Salt Lake City Office Market Report

Near-term vacancy challenged by recent construction. By the end of 2023, Salt Lake City’s office inventory will have grown by 9.8 percent over a four-year span, the third-fastest pace among major U.S. metros. Despite also recording the nation’s second-highest net absorption total over the same period, the new market inventory exceeded that figure by more than 6.8 million square feet. This supply overhang persists through 2023, exacerbated by softening demand due to sustained hybrid and remote work schedules. As such, the market’s vacancy rate is set to rise by a second consecutive 100-plus-basis-point margin annually. The moderation in demand has filtered through to the supply pipeline as completions recede to an 11-year low in 2023, with minimal deliveries slated for 2024. Being heavily accounted for, the reduced pipeline should direct some demand to existing space, although a record-high net relinquishment this year results in 16 million square feet of vacant stock by year-end.