The Salt Lake City Commercial Real Estate Market

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Salt Lake City commercial real estate 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. 

Wise commercial real estate investment requires proper due diligence. Principles and tenants alike benefit from well-researched data and insights to make the best possible business decisions. Salt Lake City is one such data-supported market, offering historically promising returns for industrial and office property types as well as steady growth across other asset classes. 

Nearly 92% 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 digitally conduct both sale and lease transactions. 

As of this writing, Crexi has facilitated over $330 billion in property transactions and represented properties valued at more than $2 trillion total. Crexi is proud to serve 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 is ranked among the top 10 markets for tech employment in the U.S., earning the metro area the nickname “Silicon Slopes.” The city is home to high-tech companies, including Facebook, Google, and Overstock.com.

SLC has long been recognized among the best in the nation for business and has received #1 rankings for a city poised to become a tech mecca, emerging cyber security hubs, top city competing with Silicon Valley for tech entrepreneurs, and the best city for young professionals.

Located in Northern Utah, Salt Lake City is the capital of Utah and the most populous city in the state. Along with Ogden and Provo, SLC is part of a 120 mile urban and suburban metropolitan area that stretches along the Wasatch Front. 

Salt Lake City is home to a robust job market, a talented and skilled workforce, and world-class recreation opportunities. SLC boasts the lowest unemployment rate in the country and has seen in-bound migration grow by more than 15% since 2010.

Salt Lake City Regional Breakdown

Utah had the second largest population growth in 2021, while the population of Salt Lake County soared by more than 15% over the past ten years. The Wasatch Front – consisting of Salt Lake City, Ogden, and Provo – is home to about 75% of Utah’s population:

  • Salt Lake City is home to nearly 200,000 people within the city and more than 1.2 million in the metropolitan area.
  • According to the most recent census, the population of Salt Lake City/County has grown by 15.1% since 2010.
  • Wasatch Front is the combined statistical area and consists of Salt Lake City, Ogden, and Provo, with over 2.6 million residents, accounting for about 75% of Utah’s population.
  • Salt Lake City is the capital of Utah and, along with Reno NV, is the central core of the Great Basin.
  • The median age in Salt Lake City is 33.2 years, about 90% of the figure in the U.S.
  • Median household income increased by nearly 8.8% last year, while property values in Salt Lake City grew by more than 8.2%.
  • Per capita income in Salt Lake City is $33,445, and median household income is $80,196.

Salt Lake City Job Market

Major high-tech companies such as Facebook, Adobe, and Electronic Arts are drawing people from out of state, helping Salt Lake City earn the nickname “Silicon Slopes.” Since the beginning of the pandemic, Utah experienced job growth of over 200% and boasts the lowest unemployment rate in the nation of just 1.4%:

  • The GDP of Salt Lake City is nearly $104 billion and has grown by more than 68% over the past ten years.
  • The unemployment rate in Salt Lake City is down to 1.4% as of November 2021.
  • The fastest-growing employment sectors in Salt Lake are leisure and hospitality, construction, information, and trade and transportation.
  • All employment sectors are expected to grow at a combined rate of 4.8% in 2022, with high-tech employment increasing by 4.2%.
  • Metropolitan Salt Lake City’s top key industry sectors are information technology and gaming, life sciences, educational services, health care and social assistance, and retail trade.
  • Major employers in Salt Lake City include the University of Utah, Goldman Sachs, Intermountain Healthcare, Academy Mortgage, and The Church of Jesus Christ of Latter-day Saints.
  • University of Utah, Utah State University, and Brigham Young University of three of the major educational institutions with campuses in Salt Lake City.
  • Nearly 92% of the residents of Salt Lake City are high school graduates, while almost 37% hold a bachelor’s degree or an advanced degree.
  • Nicknamed the “Crossroads of the West,” the transportation infrastructure of Salt Lake City consists of two interstate highways, Union Pacific Railroad Intermodal Hub and Salt Lake City International Airport.

Salt Lake City Industrial Market

Although 5 million S.F. of new product was delivered in 2021, the vacancy rate for industrial space in Salt Lake City is down to just 2.2%. Tenants absorbed 2.2 million S.F. in Q4 2021 alone, with the rapid growth of e-commerce and same-day delivery creating an ever-greater demand for warehouse and distribution properties in SLC.

  • Total industrial inventory: 142,231,901 SF
  • Average asking rent: $0.58 per S.F. per month, NNN
  • Vacancy rate: 2.2%
  • Absorption: 7.7 million S.F. through Q3 2021
  • Key lease transactions by tenant: Walmart Fulfillment Services, Bailey’s Moving & Storage, Home Depot USA
  • New construction: 5 million S.F. completed year-to-date with 12.1 million S.F. under construction.
  • Key sales transactions by buyer: Walton Street Capital, Link Logistics, Scout Cold Storage Salt Lake City, average sales price $296/S.F.
  • Largest industrial submarkets: North West, Central West, South West

Learn more about industrial properties for lease in Salt Lake City.

Salt Lake City Office Market

Leasing by tech tenants is expected to increase the demand for office space in Salt Lake City, driving asking rents higher and vacancy lower. Salt Lake City is among the top 10 markets for tech talent, with nearly double the amount of tech employment compared to the national average. High-tech employment in SLC is expected to grow by 4.2% in 2022, while overall office employment is projected to increase by 3.8%:

  • Total office inventory: 56,490,952 SF
  • Average asking rents: $24.48 per S.F. year, full service gross, all classes
  • Vacancy rate: 17.9%
  • Absorption: -1.3 million SF YTD
  • Leasing activity: 3.3 million SF YTD
  • Key leases by tenant: ReliaQuest – Utah for 64,000 SF, Straight Smile LLC Byte for 59,400 SF
  • New construction: 1.8 million S.F. delivered in 2021 with 1.9 million S.F. currently under construction
  • Key sales by property: Union Park III & IV for $39.2 million, Thanksgiving Point – Solution Reach for $37.7 million
  • Largest office submarkets: Utah County North, Central Business District, South East 

Learn more about office properties for lease in Salt Lake City.  

Salt Lake City Retail Market

The young and educated workforce fueling tech growth is also helping the Salt Lake City retail market to rebound faster than other major markets. Strong job gains and in-migration combined with fewer restrictions is driving vacancy down and asking rents for retail space in SLC up by nearly 8% year-over-year:

  • Total retail inventory: 70,921,739 SF
  • Average asking rent: $20.60 per S.F. per year, NNN
  • Vacancy rate: 3.9%
  • Absorption: 551,115 SF year-over-year (as of Q3 2021)
  • Key leases by tenant: Ashley Homestore, Sportsman’s Warehouse, Wallaroo’s Furniture & Mattresses
  • New construction: 103,287 SF delivered YTD with 321,853 SF under construction
  • Key sales by property: Foothill Village, Roy Crossing, Oakridge Plaza
  • Sale summary: Average cap rate 5.98%, average price/S.F. $214.97, for multi-tenant investment sales
  • Retail submarkets: West Downtown, Central Downtown, Foothill Corridor, East Downtown

Learn more about retail properties for lease in Salt Lake City.

Salt Lake City Multifamily Market

A booming job market, a business-friendly government, and strong inbound migration are helping to keep the apartment demand in Salt Lake City strong and steady. The unemployment rate in SLC is the lowest in the nation, helping to drive effective rent per apartment unit up 17.6% year-over-year.

  • Total housing units: 434,654
  • Renter occupied: 32%
  • Total multifamily units: 77,893
  • Average asking rent: $1,422
  • Effective annual rent growth: 17.6% year-over-year
  • Vacancy rate: 4.7%
  • New construction: 2,482 units delivered through Q3 2021, with 6,021 units currently under construction
  • Sales activity: $13 million year-to-date, transaction sales price $194,216/unit, average cap rate 4.2%
  • Median household income: $80,196
  • Per capita income: $34,445

Learn more about multifamily properties for sale in Salt Lake City. 

How Crexi Connects Buyers to Salt Lake City Properties

Salt Lake City buyers and tenants can explore thousands of properties on Crexi’s open-source marketplace. The Salt Lake City MSA has established itself as one of the fastest-growing populations in the U.S., attracting interest from buyers and business tenants nationwide to the area. SLC is increasingly attracting younger demographics and tech sector industries and is on the docket to become a government-designated inland port, thanks to its central location in the Western U.S. 

Principles, tenants, and sellers can explore hundreds of Salt Lake City, Provo, Ogden, and other properties on Crexi’s marketplace at zero cost. The advanced search feature allows users to narrow searches by price, cap rate, square footage, property type, and neighborhood to find the ideal property for investment interests.

Once the perfect property is found, buyers and tenants can contact brokers, download O.M.s, and submit letters of intent (LOI) through Crexi’s secure platform.

Intelligence Connects Investors Data Insights and Market Knowledge 

Crexi’s Intelligence product equips tenants and investors with the data they need to make smart commercial real estate investments. 

Intelligence users can access over 40 million historical transactions and sales comparables on Crexi — including hundreds in Salt Lake City — all verified by government and third-party data sources. Too, an in-depth property details view shares data on demographics, foot traffic, flood maps, and much more right on the page.

Intelligence is available to buyers and sellers on a subscription basis.

How Salt Lake City Brokers Thrive with Crexi

The Salt Lake City MSA’s commercial real estate market is vibrantly active, with 650+ assets for sale and lease within the city limits. Commercial real estate activity in SLC is trending towards industrial and office asset classes, with healthy development in multifamily spaces and suburban retail properties.

Salt Lake City brokers can list properties and manage transactions using Crexi’s robust lead-management dashboard. Crexi equips brokers in Salt Lake City with the ability to list and manage property transactions across various asset classes:

  • Industrial facilities
  • Office units
  • Development sites
  • Multifamily units
  • Land Parcels
  • Non-traditional properties such as medical offices, self-storage, etc.

Brokers use Crexi’s free marketplace to easily and securely manage every aspect of the traditional CRE process. Using tools such as lead contact, buyer insights, pipeline management, and a secure due diligence vault, Salt Lake City agents can easily manage pursuits and close deals. However, the true power of Crexi’s platform comes with the added functionality of Sale PRO and Lease PRO.

Crexi Sale PRO & Lease PRO

“I have loved Crexi since I first laid eyes on it. I have had such bad experiences with other platforms (…) I love how open and collaborative Crexi is, the fact that it’s free for everyone to list or search is amazing. We used the Crexi API with our database, so all of our listings get synced to Crexi, which they were really helpful in building.”

— Rich Lachowsky, Newmark Knight Frank – Salt Lake City 

Brokers use Crexi Sale PRO and Lease PRO to access more detailed contact information, in-depth email marketing analytics, and produce customized lead reports directly inside the broker dashboard. Too, PRO listings are featured at the top of Crexi search pages and are included in Crexi’s weekly email blasts as an added marketing value. These emails are viewed by thousands of relevant buyers weekly and receive an average click-through rate of 10-15%.

PRO users also can browse through Intelligence’s 40 million sales comparables and data analytics at no additional cost.

Salt Lake City brokers use Sale PRO and Lease PRO to connect to over 52,000 leads interested in the region in the last two years and the 12.5 million leads nationwide that searched on Crexi in 2021.

Salt Lake City PRO users also — on average — close six to eight more deals than their non-PRO counterparts.

Contact support@Crexi.com to learn more about Sale PRO and Lease PRO.

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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.

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