St Louis Commercial Office Space for Rent

Q4 2025

St. Louis Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The St. Louis commercial real estate (CRE) market is navigating a period of stabilization and recalibration as 2025 draws to a close [2, 3]. The Office sector continues to right-size, with vacancy stabilizing around 14.5% despite a surge in sublease space [1]. Industrial fundamentals remain healthy, though vacancy has ticked up to 5.7% due to new construction outpacing absorption [2]. Retail is resilient, with low vacancy and steady demand for neighborhood centers [4]. Multifamily is tightening as construction activity slows, supporting rent growth and high occupancy [5].

TenantBase Proprietary Data [7] highlights the distribution of active tenant demand over the last 90 days (148 total deals):

  • Retail/Storefront led market activity with 60.14% of all searches [7].
  • Warehouse was the second most active sector at 25.68% [7].
  • Office accounted for 14.86% of total search volume [7].

Office Market

Market Overview St. Louis's office market is showing signs of finding a floor, with vacancy rates holding steady despite the ongoing challenge of sublease availability.

  • Vacancy & Availability: The vacancy rate stabilized at 14.5% in Q3 2025, unchanged from the previous quarter [1]. However, sublease availability remains elevated at nearly 1.5 million SF, creating competition for direct space [1].
  • Net Absorption: Net absorption was slightly negative at (60,248) SF in Q3, a significant improvement from the deeper losses seen earlier in the year [1].
  • Rental Rates: Asking rents held firm at $22.45 per SF (Full Service), with Class A space commanding a premium [1].
  • Market Drivers: TenantBase data indicates a preference for flexibility, with 45.00% of office inquiries seeking leases of Less than one year [7].

TenantBase Activity [7]

  • Demand Share: Office accounted for 14.86% of total search volume [7].
  • Lease Term Preference: Demand is split between short-term agility and mid-term commitment:
    • Less than one year: 45.00% of deals [7].
    • 3-5 Years: 30.00% of deals [7].
    • 2-3 Years: 15.00% of deals [7].
  • Size Requirements: Tenants seeking short-term leases have significantly larger requirements (avg. 10,250 SF) compared to mid-term users (avg. 1,600 SF) [7].

Industrial & Warehouse Market

Market Overview The St. Louis industrial market remains a key logistics hub, though a recent wave of construction has pushed vacancy rates higher.

  • Vacancy & Rent: Vacancy rose to 5.7% in Q3 2025, up from 4.2% a year prior [2]. Despite this, asking rents have continued to climb, reaching $6.25 per SF (NNN) [2].
  • Demand & Supply: Net absorption remained positive at 1.2 million SF in Q3, driven by distribution and manufacturing users [2].
  • Construction: The construction pipeline is active but moderating, with 3.8 million SF currently underway, which should help balance supply and demand in 2026 [2].
  • Leasing Highlights: TenantBase data shows steady demand for mid-term leases, with 1-2 Years being the most popular term for warehouse users [7].

TenantBase Activity [7]

  • Demand Share: Warehouse accounted for 25.68% of total search volume [7].
  • Lease Term Preference: Demand is spread across lease terms:
    • 1-2 Years: 38.10% of deals [7].
    • 2-3 Years: 23.81% of deals [7].
    • 3-5 Years: 19.05% of deals [7].
  • Size Requirements: The average lower size requirement for warehouse space is 7,500 SF for 3-5 year terms [7].

Retail Market

Market Overview St. Louis's retail sector is performing well, with limited new supply supporting high occupancy rates and steady rent growth.

  • Vacancy & Availability: Retail vacancy remains low at 4.1%, with prime corridors seeing strong demand [4].
  • Rental Rates: Asking rents have risen 2.8% year-over-year to $14.50 per SF (NNN) [4].
  • Construction: New retail development is minimal, which is keeping the market tight and driving competition for existing space [4].

TenantBase Activity [7]

  • Demand Share: Retail/Storefront activity dominated with 60.14% of all search volume [7].
  • Lease Term Preference: Retail tenants show a preference for shorter commitments:
    • 1-2 Years: 29.55% of deals [7].
    • 2-3 Years: 25.00% of deals [7].
    • Less than one year: 20.45% of deals [7].
  • Top Locations: Tenant interest is highest in St. Louis (City) (17 deals) and Central St. Charles/Chesterfield (8 deals) [7].

Multifamily Market

Market Overview The multifamily market is stabilizing as the construction pipeline thins, leading to renewed rent growth and high occupancy.

  • Vacancy & Occupancy: Vacancy held steady at 5.2% in Q3 2025, with occupancy rates consistently above 94% [5].
  • Rents: Average asking rents rose 2.1% year-over-year to $1,150 per unit, driven by demand for affordable housing options [5].
  • Construction: The construction pipeline has shrunk to 1,800 units, a significant decrease from previous years, which will support tighter conditions in 2026 [5].
  • Investment: Sales activity remains cautious, but pricing has stabilized, offering opportunities for investors seeking steady yields [6].

2026 Outlook

Looking ahead to 2026, the St. Louis market is positioned for steady performance and gradual growth.

  • Industrial Strength: With a moderating construction pipeline and steady demand, the industrial sector is expected to see continued rent growth and low vacancy [2].
  • Retail Resilience: The lack of new retail supply will keep vacancy low and rents rising, making existing centers highly valuable [4].
  • Office Stabilization: While challenges remain, the office market is expected to find a floor as tenants take advantage of favorable terms and right-size their space needs [1].

Sources

  1. Newmark: St. Louis Office Market Overview Q3 2025
  2. Newmark: St. Louis Industrial Market Overview Q3 2025
  3. Cushman & Wakefield: St. Louis MarketBeats Q3 2025
  4. Marcus & Millichap: St. Louis Retail Market Report Q3 2025
  5. Yardi Matrix: St. Louis Multifamily Market Report – September 2025
  6. Berkadia: St. Louis Multifamily Report Q3 2025
  7. TenantBase Proprietary Market Data (St. Louis - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.