SALT LAKE CITY, April 25, 2017 – The Cushman & Wakefield Commerce first quarter MarketBeat report shows healthy growth in the Salt Lake Valley, setting the stage for another positive year in 2017. Even though the vacancy rate rose to 12.7 percent, net absorption was positive and trended above the 10-year average. The market also continued to experience an increase in asking rent from $22.85 per square foot full service to $23.46. Meanwhile, it is anticipated that the construction completion total will reach its highest level since 2007.
The Southeast submarket continued to see heightened development, with the completion of two Class A office properties in Sandy and Draper. Both buildings combined were approximately 83 percent pre-leased, which helped the Southeast to drive the majority of positive absorption activity this quarter. Another indication of strong Salt Lake market confidence was the repositioning of 84,000 square feet of retail space into creative office space in downtown Salt Lake’s Gateway Mall.
“The Salt Lake Market is operating in the wake of historic levels of activity in recent years. The rate of growth should still remain strong but not record-breaking,” said Trigger Reital, market leader of the Salt Lake City office of Cushman & Wakefield Commerce. “It is expected that asking rates will continue to rise at a steady but slightly slower pace, and it is expected that Q1’s positive absorption activity will continue in Q2.”
Due to the high level of construction and redevelopment activities in the Salt Lake Valley, vacancy rates will remain steady, possibly experiencing a slight increase.
View the Salt Lake City Q1 2017 Office Market Snapshot at http://www.comre.com/uploads/reports/p1be3tke8l1lvim1i9j11kf3nmo3.pdf
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About Cushman & Wakefield Commerce
Cushman & Wakefield Commerce operates the Cushman & Wakefield business in Nevada, Utah and Washington. As part of the Cushman & Wakefield global platform, the firm offers innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory. With nearly 300 employees, 9 million sq. ft. of property management and transaction value of more than $2.8 billion, the firm is a leading commercial real estate resource in the Intermountain West region and Pacific Northwest. Learn more at www.comre.com.
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 revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
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