Salt Lake Wasatch Front Office Market
Net absorption losses slowed in recent quarters in both Salt Lake and Utah Counties but are expected to increase in 2024. 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 Salt Lake Wasatch Front Office Market 4Q23
Salt Lake City Industrial Market
Construction deliveries continued to surpass net absorption gains along the entire Wasatch Front. Vacancy increased across the entire region and will see further rises as under-construction projects deliver. Fortunately, construction starts are slowing and vacancy will eventually stabilize. Achieved first-year lease rates continue to experience strong growth, with signed deals coming in higher than current asking rates across all counties. 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.