What area is your expertise?
The greater Salt Lake City area and Utah.
What trends do you see presently in retail development in your area?
After a record year in 2007, with absorption of over 1.9 million square feet of retail space, this year is expected to slow down somewhat due to the pullback by many retailers nationwide and the tightening of the financial markets. Existing centers will remain strong and should not experience any significant increase in vacancy or decrease in lease rate.
What type of retail product is doing well in your area?
Grocery-anchored centers are still very strong mainly because the support types tenants are still expanding and our market remains one of the strongest in the country.
What retailers are new to your area?
The Cheesecake Factory, Whole Foods Market, Ulta, Sunflower Market, El Pollo Loco, Shari’s Restaurant, Corner Bakery, Red Mango, Stage Stores, Egg & I, and In & Out Burger.
Who are the active retail developers in your area?
The Boyer Company, The Woodbury Corporation, Amsource Development, Four Square Development and Taubman.
Please name one or two significant retail developments in your area. What impact will these projects have on the market?
The City Creek Development is a major mixed-use redevelopment in downtown Salt Lake City. It is a joint development between the Church of Jesus Christ of Latter-Day Saints and Taubman. The new retail project will encompass a three-block area that previously held two regional enclosed malls. Tenants announced are Nordstrom and Macy’s. This development will have a significant impact in redirecting retailing to the downtown area as opposed to the suburbs and will take advantage of the nearly 6 million visitors/tourists that visit the area every year.
Where is the majority of development taking place? Why is this area doing well?
Aside from the City Creek development above, the majority of new retail development has taken place in the high growth areas of the southwest quadrant of the Salt Lake Valley. Even with the residential downturn, this area continues to grow at a steady pace (supported by the highest birth rate and highest number of people per household in the country) and new service opportunities still exist.
What area do you expect to be the next big retail development market? Why?
The west side of Utah County, as well as Weber and Davis counties continue to grow, although at a slower pace, and new retail opportunities can still be found there.
Please describe the retail leasing activity in your area.
Existing quality projects will remain stable. Tenants are more cautious and are taking longer to make deals but are still attracted to our market as we continue to have some of the lowest unemployment rates in the country.
What major leases have been closed recently?
New Smiths Market place store (165,000 square feet) at SR 92 in Lehi, Utah. A new Super Wal-Mart in West Jordan Utah on Bangerter Highway.
Please give a measure of retail vacancy rates and a measure of available sublease.
The overall average vacancy rate for all markets and property type last year was 6.89 percent. This year, vacancy is expected to remain stable and close to the same vacancy.
What types of retailers should look into your market in the coming year? What type of retail is needed?
Support retail for grocery-anchored centers.
Submitted by Rob Moore, CCIM and vice president with the Salt Lake City office of CBC NRT Utah/ONCOR International.