Tenants active in Salt Lake County office market, but outlook uncertain as availability swells, economy slows
The Salt Lake County office market observed solid office leasing activity in the third quarter, hitting its highest level seen in several years, while exhibiting an increase for the fourth consecutive quarter. However, many of the largest transactions completed were short to medium term renewals, as some occupiers opted to delay decisions on their long-term occupancy needs. Meanwhile, availability retreated slightly from the second quarter, but is up 290 basis points (bps) from a year ago. While some of the rise in available options is a result of new development, many companies have reduced their occupancies as they adopt new models for their workplace. Meanwhile, economic headwinds have the potential to alter Salt Lake County's market dynamics. While unemployment remained comparatively low, the region has witnessed declining levels of office-using job growth over the last 18 months and exhibited negative year-over-year growth in September.