Salt Lake County
Market Report
Q4
Accelerating success.
Salt Lake County
Headline
Office
By the end of 2023, office construction in Salt Lake County decreased from 626,552 square feet to 218,552 square feet year-over-year, with the most notable projects including The Beverly and Highpointe Center. Average lease rates decreased by $0.02 from the third to the fourth quarter but increased by $0.21 year-over year, reaching $27.00 FSG. Absorption reached a record low of negative 1,085,596 square feet despite the completion of Baltic Pointe.
23Q4
Current Market Indicators
YTD Absorption
Under Construction
Direct Vacancy Rate
Lease Rate (FSG)
-1.1M SF
219K SF
16.23%
$27.21/ SF
YOY
FORECAST
YOY
FORECAST
YOY
FORECAST
YOY
FORECAST
Construction
Historic Comparison 22Q4
23Q3
23Q4
Total Inventory (SF)
42,067,393
42,362,290
42,673,391
New Supply (SF)
0
0
191,684
YTD Absorption (SF)
+536,787
(788,628)
(1,085,596)
Direct Vacancy Rate
13.19%
15.40%
16.23%
Sublease Availability
4.85%
5.36%
5.00%
Under Construction (SF)
626,552
283,366
218,552
Overall Asking Lease Rates (FSG)
$27.00
$27.23
$27.21
Draper 34.3%
54.9%
61.77% Preleased
Sandy South Towne
10.8%
Cottonwood
Office construction in Salt Lake County slowed significantly from 626,552 square feet underway at the end of 2022 to just 218,552 square feet one year later. The largest contributors included The Beverly, at 120,000 square feet in the Cottonwood submarket, and HighPointe Center, at 75,000 square feet. All other current projects are less than 10,000 square feet in size.
4th Quarter Transactions
Sale
205 E 200 S Salt Lake City Dart Interests 305,786 SF
Prelease
4835 S Highland Dr Salt Lake City Kiln 60,000 SF
Colliers | Salt Lake County| 23Q4 | Office Report
Lease
5272 S College Dr Murray State of Utah 45,305 SF
Sublease
10355 S Jordan Gtwy South Jordan Strider Technologies 31,441 SF
Renewal
2750 E Cottonwood Pkwy Cottonwood Heights Aumni 21,148 SF
Top Construction Projects
Salt Lake County
Office
23Q4
Avg. Asking Lease Rates The overall average asking lease rate hovered around $27.00 FSG throughout 2023, experiencing a $0.02 dip in the last quarter but an overall increase of $0.21 year-over-year. Class A properties in the Sugarhouse submarket have the highest average asking lease rates, boasting an impressive $38.51-FSG average and spanning anywhere from $27 to $40.50 FSG.
Class A
$25.00 $20.00 $15.00 $10.00 $5.00 2018 2019
2019
2020
2020
2021
2022
2022
2023
Class C
Overall
2021
2,000,000 1,500,000 1,000,000 500,000 0 (500,000) (1,000,000) (1,500,000)
Vacancy
Class A
Class A
Class B Class B
Class C
Overall
25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Colliers | Salt Lake County| 23Q4 | Office Report
Overall
$30.00
Absorption
In response to decreased absorption, vacancy rates increased quarter-over-quarter to 16.23 percent at year-end. Class B properties, particularly in the Draper and West Valley/Lake Park submarkets, saw the most vacancy, with both areas reporting over 30 percent vacancy in Class B inventory. However, when factoring in a 5 percent sublease vacancy rate, the overall county-wide vacancy rate surpassed 21 percent, a more accurate reflection of current, comprehensive market dynamics.
Class C
$35.00
$0.00
Absorption in Salt Lake County plummeted to an unprecedented all-time low, reporting negative 1,085,596 square feet at the end of 2023. However, there is room for optimism as Baltic Pointe added 130,000 square feet to the Draper submarket in the fourth quarter, generating positive absorption of 49,870 square feet. Pelion & HB Workplaces preleased several full-floor opportunities at Baltic Pointe. The market's tenant landscape is characterized by a predominant interest in spaces between 2,000 and 6,000 square feet, with minimal demand for spaces exceeding 20,000 square feet.
Class B
2019
2020
2021
2022
2023
Under Construction Asking Lease Rates $40.00
$34.95
$30.00
$36.00
$34.37
South West Valley
Overall
$24.25
$20.00 $10.00 $0.00
Draper
Sandy South Towne
Market Overview Existing Properties Building Total Class Inventory SF
Direct Vacancy
Sublease Availability
SF
SF
Rate
Rate
Total Vacancy Rate
Absorption Square Footage
Avg Asking Rent
Current Period
Rate (FS)
YTD
OFFICE MARKET Airport/International Center A
0
0
0.00%
0
0.00%
0.00%
0
0
-
B
1,705,349
493,922
28.96%
157,147
9.21%
38.18%
2,007
(219,640)
$26.23
C
575,417
30,252
5.26%
0
0.00%
5.26%
2,739
2,739
$20.06
TOTAL
2,280,766
524,174
22.98%
157,147
6.89%
29.87%
4,746
(216,901)
$24.97
CBD A
3,804,491
495,632
13.03%
105,397
2.77%
15.80%
6,961
9,816
$37.06
B
3,857,083
1,002,586
25.99%
101,345
2.63%
28.62%
(123,703)
(122,777)
$28.76
C
1,643,040
281,943
17.16%
15,110
0.92%
18.08%
7,626
92,756
$15.25
TOTAL
9,304,614
1,780,161
19.13%
221,852
2.38%
21.52%
(109,116)
(20,205)
$30.45
Central Valley East A
0
0
0.00%
0
0.00%
0.00%
0
0
-
B
924,100
88,453
9.57%
0
0.00%
9.57%
(55,726)
20,984
$24.53
C
920,893
51,162
5.56%
0
0.00%
5.56%
1,297
6,720
$16.80
TOTAL
1,844,993
139,615
7.57%
0
0.00%
7.57%
(54,429)
27,704
$21.38
Central Valley West A
1,135,697
49,240
4.34%
64,623
0.00%
4.34%
(13,624)
(38,624)
$28.10
B
660,591
98,232
14.87%
5,191
0.79%
15.66%
3,583
13,194
$22.13
C
549,373
53,026
9.65%
0
0.00%
9.65%
9,003
14,768
$17.72
TOTAL
2,345,661
200,498
8.55%
69,814
2.98%
11.52%
(1,038)
(10,662)
$21.40
Cottonwood A
1,946,380
228,693
11.75%
29,991
1.54%
13.29%
19,843
(50,405)
$33.42
B
347,543
67,252
19.35%
27,942
8.04%
27.39%
0
(2,908)
$29.54
C
0
0
0.00%
0
0.00%
0.00%
0
0
-
2,293,923
295,945
12.90%
57,933
2.53%
15.43%
19,843
(53,313)
$32.01
A
3,144,989
316,548
10.07%
446,504
14.20%
24.26%
33,213
(13,086)
$28.27
B
1,475,493
401,401
27.20%
88,591
6.00%
33.21%
75,384
(64,366)
$27.30
TOTAL Draper
C
408,209
25,040
6.13%
0
0.00%
6.13%
(1,101)
(12,284)
$22.76
TOTAL
5,028,691
742,989
14.77%
535,095
10.64%
25.42%
107,496
(89,736)
$27.43
Foothill A
0
0
0.00%
0
0.00%
0.00%
0
0
-
B
219,230
45,082
20.56%
0
0.00%
20.56%
0
(9,021)
$24.97
C
120,883
997
0.82%
0
0.00%
0.82%
0
1,054
$19.95
TOTAL
340,113
46,079
13.55%
0
0.00%
13.55%
0
(7,967)
$24.17
Salt Lake County
Sublease Availability
Office
Class A
23Q4
Class B
Class C
Overall
2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
Market Overview
Existing Properties Building Total Class Inventory SF Interchange A 150,000 B 0 C 519,237 TOTAL 669,237 Research Park A 529,560 B 169,236 C 444,944 TOTAL 1,143,740 Periphery A 1,280,885 B 1,551,602 C 717,164 TOTAL 3,549,651 Sandy South Towne A 3,996,372 B 1,445,133 C 237,963 TOTAL 5,679,468 South West Valley A 571,384 B 22,000 C 0 TOTAL 593,384
2019
2020
2021
2022
2023
Absorption Square Footage
Avg Asking Rent
Rate
Current Period
YTD
Rate (FS)
3.91% 0.00% 15.31% 12.75%
20.58% 0.00% 15.82% 16.88%
0 0 (2,647) (2,647)
0 0 (2,647) (2,647)
$29.00 $13.00 $27.47
125,555 85,430 0 210,985
23.71% 50.48% 0.00% 18.45%
23.71% 58.27% 0.00% 19.60%
0 0 0 0
0 (622) 0 (622)
$23.00 $23.00
20.50% 12.59% 6.44% 14.20%
56,001 33,582 4,307 93,890
4.37% 2.16% 0.60% 2.65%
24.88% 14.76% 7.04% 16.85%
63,975 7,280 (700) 70,555
39,801 46,550 8,065 94,416
$36.30 $24.36 $19.17 $29.12
365,316 170,301 19,930 555,547
9.14% 11.78% 8.38% 9.78%
340,395 23,751 0 364,146
8.52% 1.64% 0.00% 6.41%
17.66% 13.43% 8.38% 16.19%
(57,485) 219 (1,176) (58,442)
(130,205) (78,473) 9,204 (199,474)
$27.62 $24.03 $17.54 $25.43
135,326 0 0 135,326
23.68% 0.00% 0.00% 22.81%
0 0 0 0
0.00% 0.00% 0.00% 0.00%
23.68% 0.00% 0.00% 22.81%
4,906 0 0 4,906
11,022 22,000 0 33,022
$28.07 $28.07
Direct Vacancy
Sublease Availability
SF
Rate
SF
Rate
25,000 0 2,647 27,647
16.67% 0.00% 0.51% 4.13%
5,864 0 79,474 85,338
0 13,188 0 13,188
0.00% 7.79% 0.00% 1.15%
262,639 195,374 46,166 504,179
Colliers | Salt Lake County| 23Q4 | Office Report
Total Vacancy
Market Overview
Existing Properties Building Total Class Inventory SF Sugarhouse A 330,047 B 401,427 C 283,057 TOTAL 1,014,531 Union Park District A 549,128 B 878,222 C 710,665 TOTAL 2,138,015 West Valley/Lake Park A 1,195,505 B 2,071,064 C 932,460 TOTAL 4,199,029
Absorption Square Footage
Avg Asking Rent
Rate
Current Period
YTD
Rate (FS)
6.89% 7.14% 0.00% 5.07%
13.23% 16.06% 6.63% 12.51%
(2,643) 3,168 (1,346) (821)
2,305 1,355 88 3,748
$38.51 $27.08 $29.00 $31.74
53,069 7,219 2,447 62,735
9.66% 0.82% 0.34% 2.93%
29.73% 17.58% 5.68% 16.75%
(16,456) 1,182 7,209 (8,065)
(36,654) (36,393) (10,284) (83,331)
$27.37 $26.10 $20.25 $25.19
54,388 297,396 0 351,784
4.55% 14.36% 0.00% 8.38%
65.54% 45.17% 4.15% 41.86%
0 (152,125) 2,931 (149,194)
(315,617) (164,232) (5,881) (485,730)
$29.50 $22.85 $16.70 $25.43
Direct Vacancy
Sublease Availability
SF
Rate
SF
Rate
20,927 35,809 18,777 75,513
6.34% 8.92% 6.63% 7.44%
22,748 28,670 0 51,418
110,210 147,205 37,944 295,359
20.07% 16.76% 5.34% 13.81%
729,171 638,005 38,734 1,405,910
60.99% 30.81% 4.15% 33.48%
Total Vacancy
Overall Market Totals
Existing Properties Building Total Class Inventory SF
Direct Vacancy
Sublease Availability
SF
Rate
SF
Rate
Absorption Square Footage
Avg Asking Rent
Rate
Current Period
YTD
Rate (FS)
Total Vacancy
Quarterly Totals A
18,882,013
2,746,700
14.55%
1,138,340
6.03%
20.58%
101,403
(401,145)
$31.65
B
15,728,073
3,564,509
22.66%
899,802
5.72%
28.38%
(315,474)
(784,048)
$25.54
C
8,063,305
615,124
7.63%
95,924
1.19%
8.82%
4,093
99,597
$21.29
TOTAL
42,673,391
6,926,333
16.23%
2,134,066
5.00%
21.23%
(209,978)
(1,085,596)
$27.21
Salt Lake County
Headline
Industrial
The Salt Lake County industrial market saw 2.33 million square feet of completed construction at the end of 2023, with 4.9 million square feet underway, primarily in the North West and South West submarkets. The average asking lease rate stabilized at $0.84 NNN, highest in the South East submarket at $1.28 NNN. Year-to-date absorption reached 3.74 million square feet, most affected by the North West submarket and buildings over 100,000 square feet in size. Direct vacancy increased to 5.27 percent while sublease vacancy reached 2.11 percent, bringing the combined vacancy rate to 7.38 percent.
23Q4
Current Market Indicators
YTD Absorption
Under Construction
Direct Vacancy Rate
Lease Rate (NNN)
+3.7M SF
4.9M SF
5.27%
$0.84/ SF
YOY
FORECAST
YOY
FORECAST
YOY
FORECAST
YOY
FORECAST
Construction
Historic Comparison 22Q4
23Q3
23Q4
Total Inventory (SF)
144,407,887
150,609,231
153,010,684
New Supply (SF)
2,605,092
2,949,374
2,330,881
YTD Absorption (SF)
+8,278,588
+2,856,059
+3,736,680
Direct Vacancy Rate
3.21%
4.36%
5.27%
Under Construction (SF)
4,623,677
6,440,590
4,896,078
Overall Asking Lease Rates (NNN)
$0.78
$0.84
$0.84
Colliers | Salt Lake County| 23Q4 | Industrial Report
22.04% North West 35.56% Preleased
77.96%
South West
Salt Lake County recorded 2,330,881 square feet of completed construction at the end of 2023 as well as 4,896,078 square feet currently underway. The North West submarket commands an impressive 77.96 percent of construction, with the second-largest share in the South West submarket. Among the 13 ongoing projects, only two are tailored for build-to-suit clients, while the rest is speculative space.
Top Construction Projects
Salt Lake County
Industrial
23Q4
Avg. Asking Lease Rates The overall asking lease rate for industrial space in Salt Lake County stabilized at $0.84 NNN at the end of 2023. The South East submarket saw the highest rate, at $1.28 NNN across just three available properties, which may not provide a comprehensive reflection of market rates. Buildings under 20,000 square feet in size have the highest asking lease rates of all building sizes, averaging $1.05 NNN, due to vacancy falling below 1 percent.
Absorption Salt Lake County saw 3,736,680 square feet of year-to-date positive absorption at the end of 2023, with an overwhelming 95.73 percent attributed to buildings over 100,000 square feet in size. The largest share came from the North West submarket, contributing 3,333,962 square feet. Specialized Bicycle Components secured most of the 583,308 square feet of absorption at the SLC Port Global Logistics Center #6, emphasizing how larger industrial space, particularly in the North West submarket, is driving absorption dynamics within the county.
$1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00
2019
2020
2021
2022
2023
5-20K SF
20-50K SF
50-100K SF
100K+ SF
Overall
0-5K SF 11,000,000 9,000,000 7,000,000 5,000,000 3,000,000 1,000,000 (1,000,000)
0-5K SF 5-20K SF 20-50K 50-100K 100K+ SF Overall SF SF
2019
2020
2021
2022
2023
Vacancy Overall vacancy rates in Salt Lake County reached 5.27 percent at the end of 2023, a significant 2.06-percent decrease year-over-year and a 0.91-percent increase from the previous quarter. Sublease availability contributed 2.11 percent, bringing the combined vacancy rate to 7.38 percent county-wide. The South West submarket recorded the highest vacancy rate, at 6.37 percent, followed closely by the North West submarket at 6.17 percent.
Colliers | Salt Lake County| 23Q4 | Industrial Report
10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 0-5K SF
2019
2020
2021
2022
2023
5-20K SF
20-50K SF
50-100K SF
100K+ SF
Overall
4th Quarter Transactions
Sale
Lease
2359 N 2200 W Salt Lake City Confidential 339,394 SF Transaction Date: 12/18/2023
Sale
4951 W 150 S Salt Lake City VOBEV 252,305 SF Transaction Date: 12/04/2023
Renewal
1420 S 4800 W Salt Lake City George Webb Sales Company 173,040 SF Transaction Date: 12/11/2023
6140 W 300 S Salt Lake City Confidential 243,232 SF Transaction Date: 12/01/2023
Lease
5354 W 700 S Salt Lake City Confidential 158,368 SF Transaction Date: 10/01/2023
Salt Lake County
Industrial
23Q4
Market Overview Existing Properties Total Inventory Building Size SF INDUSTRIAL MARKET Central East 0-5,000 194,368 5,001-20,000 2,860,878 20,001-50,000 2,430,277 50,001-100,000 671,679 100,001+ 1,695,588 TOTAL 7,852,790 Central West 0-5,000 88,541 5,001-20,000 2,181,412 20,001-50,000 4,809,200 50,001-100,000 4,634,596 100,001+ 4,890,622 TOTAL 16,604,371 North East 0-5,000 187,372 5,001-20,000 1,836,963 20,001-50,000 1,698,298 50,001-100,000 1,617,228 100,001+ 977,714 TOTAL 6,317,575 North West 0-5,000 216,716 5,001-20,000 4,606,535 20,001-50,000 11,346,601 50,001-100,000 12,636,304 100,001+ 69,613,962 TOTAL 98,420,118 South East 0-5,000 20,383 5,001-20,000 376,008 20,001-50,000 611,655 50,001-100,000 303,797 100,001+ 670,144 TOTAL 1,981,987 South West 0-5,000 129,618 5,001-20,000 3,117,186 20,001-50,000 3,945,291 50,001-100,000 4,352,973 100,001+ 10,288,775 TOTAL 21,833,843 Quarterly Totals 0-5,000 836,998 5,001-20,000 14,978,982 20,001-50,000 24,841,322 50,001-100,000 24,216,577 100,001+ 88,136,805 TOTAL 153,010,684
Direct Vacancy
Sublease Availability
Total Vacancy
Absorption Square Footage
Avg Asking Rate
SF
Rate
SF
Rate
Rate
Current Period
YTD
Rate (NNN)
0 20,234 10,432 15,000 122,511 168,177
0.00% 0.71% 0.43% 2.23% 7.23% 2.14%
0 0 23,595 0 0 23,595
0.00% 0.00% 0.97% 0.00% 0.00% 0.30%
0.00% 0.71% 1.40% 2.23% 7.23% 2.44%
0 2,794 0 0 (114,364) (111,570)
0 (5,664) 31,072 (15,000) (122,511) (112,103)
$1.15 $0.92 $1.00 $0.58 $0.79
0 7,251 69,020 138,777 0 215,048
0.00% 0.33% 1.44% 2.99% 0.00% 1.30%
0 0 0 0 0 0
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.33% 1.44% 2.99% 0.00% 1.30%
0 (3,551) 36,974 0 0 33,423
0 (7,251) (20,420) 182,206 166,745 321,280
$1.41 $0.98 $0.93 $0.98
0 53,331 121,858 19,879 0 195,068
0.00% 2.90% 7.18% 1.23% 0.00% 3.09%
0 0 14,900 0 0 14,900
0.00% 0.00% 0.88% 0.00% 0.00% 0.24%
0.00% 2.90% 8.05% 1.23% 0.00% 3.32%
0 856 (39,157) 0 0 (38,301)
0 (6,239) (39,157) (19,879) 9,879 (55,396)
$0.98 $0.95 $0.83 $0.95
0 40,927 212,028 203,247 5,613,237 6,069,439
0.00% 0.89% 1.87% 1.61% 8.06% 6.17%
0 4,405 48,398 72,729 2,600,678 2,726,210
0.00% 0.10% 0.43% 0.58% 3.74% 2.77%
0.00% 0.98% 2.30% 2.18% 11.80% 8.94%
0 (25,639) (60,604) 42,889 1,236,115 1,192,761
2,847 (33,127) 65,584 44,948 3,253,710 3,333,962
$1.21 $0.93 $0.94 $0.79 $0.80
0 0 12,210 8,440 0 20,650
0.00% 0.00% 2.00% 2.78% 0.00% 1.04%
0 0 0 0 0 0
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 2.00% 2.78% 0.00% 1.04%
0 0 0 (8,440) 0 (8,440)
0 0 (12,210) (8,440) 0 (20,650)
$1.12 $1.05 $1.28
0 21,592 125,821 50,991 1,192,154 1,390,558
0.00% 0.69% 3.19% 1.17% 11.59% 6.37%
0 4,294 3,920 0 454,848 463,062
0.00% 0.14% 0.10% 0.00% 4.42% 2.12%
0.00% 0.83% 3.29% 1.17% 16.01% 8.49%
0 0 3,578 (16,373) (31,457) (44,252)
0 (8,109) (1,359) 9,763 269,292 269,587
$1.26 $1.11 $1.30 $0.88 $0.96
0 143,335 551,369 436,334 6,927,902 8,058,940
0.00% 0.96% 2.22% 1.80% 7.86% 5.27%
0 8,699 90,813 72,729 3,055,526 3,227,767
0.00% 0.06% 0.37% 0.30% 3.47% 2.11%
0.00% 1.01% 2.59% 2.10% 11.33% 7.38%
0 (25,540) (59,209) 18,076 1,090,294 1,023,621
2,847 (60,390) 23,510 193,598 3,577,115 3,736,680
$1.05 $1.05 $0.92 $1.01 $0.79 $0.84
Colliers | Salt Lake County| 23Q4 | Industrial Report
Market Activity
North West
Direct Vacancy Rate: 6.17% YTD Absorption: +3,333,962 SF Lease Rate: $0.80 NNN
North East
Direct Vacancy Rate: 3.09% YTD Absorption: (55,396) SF Lease Rate: $0.95 NNN
Central West
Direct Vacancy Rate: 1.30% YTD Absorption: +321,280 SF Lease Rate: $0.98 NNN
Central East
Direct Vacancy Rate: 2.14% YTD Absorption: (112,103) SF Lease Rate: $0.79 NNN
South West
Direct Vacancy Rate: 6.37% YTD Absorption: +269,587 SF Lease Rate: $0.96 NNN
South East
Direct Vacancy Rate: 1.04% YTD Absorption: (20,650) SF Lease Rate: $1.28 NNN
Salt Lake County
Headline
Retail
Construction in Salt Lake County’s retail market stabilized, decreasing from 574,575 square feet at the end of 2022 to 474,575 square feet one year later. The South West submarket is home to the largest share of current construction at 83.86 percent. Overall asking lease rates increased slightly to $21.21 NNN, while year-to-date absorption reached a record-high 639,374 square feet.
23Q4
Current Market Indicators
YTD Absorption
Under Construction
Direct Vacancy Rate
Lease Rate (NNN)
+639K SF
475K SF
2.28%
$21.21/ SF
YOY
FORECAST
YOY
FORECAST
YOY
FORECAST
YOY
FORECAST
Construction
Historic Comparison
0.71%
22Q4
23Q3
23Q4
Total Inventory (SF)
40,679,515
38,848,959
40,753,415
New Supply (SF)
10,000
0
17,856
YTD Absorption (SF)
+421,841
+529,680
+639,374
Direct Vacancy Rate
3.75%
2.18%
2.28%
Under Construction (SF)
574,575
474,575
474,575
Overall Asking Lease Rates (NNN)
$20.57
$21.18
$21.21
1.34% 12.50%
Central East 1.58%
63.00% Preleased
Central West North East North West
83.86%
South West
Retail construction in Salt Lake County demonstrated stability throughout 2023, decreasing modestly from 574,575 square feet at the end of 2022 to 474,575 square feet one year later. The South West submarket saw the most construction, at 398,000 square feet, or 83.86 percent of total construction.
4th Quarter Transactions
Sale
11800 S Bangerter Hwy South Jordan South Jordan JCP 99,411 SF
Sale
5575 W 4700 S Kearns Confidential 66,000 SF
Colliers | Salt Lake County| 23Q4 | Retail Report
Lease
10400 S State St Sandy Barnes & Noble 28,000 SF
Lease
180 W 7200 S Midvale Sukiya Sushi & Japanese Buffet 8,400 SF
Lease
5519 W 150 S Salt Lake City Concentra Inc. 8,024 SF
Top Construction Projects
Salt Lake County
Retail
23Q4
Avg. Asking Lease Rates The overall retail asking lease rate in Salt Lake County reached $21.21 NNN at the end of 2023, a marginal increase from the $21.18 NNN recorded in the third quarter and a $0.64 increase from the $20.57 NNN recorded the previous year. Regional Centers saw the highest overall asking rates, at $23.05 NNN, followed by Anchorless Strip Centers at $22.41 NNN. The South West had the highest asking rate of all the submarkets, at an overall $24.98 NNN.
Absorption Salt Lake County year-to-date absorption reached a record-high 639,374 square feet, including 96,838 in the fourth quarter alone. H Mart leased the entire vacant Kmart building in West Jordan, and The Shops at Fort Union contributed 91,114 square feet of absorption when an undisclosed tenant took 77,531 square feet of space — Dave’s Hot Chicken and Key Bank account for the remaining portion.
Vacancy Retail vacancy in Salt Lake County continued to decrease, reaching 2.28 percent at yearend. Anchorless Strip Centers have the highest vacancy, at 2.56 percent, followed by Regional Centers at 2.54 percent. Neighborhood Centers in the Central West quadrant had the highest county-wide vacancy rate, at 4.39 percent. A lag in construction behind demand will likely keep vacancy rates below the healthy 8 percent threshold going forward.
$30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00
2019 2020 2021 2022 Anchorless Community Neighborhood Regional 2019
2021
2022
2023
2021
2022
2023
Regional
Overall
800,000 600,000 400,000 200,000 0 (200,000) (400,000) 8.00% 6.00% 4.00% 2.00% 0.00%
2019
Anchorless Colliers | Salt Lake County| 23Q4 | Retail Report
2020
2023 Overall
2020
Community
Neighborhood
Market Overview
Existing Properties
Direct Vacancy
Sublease Availability
Total Vacancy
Absorption Square Footage
Avg Asking Rate
Total Inventory SF
SF
Rate
SF
Rate
Rate
Current Period
YTD
Rate (NNN)
Anchorless Strip
1,878,584
48,501
2.58%
0
0.00%
2.58%
2,136
11,358
$20.52
Community Center
1,659,686
17,945
1.08%
0
0.00%
1.08%
2,681
7,418
$28.48
Neighborhood Center
1,492,584
14,813
0.99%
0
0.00%
0.99%
0
4,545
$23.59
Regional Center
2,156,305
33,493
1.55%
0
0.00%
1.55%
(4,618)
83,376
$26.16
TOTAL
7,187,159
114,752
1.60%
0
0.00%
1.60%
199
106,697
$24.17
Anchorless Strip
1,405,945
11,964
0.85%
0
0.00%
0.85%
15,830
22,312
$19.31
Community Center
3,615,901
62,301
1.72%
0
0.00%
1.72%
0
24,480
$19.57
Neighborhood Center
1,460,139
64,104
4.39%
31,838
2.18%
6.57%
0
42,361
$15.79
Regional Center
1,561,486
46,468
2.98%
0
0.00%
2.98%
0
0
$16.50
TOTAL
8,043,471
184,837
2.30%
31,838
0.40%
2.69%
15,830
89,153
$17.35
Anchorless Strip
2,092,286
86,242
4.12%
2,794
0.13%
4.26%
1
20,638
$21.25
Community Center
1,919,016
61,412
3.20%
0
0.00%
3.20%
6,063
22,773
$25.21
Neighborhood Center
336,405
11,500
3.42%
0
0.00%
3.42%
0
0
$35.00
Regional Center
502,227
4,782
0.95%
0
0.00%
0.95%
0
51,410
$16.78
TOTAL
4,849,934
163,936
3.38%
2,794
0.06%
3.44%
6,064
94,821
$23.58
Anchorless Strip
442,412
5,286
1.19%
0
0.00%
1.19%
2,441
11,724
$27.88
Community Center
869,682
14,400
1.66%
0
0.00%
1.66%
0
26,951
$18.00
Neighborhood Center
539,213
0
0.00%
0
0.00%
0.00%
0
0
-
0
0
0.00%
0
0.00%
0.00%
0
0
-
1,851,307
19,686
1.06%
0
0.00%
1.06%
2,441
38,675
$20.65
Center Type RETAIL MARKET Central East
Central West
North East
North West
Regional Center TOTAL
Salt Lake County
Retail
23Q4
Market Overview
Existing Properties Center Type South East Anchorless Strip Community Center Neighborhood Center Regional Center TOTAL South West Anchorless Strip Community Center Neighborhood Center Regional Center TOTAL
Direct Vacancy
Sublease Availability
Total Vacancy
Absorption Square Footage
Avg Asking Rate
Total Inventory SF
SF
Rate
SF
Rate
Rate
Current Period
YTD
Rate (NNN)
1,426,393 3,870,243 1,801,091 804,319 7,902,046
50,029 142,606 29,274 10,399 232,308
3.51% 3.68% 1.63% 1.29% 2.94%
0 3,791 2,781 0 6,572
0.00% 0.10% 0.15% 0.00% 0.08%
3.51% 3.78% 1.78% 1.29% 3.02%
6,980 (336) 16,426 28,000 51,070
3,516 56,258 3,473 30,745 93,992
$26.12 $14.73 $16.63 $25.00 $17.92
1,621,862 2,794,552 2,084,557 4,418,527 10,919,498
25,114 11,394 33,802 144,814 215,124
1.55% 0.41% 1.62% 3.28% 1.97%
0 0 0 0 0
0.00% 0.00% 0.00% 0.00% 0.00%
1.55% 0.41% 1.62% 3.28% 1.97%
10,500 0 6,212 4,522 21,234
28,057 26,969 125,991 35,019 216,036
$22.97 $20.00 $25.72 $25.58 $24.98
Sublease Availability
Total Vacancy
Absorption Square Footage
Avg Asking Rate
Overall Market Totals
Existing Properties
Direct Vacancy
Total Inventory SF
SF
Rate
SF
Rate
Rate
Current Period
YTD
Rate (NNN)
Anchorless Strip
8,867,482
227,136
2.56%
2,794
0.03%
2.59%
37,888
97,605
$22.41
Community Center
14,729,080
310,058
2.11%
3,791
0.03%
2.13%
8,408
164,849
$19.00
Neighborhood Center
7,713,989
153,493
1.99%
34,619
0.45%
2.44%
22,638
176,370
$20.33
Regional Center
9,442,864
239,956
2.54%
0
0.00%
2.54%
27,904
200,550
$23.05
TOTAL
40,753,415
930,643
2.28%
41,204
0.10%
2.38%
96,838
639,374
$21.21
Center Type Quarterly Totals
Colliers | Salt Lake County| 23Q4 | Retail Report
Market Activity
North West
Direct Vacancy Rate: 1.06% YTD Absorption: +38,675 SF Lease Rate: $20.65 NNN
Central West
Direct Vacancy Rate: 2.30% YTD Absorption: +89,153 SF Lease Rate: $17.35 NNN
North East
Direct Vacancy Rate: 3.38% YTD Absorption: +94,821 SF Lease Rate: $23.58 NNN
Central East
Direct Vacancy Rate: 1.60% YTD Absorption: +106,697 SF Lease Rate: $24.17 NNN
South West
Direct Vacancy Rate: 1.97% YTD Absorption: +216,036 SF Lease Rate: $24.98 NNN
South East
Direct Vacancy Rate: 2.94% YTD Absorption: +93,992 SF Lease Rate: $17.92 NNN
At Colliers, we are enterprising
Market Contact: Megan Donnell Research Manager | Utah Millrock Office | Salt Lake City +1 801 453 6822 megan.donnell@colliers.com
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About Colliers Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
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