Greater Salt Lake Office Market
Positive net absorption occurred across all regions of the Wasatch Front, with the Provo-Orem and Ogden-Clearfield MSAs seeing the largest occupancy gains. Under-construction space has trended down sharply since 2019, when a record high 3.7 MSF for the Wasatch Front was underway. Hybrid work models and rising sublet availability are factors. Davis and Weber Counties are seeing growth in rents, construction and occupancy, buoyed by activity around Hill Air Force Base and traditional office users that do not want hybrid work models. Softening market conditions are strongest in the Tech Corridor, based on ongoing volatility amid its namesake occupiers and their preference for hybrid work models.
Download Greater Salt Lake Office Market 1Q24
Greater Salt Lake Industrial Market
Net absorption surpassed construction deliveries in Salt Lake and Utah Counties, while absorption was nearly equal to deliveries in Davis and Weber Counties. Vacancy decreased across the entire region as construction starts slowed and tenants progressively lease new supply. Achieved first-year lease rates continue to experience strong growth. Other occupancy costs are rising alongside rent. Operating expenses are up amid inflation and the 4.0% annual lease escalation is more prevalent. Cost-conscious tenants are turning more to Class B and Class C spaces.