SALT LAKE CITY, April, 25, 2016 – The Utah investment market experienced the strongest first quarter on record according to Cushman & Wakefield/Commerce, with total sales volume surpassing a half-billion dollars. At this pace, 2016 is expected to exceed $2 billion by end-of-year for the first time in state history.
“Record-high sales volume, record-low overall cap rates and the most square footage transacted in a first quarter all point to an overall record-breaking year,” said Kip Paul, executive director of investments with Cushman & Wakefield/Commerce’s Salt Lake City office. “Expect cap rates to remain below the historical average through the year and into the next.”
Several large office and retail transactions led to a $3 million increase in the average size of first quarter investment transactions. The Gateway shopping center in Salt Lake City and the Provo Towne Center both exchanged hands, totaling a combined $125 million.
High demand for industrial investments also bumped record-breaking numbers, tripling first quarter volume from 2015. Ecommerce companies are streaming into the market’s northwest quadrant, near the airport, setting up distribution and warehouse facilities to leverage Salt Lake’s strategic proximity to regional and national distribution and logistics chains.
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 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.