Salt Lake City, Utah–10/13/15–The Salt Lake County commercial real estate market has seen incremental change across the board in third quarter of 2015. A new report from Cushman & Wakefield | Commerce reaffirms the ongoing growth in the industrial sector, in particular.
Industrial Vacancy Rates are Up
Vacancy rates saw an increase on a year-over-year basis going from 6.8 percent to 7.2 percent.
“This uptick is a signal of the market’s strength rather than weakness as developers have responded to increased demand with new product,” Trigger Reital, Market Leader of the Cushman & Wakefield | Commerce Salt Lake City office, said. “While 2014 saw just 671,964 square feet of new construction, so far in 2015 there has been 2,346,179 square feet. This significant increase in new product has not yet been fully occupied and has caused the vacancy rate to increase.”
With absorption remaining strong, the vacancy rate will decline over the coming quarters even as new construction remains robust. Absorption of 1,468,173 square feet is expected to strengthen through year-end and be above its 5-year average.
Total market availability is 8,802,621 square feet while the entire market encompasses 122,363,219 square feet, with roughly half of all availability in the 100,001+ square foot building type. The 20,001 to 50,000 square foot and 50,001 to 100,000 footprints take up 25,346,894 market square feet and 20,095,529 market square feet respectively, while the smaller footprints lag behind taking up 16,654,345 square feet in the 0 to 20,000 square foot bracket.
Reital also added that Cushman & Wakefield | Commerce also negotiated a number of notable industrial transactions in Q3. Two of which are highlighted here:
- Industrial building, located at 480 N. 5600 W. in Salt Lake City, Utah
- Square Feet: 202,625
- Seller: JDK REAL ESTATE LLC
- Buyer: Exeter 480 N. 5600 W., LLC
- Brokers: Mike Farmer and Phillip Eilers of Cushman & Wakefield | Commerce
- Industrial building located at 514 W. Pickett Cir., in Salt Lake City, Utah
- Square Feet: 104,200
- Seller: TPRF II / Pickett Circle, LLC
- Buyer: Pioneer News Group, Co.
- Brokers: Travis Healey, Tom Freeman and Gina Moore of Cushman & Wakefield | Commerce
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About Cushman & Wakefield | Commerce
Cushman & Wakefield | Commerce, headquartered in Salt Lake City, Utah is an independently owned and operated member of the Cushman & Wakefield Alliance with offices throughout Utah, Nevada, Washington and Idaho. The firm partners with its sister company Cushman & Wakefield | NorthMarq to provide innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory.
Together the firms manage more than 52 million sq. ft. of retail, industrial, and office assets, have annual revenues of more than $100 million, and employ more than 750 professionals. Learn more at www.comre.com; www.cushwakenm.com. Cushman & Wakefield | Commerce and Cushman & Wakefield | NorthMarq are part of the Cushman & Wakefield platform, which is the world’s largest privately-held commercial real estate services firm with 259 offices in 60 countries globally.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop and live. The firm’s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facility services (branded C&W Services), global occupier services, investment & asset management (branded DTZ Investors), project & development services, tenant representation and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.