Intelica CRE: St. Louis to remain a strong industrial market in 2014

Expect a solid year for St. Louis' industrial market in 2014.

Expect a solid year for St. Louis’ industrial market in 2014.

by Dan Rafter

Can you guess which market ranked 16th in the United States in industrial transaction volume in 2013?

The answer, which might be a surprise to some, is St. Louis.

The truth is, St. Louis has long been a strong industrial market. And according to the latest research by Intelica CRE, St. Louis’ industrial market should be strong for years to come.

Intelica CRE recently released its 2014 market outlook for the St. Louis region. Much of this report focused on the good news in the city’s industrial market.

Intelica CRE’s report says that industrial vacancy rates in 2014 should hover around 8 percent. The area doesn’t have to worry about industrial overbuilding, either. Intelica CRE reported that in 2013 a total of just 521,000 square feet of industrial space was delivered in the market. Developers started construction on just 727,000 square feet of new industrial space during the same time period.

The analysts with Intelica CRE say not to expect much more industrial building in 2014. The reason? It is significantly more expensive to build new industrial spaces. It’s more cost efficient to buy and renovate existing industrial properties. This, Intelica CRE reports, is good news for those already owning industrial properties and for prospective investors looking for industrial properties in the area.

Advertisements
This entry was posted in industrial real estate, Missouri commercial real estate, St. Louis real estate and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s