St. Louis Retail Market Report
Mature Economic Cycle Encouraging Capital Migration to St. Louis Retail Assets
The local retail market slowly gaining ground. The metro outperformed traditional Rust Belt markets during the early stages of the recovery, but the underlying demographic fundamentals are not as strong as those in the high-growth South and West. Modest demographic tailwinds have been a net positive in terms of supply-side pressure. Builders that struggle to find construction workers are diligent when considering new developments within the city. Core mixed-use projects that have been the nationwide hallmark of this economic cycle are coming online, symbolic of the confidence that space demand in densely populated areas will persist. The City Foundry, for example, will add 330,000 square feet to inventory this year. The redevelopment of former industrial space represents the future of large retail projects, though the pace of construction will be measured. Low construction levels combined with modest demand drivers will keep retail fundamentals relatively stable this year.