Salt Lake City Retail Market Report

Big-box closures lift vacancy, but tailwinds offer stability. After a decade of slower supply growth, developers aim to deliver nearly twice 2024’s volume. Net absorption, however, has posted three straight negative quarters as of June, with over 70 percent of the vacant square footage tied to large-format stores. These relinquishments are pushing metrowide vacancy to its highest level since the pandemic, leaving rents to rise slower as the market digests supply. Still, lease signings over the past 12 months have tracked with the metro’s 10-year average. Sub-20,000-square-foot properties, with June vacancy under 2.6 percent, remain resilient — especially in Salt Lake City’s central corridor — highlighting stable demand from smaller tenants. Looking ahead, strong net in-migration, driven by the nation’s third-fastest-growing 20- to 34-year-old cohort, particularly on the West Side, should support long-term retail demand.