The Salt Lake City office of commercial real estate firm CBRE has released its second quarter 2017 MarketView report, highlighting conditions of the local office, retail and industrial markets.
An increase in office property supply shows it is still a primarily demand-driven key in Salt Lake and reflects a market at equilibrium during the second quarter, the report says. New office completions are currently on track to surpass last year’s record-high levels, but with pre-lease percentages holding at 65 percent, fear of an over-built market can be pacified for the time being. Three buildings were completed during the second quarter and 980,000 square feet of office space remains under construction, all of which is located in suburban markets.
Though new construction led to a rise in vacancy levels, increased availability is being welcomed by tenants who have previously had limited options in the area. More construction is on the horizon, but most projects are not expected to break ground without a commitment from a major tenant. One such project that was announced this past quarter was the redevelopment of the former Shopko in Sugar House, which is planned to be a three-building project consisting of two office buildings and one multifamily building.