New construction remains the big story for the St. Louis industrial market, rising to record levels and supporting a continued high rate of absorption. The overall St. Louis vacancy rate dropped to 6.37% for the quarter, down slightly from the first quarter. This is the lowest vacancy rate since 2006 when it fell to 6.1%, and nearly four percentage points below the rate at the height of the recession. Year-to-date net absorption is at 2.25 MSF, the highest mid-year rate in the market’s recorded history. It is important to note that this absorption has been spurred by the delivery of new construction rather than new leases. The deals commencing this quarter, and triggering the absorption, have been signed since early 2018 or 2017. The pipeline for new deals entering the market appears to be slowing, but large construction projects continue to break ground.