The Greater St. Louis area offers competitively priced commercial real estate options to meet any business need.
Commercial real estate is less expensive when compared to competing markets. The average rate for Class A office space in the St. Louis market was $22.35 per square foot, far less than the U.S. market average of $31.01 in first quarter 2018. These rates are very competitive even when compared with Midwestern markets like Chicago at $23.81 and Minneapolis at $19.57. They even compare well to cities outside the Midwest like Dallas at $25.18 and Atlanta at $23.76. Industrial space in the St. Louis region was $4.68 per square foot, compared to $6.56 across U.S. markets tracked by CoStar. These rates are competitive with Indianapolis at $4.56 and Kansas City at $4.28 and less expensive than Chicago at $5.92.
St. Louis is the 24th largest U.S. office market, with 139 million square feet of space and a 6.8 percent vacancy rate at the end of 2018. St. Louis is the 25th largest warehousing market with 300 million square feet of industrial warehouse space and a vacancy rating of 4.3 percent. Much of this space is located near business centers as well as major transportation and intermodal hubs, making travel and the distribution of goods and people fast and efficient. Further, businesses can lease these sites at prices substantially lower than U.S. averages.
Construction costs in Greater St. Louis were slightly above the U.S. average in 2018, but they are still remarkably low for a metropolitan area of 2.8 million. In other Midwestern cities, costs are trending higher, reaching up to 120.5% of the national average in Chicago and 105.9% in Minneapolis.
The St. Louis region’s office market is divided into several attractive submarkets.
Downtown St. Louis is the largest office center, with over 12 million square feet of Class A space. There are several other large concentrations of office space located near key intersections of the highway network, including the St. Louis County seat of Clayton. These locations provide businesses with many choices for their ideal location and budget.
Both of St. Louis’ major public ports, America’s Central Port in Illinois and the Municipal River Terminal in the city of St. Louis, contain available sites with access to the river, railways and highways. America’s Central Port is a 1,200-acre intermodal, mixed-use business and industrial park located adjacent to the Mississippi River and in a foreign trade zone. The North Riverfront Commerce Corridor, which includes the Municipal River Terminal, is a 3,000-acre multimodal logistics and business district in the city of St. Louis.
St. Louis Lambert International Airport, MidAmerica St. Louis Airport, and other regional airports have available development sites with direct runway access near interstate highways. Additional buildings and hundreds of acres of land are available close by, providing access to interstate highways and foreign trade zones. St. Louis provides multiple options for distribution sites and buildings that are strategically located near intersections of the interstate and regional highway network. Distribution parks with modern bulk buildings are available in numerous locations within the metro area.
Greater St. Louis is a major manufacturing center with numerous areas with industrial zoning. Buildings are available in almost any size and with access to heavy utilities, highways, rail connections, and other key manufacturing requirements.
The St. Louis region offers a wide range of available land sites of all sizes, including greenfield and shovel-ready locations. These sites provide options for direct access to all modes of transportation as well as office and industrial centers.