ST. LOUIS, Mo. — Global real estate services and investment management company Colliers International has named St. Louis among the top ten emerging U.S. industrial markets to watch in 2019. They say that the Gateway to the West now has 5.1 million square feet under construction, the highest on record.
Colliers says that while 2019 looks to be another strong year, some indicators point to a tapering off of industrial real estate activity for the US. They say that there is still opportunity for investors.
St. Louis has some significant strengths that place it on this list. Nearly one-third of the U.S. population is located within 500 miles of St. Louis. A central location, built-in rail network, and strong leasing activity make it one of the best industrial markets to take advantage of ordering online. E-commerce companies need to get their products to consumers.
“Between Midtown and downtown, depending on who you ask, there is close to $6 billion worth of renovation that is happening in the St. Louis area, that doesn’t include the county,” Harry Lunt, senior vice president of sales and marketing for Innkeeper Hospitality Services, LLC told FOX 2 in 2018.
Four million square feet of occupancy gains were made in St. Louis in 2018. Despite this, vacancy rates remained low despite new construction. Colliers expects increased demand for new development in 2019.