
  • Vacancy rate: 4.35% vs. 2.76% in Q1 2022
  • Absorption: -969,000 SF (Q1 2023)
  • Key leases by tenant: Sam’s Club 370,000 SF, Snap AV 100,000 SF, Southern Hobby Distribution 79,000 SF
  • New construction: 1,770,000 SF under construction
  • Largest submarkets: St. Louis City, Metro East, St. Charles County

Crexi Intelligence

These are the most recent lease and sales trends from Crexi Insights (as of July 2023):

For Lease (active)

  • Asking rate/SqFt (median): $8 per year
  • Median SqFt/listing: 10,800
  • Days on market: 156
  • Total listings on Crexi: 120 spaces

For Sale (active)

  • Median asking price: $941,000
  • Price/SqFt: $35
  • Asking cap rate: 6.0%
  • Days on market: 212
  • Total listings on Crexi: 68 listings for a total of 4.08 million SF

Sales Comps (past 12 months)

  • Median sold price: $816,000
  • Sold price/SqFt: $57
  • Total sales volume: $76.7 million
  • Sold cap rate: 7.7%
  • Median SqFt sold/transaction: 26,900
  • Total SqFt sold: 992,000
  • Days on market (median): 71

Learn more about St. Louis industrial property for lease.

Louis Office Market

The St. Louis office market shows signs of resilience despite a challenging environment. Vacancy rates have remained steady, marking a positive turn from previous trends of increasing vacancies. 

The market has even experienced some growth in the first quarter, with some submarkets reporting significant positive absorption. On the pricing front, rental rates have maintained an upward trajectory, suggesting a continued demand for quality office spaces. 

Market overview (Cushman & Wakefield Q1 2023)

  • Inventory: 50,879,185 SF
  • Vacancy rate: 17.2%
  • Absorption: 67,275 SF net in Q1
  • Key leases by tenant: CRB Group 27,317 SF, Bethesda 20,000 SF, MI Industries 13,447 SF
  • New construction: 598,572 SF under construction
  • Largest submarkets: St. Louis City, Central Business District, West County, Clayton

Crexi Intelligence

Crexi delivers current information on the St. Louis office market. Here are the latest leasing and sales patterns (as of July 2023):

For Lease (active)

  • Asking rate/SqFt (median): $18 per year
  • Median SqFt/listing: 3,056 SF
  • Days on market: 285
  • Total listings on Crexi: 851 spaces

For Sale (active)

  • Median asking price: $925,000
  • Price/SqFt: $79 
  • Asking cap rate: 7.4%
  • Days on market: 218
  • Total listings on Crexi: 79 listings totaling 1.81 million SF

Sales Comps (past 12 months)

  • Median sold price: $970,000
  • Sold price/SqFt: $45
  • Total sales volume: $2.29 million
  • Sold cap rate: 7.2%
  • Median SqFt sold/transaction: 11,000 SF
  • Days on market (median): 217

Learn more about St. Louis office property for lease. 

Louis Retail Market

The retail market in St. Louis has been experiencing some shifts. Negative net absorption was recorded in the first quarter, indicating decreased demand for retail space. 

However, the vacancy rate has improved, decreasing over the last year. Rental rates have also increased, suggesting that despite the challenges, there is some resilience in the market with positive signs of recovery.

Market overview (Newmark Q1 2023

  • Inventory: 162,560,676 SF
  • Vacancy rate: 4.5% overall
  • Absorption: 311,681 SF (past four quarters)
  • Largest submarkets: Metro East, St. Charles County, North-Northeast County

Crexi Intelligence

Lease and sales trends from Crexi Insights (as of July 2023):

For Lease (active)

  • Asking rate/SqFt (median): $15 per year
  • Median SqFt/listing: 2,550 SF
  • Days on market: 333
  • Total listings on Crexi: 444 spaces

For Sale (active)

  • Median asking price: $697,000
  • Price/SqFt: $145
  • Asking cap rate: 6.4%
  • Days on market: 235
  • Total listings on Crexi: 88 listings for a total of 890,000 SF

Sales Comps (past 12 months)

  • Median sold price: $384,000
  • Sold price/SqFt: $115
  • Total sales volume: $39.1 million
  • Sold cap rate: 5.9%
  • Median SqFt sold/transaction: 4,213 SF
  • Days on market (median): 71

Learn more about St. Louis retail property for lease.

Louis Multifamily Market

The St. Louis multifamily market is experiencing some softening after a period of steady growth. The vacancy rate slightly increased in the first quarter, though it remains below the historical average for the market. 

Rental rates have also experienced a modest decrease following two years of significant growth. Despite this, the overall rent growth over the past year has been positive. Sales activity within the multifamily investment market has slowed recently, but per-unit prices have shown an increase in the transactions that have been completed. 

Market overview (Northmarq Q1 2023)

  • Total inventory: 278,545 (Census Reporter)
  • Vacancy rate: 4.2%
  • Asking rents: $1,173, increasing by 6.5% year over year
  • Construction activity: 156 units delivered (Q1 2023) with 4,316 units under construction
  • Recent sales by property: The View at Forest Park $61 million, Courtland Manor $8.7 million, Oakwood Apartments $7 million

Crexi Intelligence

Here are the most recent Multifamily Insights from Crexi (as of July 2023):

For Sale (active)

  • Median asking price: $617,000
  • Price/SqFt: $74
  • Price/Unit: $97,700
  • Asking cap rate: 7.8%
  • Days on market: 81
  • Total listings on Crexi: 36 listings totaling 463,000 SF

Sales Comps (past 12 months)

  • Median sold price: $257,000
  • Sold price/SqFt: $91
  • Sold price/unit: $84,700
  • Total sales volume: $601 million
  • Sold cap rate: 7.3%
  • Total SqFt sold: 4.96 million
  • Days on market (median): 96

Learn more about St. Louis multifamily property for sale.

Get more in-depth St. Louis market data with Crexi Intelligence.

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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