Q2 2019 Salt Lake City Market Report
The Salt Lake City Metropolitan Office Market continues to grow. Healthy
demand from both existing companies expanding and enterprises new to the market continue to fuel the need for new Suburban Class "A" space.
Additionally, construction of 95 State at City Creek, Downtown Salt Lake
City's newest 25-story high-rise, was formally announced. It will add 500,000 SF of new Class "A" office space to the market in late 2021. The technology, finance, healthcare and flex/co-working space sectors are driving the bulk of new occupancy.
Asking lease rates continue to climb and now average $27.72/SF, full service in Class "A" and "B" properties combined market-wide. The overall strength of the market, increasing construction costs and land prices, together with
increasing operating expenses, most notably in property taxes, continue to
push rates higher.
Over the next 18 to 24 months, demand for just-in-time flexible work
environments will increase. WeWork and other co-working providers will likely bring an additional 300,000 to 400,000 SF online to meet this increasing
One mild concern to monitor moving forward is the increase in sublease space entering the market. If this continues or the pace accelerates, it could slow
the pace of new construction and lease rates may flatten. But it would also
add more competitively priced opportunities for tenants.