Salt Lake City Office Market
| Average Actual Rent (Price/SF) | $25.57 |
| Vacancy Rate (%) | 11.2% |
| Net Absorption (SF) | 172,719 |
Riding on the strength of second-quarter 2021’s economic return and activity, the Salt Lake County office market continued to illustrate the desire for tenants and buyers to stake a claim in one of the fastest-recovering areas of the nation. Leasing increased in third-quarter 2021 by another 20.6% compared with second-quarter 2021. Sales, both owner-user and investment, are up 17.5% year-over-year. Overall activity, with companies making plans regarding what the future of the workplace looks like, is solidifying, with a new focus on safety measures, flexibility options and technology at the forefront.
Salt Lake City Industrial Market
| Average Actual Rent (Price/SF) | $.66 |
| Vacancy Rate (%) | 2.3% |
| Net Absorption (SF) | 2,381,255 |
The demand for industrial space, particularly from out-of-state tenants looking to establish a presence along the fast-growing Wasatch Front, drove the direct vacancy rate to an all-time quarterly low of 2.3%. Net absorption for the quarter measured 2.4 million square feet, with close to 7.3 million square feet absorbed year to date, besting the high watermark of 2020 by 1.5 million square feet with one quarter still left in the year. Construction levels remain elevated – 9.6 million square feet was under construction in third-quarter 2021 – with developers attempting to keep up with demand amid material shortages and delays, in addition to the difficulty of attracting and retaining labor. Demand and rising construction costs spurred average asking and achieved average first-year lease rates higher in the third quarter of 2021, up 14.1% and 12.5% year over year, respectively. Owner-user and investment sale prices per square foot continue to post strong growth, and cap rates for industrial product in Utah compressed further, now below 5.0% for the year.
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