The Salt Lake City Commercial Real Estate Market

Salt Lake City’s commercial real estate market presents both opportunities and challenges across sectors. While office spaces face hurdles, the industrial and retail sectors continue to thrive, supported by a growing economy and strong demand. Multifamily properties stand out for their stability and investor interest. As the market evolves, platforms like Crexi play a vital role in connecting stakeholders and streamlining transactions in this dynamic environment.

A high volume of Crexi's online traffic consists of buyers and tenants, many of whom use the platform to search Salt Lake City properties that match their search criteria and interests. Additionally, thousands of commercial real estate brokers utilize Crexi's robust sales and marketing tools to conduct sale and lease transactions digitally. 

As of this writing, Crexi has facilitated over $615 billion in property transactions and represented properties valued at more than $7 trillion total. Crexi proudly serves Salt Lake City, Provo, Ogden, and the surrounding regions as the fastest-growing online commercial real estate platform and marketplace.

The State of Commercial Real Estate in Salt Lake City

Salt Lake City, Utah’s capital and largest city, is situated in the north-central region of the state, along the Jordan River near the southeastern edge of the Great Salt Lake. The city uniquely combines natural beauty with urban sophistication, nestled at the foothills of the Rocky Mountains and overlooking the expansive Great Salt Lake. This setting offers residents and visitors a diverse array of activities, from outdoor adventures to rich cultural experiences.

In recent years, Salt Lake City has experienced significant growth in both population and employment. This expansion is driven by a combination of factors, including a pioneering spirit that fosters innovation, a robust educational system that cultivates a skilled workforce, and a business-friendly environment that attracts investment. The city’s economy is bolstered by thriving sectors such as technology, healthcare, and finance. Notably, the technology industry has seen substantial growth, with numerous tech companies establishing operations in the area, contributing to the city’s reputation as a burgeoning tech hub.

Culturally, Salt Lake City boasts a rich history that extends beyond its frontier origins. The city is home to esteemed institutions like the Utah Symphony and Ballet West, reflecting a vibrant arts scene. The dining and shopping landscapes are flourishing, offering a spectrum from farm-to-table restaurants to unique local boutiques. The city’s commitment to cultural diversity and inclusivity is evident in its numerous festivals and community events, celebrating a wide range of traditions and artistic expressions.

Salt Lake City Regional Breakdown

Salt Lake City has experienced notable population growth, establishing itself as one of America’s rapidly expanding urban centers. This surge is driven by demographic shifts and increased migration, with individuals and businesses drawn to the city’s economic opportunities, commitment to education and community engagement, and quality of life. 

• As of 2024, Salt Lake City’s population is approximately 212,570, reflecting a 5.94% increase since the 2020 census. The broader metropolitan area has also seen growth, with the population reaching about 1,214,000 in 2024, a 0.91% increase from the previous year. 
•  The median age in Salt Lake City is 32.5 years, slightly younger than the national median. 
• The city boasts a diverse and educated workforce, with approximately 38% of residents holding a bachelor’s degree or higher. 
• The median household income in Salt Lake City is $72,357, with a per capita income of $41,933. 
• The city’s economy is bolstered by sectors such as technology, healthcare, and finance, contributing to its robust economic health.

Salt Lake City Job Market

Salt Lake City, Utah’s capital, stands out as a city that combines natural beauty with economic opportunity. Positioned at the crossroads of the Rocky Mountains and Great Salt Lake, the area attracts a growing population due to its high quality of life and favorable business climate. The local economy, valued at $112.9 billion in 2024, continues to thrive with projections to reach $118.9 billion by 2026. A low unemployment rate of 3.2% (compared to 4.1% nationally) reflects the city’s strong job market, with sectors such as technology, healthcare, and logistics driving growth .

• The metropolitan area’s GDP reached $135.4 billion in 2022, showcasing consistent economic growth.
• The unemployment rate is 3.6% as of September 2024, lower than the national average.
• Key industry sectors include life sciences, healthcare, finance, logistics, manufacturing, distribution, information technology, and gaming.
• Five of the largest employers in SLC are the University of Utah, Intermountain Health Care, the State of Utah, Granite School District, and Jordan School District.
• WalletHub ranks Salt Lake City as the 7th best city to find a job.
• The largest universities by degrees awarded are Western Governors University, University of Utah, and Salt Lake City Community College.
• About 38% of residents have a bachelor’s degree or an advanced degree, a rate that is a little higher than in the US.
• Transportation infrastructure encompasses the Salt Lake City International Airport (SLC), an extensive metro system with TRAX light rail and FrontRunner commuter rail, and a road network that includes major highways such as Interstate 15 and Interstate 80.

Salt Lake City Industrial Market

The industrial sector in Salt Lake City is marked by high demand for warehouse and distribution facilities. Vacancy rates in this sector rose slightly to 7.5% due to substantial new supply entering the market, including 7.2 million square feet of warehouse space delivered in 2023. However, the market experienced positive absorption of 734,000 square feet in Q3 2024, driven by significant move-ins such as Kane Warehousing’s 1-million-square-foot lease. Average asking rents increased to $0.80 per square foot monthly, with additional increases expected as the pipeline of new construction projects slows .

Market overview (Cushman & Wakefield Q3 2024)

• Inventory: 161,205,202 SF
• Vacancy rate: 5.8%
• Absorption: 3,555,114 SF (YTD)
• Key leases by tenant: Freeport West 90,333 SF, Summit Distribution Center 70,560 SF, Great Lakes Industrial Park 65,454 SF
• Under construction: 2.8 million SF 
• Largest submarkets: North West, Central West, South West

Crexi Insights

These are the most recent Salt Lake City industrial lease and sales trends from Crexi Insights (as of November 2024):

For Lease (active)

• Asking rate/SqFt (median): $12 per year
• Median SqFt/listing: 10,800 SF
• Days on market: 213
• Total listings on Crexi: 117 spaces

For Sale (active)

• Median asking price: $3.09 million
• Price/SqFt: $221
• Asking cap rate: 5.2%
• Days on market: 88
• Total listings on Crexi: 15 listings for a total of 487,000 SF

Sales Comps (past 12 months)

• Median sold price: $2.7 million 
• Sold price/SqFt: $165
• Total sales volume: $394.8 million
• Median SqFt sold/transaction: 15,900 SF
• Days on market (median): 303

Find industrial space for rent in Salt Lake City.

Salt Lake City Office Market

The Salt Lake City office market is undergoing a transitional period, with vacancy rates climbing to 25.2% in Q3 2024. This increase reflects ongoing adjustments in space needs and sublease activity. Sublease vacancy held steady at 5.4%, while direct vacancy rose to 19.8%. Despite these challenges, leasing activity has concentrated on Class A properties, with landlords adopting modern amenities and flexible configurations to attract tenants. Rents have slightly declined, with the overall asking rate averaging $25.38 per square foot annually. Positive trends, such as growing pre-leased construction projects, suggest a potential recovery in 2025 as market conditions stabilize.

Market overview (Cushman & Wakefield Q3 2024)

• Inventory: 51,848,898 SF
• Vacancy rate: 25.2%
• Absorption: -264,827 SF (YTD)
• Key leases by tenant: Regus 45,964 SF, Athelas 25,089 SF, HDR Engineering 20,317 SF 
• Under construction: 180,000 SF
• Largest submarkets: CBD, Utah County North, South East

Crexi Insights

Crexi Insights provides real-time data for the Salt Lake City office market. Here are the latest leasing and sales trends as of November 2024:

For Lease (active)

• Asking rate/SqFt (median): $24 per year
• Median SqFt/listing: 2,714 SF
• Days on market: 187
• Total listings on Crexi: 480 spaces

For Sale (active)

• Median asking price: $2.9 million
• Price/SqFt: $248 
• Days on market: 96
• Total listings on Crexi: 25 listings totaling 699,900 SF

Sales Comps (past 12 months)

• Median sold price: $2 million
• Sold price/SqFt: $218
• Total sales volume: $44 million
• Median SqFt sold/transaction: 7,530
• Total SqFt sold: 221,500 
• Days on market (median): 196

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Salt Lake City Retail Market

Salt Lake County’s retail market is thriving, with vacancy rates declining to a mere 2.57% in Q3 2024. The limited availability of prime retail space has driven up lease rates, now averaging $21.93 per square foot annually on a triple-net basis. New construction activity has surged, with 637,837 square feet underway, led by major projects like Academy Village in Herriman. Retailers like Trader Joe’s and Williams-Sonoma are expanding their footprint, underscoring the region’s attractiveness for national and regional tenants alike.

Market overview (Colliers Q3 2024 Salt Lake County Retail)

• Inventory: 40,428,251 SF
• Vacancy rate: 2.57%
• Absorption: 77,561 SF (YTD)
• Under construction: 637,837 SF 
• Largest submarkets: Central East, Central West, South East

Crexi Insights

Salt Lake City retail lease and sales trends from Crexi Insights (as of November 2024):

For Lease (active)

• Asking rate/SqFt (median): $25 per year
• Median SqFt/listing: 2,554 SF
• Days on market: 242
• Total listings on Crexi: 259 spaces

For Sale (active)

• Median asking price: $2.8 million
• Price/SqFt: $374
• Asking cap rate: 5.7%
• Days on market: 126
• Total listings on Crexi: 25 listings for a total of 371,900 SF

Sales Comps (past 12 months)

• Median sold price: $1.8 million
• Sold price/SqFt: $395
• Total sales volume: $73.7 million
• Median SqFt sold/transaction: 1,838 SF
• Days on market (median): 196

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Salt Lake City Multifamily Market

Salt Lake City’s multifamily market remains one of the most competitive in the nation. Despite a 2.2% vacancy rate, rents have continued to climb, with an average asking rent of $1,632 per unit. Rent growth of 15.1% year-over-year reflects strong demand, especially in areas like Downtown and Sugar House. The pipeline of 12,315 units under construction demonstrates developers’ confidence in sustained demand, fueled by population growth and high homeownership costs. Multifamily sales remain active, with a median price per unit of $243,000 and cap rates averaging 4.4%.

Market overview (CBRE Q3 2024)

• Total housing units: 476,147
• Multi-unit: 116,822
• Vacancy rate: 6.2%
• Asking rents: $1,548
• Rent growth: -0.6% year over year
• Submarkets with highest monthly rent: Downtown Salt Lake City $1,738, Midvale/Sandy/Draper $1,591, South Salt Lake/Murray  $1,570

Crexi Insights

Here are the most recent Salt Lake City multifamily Insights from Crexi (as of November 2024):

For Sale (active)

• Median asking price: $1.8 million
• Price/SqFt: $259
• Asking cap rate: 5.4%
• Days on market: 88
• Total listings on Crexi: 10 listings totaling 152,300 SF

Sales Comps (past 12 months)

• Median sold price: $791,400
• Sold price/SqFt: $280
• Sold price/unit: $63,900
• Total sales volume: $442 million
• Total SqFt sold: 373,000
• Days on market (median): 58

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Get more in-depth Salt Lake City market data with Crexi Intelligence.