The Salt Lake City Commercial Real Estate Market

Reading Time: 7 minutes

Salt Lake City commercial real estate professionals discover and transact more deals with Crexi. Nationwide, Crexi seeks to unite all commercial real estate transaction parties into a unified ecosystem where brokers, tenants, buyers, investors, and principals enjoy transparency and ease of use across the CRE lifecycle. 

Most 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. Too, thousands of commercial real estate brokers utilize Crexi’s robust sales and marketing tools to conduct both sale and lease transactions digitally. 

As of this writing, Crexi has facilitated over $540 billion in property transactions and represented properties valued at more than $5 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, the capital and most populous city of Utah, is located in the north-central part of the state, on the Jordan River at the southeastern end of Great Salt Lake. The city stands out due to its unique blend of natural beauty and urban sophistication. Nestled on the foothills of the Rocky Mountains and overlooking the largest inland lake in the western US, SLC offers a diverse range of activities, from outdoor adventures to cultural experiences.

The city and the State of Utah are experiencing significant growth in both population and jobs. Factors contributing to this growth include a pioneering spirit that has fostered innovation, a robust educational system that supports a skilled workforce, and a business-friendly environment that attracts investment. The state’s strong economy is driven by technology, healthcare, and finance sectors.

Culturally, the city is rich in frontier history, but its story doesn’t end there. With a vibrant arts scene, the city is home to renowned institutions like the Utah Symphony and Ballet West. The dining and shopping scene is booming, offering everything from farm-to-table restaurants to unique local boutiques. 

Salt Lake City’s distinctive history and its contemporary amenities and attractions make it a compelling destination for residents, visitors, businesses, and commercial real estate investors.

Salt Lake City Regional Breakdown

Salt Lake City is experiencing a significant population boom, becoming one of America’s fastest-growing cities. This growth is primarily fueled by demographic shifts and increased city migration, with residents and businesses attracted to its economic potential and high quality of life. 

  • Salt Lake County is home to nearly 1.2 million and has grown by about 15% since 2010.
  • The population of the metropolitan area has grown by 1.2%, while the employed population has increased by over 1.9% year over year (Data USA).
  • The median age is 34, about 90% the figure in the US.
  • Wallet Hub ranks SLC among the best metro areas for STEM professionals.
  • Salt Lake City receives an A grade from, with public schools, diversity, nightlife, and family living all receiving high scores.
  • Per capita income is $41,933 (about 10% higher than in Utah), and median household income is $91,891 (about 25% higher than in the US).

Salt Lake City Job Market

The economy is flourishing, driven by a robust job market among the most vibrant in the United States. Key factors contributing to this growth include a diverse range of thriving sectors, from government and trade to transportation and utilities, and a post-pandemic economic recovery that has seen significant job creation across multiple industries.

The city’s low unemployment rate and positive job growth remain bright spots for the region, making it an attractive destination for businesses and job seekers.

  • GDP is nearly $118.5 billion and has grown by almost 80% since 2011.
  • The unemployment rate is 3.0% as of August 2023.
  • Key industry sectors include life sciences, healthcare, finance, logistics, manufacturing and 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 Salt Lake City industrial market is experiencing challenges marked by negative absorption and a historically high increase in available space due to a surge in new sublease listings. Sales activity is stagnant due to high interest rates and a cautious lending environment. Despite these obstacles, leasing activity remains strong, with rents reaching a record high. 

Industrial market overview (CBRE Q2 2023

  • Inventory: 161,616,536 SF
  • Vacancy rate: 5.1%
  • Absorption: -416,359 SF (YTD)
  • Key leases by tenant: Specialized Bicycle 583,308 SF, Sephora 350,892 SF, BioFire Diagnostics 179,400 SF
  • Under construction: 8.7 million SF 
  • Largest submarkets: California Ave, West Valley, Airport, South Salt Lake

Crexi Intelligence

These are the most recent Salt Lake City industrial lease and sales trends from Crexi Insights (as of October 2023):

For Lease (active)

  • Asking rate/SqFt (median): $9 per year
  • Median SqFt/listing: 27,800
  • Days on market: 146
  • Total listings on Crexi: 119 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: $1.92 million
  • Sold price/SqFt: $208
  • Total sales volume: $133 million
  • Sold cap rate: 5.7%
  • Median SqFt sold/transaction: 8,170
  • Total SqFt sold: 601,000 
  • Days on market (median): 27

Discover industrial space for rent in Salt Lake City.

Salt Lake City Office Market

The Salt Lake City office market faces challenges with an increased vacancy rate due to new space coming to market and increased sublease activity. Tenants’ cautious approach toward real estate needs and difficulties getting employees back to the office have created a negative absorption trend. Landlords are enhancing amenities and upgrading common areas to create more desirable workspaces, with Class A spaces seeing the majority of new leases.

Office market overview (Cushman & Wakefield Q2 2023)

  • Inventory: 53,994,453 SF
  • Vacancy rate: 22.5%
  • Absorption: -1,240,675 SF (YTD)
  • Key leases by tenant: Henry Schein One 72,809 SF, Capita Financial 37,500 SF, Human Interest 26,850 SF 
  • Under construction: 648,468 SF
  • Largest submarkets: CBD, Utah County North, South East, Utah County South

Crexi Intelligence

Crexi Insights provides real-time data for the Salt Lake City office market. Here are the latest leasing and sales trends as of October 2023:

For Lease (active)

  • Asking rate/SqFt (median): $25 per year
  • Median SqFt/listing: 3,909 SF
  • Days on market: 197
  • Total listings on Crexi: 621 spaces

For Sale (active)

  • Median asking price: $1.61 million
  • Price/SqFt: $253 
  • Asking cap rate: 6.3%
  • Days on market: 100
  • Total listings on Crexi: 23 listings totaling 673,000 SF

Sales Comps (past 12 months)

  • Median sold price: $2.81 million
  • Sold price/SqFt: $234
  • Total sales volume: $632 million
  • Sold cap rate: 5.7%
  • Median SqFt sold/transaction: 10,700 SF
  • Days on market (median): 138

Discover office space for rent in Salt Lake City.  

Salt Lake City Retail Market

Salt Lake County’s retail market is experiencing a period of robust growth, with significant construction activity and high pre-leasing rates indicating strong demand for retail space. The overall vacancy rate remains low. Additionally, absorption has been positive, with retail leasing activity strong across the various submarkets. 

Retail market overview (Colliers Q1 2023 Salt Lake County Retail

  • Inventory: 40,655,282 SF
  • Vacancy rate: 3.26%
  • Absorption: 188,677 SF (YTD)
  • Under construction: 474,575 SF 
  • Largest submarkets: South West, Central West, South East

Crexi Intelligence

Salt Lake City retail lease and sales trends from Crexi Insights (as of October 2023):

For Lease (active)

  • Asking rate/SqFt (median): $25 per year
  • Median SqFt/listing: 2,204 SF
  • Days on market: 212
  • Total listings on Crexi: 244 spaces

For Sale (active)

  • Median asking price: $2.09 million
  • Price/SqFt: $215
  • Asking cap rate: 5.8%
  • Days on market: 182
  • Total listings on Crexi: 18 listings for a total of 807,000 SF

Sales Comps (past 12 months)

  • Median sold price: $1.15 million
  • Sold price/SqFt: $273
  • Total sales volume: $139 million
  • Sold cap rate: 5.6%
  • Median SqFt sold/transaction: 3,638 SF
  • Days on market (median): 62

Discover retail space for rent in Salt Lake City.

Salt Lake City Multifamily Market

The multifamily market in Salt Lake City remains one of the strongest in the nation, maintaining low vacancy rates and growing rental rates despite the completion of several large apartments. The market is expected to stay robust, with demand continuing to outpace supply. Factors such as high homeownership costs and strong investor interest in quality multifamily products propel this upward trend, particularly in the Downtown market where demand and rental rates are highest.

Market overview (Cushman & Wakefield Mid-Year 2022)

  • Total housing units: 476,147
  • Multi-unit: 145,000
  • Vacancy rate: 2.2%
  • Asking rents: $1,632
  • Rent growth: 15.1% year over year
  • Under construction: 12,315 units
  • Submarkets with highest monthly rent: Downtown Salt Lake City $1,965, Sugar House $1,841, Jordan/Herriman/West Jordan $1,714

Crexi Intelligence

Here are the most recent Salt Lake City multifamily Insights from Crexi (as of October 2023):

For Sale (active)

  • Median asking price: $1.21 million
  • Price/SqFt: $307
  • Price/Unit: $243,000
  • Asking cap rate: 4.4%
  • Days on market: 60
  • Total listings on Crexi: 18 listings totaling 154,000 SF

Sales Comps (past 12 months)

  • Median sold price: $768,000
  • Sold price/SqFt: $284
  • Sold price/unit: $321,000
  • Total sales volume: $442 million
  • Sold cap rate: 4.8%
  • Total SqFt sold: 1.34 million
  • Days on market (median): 184

Find multifamily properties for sale in Salt Lake City. 

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

Similar Articles

Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

Share This Article