ST LOUIS, MO/January 10, 2017 (STLRealEstate.News) The St. Louis industrial market is poised to have an historical comeback after decades of stagnated growth and industrial construction demand. As witnessed by many market players in the St. Louis economy at this time, “big bombers” – industrial facilities 500,000 square feet and larger – are coming out of the ground at record pace at this time. Even better, before these projects are completed, they are being leased and pre-leased at a record pace.
What is the reason for this sustainable industrial spur? Many attribute the new e-Commerce phenomenon with major players like Amazon taking nearly 1.5 million square feet in the Metro East submarket. The two major developments in this submarket are Gateway Commerce Center, developed by TriStar, and the adjacent Lakeview Commerce Center, developed by Panattoni.
In addition to Amazon, the Gateway Commerce Center contains a host of big box users such as P&G, Unilever, and Saddle Creek Corp. In neighboring Lakeview Commerce Center, Amazon occupies space along with World Wide Technologies, occupying 769,500 feet in the Center.
The overall vacancy rate in metro St. Louis dropped to 6.5 percent at the end of the third quarter this year. Absorption year-to-date has totaled more than 3.5 million square feet now, and the velocity of these developments has captured the attention of local, established St. Louis developers, as well as brand new names to the great region. The industrial construction has been nothing but good for St. Louis residents, whom now have thousands more jobs to peruse in 2017.
It’s important to note, not all development in the St. Louis market is speculative at this time. Boeing is completing a 367,000-square-foot expansion of its tooling center near the company’s north St. Louis County campus. All of this new construction by local, national, and international developers points to St. Louis as a serious contender in the rapidly expanding distribution center arena.
Contributing Editor: Alexandra R. Fasulo
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