Greater Salt Lake Office Market
Net absorption reached 272,327 SF across the Wasatch Front, led by strong occupancy gains in Utah County. Approximately 200,000 SF of new office space delivered this quarter, with over 50% pre-leased prior to completion—supporting absorption and preventing a rise in vacancy. A cautious, targeted development approach has mitigated risks of overbuilding. The impact of hybrid work persists. While pre-pandemic trends saw 191 SF of office space added per new office-using job, that figure has declined to 113 SF per job post-COVID, reflecting tenants’ ongoing shift toward reduced space requirements per employee.
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Greater Salt Lake Industrial Market
Construction outpaced demand on the Wasatch Front, with 1.8 million SF delivered versus 1.3 million SF absorbed. Demand for specialized and small-bay spaces remains high, commanding rental premiums amid tight supply. Salt Lake County trailed other regional markets in rental rate growth this quarter. Inflationary pressures and 4% annual rent escalations are driving cost-conscious occupiers toward Class B and C assets. Overall leasing rose, driven by renewals as many tenants opted to remain in place rather than take on higher relocation costs.