Lehi Economic Development Message

History books will tell the story of 2020 as the year of COVID-19 and the effect it had on local businesses. The Lehi business community was not immune to COVID-19. Service industries that have in-person contact or promote social interaction were hit the hardest, especially those in hospitality, dining, entertainment and amusement.

Overall, Lehi City saw an increase in sales tax year over year for 2020, mostly driven by grocery and large retailer sales. Those service-based businesses who pivoted or re-invented themselves survived or grew. “Shop local” campaigns, installing a drivethrough window, providing home delivery service, updating websites and installing barriers per CDC guidelines became critical to helping a business succeed. Other businesses sent their employees home to work utilizing video conferencing. Shopping and ordering groceries online are now the new normal.

As a government entity, our responsibility is to be a resource and facilitator for the business community. The city played an important role in helping Utah County disseminate funds through the Small Business COVID-19 Grant Program. We worked hand-in-hand with the Point of the Mountain Chamber of Commerce to inform the business community about federal and state grant programs and utilized social media to implement a shop local campaign.

As we look forward to 2021 and beyond, there are many opportunities for businesses. Lehi City has more than 5 million square feet of Class-A office space. A large portion of the businesses occupying this space still have the majority of their employees working from home. The question becomes: Will the business community bring back all their employees? If they don’t, do they still need as much space as they currently occupy? How soon can this space be backfilled if vacated? How will the space be reconfigured? These questions will reshape Class-A office space for the future.

A lot of businesses are faced with implementing the 33/33/33 rule. About 33 percent of their employees will permanently work from home, 33 percent will work half-time in the office and the other half at home, and the last 33 percent will permanently work in the office. A concern most businesses had was productivity of their employee base. According to Forbes Magazine, a survey was done in conjunction with Microsoft and the Boston Consulting Group that showed employee productivity remained constant and, in some cases, increased. The main concern was a decrease in innovation. This was due to employees not knowing how to utilize video conferencing tools and a lack of collaboration from not being in an office setting. The study anticipates that employee productivity will stay steady and innovation will increase over time through education of tools.

With fewer employees needed in the office, will this require smaller space? COVID-19 has forced businesses to spread employees out, discourage social gatherings in common areas and practice social distancing in meetings. Six feet is the new norm, so building space is going to have to be reconfigured. While employee numbers might drop in the office, space will grow to accommodate social distancing.

We expect that Lehi will have more than 8 million square feet of Class-A office space completed at full buildout. The real estate community is anticipating about a year to backfill available lease space that comes online due to COVID-19. However, developers are in a wait-and-see pattern. With higher vacancy rates, it doesn’t make sense to build additional lease space.

We will see a new business norm emerge through 2021. I envision our robust economy will continue to grow, creating more jobs and demand for retail and housing. All economic indicators show the growth is healthy and controlled. The key to Lehi City’s success is indeed the secret sauce — placing emphasis on family, values and heritage. Lehi City is definitely “where it’s at.”

Marlin Eldred Lehi Economic Development Director

3320 N Digital Drive | Lehi, UT 84043

Monday - Friday Lunch 11:00 - 2:30 Dinner 5:00 - 9:00

Saturday 5:00 - 9:00 Dinner

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