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.