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MARKET NEWSLETTER
July 20, 2021

Source: CBRE Research.
The Salt Lake-Provo office market is rebounding due to COVID-19 vaccines. Net absorption and rental rates are key metrics indicating the health of the office market. At mid-year with almost 500,000 square feet of absorption, the Salt Lake-Provo metro market were achieving absorption levels we experienced during a strong, growing office market. Decreases in new office construction and reduction in subleases should further enhance office absorption by end of year. The overall Salt Lake-Provo markets have been resilient, but several submarkets are still experiencing over vacancy rates over 20%.

Employment growth is contributing to office absorption. Both metros have approximately 7% year-over-year growth, with professional business services and financial jobs being the industry drivers. The tech industry also remains strong in the Salt Lake-Provo Metro. In CBRE’s recent 2021 Scoring Tech Talent report, our local metro is considered a large national tech market (markets with tech labor pools greater than 100,000), ranking #18 overall with the fourth-highest growth rate (33.9%). It also remains a lower cost market in office rental rates and employee wages.

Sublease decline is enhancing net absorption; with vaccines providing more certainty, occupiers are pulling sublease space off the market. Over the next two quarters, we may see more tenants occupy some or all of their current marketed subleased space. The line graph shows the decrease of subleased space in the Salt Lake-Provo markets.

                             

For more information about the Q2 2021 Salt Lake-Provo metro office market, please see the attached MarketView report. Our team welcomes your questions and comments;  we are here to provide market knowledge and insights to help you make better decisions about your real estate. Let us know how we can help.
Barb Johnson, CCIM, SIOR
First Vice President
+1 801 869 8019
Barb.Johnson@cbre.com
LinkedIn
CBRE Profile
Jenna Ayre, NCIDQ,
LEED CI
Associate
+1 801 869 8021
Jenna.Ayre@cbre.com
LinkedIn
CBRE Profile

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