Cushman & Wakefield | Commerce Utah Marketbeat Reports Show Strong Fundamentals for First Quarter 2014 Commercial Real Estate
SALT LAKE CITY—May 14, 2014—Cushman & Wakefield | Commerce (www.comre.com) released its Q1, 2014 Marketbeat Snapshot reports outlining the state of commercial real estate in Utah including reports for the office, industrial, investment and retail markets.
“The reports show that some indicators cooled off slightly in the first quarter,” said Michael Lawson, President of Cushman & Wakefield | Commerce. “However, market fundamentals are continuing to strengthen and 2014 performance is expected to be on par with the record-breaking 2013.”
The following are report highlights from the Cushman & Wakefield | Commerce reports, which can be accessed (along with historical reports) at http://www.comre.com/research.
The office market slowed slightly through Q114 as direct vacancy rates ticked up slightly by 0.2 pps from the end of 2013. Despite this slight increase, the direct vacancy rate of 12.0 percent was still 1.9 pps lower on a year-over-year basis. Lease rates were up, with a 2.3 percent increase. The outlook for the office market is bullish with about 350,000 sf of new or renovated space coming online in Salt Lake City during Q214. As such, vacancy rates within the CBD are expected to tick up by around 2.0 pps in the next quarter.
The overall industrial vacancy rate decreased by 0.7 pps on a year-over-year basis to end the quarter at 7.5 percent. Despite this decrease, both leasing and sales activity were down through the first quarter; however, optimism remains fairly strong because several projects were simply pushed into Q2.
The investment market saw the highest price point sale in the history of the state with 222 Main, a class AA trophy office tower. The high sales volume by number of transactions and total investment value are continuing to rise, which demonstrates an ongoing strong demand for investment product in Utah.
Vacancy rates continued to improve with a drop of 2.0 pps on a year-over-year basis to end Q1 at 7.1 percent. New construction is expected to keep overall vacancy rates in check and expansion by existing retailers in the market, as well as new entrants, is expected to continue as Utah gains national recognition for its vibrant economy.
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About Cushman & Wakefield | Commerce
Cushman & Wakefield | Commerce, an independently owned and operated member of the Cushman & Wakefield Alliance, has been the leading provider of real estate brokerage services for more than 30 years. Headquartered in Salt Lake City, the firm has offices throughout Utah, Nevada, Idaho and Washington. It offers consulting, brokerage, tenant and landlord representation, property and facilities management, and valuation services to corporations, institutions and investors throughout the Intermountain West and Pacific Northwest. For more information, and for property listings, broker information, market category reports and more visit www.comre.com.
About Cushman & Wakefield
Cushman & Wakefield is the world’s largest privately‐held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 253 offices in 60 countries, employing more than 15,000 professionals. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $3.7 billion in assets under management globally. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.