Q3 2014 Overview
- The St. Louis Industrial market is still going strong as the market absorbed over 1,000,000 SF during the quarter.
- As class A space becomes increasingly scarce, Landlords are less likely to be offering the free rent concessions that were being thrown in the deals even as recent as nine months ago.
- Quoted lease rates are also ticking up as much as 10%-15%. This is a necessary trend if lease rates are to keep up with the construction cost and still make the exit spreads.
- Holding firm to asking rates for non-credit tenants will be the trend until some of the planned speculative development comes out of hte ground and forces competition.
- Vacancy rates are expected to continue to decline through the end of the year.