CONTACT US

BARB JOHNSON, CCIM, SIOR
+1 801 869 8019

barb.johnson@cbre.com
www.cbre.com/barb.johnson


VIC GALANIS, SIOR
+1 801 869 8021
vic.galanis@cbre.com
www.cbre.com/vic.galanis


COURTNEY RUDOLPH
+1 801 869 8022
courtney.rudolph@cbre.com
www.cbre.com/courtney.rudolph

 

















 

Positive, Tempered Growth in Office for 
2nd Quarter 2016

Here are some key statistics for Q2:

  • Vacancy in Q2 ticked up slightly from Q1, increasing from 9.68% to 9.8%; this represents a 4.3% year-over-year increase. Class C office vacancy is significantly higher than Class A and B vacancy rates.
  • Rent growth was positive. Asking rents increased to $22.52 per RSF, full service from the $22.19 reported in this first quarter of 2016.
  • Net Absorption increased by 98,480 square feet for a year-to-date total of 322,522 square feet; this is 30% higher than mid-year 2015 totals.
  • New Construction continues, with almost 1.9 million square feet currently under construction and 1.4 million square feet set to be delivered before year-end 2016.
  • Demand is largely driven by the technology and finance industries.
  • Available sublease space continues to rise; availabilities in the south end of the Salt Lake Valley increased by nearly 50% year-over-year.

In summary, market indicators remain positive but two things will ultimately impact the outcome of the office real estate market for 2016: the large supply of new construction and job growth.

In order to help our clients make better real estate decisions, we diligently track market statistics, job growth, new companies entering the Utah market, and corporate expansion and contraction. Contact us with questions and comments; we look forward to serving you now and in the future.

 



 
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