Greater Salt Lake Office Market
Tenant occupancy across all regions of the Wasatch Front remained even, with negative absorption in the Provo-Orem MSA counterbalanced by almost equal positive absorption between the Salt Lake City and Ogden-Clearfield MSAs. 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 have office-first work models. 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 2Q24
Greater Salt Lake Industrial Market
Net absorption surpassed construction deliveries in Salt Lake Counties, while absorption was nearly equal to deliveries in Utah, Davis and Weber Counties. 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 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.