SALT LAKE CITY, UTAH April 28, 2016 – Salt Lake retail activity remained strong during first quarter 2016, with overall vacancy decreasing by one percentage point year-over-year, according to Cushman & Wakefield/Commerce. This tightening has pushed average asking rates up more than 11 percent during the same period. Absorption remained positive, with community and regional centers performing strongest, indicating continued demand for quality space in new, anchored projects.
“Retail follows population,” said Trigger Reital, market leader and managing director of the Cushman & Wakefield/Commerce Salt Lake City office. “Downtown is experiencing massive residential development due to millennials looking to ‘live, work and play’ downtown, new-to-the market office tenant employees, and baby boomers downsizing from the suburbs opting for urban living.”
In addition to the residential boom, downtown is receiving a great deal of attention due to the numerous redevelopment and renovations occurring. The Gateway Mall will undergo a $30 million remodel and will offer additional entertainment options, restaurants and unique local and national tenants. Regent Street is being rejuvenated into a retail, restaurant and art district, with the west side of the street already fully leased. Peery Hotel just completed renovations which include two street-level restaurants and fully leased ground-floor retail.
Along with the overall market strength, there are opportunities through attrition. The Sports Authority has announced four store closures throughout the valley and will likely shutter most, if not all, of their stores in the market. Additionally, Kmart has announced the closure of three more stores in select locations, all of which are in attractive locations providing opportunities for new and expanding concepts to service our market.
Salt Lake’s retail outlook remains remarkably bright as market fundamentals like job growth and residential construction rank among the highest in the nation. Expect to see new-to-market tenants as well as new retail concepts.
About Cushman & Wakefield/Commerce
Cushman & Wakefield/Commerce operates the Cushman & Wakefield business in Idaho, Nevada, Utah and Washington. 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 52 million sq. ft. of retail, industrial, and office assets, have transaction revenues of more than $2 billion, and employ more than 750 professionals. 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.