Greater Salt Lake Office Market
While 136,330 SF in quarterly net absorption gains were recorded across the Wasatch Front, the region posted 599,055 SF in overall losses for the year. Tenant contractions were heaviest in Salt Lake City and Provo-Orem MSAs, while Ogden-Clearfield MSA saw strong gains driven by activity around Hill Air Force Base. The office construction pipeline declined sharply from its 2019 peak of 3.7 MSF, with just over 450,000 SF underway at the end of 2024. Rising sublease availability and hybrid work models have curbed new starts. Stagnant rent growth reflects tenants’ cost sensitivity and landlords’ focus on retaining rental income. Increasing direct vacancy rates may prompt landlords to offer greater concessions and flexible terms to attract tenants.
Download Greater Salt Lake Office Market 4Q24
Greater Salt Lake Industrial Market
Net absorption in 2024 exceeded construction deliveries across the Wasatch Front, except in Utah County. Achieved first-year lease rates experienced steady growth in most areas, with specialized and small spaces commanding a premium due to limited supply. Salt Lake County lagged in lease rate growth compared to other regions. Rising operating expenses, driven by inflation and 4.0% annual lease escalations, are pushing cost-conscious tenants toward Class B and C spaces