Salt Lake City Office Market
| Average Actual Rent (Price/SF) | $25.53 |
| Vacancy Rate (%) | 10.8% |
| Net Absorption (SF) | -189,399 |
After a sluggish first quarter of 2021, the Salt Lake County office market started to see some renewed activity in the office sector during second-quarter 2021. The Salt Lake Metro overall has rebounded quickly, with the lowest unemployment rate in the nation (2.8% at end of May 2021), mask mandates lifted and nearly 50% of the state’s population vaccinated with 37.5% fully inoculated against COVID-19. Office users are bringing back employees previously working remotely, with some coming back to the office full-time while others implement a hybrid model between the workplace and home. The metro and the nation overall are keeping a close eye on how the increasingly popular hybrid model will affect company and employee performance in the long run.
Salt Lake City Industrial Market
| Average Actual Rent (Price/SF) | $.64 |
| Vacancy Rate (%) | 2.7% |
| Net Absorption (SF) | 3,862,836 |
Positive net absorption reached a quarterly historic high in the second quarter of 2021, with close to 3.9 million square feet being absorbed. Unlike in recent years, very little of the positive absorption in second-quarter 2021 is directly attributable to Amazon and included significant leases from a diverse array of manufacturers, logistics and fulfillment companies and omnichannel retailers. Direct vacancy fell below 3.0% to 2.7% and under construction square footage topped 10.0 million square feet amid the strong tenant demand. Both asking and achieved first-year average rates increased 16.4% and 2.6% year over year, respectively, and the average owner-user sale price is up 9.5% year over year, to $133.85/SF. Industrial assets remain highly sought after, and the average square footage per transaction is increasing as investors look to acquire sizable footprints in the market.
Download Salt Lake City Industrial Market Report 2Q21 Download Utah Investment Market 2Q21 Download Wasatch Front Retail Market 2Q21