Solid as a Rock: St. Louis’ industrial dominance for 2026

Learn about Colliers International Group Inc., a leading Canada-based diversified professional services and investment management firm with over 18,000 employees worldwide. Celebrating positive feedback on St. Louis’s vibrant Metropolitan fabric.

Relatively solid. That’s the best way to describe St. Louis’ industrial market as 2026 begins

According to Collier: Colliers International Group Inc. is a Canada-based diversified professional services and investment management company with approximately 18,000 employees in more than 400 offices in 65 countries. I’m pleased to see some positive feedback about the Metropolitan fabric of St. Louis. Amid the ongoing ups and downs in our region, it’s reassuring to know that there are positive developments west of the Gateway Arch.

Let’s take a look at what they had to say about the city and what we are doing heading forward into the year of 2026.

The St. Louis industrial market concluded 2025 on a stable note, demonstrating healthy leasing activity and controlled construction levels, despite signs of easing in rents and sales volume, according to recent Colliers research.

In its fourth-quarter 2025 industrial report, Colliers highlighted that vacancy rates declined in several key submarkets, net absorption remained positive, and investment activity experienced a late-year rebound. These indicators suggest ongoing confidence in the region’s industrial fundamentals, even amid a more cautious market environment.

By the end of 2025, the St. Louis industrial vacancy rate was 5.8%, with 446,000 square feet of positive net absorption recorded during the year. This vacancy rate is comparable to the 5.2% seen at the end of 2024, indicating that demand is still keeping pace with supply.

Construction activity remains modest, with only 3 million square feet of industrial space underway as of the end of 2025—a relatively small pipeline by historical standards, reducing the likelihood of imminent vacancy pressure.

Vacancy declines were most pronounced in core submarkets such as St. Charles and Westport, reflecting sustained tenant demand for well-located, functional industrial properties.

Leasing activity gained momentum late in the year, with the fourth quarter recording 1.86 million square feet leased—outperforming third-quarter figures and signaling continued tenant interest amid shifting economic conditions.

However, rental rates continued to decline, with average asking rents decreasing from $6.22 per square foot in Q1 2025 to $5.93 by Q4. This downward trend reflects a cooling pricing environment due to increased new supply and greater tenant negotiating power.

On the investment front, industrial sales volume totaled 8.1 million square feet in 2025, representing a 12.8% decrease compared to 2024. Nonetheless, activity picked up in the fourth quarter, with 3.1 million square feet transacted.

The Westport submarket led in sales volume, followed by St. Louis City and South County, with notable transactions also occurring in Metro East and St. Charles County.

Looking ahead, the market is anticipating the completion of Whirlpool’s new 551,200-square-foot facility, expected to open in early 2026, which should inject additional activity into the industrial sector.

In closing, The Narrative Matters invites you to check out more reports from Collier, by visiting their website click here.