Utah has all the classic elements of an iconic storyline. We have big personalities, a dazzling backdrop, jaw-dropping events and a growing skyline.
For 11 years, Colliers has been telling these incredible stories of Utah in our annual Advisor magazine. As the leading commercial real estate firm in the state, we take our stewardship seriously and provide thought leadership not just on real estate but also on entrepreneurism, technology, transportation and development. We know that our ecosystem is tightly connected and when we work together as a state, we write each new chapter with confidence and success.
I joined Colliers in 2024 after a quarter-century of documenting Utah’s business scene. I am proud to sit in this seat at the economic development table for Utah. Working alongside Colliers Chairman Brandon Fugal — and learning from the legendary Lew Cramer before succeeding him in his role as CEO — is a dream role for me. I love this state and its leadership, and this edition of The Advisor highlights the reasons we are all devoted to the positive trajectory of Utah.
To inspire and inform you, this edition highlights Utah's changing culture, the race for Utah’s first vertiport, solutions to the housing crisis, and specific case studies of how some of the Wasatch Front’s most well-known buildings are evolving in ownership and usage.
At Colliers, we are trusted advisors to the public and private entities who partner with us to make wise decisions on location and timing. We value our connection to the communities and leaders we serve, and we will continue to be at the table as Utah’s script continues to be written. Spoiler alert! It’s a thriller.
With appreciation,
Jeanette Bennett
Executive Managing Director & CEO
Colliers Utah
ADVISOR THE
Chairman | Colliers Utah
Brandon D. Fugal brandon.fugal@colliers.com
Executive Managing Director & CEO | Colliers Utah
Jeanette Bennett jeanette.bennett@colliers.com
Public & Media Relations
Colliers Utah
Bryan Welch bryan.welch@colliers.com
Contributors
John Adams
Judd Bagley
Rachel Barnes
Angelika Brewer
Ernie Cottle
Jack Dodson
Megan Donnell
Jordan Emery
Courtney Geary
Chuck Green
Josh Heath
Melanie Jones
Mike Koepp
Mekenna Malan
Mindy Martinez
Dainon Moody
Jacqueline Mumford
Amber Napiwocki
Amanda Nogales
Brett Scothern
Jacob Swanson
Savannah Beth Withers Taylor
DEVELOPMENT
04 | SALT LAKE CITY’S NEW SELLING POINT: CULTURE, NOT COST
As living costs rise, downtown developments bet on arts and entertainment to attract business.
10 | ALL ABOARD PROGRESS
How rail and industry are transforming Tooele County.
16 | WHAT’S DRIVING CORPORATE RELOCATIONS TO UTAH?
A thriving culture, motivated workforce and strong startup ecosystem make Utah irresistible to growing companies.
24 | SCHOOL IS IN SESSION
Why Canyons School District moved its Career and Technical Education Center into eBay’s former Draper campus.
FEATURES
30 | UTAH’S FLYING FUTURE
Vineyard leads the race for the state’s first “vertiport.”
36 | TURN ON THE LIGHTS
How Utah’s new energy initiative, Operation Gigawatt, will boost the economy, save residents money and illuminate the way for other states.
42 | BEYOND GOOGLE MAPS
Colliers Utah leverages drones and mapping technology to track project growth and showcase real-time progress with the latest 360-degree imagery.
RESIDENTIAL
50 | UTAH’S HOUSING CRISIS NEEDS NEW SOLUTIONS — AND FAST
With home prices now 6.2 times the median wage, experts say innovation and policy changes are crucial.
HOSPITALITY & RETAIL
56 | READY, SET, LEASE
Why turnkey properties are winning in Utah, as evidenced by University Place.
62 | WHERE RED ROCKS MEET ROOM SERVICE
Luxury resorts are redefining Southern Utah’s tourism economy.
MARKET REPORT
68 | STATE OF THE MARKET
Checking the pulse of major markets throughout the Wasatch Front.
Photo courtesy of Adobe Stock
SALT LAKE CITY’S NEW SELLING POINT: CULTURE, NOT COST
As living costs rise, downtown developments bet on arts and entertainment to attract business.
By Judd Bagley
A wooden statue named Hoodah and other artwork displayed in the Granary District. | Photo by Isaac Hale, Deseret News
There was a time when one of Salt Lake City’s main selling points was low costs of living and labor.
“That price arbitrage is no longer what it used to be,” Chris Kirk, managing director at Colliers, says with a laugh. “Now, to attract new business coming from big urban areas, we have to win based on the desirability to be here. That means matching the amenities that decision-makers are used to. That requires a strong culture and arts scene knit together by walkable streets, world-class hospitality, entertainment, music and all the vibrancy of a world-class city.”
Though he sells commercial real estate throughout the Wasatch Front, Kirk is known for his special expertise in downtown Salt Lake City — and with good reason.
“I grew up and lived in the downtown area almost my entire life, and I’ve spent my entire 30-year career working in a downtown office,” Kirk says. “I’ve watched this city evolve, and it’s all been exciting, but culturally, something really unique and interesting is happening right now.”
Kirk feels that a lack of continuity has traditionally held back the culture of Salt Lake City’s downtown.
“We’ve had a fragmentation problem where there’s a little central business district, then all these unwalkable blocks between The Gateway and City Creek Center. Then there’s Abravanel Hall, Temple Square and the Delta Center like disconnected islands,” Kirk says. “The solution — and what’s filling in the gaps — is a growing wave of arts, culture and entertainment.”
Reimagining Salt Lake City’s industrial gateway
Two prime examples of arts and culture-centered developments include the entertainment district being built around Abravanel Hall and the Granary District. While the process of planning and approving the entertainment district dominated headlines last fall, the development of the Granary District has made much less noise. This is likely because its aim is to completely transform 50 mostly forgotten and woefully underutilized acres into the kind of quirky and bohemian cultural corridor at the heart of many top-tier urban centers.
The complete remaking of the Granary District — that rundown zone bounded by I-15 and its 900 South exit on the west and south and 600 South and West Temple on the north and east — is the dream of developer Brandon Blaser, also a native of Salt Lake City.
Photo by John Adams, Colliers Utah
Salt Lake City Mayor Erin Mendenhall talks as she walks in the Granary District. | Photo by Isaac Hale, Deseret News
This period of cultural transformation will be seen as the start of an exciting new era.”
Brandon Blaser, Developer, Granary District
“I spent 20 years living outside of Utah, and I’d go to other cities [that] have these really cool, organic renaissance areas full of restored and readapted buildings housing the coolest local businesses and art and culture. I wondered why Salt Lake didn’t have anything like The Gulch in Nashville or the Design District in Dallas,” Blaser says. “When I moved back to Salt Lake, I could sense that we were seven or eight years away from being ready to have something like that here.”
Blaser says that most of the neighborhoods he aspired to have in Salt Lake City were once old industrial areas near its downtown.
“Amazingly, the first thing one sees when driving into the heart of Salt Lake is our old industrial area, and nobody was doing anything about it,” Blaser says. “Here we were with the best real estate market in America and on every top five list of every other measure of economic strength, but nobody would touch the entrance to our capital city. I knew I had no right to complain about things unless I was willing to do something about it.”
Blaser raised money and began planning and building his dream. He’s now carving up 10-acre blocks and filling them with wine bars, coffee shops, breweries and music venues, all while keeping and readapting 70 percent of the area’s original structures — a feat Kirk calls “unheard of.”
“The entertainment district and the Granary District will make downtown more vibrant and desirable, more like
other big cities,” Kirk continues. “When executives are deciding where to take their companies, and they’re considering recruiting and retaining talent, these things will sway them in the direction of Utah and downtown Salt Lake.”
A ripple effect
Kirk believes the impact of this dynamic will be felt in commercial real estate.
“We have a limited supply of true Class A properties downtown. I think that bodes well for the current vacancy to be leased,” he says. “There is a real opportunity to take old buildings and reinvent them like the Granary is doing. Investors should look at functionally obsolete properties and readapt them. I tell landlords to reexamine and upgrade their assets to attract these relocating tenants. Doing that will increase the desirability of downtown, which will further increase demand. This is a good opportunity.”
Blaser agrees and takes an even broader view.
“Soon, we’ll be announcing top-tier restaurant and entertainment venues already in markets like Dallas, Austin and New York that are expanding here because they see this is a special place,” he says. “They’ll be leasing right along with organic new concepts being sprouted by local entrepreneurs. When the history of Salt Lake City — the history of my hometown — is written, this period of cultural transformation will be seen as the start of an exciting new era.”
ALL ABOARD PROGRESS
How rail and industry are transforming Tooele County.
By Amber Napiwocki
Photo courtesy of Adobe Stock
Once considered a rural outpost and historically known as a mining district, Tooele County is becoming a magnet for businesses and residents alike. Anchored by the ambitious Lakeview Business Park and fueled by groundbreaking projects like the Savage Tooele Railroad (STR), the county is shaping up to be a blueprint for balanced and thoughtful economic expansion.
A revolution in connectivity
Over the past decade, Tooele has redefined its accessibility for businesses and residents.
“Tooele County is just 25 minutes from an international airport, with infrastructure to support it and ongoing infrastructure projects that will continue to bolster it,” says Tom Freeman, vice chair at Colliers Utah. He believes these improvements make the county an attractive location for industries that rely on speed, efficiency and proximity to urban centers.
One of the most transformative elements of Tooele’s infrastructure evolution is the Savage Tooele Railroad. The first new rail line in Utah in decades, the STR will establish a critical connection between the Lakeview Business Park and the Union Pacific network. Freeman calls it “a game-changer for manufacturing and distribution.”
“Each railcar handled by railroads removes three to four trucks off the road,” explains Phillip Hoskins, VP of business development at Savage. He also highlights findings from the American Association of Railroads (AAR), which emphasize the environmental advantages of rail: Freight rail is significantly more fuel-efficient than trucking, with one train able to move nearly 500 tons of freight on a single gallon of fuel while removing hundreds of trucks from highways. These
benefits position the STR as a critical component of Tooele’s sustainability and efficiency.
Lakeview Business Park fuels expansion
At the center of Tooele County’s transformation lies the Lakeview Business Park. The park, developed by The Romney Group in partnership with Prologis, serves as a vital engine for progression in the region. Freeman describes the park as a critical economic center in the county with “more than 1,700 committed acres to business development, including 900 acres of non-rail-served property and 800 acres of railserved property.”
Tenants like Lineage Logistics and Jabil have established operations at Lakeview, and more businesses are expected to follow.
“Prologis shares the vision that Lakeview Business Park is the premier rail-served, greenfield business park in the western United States,” says Anthon Stauffer, chief investment officer of The Romney Group. He notes that Prologis, “the largest landlord of industrial warehouse space in the world,” brings significant expertise to the project.
At full build-out, Lakeview Business Park is expected to accommodate approximately 24 million square feet of warehouse space and create about 10,000 jobs, according to Stauffer. He also estimates that the total investment could exceed $2.5 billion, solidifying its role as a key driver of Tooele County’s economy.
Balancing progress and preservation
While Tooele County races toward the future, developers and stakeholders remain mindful of balancing growth with
Map by Ernie Cottle, Colliers Utah
sustainability. One of the biggest challenges in the region is water availability.
“Lakeview Business Park secured all the necessary water for their 1,700-acre project at the time that they put this into production,” Freeman explains. “But for others in Tooele County, [water] will continue to be constrained.”
Rio Tinto, a leading global mining and materials company and a key landholder in the region, has embraced sustainability as a guiding principle.
“We’ve got probably 5,000 acres in the Salt Lake Valley and Tooele County that are prime for thoughtful development,” says Alan Matheson, general manager of land and water development at Rio Tinto. The company collaborates regularly with local and state leaders to identify opportunities for its business and to support the communities where it operates.
Matheson also highlights some of the company’s efforts: “We’ve donated about 1,900 acre-feet of water annually to the Great Salt Lake to keep that lake wet.” he says, noting
that, over the last few years, Rio Tinto closed down a coalfired power plant and transitioned all of its heavy mining equipment from conventional to renewable diesel.
“[That transition] reduces carbon emissions by 407,000 tons a year,” Matheson says. The company also recently announced a 25-megawatt solar power plant expansion project.
Lakeview Business Park also reflects this balance between development and preservation.
“During the development period, the acreage continues to be leased by agricultural tenants,” Stauffer explains. “The nature of Grantsville is changing to accommodate residential growth and development in place of the rural, agrarian historical uses.”
Freeman highlights that farmland preservation remains a personal choice, as there are no mandates from Grantsville City, Tooele County or Tooele City dictating land use. He adds that the community strongly values property rights.
Graphic by Megan Donnell, Colliers Utah
A vision for the future
According to Freeman, a significant portion of Tooele County’s workforce commutes outside the county for work, many of them traveling to Salt Lake County. This creates a clear opportunity to bring jobs closer to home, reducing commutes and improving quality of life for residents.
Lakeview Business Park is well-positioned to tap into the local labor force and improve commute options. Stauffer emphasizes the park’s convenient location, noting that it offers a reverse commute of just 30 minutes from nearby cities like Magna and Kearns. This strategic location offers businesses access to a broader labor pool in the surrounding areas.
Rio Tinto’s developments are also shaping the region’s future.
“We want development that is high quality … and addresses some of the challenges in the region,” Matheson says, noting efforts to reduce traffic generation, water use and air quality challenges “while providing opportunities for people of all life stages to be able to find places to live, work and recreate in beautiful surroundings.”
The first new rail line in Utah in decades, the STR establishes a critical connection between Lakeview Business Park and the Union Pacific network.”
Tom Freeman, Vice Chair, Colliers Utah
Graphic by Megan Donnell, Colliers Utah
WHAT’S DRIVING CORPORATE RELOCATIONS TO UTAH?
A thriving culture, motivated workforce and strong startup ecosystem make Utah irresistible to growing companies.
By Joshua Heath
Thanksgiving Park in Lehi, Utah, has six office buildings with 861, 971 total SF. | Photo by Courtney Geary, Colliers Utah
Recognized for its affordable living, vibrant workforce and unmatched quality of life, the Beehive State continues to attract businesses and families alike.
Delta Air Lines recently opened a $50 million training center in Salt Lake City, Utah. Texas Instruments is investing $11 billion in a semiconductor manufacturing plant in Lehi. OmniTeq is relocating its headquarters to Northern Utah, bringing thousands of high-paying jobs.
When Matt Dubois, founder and CEO of Chargezoom, decided to move his company out of California, Utah stood out as the obvious choice. Dubois had considered Nashville, Miami and Dallas, spending time in each location to evaluate the talent pool and environment. Ultimately, Utah’s strong cultural fit, motivated workforce and thriving startup ecosystem made Salt Lake City the clear winner.
“We launched three and a half years ago and struggled to find good talent in Southern California. The quantity and quality we needed just wasn’t available,” Dubois says. “In
Utah, it’s amazing. We can hire young, smart, hungry adults — many are starting families and buying homes. That’s the perfect climate for us. We give equity and help them achieve their goals.”
Utah’s appeal to businesses is no accident. With its blend of economic incentives, a skilled and motivated workforce, and a unique collaborative approach to development, Utah has positioned itself as a destination for companies seeking growth and stability.
“I believe the relocation of companies like Chargezoom from California to Utah is an indication of what we can expect to see for years to come,” says Brandon Fugal, chairman of Colliers Utah.
A talented workforce
Fugal highlights Utah’s higher education system as a key driver for recruitment:
Photo by Courtney Geary, Colliers Utah
“The proximity to world-class institutions like the University of Utah, Brigham Young University and Utah Valley University offers businesses unparalleled access to human resources and technology transfer,” Fugal says.
Utah’s young, educated and motivated workforce sets the state apart, blending strong family values, a culture of hard work and ambition, and the unmatched quality of life offered by one of the nation’s premier outdoor recreation destinations.
“We have a tremendous workforce. They’re young, educated, industrious, and it’s growing. It’s a great state for business to invest in because of our people,” says Scott Cuthbertson, CEO and president of EDCUtah.
Phil Dean, chief economist and public finance senior research fellow at the Kem C. Gardner Policy Institute, highlights Utah’s workforce as a cornerstone of its economic appeal.
“We’re still one of the youngest states in the nation. In terms
One of the secrets to Utah’s success lies in its public-private partnerships and dynamic collaboration between state and municipal leaders and the business community.”
Brandon Fugal, Chairman, Colliers Utah
The Chargezoom team poses for a group photo at their Utah headquarters. | Photo courtesy of Chargezoom
Illustrated map by Ernie Cottle, Colliers Utah
of educational attainment — like the percentage of adults with a bachelor’s degree — we’re in the upper third in the United States,” Dean says. “Especially in today’s information economy, those higher education levels make a big difference.”
Emily Rushton, founder and CEO of Hire Integrated, has been recruiting top Utah talent for nearly 20 years. She highlights Utah’s multilingual, diverse workforce as a competitive edge.
“We have a lot of multilingual candidates here,” Rushton says. “During a recent virtual town hall, a third of attendees spoke another language. It shows intellect and adaptability — qualities that benefit any organization.”
Strategic location and infrastructure
For Eugene Alletto, CEO of BEDGEAR, Utah’s location and infrastructure made it an ideal choice.
“We’re on Harold Gatty Drive, just five to ten minutes from the airport in an industrial park right off the highway,” Alletto says. “The rail access allows us to bring in raw materials economically and sustainably. Being near the airport makes it easy for employees and guests to travel.”
Utah’s geographic location amplifies its appeal. “It’s a great place to ship from. I can get products to Western Canada or Texas and almost anywhere in America within 24 hours using UPS or FedEx,” Alletto adds.
Utah’s central position within the Intermountain West makes it a great place to ship from. I can get products to Western Canada or Texas and almost anywhere in America within 24 hours.”
Eugene Alletto, CEO, BEDGEAR
Dean underscores the importance of Utah’s central position within the Intermountain West: “We’re in the middle of a fast-growing region. The highways, railways and Salt Lake International Airport connect us to surrounding states and national markets.”
Collaborative governance
Utah’s public-private partnerships and government cooperation create a supportive business environment. Jim Grover, managing director of economic growth at the Governor’s Office of Economic Opportunity, credits the Post-Performance Business Incentive Program for attracting high-paying jobs and fostering economic growth in Utah.
“The incentive is a post-performance tax credit, meaning businesses must first meet specific milestones — such as creating high-paying jobs and investing in the local economy — before receiving any credit,” Grover says.
This collaborative approach attracts significant investments. In fiscal year 2023-24, EDCUtah alone has helped 28 companies expand or relocate to Utah, resulting in 8,968 new or retained jobs and $9.2 billion in projected capital expenditures.
“Our public-private collaboration allows us to create a seamless process for businesses entering Utah. We connect companies with resources and guide them through site selection and incentives, ensuring they feel welcome and supported,” Cuthbertson says.
BEDGEAR’s recent relocation highlights this advantage. The company celebrated the grand opening of “The Peak,” a facility in Salt Lake City, with a ribbon-cutting ceremony featuring Utah Gov. Spencer Cox, Salt Lake City Mayor Erin Mendenhall and members of the Salt Lake Chamber.
“The Chamber of Commerce reached out first, welcoming us before we even had to ask,” Alletto says. “The governor and mayor showed up at our grand opening, making us feel like we truly belong in Utah. That level of support and sense of community is incredible — it’s unlike anything we’ve experienced elsewhere.”
Citing projects like The Point in Draper, the Falcon Hill Aerospace Research Park in Layton, and WonderBlok development in Ogden as shining examples of Utah’s ability to foster cooperation between public and private sectors, Fugal emphasized the state’s unique approach to economic development and smart growth.
“One of the secrets to Utah’s success lies in its publicprivate partnerships and dynamic collaboration between state and municipal leaders and the business community,” Fugal says.
BEDGEAR celebrates the grand opening of its new facility, “The Peak,” with a ribbon-cutting ceremony featuring Founder and CEO Eugene Alletto, Utah Gov. Spencer Cox and Salt Lake City Mayor Erin Mendenhall on Dec. 20, 2024, in Salt Lake City, Utah. | Photo courtesy of BEDGEAR
SCHOOL IS IN SESSION
Why Canyons School District moved its Career and Technical Education Center into eBay’s former Draper campus.
By Rachel Barnes
The former eBay building is vacant in Draper. | Photo by Jeffrey D. Allred, Deseret News
In an innovative move that could reshape career education in Utah, Canyons School District has transformed eBay’s former Draper headquarters into an advanced technical learning center — capitalizing on both the post-pandemic office real estate market and its prime location near The Point, Utah’s emerging technology hub.
A steal of a deal
“The purchase was a convergence of the right timing, the right building, the right location, the right price,” says Kirsten Stewart, associate director of communications for Canyons.
It began with the district’s Career and Technical Education Center (CTEC). CTEC offers Canyons students the opportunity to take classes involving hands-on, real-world trades, including physical therapy, welding, cybersecurity, cosmetology and business leadership. However, according to Dr. Rick Robins, superintendent of Canyons, the forty-year-old CTEC building needed an update.
While the current real estate market is rather inhospitable toward new construction, conditions are ideal for those who could use office space. The after-effects of the COVID-19 pandemic have led to a mass influx of office employees opting to work from home.
“The cost to construct a new building is about $500 per square foot right now,” Leon Wilcox, business administrator of Canyons, says. By contrast, eBay offered $230 per square foot, less than half the price. “The building is only twelve years old and in great condition, so we’re excited,” Wilcox says.
Updated building, upgraded education
It wasn’t just the price tag that made the eBay campus appealing. The architecture reflects the values of
Photo by Jeffrey D. Allred, Deseret News
Canyons just as it did eBay, Robins says. An open, airy space with very few walls, the building was designed to be an ideal workplace to foster collaboration, creativity and presentation.
“We were looking for a space where students, teachers and industry could really work side by side in more of an apprentice/mentor type model. The [eBay] office space really presented it,” Robins says. “We weren’t necessarily locked in on a certain type of business or building.” Instead, they simply considered what their needs were and the most efficient way to meet them. “It just happened to be that the eBay building really checked the box.”
Canyons School District’s goal for its students is that they enter the doors each day feeling the professionalism and the sense that “this is something I can do,” Robins says.
According to Wilcox, the campus’s appeal was also in its novelty. With technology, furniture and a perfectly functioning HVAC system, the campus was ideal for Canyons' long-term vision for the project.
“It’s loaded with technology, and all that stays with us. We’re looking at this as not just a two or three-year deal,” Wilcox says. “This is going to impact students two, three decades from now. That’s our vision with it.”
While the project began as a replacement for the district’s old CTEC building, Robins hopes it will evolve to more than that: “We see much more than just our CTEC programs evolving there. We’d really like it to have an entrepreneurial atmosphere.”
Breaking the status quo
The new building’s location couldn’t be better for a program aiming for an entrepreneurial atmosphere. Directly in front of the Draper Frontrunner station and adjacent to The Point, an emerging community in Draper dedicated to fostering technological advancement, the area is ideal for inspiring the innovation that is at the core of the Canyons’ mission.
“Innovation is one of the tenets of our strategic vision. Since the beginning of Canyons School District, that has always
Photo courtesy of Canyons School District
been a central component of what we do in the district,” Robins says.
The response from the community has been overwhelmingly positive. “There is a lot of excitement and people asking how they can partner … and be part of this,” Robins says.
“I really see it as a hub and a center for the community to rally around and support. It’s definitely not a traditional high school model. But, for a lot of students, that’s exactly what they’re seeking.”
Many of those students are hoping for real-world, handson experience that will truly prepare them for a career.
“When this is all said and done, we see our students doing apprenticeships, work-based learning and mentorships with all the companies that will be moving into the area,” Robbins says.
The relationship will be a symbiotic one, as the new businesses will have a fresh batch of talent to choose from to further fuel the community's economy. “Having
an educational space like this, in any community, will enhance the overall culture in that area,” Robbins says.
“This is an area that we will be serving,” Stewart says. “When they build The Point and build homes there, we will be serving those families with our schools. This gives us a foothold in that area.”
In addition to the building itself, the purchase came with 16 acres of developable land, which could be repurposed into an elementary school for the new families moving in.
As Canyons School District transforms this corporate space into an educational hub, it offers a dual blueprint — showing school districts how to create modern learning environments that connect students to industry, while demonstrating to commercial real estate owners how vacant office buildings can find new purpose in a postpandemic market.
Photo courtesy of Canyons School District
UTAH’S FLYING FUTURE
Vineyard leads the race for the state’s first “vertiport.”
By Dainon Moody
Vertiport: A designated area for vertical takeoff and landing (VTOL) aircraft. VTOL aircraft include drones, air taxis and other types of hovercraft. | AI rendering courtesy of Adobe Stock
With increasing discussions of advanced air mobility (AAM), Utah is beginning to hear new words and terms like “air taxis,” “low-level aircraft” and “eVTOL.” One word that’s surfacing with increasing regularity is “vertiport,” which refers to the designated spaces where electric air taxis carrying passengers or packages will vertically land and take off and where they’ll also be able to recharge.
Similar to heliports, vertiports come with a few updated bells and whistles. Since AAM vehicles run on electricity instead of fossil fuels, they require improved charging infrastructure. The first vertiports began operating in the United Kingdom two years ago, and according to 47G CEO Aaron Starks, plans are underway to create at least half a dozen in Utah within the next decade.
“Vineyard has put together the most advanced proposal — with a property site already determined — and is a frontrunner to having the first vertiport in Utah,” Starks says. “If all goes according to plans, which are still very much in progress, it should be built in time for the 2034 Winter Olympics. Locations for at least five or more statewide vertiports are expected to be in operation statewide by that same time, placing Utah among the top 10 percent of states in the country to have one or more operable vertiports.”
Smart infrastructure for future growth
Having vertiports placed strategically near freeways and mass transit points will not only allow commuters added convenience and efficiency with their choice of air travel, but also allow growth to happen vertically within the state, an alternative to urban sprawl. What’s more, the infrastructure associated with vertiports will be environmentally friendly.
“It won’t involve ripping up large amounts of earth, and it won’t increase the carbon footprint,” Starks says. “For a large-scale development like Vineyard, it’s an opportunity for that community to get behind a mass transportation system and new supply chain at a much more limited price, at a lower barrier to entry and quicker pace, too.”
If done right, Starks believes this new transportation system will bless Utahns for generations to come.
Heliport pad (helipad): A landing and takeoff area for helicopters. | Photo courtesy of Adobe Stock
Locations for at least five or more statewide vertiports are expected to be in operation statewide by that same time, placing Utah among the top 10 percent of states in the country to have one or more operable vertiports.”
Aaron Starks, CEO, 47G
Though official timelines for development are not yet set, Vineyard Mayor Julie Fullmer says she’s been planning a vertiport in her city for a very long time to prepare appropriately for its future. She believes a carefully thoughtout process will ultimately pay off, in part, in increased business.
“In multiple ways, [Vineyard is] a place of innovation and economic growth, and transportation always opens doors for additional business and industry. It’s an opportunity to connect people, businesses and industries across rural landscapes,” Fullmer says. “I believe that will enhance our economic growth and our ability to access not only the industry in our area but regionally, statewide and nationally — in a way that streamlines supply chains, enhances mobility and creates better access to jobs, education and healthcare. It will allow for incredibly efficient transportation, which we all need with the new growth coming into the state.”
Going vertical
While AAM will initially be able to utilize any of Utah’s existing airports, vertiports will allow travel to destinations Utahns have generally not been able to fly into as they populate throughout the state. Want to take an air taxi to shop downtown? No problem. Visiting from out of state and
want to head straight to the top of the ski slopes? You’ll be able to do that, too.
According to Matt Maass, director of aeronautics with the Utah Department of Transportation, vertiports are similar to airport extensions. His division registers aircraft within the state, including uncrewed aerial systems — everything from small drones to larger aerial vehicles that will eventually carry passengers.
Air taxis won’t replace the need for automobiles; instead, they will enhance the traveling options currently offered, Maass says. The hope is that they’ll be as affordable and convenient as ordering an Uber or Lyft one day. And because they are solely electric vehicles, Maass hopes they’ll be an added tool in the tool chest to help relieve traffic congestion.
“I like to compare where we are with AAM today with where we were with conventional takeoff and landing aircraft in the 1920s,” he continues. “People looked at flying as a novelty back then. When Charles Lindbergh flew across the Atlantic, people started to see air travel for the possibility that it could become. We’re set to have another Charles Lindbergh moment in the next few years that will help the public realize what a benefit [AAM] technology will be.”
The future is now
After the state’s successful air taxi simulation earlier this year and Gov. Spencer Cox’s promised $1.9 million in funding in his 2025 fiscal budget, it is important to note that vertiports — and AAM as a whole — are far more than wished-for possibilities for better local travel in the coming years. It’s not a matter of “if” it will happen but “when.”
Brandon Fugal, chairman of Colliers Utah, believes package delivery and air taxi resources will help Vineyard and other local communities experience a higher quality of life. He also believes this dynamic transportation system will provide connectivity, seamless delivery and transportation — and it may alleviate some congestion on our main transportation arterials, too.
“Utah has a bright future ahead as a leader in enabling AAM and transport like no other market has,” Fugal continues. “The fact that we already have collaboration between the public and private sectors — establishing the infrastructure and regulatory framework — is an example of what put the state on the map in years past. It’s evidence that Utah will continue to lead the way.”
Illustration by John Adams, Colliers Utah
TURN ON THE LIGHTS
How Utah’s new energy initiative, Operation Gigawatt, will boost the economy, save residents money and illuminate the way for other states.
By Jacqueline Mumford
Existing electric power plants and transmission lines in Utah. | Map by Jordan Emery, Colliers Utah
Experts warn that Utah is headed toward an energy crisis.
Operation Gigawatt, Utah’s ambitious renewable energy initiative, seeks to avert an energy shortage and maintain the state’s position as a leader in power.
“Operation Gigawatt has four key objectives,” says Emy Faulkner Lesofski, Gov. Spencer Cox’s energy advisor and new director of the Office of Energy Development. “First, increasing transmission to get energy where it’s needed; second, developing new energy resources and securing what we have; third, enhancing our policies to enable clean energy resources like geothermal and nuclear; and fourth, investing in innovation and research. These objectives are intended to secure baseload, get energy to where consumers and industry need it, and foster innovation, taking things from the lab to the market.”
With this project’s implantation, no other industry stands to benefit more directly than real estate.
Where land meets power
“The commercial real estate sector is the largest economic tool that the state of Utah has … [and is] responsible for the velocity and opportunities that exist to attract occupiers, bringing in billions of dollars of investment to the state every year,” says Tom Freeman, vice chair at Colliers.
Rising energy costs, lack of diverse power sources and struggling infrastructure drove the private sector to raise concerns with state leadership. As a result, Freeman helped set up a political action committee to get the initiative moving.
“Utah is one of the most diverse economies in the country, and that’s [driven by] the commercial real estate world,” Freeman says. “It’s no secret that the demand for power is ever increasing as the world changes. Without an investment into our utility sector, our economic development is going to come to a screeching halt.”
Dr. Bryony Richards, an economic geologist and senior research scientist at the Energy & Geoscience Institute at the University of Utah, agrees with Freeman.
“Energy-intensive industries such as artificial intelligence, data centers and advanced manufacturing stand to gain significantly from this expansion, as they require consistent, high-capacity energy to sustain operations,” Richards says.
In 2022, Richards says total energy consumption throughout the state reached 849 trillion Btu, or “British Thermal Units,” a unit of measurement used to determine the heat. She says demand is only going to increase as new technology, like AI, adds additional pressure to our grids.
Solar farm off Skull Valley Road in Grantsville, Utah. | Photo by Ernie Cottle, Colliers Utah
Keeping up with the gigawatts
Over the next 10 years, Operation Gigawatt seeks to address this issue by doubling Utah’s capacity to generate energy — an additional four gigawatts — through what Lesofski calls an “any- and more-of-the-above” approach.
“Our geography has gifted us with a wide range of resources,” she says. “We are only one of seven states that generate utility-scale geothermal power, and Operation Gigawatt will further develop our state’s untapped but substantial geothermal potential. Eight out of 10 homes in Utah are heated with natural gas; we were No. 14 in the nation for solar generating capacity. You can see that we use all our resources, and we need more of these resources if we are going to get to that additional 4GW.”
Richards’ research focuses on identifying and recovering these resources.
“We’re examining historical mine waste for valuable minerals, which could supply the raw materials needed to
build a resilient energy infrastructure,” Richards says. “By integrating such projects into the energy supply chain, Utah is enhancing its ability to support technologies critical to the energy transition, such as advanced batteries and hydrogen electrolyzers, again feeding back into Utah’s energy cycle.”
Nuclear energy is also on the table for Operation Gigawatt.
“Most of the contention around nuclear power stems from outdated technologies and negative depictions in popular media,” Lesofski says. “Today’s nuclear power is vastly safer and more efficient than the nuclear power of yesterday, but these are technologies and data that aren’t well-socialized yet. Nuclear power’s strengths of unmatched energy density, safety and ability to meet environmental goals are why states like Utah have been considering adding this resource to their energy mix.”
Projects like the UAMPS (Utah Associated Municipal Power Systems) and NuScale small modular reactor initiative aim to develop safer, efficient and easy-to-integrate reactors that can continue quell nuclear power unrest.
Power for the people
It’s not just corporations who stand to lose if Operation Gigawatt isn’t implemented — the average resident would take the biggest day-to-day hit.
“There’s already been a large increase [in energy costs] to the end consumer,” Freeman says. “The consumer is you and me — people that turn on their lights or use the garbage disposal. We’re seeing increases in energy bills. That’s not keeping us in a competitive state, and it will absolutely stymie our ability to continue to be a leader.”
No one wants to move to — or stay — in a place that can barely keep a dishwasher running, Freeman says.
Richards says part of the beauty of Operation Gigawatt’s design is that while it supports corporations and industries, it’s also looking out for the individual.
“Residents benefit from the stabilization of energy prices and increased grid reliability, reducing the risk of blackouts or price spikes,” she says. “By doubling
the state’s power production over the next decade, the initiative aims to ensure a reliable and affordable energy supply to support economic growth, community needs and technological advancement.”
Operation Gigawatt isn’t meant to be a Band-Aid for the energy crisis — it’s meant to be a diving board.
“We’re not just avoiding an energy crisis; we’re turning this into an opportunity, positioning Utah as an energy leader, innovator and net energy exporter,” Lesofski says.
She, along with other Operation Gigawatt partners, hopes to see Utah become the example of energy usage for the rest of the country.
“I’m confident the projects we’re undertaking and the timelines we’re achieving will serve as a template for other states,” she says. “It’s both an honor and exciting to be part of the team driving this vision forward, creating an abundance of energy here at home, and securing our role as the energy powerhouse of the West.”
This illustration represents Utah's current electricity production. Operation Gigawatt aims to double this production in the next 10 years. | Illustrated map by Jordan Emery, Colliers Utah
BEYOND GOOGLE MAPS
Colliers Utah leverages drones and mapping technology to track project growth and showcase real-time progress with the latest 360-degree imagery.
By Jacob Swanson
Inside the Colliers Utah technology room, showcasing the new Aerial 360 Journey. This interactive map and interactive imagery can be used to showcase more up-to-date imagery than Google Earth. | Photo by Brett Scothern, Colliers Utah
Using drones and cutting-edge mapping technology, Utah’s Colliers real estate technology support team can show clients everything from nearby transmission lines to up-to-date aerial views of rapidly developing areas like Eagle Mountain — all with a few clicks.
Mapping the future of real estate
This is, in part, thanks to the Map App — a multi-layer mapping application that allows clients or brokers to display a traditional mapping application layered with any number of different filters. These filters include demographic information — average household income, household size, population density and more — as well as development information like current office, hotel or multifamily construction projects.
Business Development Marketing Manager Brett Scothern calls the system “the most robust interactive map, I believe, in the nation — if not the world.” It’s specific to Utah, partly because the state has opensource data.
“Whenever the state updates their information, it automatically updates on this end so we are getting the most up-to-date information,” says Ernie Cottle, Colliers GIS manager of Utah. Other proprietary data layers are maintained manually by Colliers’ in-house team.
About three years ago, a full revamp and redesign gave users more customization and a more robust system than its predecessor. Hundreds of filters exist from ever-changing data and demographics to illustrating where the nearest golf course is. Any map app or even a Google search could pull up golf courses near you, but this gives you more than just a point on a map, Cottle says.
“Google Maps can’t provide detailed demographic overlays,” he continues. “With a printed map, you get static data, but an interactive map lets you overlay demographics with zip codes, showing how they relate and helping users focus on details their clients need.”
It can happen pretty quickly. Cottle recalls one instance where he was pulled into a meeting with a client to display the Map App. The client inquired about proximity to transmission lines and substations, and though a layer with that information wasn’t available, Cottle was quickly able to add one in real time.
“That right there is what won us business that day — being able to accommodate and find this data and immediately add it in so that it was right there and readily available for them,” Cottle says.
Spherical panoramas, often called "little planets," give the illusion of a miniature world, created by stitching a full 360-degree view into a single, globe-like image. | Photo by Brett Scothern, Colliers Utah
Another type of visualization
Aerial 360 Journeys is a new program from Colliers Utah that involves 360-degree imagery taken with drones to give both clients and brokers a wide-angle, high-quality view of the world around a property.
The idea was originally Scothern’s. The tool is limited to Colliers Utah and is still in development, but Scothern believes it will be available to Colliers on a national level very soon.
Scothern came up with the idea while shooting monthlyprogress drone photography of a development for a broker to give out-of-state buyers a better view of the area. Now, about a dozen brokers with drones go out and provide their 360-degree images.
“Aerial 360 Journeys is really starting to take off,” Cottle says. “In six months, we have gathered nearly 60 images all over Utah, from St. George to Salt Lake City and from Heber City to Grantsville.”
Scothern says that, from this point on, it’s about getting as much imagery as possible.
“I want to have hundreds and hundreds of points,” he continues. “I think it’s going to be key for brokers to show their clients what’s really happening in an area instead of depending on Google Maps, where sometimes, if it’s not a well-populated area, they don’t scan for five years.”
Digital mockup by Brett Scothern, Colliers Utah
No other brokerage is using technology the way we are — seamlessly blending interactive mapping and immersive imagery for a true competitive edge.”
Brett Scothern, Business Development Marketing Manager, Colliers Utah
A lot of business is happening in rapidly developing areas like Eagle Mountain, Tooele and Heber, so knowing that information is up-to-date is important.
“Nobody else is doing this, so it really gives us a competitive advantage when we’re trying to win business,” Scothern says. “No other brokerage has the technology that we have.” It also presents an opportunity for the client to be more involved in the process.
Setting the national standard
Soon, clients and brokers may get an opportunity to use a similar system outside of Utah.
“This could be massive in the next couple of years,” Scothern says. “When the concept was presented to the director of technology, he was very excited and expressed the desire to see it utilized throughout Colliers on a national level.”
Colliers Utah Associate Tyler Broussard has so far been involved in one deal that closed with the assistance of this very new process, and he’s excited by the possibilities it offers.
“I’m excited to see where this goes and happy that the Salt Lake Valley is putting it out first,” Broussard says, noting that it’s no surprise Colliers and Utah are on the cutting edge. “It’s awesome and unbelievably exciting, but to be frank, this is what we try to do at Colliers. We’re trying to push the limits; we’re trying to stay on the edge.”
Photo by Brett Scothern, Colliers Utah
UTAH’S HOUSING CRISIS NEEDS NEW SOLUTIONS — AND FAST
With home prices now 6.2 times the median wage, experts say innovation and policy changes are crucial.
By Jack Dodson
The site of a future affordable housing development, the Liberty Wells project, which will contain 30 apartments and 36 townhomes. It is part of Ivory Innovations and Call to Action Foundation’s joint plan to build 850 affordable housing units in Utah in three years. | Photo by Kristin Murphy, Deseret News
Clark Ivory, CEO of Utah’s Ivory Homes, is waiting for innovation in the housing market. The last major idea to boost home accessibility, he says, was the development of the 30-year mortgage just after World War II.
Closing in on a century later, the housing market across the country is in a bind, tied up by changing work and cultural habits that are exacerbating outdated policies and infrastructure.
Residents in the United States are watching their cost of housing increase while inflation and wages have struggled to keep up despite slow growth at mid- and lower-bracket income margins. During the pandemic, many people drove up the cost of housing nationally by moving out of cities; in rural areas, a lack of available housing has followed, even for those who can afford it.
In this context, Utah has become one of the states hardest hit. As a high growth state with new businesses and startups opening each year, the population increase and changing infrastructural needs have amplified the problem.
A 50,000-unit housing deficit
“We need to create 27,000 homes a year in our market over the next 10 years to keep up with what the demographers are suggesting will be the number of households created,” Ivory says. “We only produced 22,000 this year, so we’re 5,000 short. And we probably have somewhere between a 40,00050,000 deficit already. People are doubling or tripling up, and they can’t get into housing; they can’t afford it.”
For Ivory, a lot of the problems stem from inconsistency in the market for building new homes. Pointing out that much of the regulation and approval for individual housing projects happens at the municipal level, he argues it can be challenging to create statewide change to allow new construction to flourish.
In some areas, he says, local officials can oppose new housing overall and maintain rules that make it difficult or inefficient to create new housing. One rule that stands out to him is localities that require new homes to be built with a garage — which can add significant costs to construction and the eventual purchase or rental of homes.
“The bottom line is, we have a supply deficit right now,” says Steve Waldrip, senior advisor on housing strategy and innovation to Gov. Spencer Cox. “So our focus is on creating supply, and then within that supply, we’re focused on creating ownership opportunities.”
Some of the ideas being discussed by policy experts and industry players include repurposing public lands that are not being used, loosening regulations to create mid-tier housing accessibility, tapping into state resources to ensure interest rates can remain low, and restructuring commercial real estate for housing use.
Utah’s business community sees these changes as a way to ensure continued growth for companies across the board.
“We see it as not just a critical issue for the state of Utah in terms of our long-term economic prosperity for the middle class to be able to afford to live here, but also to retaining great companies and attracting great companies,” says Scott Cuthbertson, CEO of the Economic Development Corporation of Utah. “We just don’t have enough housing. And this is a nationwide issue, but it’s particularly acute in the Intermountain West and Utah specifically.”
Waldrip points out that affordability is a major limiting factor.
“For 90-100 years, as a general rule, the cost of a home has been three times the median wage,” Waldrip says, saying that only major cities on the country’s coastline acted as outliers. “That’s how our whole financial system is set up. … That’s what allowed everybody to finance homes, save money for down payments, and it was a reasonable ratio.”
Clark Ivory talks to members of the media at a press conference about seven new affordable housing projects in Utah in September 2023. | Photo by Kristin Murphy, Deseret News
In Utah, housing costs are now 6.2 times the median wage, he says.
“Utah is the third highest behind Hawaii and California,” Waldrip says. “Essentially, we’ve cut affordability in half.”
Incentivizing mid-tier housing development
One possible solution is the state’s rainy day fund, says Dejan Eskic, senior research fellow at the Kem C. Gardner Policy Institute. This fund has reserves that can offer low interest rates to home buyers.
“The state has taken like $300 million of that to do a pilot program where, if you have projects that meet certain thresholds on affordability, we’ll give you a low interest rate loan to help develop your infrastructure or help offset some of your costs,” he continues.
Eskic argues the current regulatory environment makes midtier housing projects inefficient for developers.
“Builders are building the bigger stuff because that’s the product they can move right now,” he says of high-end housing. Eskic points out that more affordable homes are not ideal for developers because of local requirements they have to meet.
“You’re going into a greenfield development, and you’re going to have a huge battle with the city, but at the end, you’re going to make about the same money — maybe a little less because you’re going to single-family,” he continues.
Urban density vs. costly suburban sprawl
For Waldrip, this environment has created a dynamic where the state has to adjust its role.
“The government used to only have to get involved in subsidized housing and the lower economic strata,” he says. “Because of these seismic shifts in the market structure, we’re going to have to be more thoughtful about how we intervene, or — probably more accurately — remove obstacles to the creation of more housing.”
Cuthbertson points out this can also be approached through city planning and urban design. Culturally, a lot of focus has been on housing in suburbs, which can come with major transportation needs. But he suggests that there are solutions within cities themselves.
“If you don’t want to sprawl, then you need to go up vertically,” Cuthbertson says. “The sprawl problem adds congestion, adds to commute times and creates problems. It’s costly.”
This hits home for Ivory. He argues that many developers want to access the middle of the market.
“There needs to be a movement toward design that figures out great ways to deliver smaller homes,” Ivory says. “[Regulators are] not really focused on the mid-range. And the truth is, what we have to start talking about that will really unlock supply is housing affordability matters at every level.”
For 90-100 years, the cost of a home has been three times the median wage. In Utah, housing costs are now 6.2 times the median wage.”
Steve Waldrip, Senior Advisor, Housing Strategy & Innovation to Gov. Spencer Cox
Ivory Homes’ Gabler’s Grove development in Magna in 2023. | Photo by Scott G. Winterton, Deseret News
READY, SET, LEASE
Why turnkey properties are winning in Utah, as evidenced by University Place.
By Chuck Green
University Place in Provo, Utah | Photo by Courtney Geary, Colliers Utah
On March 16, 2022, University Place (UP) announced the grand opening of Dillard’s. Despite already having a location just miles down the road at the Provo Towne Center Mall, the department store opened a 160,000-square-foot, newly constructed building. In the announcement, store manager Robert Glodowski says, “Our previous location could be described as a B or C location as far as Dillard’s go. This will be an A.”
How did the 120-acre mall draw in the retail giant? Turnkey, mixed-use development.
Turnkey spaces are the perfect fit
Modern turnkey, multi-use spaces are fully functional, commercial offices that are ready for occupancy.
For tenants, owners and developers, turnkey properties check all the boxes, says Ajla Akšamija, professor at the School of Architecture at the University of Utah. They provide the ability to move into a fully functioning office space without sinking “major investments” into design, building and construction.
These properties often feature high, exposed ceilings; polished concrete floors; and a mix of open space, private offices, conference rooms, huddle rooms, and break rooms, says Rusty Lugo, VP at Colliers Utah.
“Many tenants don’t allow enough time on the clock to build out a space,” Lugo explains. “Tenants want to hit the easy button. Also, [they] have a hard time envisioning a space in shell condition.”
In Utah, suites in the 4,000 to 8,000-square-foot range are typically snapped up quicker than larger floor plates “due to the move-in ready nature of these turnkey suites,” says David Nixon, senior managing director at JLL in Salt Lake City.
Tracking local trends like remote work helps developers better understand market conditions and demand, allowing them to plan accordingly when crafting new developments. “Flexibility becomes the key design consideration; thus, designing spaces that can work well for different tenants is crucial,” Akšamija adds.
Plenty of stock is also placed in amenities, such as wellness spaces and IT infrastructure. “These spaces provide all — or almost all — of the amenities for companies and organizations seeking to lease functional, commercial space for their operation,” Akšamija says.
For owners, the built-in flexibility of turnkey, multi-use spaces allows tenants to come and go as they please because the spaces can function well for anyone. Akšamija highlights the benefits of dividing buildings into smaller areas that can be leased to different companies and organizations or packaged as one large lease. She also cites circulation through the building, access to nature and daylight and design strategies “that improve employee productivity and well-being” as key value adds.
Additionally, timing is a key factor. For typical build-outs, the process can take five to six months and is usually at a greater expense. “Turnkey suites are often ideal for users looking to relocate a few months out versus the larger users looking for space one to two years in advance,” Nixon continues.
Looking to Utah County
University Place in Orem might just be the gold standard for successful mixed-use developments, featuring a move-in ready floor for office space, residential units and — on the retail side — Dillard’s, the first The Cheesecake Factory in the region and Bobby’s Burgers, celebrity chef Bobby Flay’s first restaurant in Utah.
Entry lobby at University Place. | Photo by Courtney Geary, Colliers Utah
Conference room with patio access at University Place. | Photo by Courtney Geary, Colliers Utah
Of course, UP felt the reverberations of COVID-19. Prior to the outbreak, the mall’s office space was thriving, explains Ryan Clark, assistant city manager and development services director at the City of Orem. With many people working from home in the aftermath of COVID, “office has struggled throughout the nation and at UP.”
Clark believes the mix of residential, retail, restaurants, hotel and office has been successful at UP “because the different uses complement each other.” The office and residential users have a wide spectrum of amenities, including dining, daycare, shopping and entertainment. With the automatic base of customers, the restaurants “have done great, and the mall continues to see more success,” he says.
The level of tenants demonstrates that UP is “a happening place.” What’s more, the addition of a hotel attracts even more visitors from outside the county. “There is amazing synergy at play,” Clark says.
Flourishing flexibility
There is also a particular draw to these properties among Utah’s submarkets.
“The submarkets with a better chance of leasing these kinds of suites are those that attract tenants that are nimbler in terms of how quickly they can move into spaces,”
Nixon says. For example, tech-forward submarkets — such as Silicon Slopes — are better suited for turnkey office suites.
Alternatively, downtown Salt Lake City, which centers more around professional services, “would be less ideal for these types of properties, since many professional services users are looking for space further in advance and require a more time-consuming, specialized buildout,” he says.
The future of mixed use developments is, in one word, promising. The success of UP illustrates the transformative potential of modern mixed-use developments. By seamlessly integrating turnkey, multi-use spaces, UP has drawn prominent tenants and established itself as a vibrant hub of activity. These move-in-ready spaces offer the perfect blend of functionality and flexibility, meeting the diverse needs of tenants while minimizing setup time and costs. The strategic combination of retail, office, residential and hospitality elements creates a symbiotic ecosystem that caters to a wide range of businesses and customers.
As UP continues to thrive, it sets a benchmark for future mixed-use projects, demonstrating how such developments can adapt to and flourish in a rapidly changing world.
WHERE RED ROCKS MEET ROOM SERVICE
Luxury resorts are redefining Southern Utah’s tourism economy.
By Angelika Brewer
Black Desert Resort | Photo courtesy of Black Desert Resort
From luxury glamping beneath towering red cliffs to five-star resorts nestled among ancient lava flows, Southern Utah’s high-end tourism scene is transforming the region into more than just a hiking destination. According to the Utah Office of Tourism, Utah visitors spent a whopping $12.7 billion in 2023, supporting 159,800 jobs and resulting in $2.35 billion in state and local tax revenue.
In response to this growing market, a new wave of upscale accommodations is reshaping how visitors experience Utah’s iconic landscape.
Location, location, location
Southern Utah’s luxury resorts flaunt exclusive perks, from next-level camps with furnished, air-conditioned tents to high-end resorts and hotels with world-class shopping and dining experiences.
“The definition of luxury depends on the traveler,” says Brittany McMichael, executive director of the Greater Zion Convention & Tourism Office. “Greater Zion has accommodations and resorts that appeal to everyone, including visitors looking for luxury experiences.”
McMichael highlights the idea that luxury isn’t always about what is included in the stay but can instead be based on where the stay is. Southern Utah views are a big piece of what makes the region so special, and resorts that offer an up-close and personal look at landmarks and scenery are highly competitive on their own.
Desert hospitality
Take Black Desert Resort, for example, which recently opened in Ivins, Utah. This resort — spanning over 600 acres of scenic landscape — is set in the middle of dramatic
black lava beds and offers top-of-the-line, personalized adventures and activities for guests.
“It is not merely an option of where to sleep when visiting the region; it is a destination itself,” says Patrick Manning, managing partner of Black Desert Resort. “People come here to experience the resort and then, maybe, venture out from there.”
Black Desert Resort aims to be the base camp for the exploration of the largest concentration of national and state parks in the country. World-class amenities — including golf courses, a high-tech spa, diverse culinary options, an adventure waterpark, and endless hiking and biking trails — aim to lure visitors from around the world.
“Luxury tourism is estimated to create a per-person daily spend of more than 20x a local resident,” Manning says. “Black Desert, including its Professional Golfers Association (PGA) and Ladies Professional Golf Association (LPGA) tournaments, looks to impact the local economy by nine figures annually.”
Grant Lammersen, vice chair at Colliers, notes that these tournaments have created greater attention for the area.
“[It’s] a great way to market the region,” he says. “The area is well known in Utah but is still a bit of a hidden gem on the national stage.”
Southern Utah’s growing reputation as a luxury destination hasn’t only impacted hospitality — it’s also sparked the interest of housing and retail developers, Lammersen says.
“We are currently working on a deal to bring a retail center featuring high-end restaurants to the area to support not only the luxury resorts but also high-end housing that is being built there,” he continues.
Vehicles travel through Zion National Park. | Photo by Ravell Call, Deseret News
The swimming pool at Camp Sarika by Amangiri. | Photo by Laura Seitz, Deseret News
The definition of luxury depends on the traveler. Greater Zion has accommodations and resorts that appeal to everyone, including visitors looking for luxury experiences.”
Brittany McMichael, Director, Greater Zion Convention & Tourism Office
Choose your adventure
Other stays in the area include luxury “glamping” resorts like East Zion Resort and Zion Wildflower Resort — which offer all the beauty of camping with the comfort of a hotel — in addition to Red Mountain Resort, The Inn at Entrada and more. For a more opulent experience, Amangiri provides modern suites to lounge in, private air tours by helicopter or hot air balloon, National Park access, themed stays, and more.
The bottom line: Southern Utah is a travel destination for everyone to enjoy, no matter their definition of luxury.
“Whether you stay in one of our luxury accommodations or choose any property in Greater Zion, there is no end to the singular experiences you can have in this destination,” McMichael says. “Step out of your hotel and rent an e-bike to explore Zion National Park. Rest on a pillow-soft mattress while gazing at constellations in our international dark sky park, or explore hundreds of miles of mountain bike trails, off-road vehicle adventures and 14 worldclass golf courses. The nature of our area — with breathtaking sandstone cliffs, ancient lava flows and Zion National Park in the heart of it — means visitors will have a one-of-a-kind experience no matter what.”
STATE OF THE MARKET
PROPERTY SECTORS
OFFICE Report
County
RETAIL Report
County
INDUSTRIAL Report
County
Illustrated map by Ernie Cottle, Colliers Utah
2024 Utah Report OFFICE
Davis & Weber Counties
The commercial office market remained active in 2024, driven by steady leasing activity and a measured approach to new development. Vacancy rates edged up to 6.18 percent as tenants adjusted their space requirements, but strong demand pushed absorption to 386,690 square feet, a significant increase from the previous year.
Lease rates climbed to $23.35 full-service gross (FSG), reflecting both sustained tenant interest and landlords’ confidence in the market. With 190,000 square feet of office space under construction, developers are responding cautiously to demand, balancing expansion with market conditions.
Salt Lake County
The office market ended 2024 with strong tenant demand for spec suites, enhanced amenities and plug-and-play sublease spaces. Landlords worked to transform Class B properties to compete for tenants seeking high-quality environments, while new construction lagged thanks to elevated tenant improvement costs.
No new office construction projects broke ground at year-end as developers grappled with sticker shock from escalating costs. Construction dropped from 218,552 square feet at the same time last year to 137,137 square feet currently.
Average asking lease rates for office space edged slightly up from $27.52 FSG last quarter to $27.55 FSG at yearend, a modest increase thanks to steady demand for premium spaces despite broader market challenges.
Absorption improved significantly this quarter from negative 1,085,596 square feet at year-end 2023 to negative 424,351 square feet currently. Several large transactions in key submarkets drove momentum and contributed to this rebound, including Granger Medical’s 20,618-square-foot lease in Sorenson Research 3, Franklin Covey’s 26,358 square feet in Minuteman V and Acima Credit’s 54,834 square feet in Minuteman I.
The overall direct vacancy rate for office space increased to 18.37 percent from 16.23 percent at year-end 2023 as tenants assessed their space needs and looked for highquality properties. Sublease vacancy, however, decreased to 4.58 percent.
Utah County
The office market had a resilient fourth quarter amid shifting tenant preferences and continued economic uncertainty. Spec suites leased faster than shell spaces, prompting landlords to finish some suites for immediate occupancy. Landlords also focused on enhancing Class B buildings with high-end finishes.
The construction landscape remained relatively quiet, with just 24,000 square feet under development at year-end compared to 68,000 square feet at the same time last year. Demand for medical office space continued, but developers are feeling cautious in the face of rising construction and tenant improvement costs.
The average asking lease rate for office space dropped slightly from $24.33 FSG last quarter to $24.00 FSG at year-end, reflecting market stability and ongoing tenant demand, particularly for well-located, upgraded spaces. Strong demand for Class A space drove lease rates highest in the North quadrant.
Year-to-date absorption remained negative, increasing from 128,825 square feet at the end of 2023 to 209,851 square feet one year later. Several significant leasing transactions helped mitigate overall negative absorption, including Cozy Earth’s 30,097 square feet at Thanksgiving Park VI and Lennar Homes of Utah’s 20,010 square feet at Traverse Mountain Corporate Center.
Direct office vacancy increased to 13.90 percent year-end compared to 11.12 percent at the end of 2023 as tenants honed in on their office needs and adjusted to shifting market conditions. Fortunately, sublease vacancy decreased to 5.95 percent from 6.44 percent year-over-year thanks to more than 20 sublease deals totaling more than 350,000 square feet leasing throughout the year.
OVERALL VACANCY RATES
Graphic by Ernie Cottle, Colliers Utah
RETAIL
Davis & Weber Counties
The retail market experienced another year of strong tenant activity, though limited availability remains a challenge. Vacancy rose slightly to 3.99 percent, but absorption remained strong, totaling 153,000 square feet by year-end.
With no new retail construction underway, supply constraints are expected to persist, making it increasingly difficult for tenants to secure quality space. This scarcity has kept competition high, contributing to an increase in lease rates to $19.24 triple net (NNN).
Salt Lake County
This dynamic retail market ended the year with strong demand and limited supply. Retailers are adapting to a competitive environment by considering flexible and creative solutions, including repurposing underutilized office space. In key areas like the South West submarket, increased construction activity is putting upward pressure on lease rates.
Retail construction ramped up to 682,677 square feet, with the South West submarket accounting for nearly 86 percent of this total. However, persistent supply constraints leave retailers struggling to secure space in a market trying to keep up with growing demand.
The average asking lease rate for retail space rose to $23.37 per square foot NNN by the close of the fourth quarter, a $0.16 increase quarter-over-quarter and a $2.16 increase year-over-year thanks to limited availability and continued high demand, particularly in high-traffic areas. The North West quadrant reached a high of $30.69 NNN due to limited availability and smaller, higher-priced space significantly influencing the overall rate. Lease rates in other areas of the county saw steady rates.
The average asking lease rate for retail space rose to $23.37 per square foot NNN, with the North West quadrant reaching a high of $30.69 NNN due to limited availability. Retail absorption slowed to 63,147 square feet year-to-date. In the face of low vacancy rates, tenants have limited options, leading to slower absorption across the county. As more developments come online, expect absorption to gradually increase.
The retail vacancy rate increased to 2.43 percent from 2.28 percent last year. Landlords are exploring adaptive reuse projects, with underutilized office spaces transformed into retail environments to alleviate market pressure. Brands seeking a localized presence are looking to neighborhood shopping centers as an alternative to traditional locations. Expect this shift to play a key role in accommodating demand throughout 2025.
Utah County
This resilient retail market saw strong demand with vacancy rates at a tight 2.47 percent, while lease rates continue to rise. Construction increased year-over-year, with development in areas like Saratoga Springs and Eagle Mountain. Retailers are exploring non-traditional spaces to navigate a competitive market.
Retail construction showed steady growth in the fourth quarter, reaching 473,589 square feet compared to 196,086 square feet at the same time last year. However, as developers faced ongoing financial challenges in bringing new space to the market, only build-to-suit retail projects were completed in 2024.
The average asking lease rate grew to $26.88 per square foot NNN, with newer developments commanding premium prices. Expect lease rates to continue to climb, making the market increasingly favorable for landlords and those able to secure space in sought-after locations.
Retail absorption showed positive movement in the fourth quarter, with year-to-date absorption reaching 57,738 square feet, down from 173,488 square feet at the end of 2023. Expect incremental increases in absorption as tenants compete for limited options. Absorption may see further increases as new developments come online, especially in high-demand areas.
Retail vacancy remains tight at 2.47 percent, with landlords getting creative with available space. Zoning policies may adapt, allowing repurposing of properties for retail space. Many retailers are looking to neighborhood shopping centers as an alternative. The retail landscape will likely accommodate new formats to address vacancy constraints and provide opportunities in high-demand areas into 2025.
Graphic by Ernie Cottle, Colliers Utah
INDUSTRIAL
Davis & Weber Counties
Industrial demand remains strong, with tenants continuing to compete for limited available space. Vacancy inched up to 1.92 percent by year-end, reflecting a slight increase in availability, but absorption surged to 875,000 square feet — nearly doubling last year’s total.
Despite heightened leasing activity, new construction has slowed significantly, with just 50,000 square feet currently underway. This limited pipeline suggests supply constraints will persist, keeping competition for space high. Lease rates have adjusted to $0.70 NNN, ensuring that well-located industrial properties remain highly sought after. With strategic advantages and ongoing tenant demand, the industrial sector is poised for continued strength in the coming year.
Salt Lake County
This resilient industrial market ended the year with tenants actively pursuing large-scale spaces and landlords capitalizing on limited availability. Consistent tenant demand and a lack of new construction will keep lease rates steady throughout 2025.
Year-end construction reached 3,365,310 square feet compared to 4,896,078 square feet last year. Any new developments in 2025 will likely be built-to-suit, as speculative projects are not financially feasible.
Asking lease rates stabilized at $0.84 NNN compared to the previous quarter and the same time last year. With no anticipated substantial new construction and limited available space, landlords are likely to gradually increase rates throughout 2025. The South East submarket reported the highest year-end rate at $1.16 NNN with just one available space.
Fourth quarter year-to-date industrial absorption reached 4,169,878 square feet, an improvement compared to 3,736,680 square feet at the end of 2023. Western Partitions secured 216,027 square feet on Harold Gatty Drive in Salt Lake City, Cache Valley Electric Company took 48,281 square feet in West Jordan, and Smackin’ Snacks leased 48,000 square feet in Salt Lake City.
The direct vacancy rate for industrial space decreased from 5.27 percent to 4.41 percent year-over-year, thanks to strong tenant activity and limited new supply. Spaces over 100,000 square feet dominate vacant inventory, and landlords hesitate to divide buildings into smaller configurations. As new construction slows despite steady tenant demand, expect lease rates to rise.
Utah County
Developers continue to target opportunities in the southern quadrant. Vacancy rates declined in the fourth quarter, while absorption demonstrated demand for large-scale space. The market is expected to maintain stability over the next three years with a leasing pace aligned with 2019 levels and power supply considerations as a key topic.
The industrial space drive, particularly in the southern quadrant, is gaining momentum. Total construction reached 2,933,934 square feet, with nearly all industrial projects completed in 2023 fully leased or approaching full occupancy due to strong demand.
The average asking lease rate reached $0.95 NNN at year-end compared to $0.96 NNN last quarter. Businesses seeking 20,000-50,000-square-foot space are driving demand. Consistent lease rates reflect a balanced market. Expect lease rates across the industrial market to remain steady or increase modestly.
Vacancy rates decreased significantly from 4.63 percent last quarter to 3.88 percent at year-end, highlighting robust leasing activity. Once current construction reaches completion, vacancy rates may rise briefly, but new spaces will fill quickly as demand outpaces supply.
Year-to-date absorption reached 1,485,707 square feet at the end of 2024 compared to 1,718,544 square feet at year-end 2023. Alice Lane secured 71,043 square feet at Lakeshore in Springville, Top Health Manufacturing occupied 68,871 square feet in Payson Tech Center, and Total Facility Solutions took 49,461 square feet in Northshore Commerce Building 1 in Saratoga Springs.
OVERALL ASKING LEASE RATES (NNN) (BY
Graphic by Ernie Cottle, Colliers Utah
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