2018 Q2 St Louis Office Report
Date Published: 07/30/2018
Several large blocks of space have come available in the second quarter. While this is good news for large companies seeking new location alternatives, it increased the overall vacancy rate for the market to 13.5%. This is an increase from 12.8% in the first quarter and 13.1% last year at this time. Despite the vacancy rate increase, asking rents continue to feel upward pressure. Average direct asking rents for the entire market reached $20.00 per SF for the first time since 2009. The average direct asking rent for the Class A market is also at a recent high at $21.97 per SF making it the highest rate since the first quarter of 2010. Although absorption for the entire market is negative year-to-date, there has been overall net absorption of 155,038 SF of Class A office space for the year, and the overall vacancy rate decreased year-to-year from 10.5% in 2017 to 10.1%. These positive indicators illustrate that the demand for Class A space continues to be strong.