SALT LAKE CITY, Jan. 11, 2016 – The latest report from Cushman & Wakefield/Commerce shows activity in the Salt Lake office market ended 2015 strong with net leasing absorption near 976,127 square feet, just shy of peak year 2007.
This strong leasing activity is supported by significant transactions such as CHG’s lease of 281,663 at View 72, Ancestry.com’s lease of 200,317 square feet at Traverse Mountain, and SolutionReach’s lease of 147,000 square feet at Thanksgiving Point.
The past year experienced significant amounts of new construction, with 830,813 square feet completed in Salt Lake County alone. The most notable project was Vista Station’s three buildings, comprising 400,000 square feet which was 100 percent leased upon completion.
“Looking back at office market trends over the past year, this segment has seen strong activity in Salt Lake County,” said Trigger Reital, managing director and market leader of Cushman & Wakefield/Commerce’s Salt Lake City office. “The leasing activity was particularly strong—so much that record levels were hit and it is very likely that the market will continue to grow in 2016.”
This coming year Salt Lake County is expected to see the highest level of construction completions in eight years with 1,621,991 square feet currently under construction. The level of confidence by both developers and tenants continues to be reinforced with notable developments such as 111 Main, a 24-story, 440,452 square foot building in the central business district (CBD) which is 42 percent pre-leased and expected to be fully leased by completion in fourth quarter.
The office market will remain strong throughout 2016. Expect to see high levels of absorption, although vacancy is expected to increase by up to 1.7 percent due to the large amount of new construction. This increase is not an indication of a weakening market, but rather the result of demand by tenants for new buildings to accommodate all their needs. Any vacancy increase will remain well within healthy levels.
See the attached infographic for a more holistic view.
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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 square feet 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, and www.cushwakenm.com. Cushman & Wakefield/Commerce and Cushman & Wakefield/NorthMarq are part of the Cushman & Wakefield platform.
About Cushman & Wakefield
The successful merger of Cushman & Wakefield and DTZ closed September 1, 2015. The firm now operates under the iconic Cushman & Wakefield brand and has a new visual identity and logo that position the firm for the future and reflect its trusted global legacy and wider history. The new Cushman & Wakefield is led by Chairman & Chief Executive Officer Brett White and Global President Tod Lickerman. The company is majority owned by an investor group led by TPG, PAG, and OTPP.
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.