Salt Lake County office market remains weakened as occupiers retune real estate strategies
Market conditions across the Salt Lake County region softened at the start of 2023. Overall availability was up 230 basis points (bps) year over year, to 18.3%. However, availability has leveled off over the past several quarters. Despite tenants seeking the best quality and highest amenitized buildings, Class A availability remained above long-term averages, at 21.4%. Occupiers continued to right-size their occupancies, delivering added challenge to landlords seeking to improve their occupancies. While the national economy was impaired by a slowdown in activity, high inflation and elevated interest rates, unemployment in the Salt Lake City MS remained low at just 2.6% in February, below the 3.6% national average. However, office using-employment growth across the region continued to trend downward, falling to 2.0% in March.