Colliers Reports Mixed Signals in Q3 Industrial Market

Date Posted: October 16, 2025

Posted In: Discussion, Projects,

From Colliers: The St. Louis Metro industrial market is experiencing mixed signals as it moves through 2025.

Leasing activity slowed in Q3, totaling 1.26 million SF, down nearly 1 million SF YOY, though the Westport submarket remained a bright spot, accounting for nearly 58% of all leasing, driven by major deals including Amazon and Confluence Genetics.

Absorption was similarly uneven: while North County and St. Charles County posted strong gains, overall Q3 absorption fell to -783,561 SF due to large move-outs in Metro East, Earth City, and St. Louis City. Vacancy rates have climbed slightly to 5.53% in Q3 2025, reflecting increased availability and shifting tenant demand.

Rental rates, which peaked in 2023 at $6.51, have steadily declined to $5.95 in Q3 2025, suggesting pricing adjustments in response to rising vacancy. Sales activity also fell 33.9% YOY, though warehouse/distribution assets continued to dominate transactions.

Construction remains active, with over 2.8 million SF underway and several key completions this quarter, including facilities for Coastal Cold Storage, USDA, and Performance Food Group. With roughly 725,000 SF in move-ins expected next quarter, the market may see some stabilization heading into year-end.

To download the Colliers Q3 St. Louis industrial report click here.