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MARKET NEWSLETTER | November 24, 2021
Delayed Office Occupancy Expected to Bolster Absorption in 2022
CBRE
Delta Variant Hinders Full Return to the Office
COVID-19 has created challenges in the office market. Market activity increased on the heels of the vaccine roll out, but the Delta variant suppressed its momentum. Uncertainty about when, how long, and where companies needed office space was still under discussion. Employees returning to the office was being pushed further out by many companies. Even though these questions were facing corporations, the Salt Lake and Provo markets continued to experience positive net absorption. Year to date, the market has reported over 661,000 square feet of net absorption. However, not all submarkets have been so fortunate, as four submarkets have experienced negative absorption. These include:
Submarket
Year-to-Date Absorption
Vacancy
Downtown SLC
(176,416) SF
16.9%
West Valley/Lake Park
(110,089) SF
34.6%
Airport/International Center
(79,033) SF
14.0%
Central Valley
(76,233) SF
11.0%
The submarkets that continue to achieve positive absorption are not surprising. These markets are centrally located in the SLC-Provo metro and facilitate providing companies with young, employee talent and accessibility to higher education innovation centers.
Submarket
Year-to-Date Absorption
Vacancy
Sandy/South Towne
327,979 SF
10.8%
Lehi
357,533 SF
13.1%
Draper
108,690 SF
10.5%
Supply Chain Impacts Occupancy
Supply chain issues have delayed occupancy which will contribute to increased positive absorption, but with new office deliveries in downtown Salt Lake City, vacancy will likely increase in 2022.

Overall office statistics in the Salt Lake City-Provo metro indicate that vacancy continued to push upward to 16.2%, while market rental rates slightly decreased from $24.95 per sq. ft. to $24.80 per sq. ft. Although there are some cautionary statistics, innovation, start-ups, and venture capital are happening throughout the market. The market is also consistently being considered for expansion by out-of-state corporations. These factors work to our advantage and will help the Salt Lake City-Provo metro area remain resilient.
3Q 2021 Salt Lake-Provo Market Report
Read the Report
Download Report
For more information, please contact:
Barb
Johnson, CCIM, SIOR
First Vice President
+1 801 580 8546
Barb.Johnson@cbre.com
CBRE
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