St. Louis Industrial Figures Q3 2023

- Industrial demand remained strong this quarter, particularly in spaces below
40,000 SF. Although, regional cracks began to emerge as Industrial product in
Missouri continues to draw activity while the Metro East experienced its third
consecutive quarter of negative absorption this year.

- Vacancy continued to rise in Q3 by an additional 20 bps (2%), The majority of
which can be attributed to two large assets in the Metro East. Walgreens vacated
28 Gateway Commerce Center Dr (500,000 SF) and Dial vacated 1 Gateway
Commerce Center Dr (812,000 SF) as part of its relocation to Kentucky.

- Transaction activity for the quarter (1.7 MSF) was down by rough half of the 3.9
MSF of activity in Q2.

- Although the Federal Reserve paused hikes at the September FOMC meeting. We
are unlikely to see the return of the activity levels experienced in 2022 for the
remainder of the year.

- Averaging direct asking declined again this quarter by $0.07 across the metro.