An Upside-Down Market: Industrial Demand in the 20K–100K SF Range

BLOG // August 2025

An Upside-Down Market: Industrial Demand in the 20K–100K SF Range

Featuring John Sheahan, SIOR, NAI DESCO

The St. Louis industrial market is showing a surprising shift. Instead of the usual “big box” focus on massive distribution centers, activity today is concentrated in the 20,000–100,000 square-foot range—and demand here is running well ahead of supply.

“Right now, we’re seeing more user-buyers looking for buildings in that 20K–100K SF range than there are options available,” said John Sheahan, Founding Principal & Managing Director at NAI DESCO. “There are a lot of requirements in this segment, but the supply is very limited.”

The End of the Big Box Mindset?
Over the past decade, much of the industrial conversation revolved around big box warehouses—those 250,000 SF and larger spaces designed for major distributors and e-commerce giants. In St. Louis, however, that story has flipped.

“There’s actually a surplus of big box bulk warehouse space on both sides of the river,” Sheahan explained. “Right now there’s not enough demand to absorb it.”

When Buyers Can’t Buy
The supply imbalance is creating challenges for companies that want to buy industrial space but can’t find the right building.

“Some users may need to look at new construction—if they can wait for a building to be completed and can take on the higher cost,” Sheahan said. “Others may need to lease for a period of time until the right purchase opportunity comes along.”

Advice for Landlords
If buyers are frustrated by the lack of options, landlords are facing the opposite problem—plenty of vacant space but not enough tenants ready to lease it.

“Depending on the product type, landlords need to be more aggressive in doing deals,” Sheahan said. “There just aren’t enough users to fill all the supply on the market.”

Submarkets to Watch
The imbalance is visible across the region. “The bulk warehouse market is larger on the Metro East,” Sheahan noted. “But there’s still plenty of large blocks of space that are vacant and available on the Missouri side of the river too.”

Practical Advice in a Flipped Market
For buyers: be ready to act fast. “If the right opportunity comes along, you need to move quickly,” Sheahan advised.

For tenants: take advantage of the moment. “If you’re looking for a large block of space, there are a lot of good options. Lock in an attractive deal while there’s excess inventory.”

Every deal is unique. Whether you’re a landlord, tenant, or buyer, understanding today’s industrial landscape is key.
Reach out to our industrial team at NAI DESCO — we’re happy to help you find the right fit.

 

Thinking about your next industrial move? Reach out to John Sheahan, SIOR for a clear read on the market!
Email jsheahan@naidesco.com or give him a call at 314 402 1031