Salt Lake City Retail Market Report
Accelerated Labor Market Recovery Drives Turnaround in Retail Sector
Economic resilience aids retail performance. Less restrictive public health mandates led to fewer business shutdowns, allowing Salt Lake City’s economy to rebound faster than all other major markets. A young and educated workforce has also been fueling growth in the metro’s tech sector, contributing to total employment exceeding the pre-pandemic level in early 2021. Strong job gains led to an accelerated recovery in the market’s retail sector. Net absorption over the first half of 2021 already surpassed last year’s total by nearly 600,000 square feet. As a result, vacancy declined 50 basis points in that same span, realigning with the region’s pre-pandemic rate. Retail fundamentals should continue to improve in the second half as the metro’s employment, population and median income all outpace the national growth rate this year.