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Salt Lake City Industrial Five Fast Facts | Q2 2023

Rebecca Lloyd • 7/26/2023
The overall vacancy rate, including sublease, increased 100 bps quarter-over-quarter (QOQ), and climbed 180 bps year-over-year (YOY) to 3.8% in Q2 2023. 
  1. Overall Vacancy Rises But It’s Still Lower Than Historical Average 
    The overall vacancy rate, including sublease, increased 100 bps quarter-over-quarter (QOQ), and climbed 180 bps year-over-year (YOY) to 3.8% in Q2 2023. The current vacancy is modestly lower (-30 bps) than the five-year average of 4.1%, and well below the historical high of 8.9% recorded after the last recession in 2011. 

  2. Warehouse/Distribution (W/D) Saw the Highest Leasing Activity  
    Leasing activity remained active during the second quarter at 1.9 msf, excluding renewals, compared to 1.1 msf in Q1 2023. W/D space accounted for 95% of the total leasing activity in Q2 2023. 

  3. Asking Rents Continue to Rise 
    The average asking rent for all product types combined was $0.78 per square foot (psf) per month on a triple net basis, a 1.2% increase QOQ and 11.4% YOY. 
  1. Construction Pipeline Remains Active 
    Salt Lake City’s development pipeline remains active with 6.8 msf across 22 new projects currently under construction, 91% of which are SPEC buildings, with 19 slated for delivery in the second half of 2023. 
  1. Net Absorption Increases Substantially 
    Tenants absorbed 1.4 msf across all product types in Q2 2023 compared to 800,000 sf during Q1 2023, bringing the year-to-date (YTD) total absorption to 2.2 msf.  

5FastFacts_Q2-2023SaltLakeIndustrial-v2

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