Industrial, Multifamily Sectors Showing Strength Across the Midwest

By on April 10, 2018

From REJournals:  It’s becoming common knowledge: In the Midwest, industrial and multifamily remain the hot commercial real estate sectors. New apartment buildings are rising in downtowns from Detroit to Minneapolis to Cleveland. And companies continue to push for more warehouse and distribution space across the Midwest as a way to deliver their products to their customers as quickly as they can.

And the best news of all? These two sectors remain as hot as ever in cities across the region as spring nears.

Just ask Chris McKee, principal and chief development officer with the St. Louis office of CRG. He said that during the last five years, the commercial real estate market in his city has steadily seen more sales, leases and new developments.

But during the last two years? That increase in activity has been even more dramatic, he said.

McKee said that multifamily development has led this surge, while industrial, too, has been strong in St. Louis and its surrounding communities. The office market has been a bit slower, with McKee describing the sector as a definite build-to-suit model.

“Multifamily has been the real leader in the city by far,” McKee said. “St. Louis has been underserved when it comes to apartments. Developers are addressing that now. So there has been tremendous commercial real estate activity in multifamily, in neighborhoods throughout the region.”

McKee pointed to such communities as the Central West End, the Grove and the Delmar Loop. The city’s ambitious Ballpark Village development, located next to the St. Louis Cardinals’ Busch Stadium, has its own multifamily component, while the neighborhoods surrounding St. Louis University are home to their own mix of multifamily units.

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