Salt Lake City Office Market Report

Flight-to-quality supports noteworthy leasing. Strong demand for nationally discounted Class A space has established the Salt Lake City metro as the tightest office market in the Mountain region. During the 12-month period preceding April, tenants absorbed 2.5 million square feet of high-quality space. This leasing velocity lowered subsector availability by 280 basis points, the fourth-largest dip in Class A vacancy among major U.S. markets. Locally, tenant demand for upper-tier space has been strongest in the metro's largest suburban submarkets, with Class A vacancy compressing by at least 100 basis points in each area over the past year. Tenants' flight-to-quality is arriving at an opportune time, as a collection of speculative deliveries are slated for the remainder of this year.