— By Tanner Olson of Legend Commercial — Downtown Salt Lake City has undergone a meaningful transformation over the past decade. The growth of ground-floor mixed-use retail, a rapidly expanding bar and restaurant scene, and the arrival of nationally recognized brands such as STK Steakhouse, the Capital Grille, Uchi and concepts affiliated with Fox Restaurant Concepts reflect a maturing urban core. At the same time, local operators such as Aker, Matteo, Urban Hill and many others have elevated the city’s culinary identity, with homegrown concepts adding depth and authenticity to the market. It was only 15 years ago that Salt Lake largely functioned as a commuter-based retail environment. Consumers prioritized surface parking and drive-thru convenience. Downtown activity outside of peak weekend hours was limited, while urban living lacked the density and vibrancy needed to support consistent retail demand. That dynamic has shifted. Today, tens of thousands of multifamily units have been delivered in and around the CBD, accompanied by hundreds of thousands of square feet of ground-floor retail. Just two to three years ago, downtown contained roughly 200,000 square feet of available mixed-use retail space, fragmented across 60 to 70 small-format spaces. Filling that space required not just tenants, but …
— By Patrick Bodnar of CBRE — Utah’s multifamily market remains one of the most resilient and compelling real estate environments in the country, supported by exceptional economic fundamentals and a steadily tightening development pipeline. Utah once again ranked No. 1 in the nation in 2025 in the American Legislative Exchange Council’s (ALEC) economic outlook index, marking its 18th consecutive year at the top and earning high marks for overall performance, labor participation and business affordability. These strengths, paired with ongoing population and job growth, continue to reinforce consistent long-term demand for rental housing across the Wasatch Front. Against this backdrop, rent trends are beginning to shift. After several years of rent stagnation driven by elevated supply, rent growth is positioned to rebound in the second half of 2026. The past three years were characterized by relatively flat asking rents, but CBRE’s analysis indicates that future rent growth is approaching as new deliveries decline and supply is absorbed. This shift is largely the result of two converging factors: a meaningful slowdown in new construction starts — driven by higher interest rates and sustained construction cost pressures — and persistently strong absorption, which places Utah among the top-performing absorption markets in …
— By Mike Embree of Drawbridge Realty — After 16 consecutive quarters of either negative or negligible net absorption, Salt Lake City’s office market closed 2025 on a positive note. The end result was 114,700 square feet of direct occupancy gains, per Cushman & Wakefield. This resulted in 263,000 square feet of direct absorption for the year, spurring a 500-basis point decline in the direct vacancy rate, which now stands at 19.4 percent. It’s too early to say that the market has turned the corner, but the signs are promising. For landlords, one positive in a market with about 10 million square feet of availability is that new office construction has effectively stalled for now. Only one building was delivered in 2025, adding just 180,000 square feet to the existing inventory with no new office projects on the drawing board. At the same time, more than a dozen buildings were removed from the office leasing market, either by developers pursuing multifamily conversions or purchases by owner-users. One such sale occurred in the fourth quarter when the Salt Lake City Corporation of Public Utilities purchased One Airport Tech, a two-story, 87,657-square-foot building near Airport Technology Park campus. C&W data notes …
— By Rebecca Lloyd of Cushman & Wakefield — Salt Lake City’s industrial market ended 2025 in a transitional period defined by rising vacancy, shifting demand across product types, and heightened activity in both peripheral submarkets and the owner‑user segment. Overall vacancy climbed to 7.9 percent, driven by more than 8.5 million square feet of new warehouse/distribution deliveries since early 2024, nearly half of which remain available. This is particularly apparent in the North West submarket, which continues to dominate the region’s industrial footprint. Despite this supply influx, tenant demand held firm with 5.9 million square feet of new leasing activity recorded in 2025. Absorption remained steady across small and mid-sized facilities, with monthly net asking rents remaining stable at $0.80 to $0.81 per square foot. Smaller 10,000- to 100,00-square-foot buildings posted the tightest availability at 6 percent vacancy, while larger big box properties over 100,000 square feet saw vacancy rise to 15.7 percent, widening the performance gap between segments. Land scarcity, power constraints and elevated development costs continue to limit opportunities in core Salt Lake submarkets, forcing more tenants and developers to pivot toward Utah County. This is where a sizeable 4-million-square-foot proposed development pipeline is helping narrow …
— By Will Moss of MMG Real Estate Advisors — After a turbulent stretch marked by oversupply and softening rents, Salt Lake City’s multifamily market is showing signs of stabilization in early 2025. Demand is returning, rent declines are easing and investor confidence is on the rise, all pointing to a market that may have found its footing. “We’re not calling a full recovery just yet,” says Will Moss, sales agent at MMG Real Estate. “But what we’re seeing is a return to fundamentals, steady demand, measured construction and buyers who are ready to transact again.” In first-quarter 2025, net absorption reached 1,044 units, outpacing the 894 units delivered and marking the first time in over a year that demand exceeded new supply. Over the past 12 months, approximately 4,500 units were absorbed, well above the metro’s historical average. Demand Rebounds, But Challenges Linger Salt Lake City mirrors national trends where improved economic confidence and easing inflation have begun to unlock pent-up housing demand. Notably, demand has been strongest among mid-tier renters, though even luxury properties, despite being the main source of new supply, posted a 1.8 percent rent increase year-over-year. Still, rents overall declined 0.3 percent annually, continuing a …
— By Brian Anderson of CBRE — Utah’s retail market is shaped by its young population and large households, driving demand for big box stores and quality consumer brands. Utah has the youngest median age of any state in the U.S. by nearly four years, and the largest median household size. Our retail real estate market mirrors these realities. Large-box grocers and membership warehouses dot the landscape, creating gravity points that draw junior boxes, shops and restaurant users to these neighborhoods. Utah’s household incomes continue to rise, while the per capita income remains average. This has led to a concentration of quality — though not luxury — consumer brands in most retail centers. Despite challenges in construction and finance markets, Utah’s ongoing housing expansion is pushing box users and grocers to open new locations. The Salt Lake and Provo MSAs are expected to see several new big box and large grocery stores, mostly in outlying communities, after a quiet 2023 and 2024. Smaller-format grocers focused on organic food are also in permitting stages in established communities. These new locations will spark competition for restaurant and shop users. Health-conscious brands are expected to take space in desirable centers as 2025 progresses. …
— By Rawley Nielsen and Mark Jensen of Northmarq — The Salt Lake City apartment market has undergone significant shifts over the past few years, shaped by broader economic headwinds and local supply dynamics. Fortunately, optimism is returning to the market as interest rates stabilize, supply is absorbed and buyers see new opportunities to enter at attractive pricing. Over the past 36 months, rising interest rates have created challenges for multifamily investment, which have impacted underwriting and transaction velocity. However, recent weeks have provided a reprieve as Treasury rates have come down, bringing renewed energy to the market. Volatility remains a factor, but there is a growing sense that we are at or near the bottom, leading to increased investor interest. One of the biggest headwinds in Salt Lake City has been the supply wave, particularly in the downtown market where an influx of new multifamily deliveries has made it difficult for buyers to underwrite rent growth. Both 2022 and 2023 brought unit deliveries totaling more than 4,000 units, nearly triple the average annual delivery count from the past 10 years. We saw nearly 3,000 units delivered last year, and our team is tracking a similar amount for 2025. …
— By Rebecca Lloyd of Cushman & Wakefield — Industrial market conditions in Salt Lake City softened a bit in 2024, with new leasing activity totaling just over 5 million square feet — a 19 percent decrease from the 6.2 million square feet recorded in 2023. Despite this decline, new sublease activity saw a 33 percent year-over-year increase, reaching 735,000 square feet. Salt Lake City’s Northwest submarket remains the dominant area, accounting for 62 percent of total leasing activity in 2024. This was followed by the Southwest at 28 percent. Collectively, they comprise 90 percent of all leasing transactions in the market. Vacancy rates ended the year at 5.9 percent, a modest 50 basis point increase from the previous year. In a positive shift, the market closed the year with 3.7 million square feet of positive net absorption, a significant increase from the 2.3 million square feet recorded in 2023. The average asking rent for all product types stood at $0.81 per square foot on a triple-net basis, up from $0.80 at the end of 2023. Industrial construction remained robust, with nearly 4.7 million square feet of new space delivered in 2024. This added to the 7 million square feet …
— By Phil Brierley of JLL — The Salt Lake City office market continues to strengthen despite strong systemic headwinds. Last year was a banner year for leasing, with 4.8 million square feet of total leasing velocity. Silicon Slopes once again led all submarkets, representing 43 percent of all leasing. This was followed by the Greater CBD with 25 percent. Absorption was positive through the fourth quarter (for the second consecutive time) at 72,861 square feet, offsetting move-outs earlier in the year. Overall vacancy peaked in 2023 at 18.9 percent and is finally trending in the right direction. It finished the year at 18.6 percent. Subleasing is still a soft spot, especially in Silicon Slopes, with 300,000 square feet of new sublease space hitting the market in the fourth quarter of 2024 alone. Sales volumes rebounded after a dismal 2023, clocking in at $518 million in 2024. RCA notes this is close to the trailing 10-year average of $587 million. Much of that velocity was driven by user sales, including Salt Lake County’s acquisition of the Peace Coliseum, Canyons School District’s purchase of the eBay regional headquarters, the University of Utah’s acquisition of City Center downtown and Onset Financials’ acquisition …
— By Jarrod Hunt of Colliers — Utah’s industrial real estate market continues to show resilience in 2025, supported by healthy tenant demand and an evolving mix of warehouse, flex and manufacturing product types. Leasing activity remains particularly strong in the 20,000- to 50,000-square-foot range, with a steady stream of local fulfillment and light manufacturing tenants driving mid-sized requirements across the Wasatch Front. Product Type and Demand Trends With enhanced industrial tracking now focused by building type, warehouse space stands out as the most active, though flex and light manufacturing buildings are seeing targeted interest. Mid-sized tenants seeking efficient, modern, move-in-ready space continue to account for most lease activity, favoring locations with convenient access to transportation corridors and workforce hubs. South Market Poised for a Breakout Year The South Utah County market is positioned for another active year, with a wave of new deliveries and groundbreakings happening this year. The Ritchie Group’s Global Logistics Center near the Spanish Fork Airport is the region’s largest project. It will feature 13 planned buildings comprising 3.3 million square feet, and early leasing interest is encouraging. While the Central market has led to early year absorption, momentum in the South is expected to build …
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