St. Louis Retail Market Update: Redevelopment Projects Reshape Key Corridors

BLOG // September 2025

Heartland Real Estate Business – September 2025

St. Louis Retail Market Update: Redevelopment Projects Reshape Key Corridors

While national headlines often highlight store closures and shifting consumer habits, the retail story in St. Louis looks very different. Vacancy remains tight, redevelopment is reshaping key corridors, and tenant demand continues to evolve toward experience-driven and service-oriented spaces.

Vacancy Remains Tight
As of Q2 2025, the overall retail vacancy rate in St. Louis stood at just 4.7%, a 40-basis-point decrease year-over-year. Suburban submarkets such as West County and St. Charles County are leading the way, with vacancy rates declining by up to 100 basis points in the past year.

This resilience is fueled by steady population growth in the suburbs, shifting migration patterns, and strong demand for affordable, service-oriented retail.

Redevelopment is the Big Story
The most visible storyline in 2025 is the wave of redevelopment projects reimagining major retail sites across the metro:

  • $232M mixed-use project near CityPark → 450 apartments, retail, and amenities designed to activate Downtown West.
  • $670M redevelopment of the Millennium Hotel site → transforming a long-vacant property into a mixed-use hub with residential, hotel, and commercial space.
  • Chesterfield Mall redevelopment → repositioning to include residential, retail, and public spaces, aligning with broader lifestyle trends.

These projects reflect how developers are adapting to changing retail dynamics and consumer preferences, creating destinations that blend shopping, living, and entertainment.

Shifting Tenant Demand
Retailers in St. Louis are following national trends but with a local twist:

  • Experience-driven retail: Tenants are enhancing in-store experiences and using digital tools to attract and engage customers.
  • Grocery & service anchors: Grocery stores, fitness concepts, medical uses, and everyday services are filling space and driving consistent traffic.
  • Affordability focus: Consumers are prioritizing value, leading to growth in discount and essential retail formats.

Capital Markets: Cautious but Selective
Retail investment activity has slowed, with sales volume totaling just $1.2B over the past four quarters — down 33% year-over-year. Higher construction costs and financing challenges are headwinds, but investors are still backing well-located, demographically strong submarkets with potential for long-term growth.

Outlook: Quality and Flexibility Win
The future of St. Louis retail isn’t about adding more square footage — it’s about repositioning and redeveloping existing assets. Properties that adapt to shifting consumer behavior and deliver modern, mixed-use experiences will continue to outperform.

St. Louis is writing its own retail story in 2025: one of resilience, reinvestment, and redevelopment.

Looking for retail opportunities in St. Louis? Connect with Emily or any of of NAI DESCO’s retail experts to learn how redevelopment and shifting demand are shaping the market.