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The Salt Lake City office market shows signs of normalizing after over three years of record construction, absorption, increasing lease rates, and increasing costs of construction. Compared to year-end 2016, the first quarter of 2017 reveals an increase in overall vacancy, a stabilizing market, and in some cases falling asking lease rates, and a significant rise in sublease space entering the market.

At the mid-point of 2017, the Salt Lake City office market continues to exhibit positive indicators with above average historical absorption levels, increasing lease rates in some market sectors, and generally solid overall leasing activity. Vacancy in Downtown Class "A" buildings fell by nearly 2.5 percentage points and stands at 10.9%.

Current market surveys indicate a 25-30% office space availability rate in one of Salt Lake’s premier suburban submarkets: Cottonwood. With the immense commercial growth in recent years, it begs the question: Is this a market anomaly or an indication of change to come? A closer look points toward fresh opportunities for office tenants.

Salt Lake's industrial market experienced a flurry of large deals announced over the first half of the year. Large industrial occupiers either announced or started construction on several projects including Post Consumer Brands, UPS, and most recently Amazon announcing in early July a $250 million regional fulfillment center in the Northwest quadrant.