Leasing volumes healthy across Salt Lake County office market, but availability, uncertainty both elevated
The Salt Lake County office market observed improving office leasing activity at the close of 2022, with volumes rising for five consecutive quarters. Many deals, however, were renewals of short to medium duration as firms have been looking to mitigate risk with shorter leases and more flex space. Other deals this quarter included companies reducing their overall footprints while often relocating to more upgraded and amenitized buildings. As new development slowed across the Salt Lake market, elevated availability levels were suggestive of companies shrinking their occupancies as they adopt new models for their workplace. Despite a slowed economy and potential for recession in 2023, unemployment in the Salt Lake City MSA remained low at 2.0% in November, well below the 3.6% national average. However, the region has seen four consecutive months of negative office using employment growth, which could have negative implications for landlords as they seek to improve occupancy across their assets.