Greater Salt Lake Office Market
Tenant occupancy contracted by 336,384 SF in total across all regions of the Wasatch Front, with Salt Lake City MSA and Provo-Orem MSAs experiencing the highest occupancy losses. Under-construction space has trended down sharply since 2019, when a record high 3.7 MSF for the Wasatch Front was underway. The Wasatch Front office construction pipeline now holds just over 400,000 SF at quarter-end. Hybrid work models and rising sublet availability are factors. Softening market conditions are strongest in the Tech Corridor, based on ongoing volatility amid its namesake occupiers and their preference for telework.
Download Greater Salt Lake Office Market 3Q24
Greater Salt Lake Industrial Market
Year-to-date, net absorption gains surpassed construction deliveries along the entire Wasatch Front. Construction starts have decreased across the entire region as debt sourcing is harder to obtain and developers monitor how new product is absorbed in the next coming quarters. Achieved first-year lease rates have stalled in overall growth along the Wasatch Front; specialized and small spaces are performing well due to lack of supply. 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.