SW-UTAH-2024Q4 Market Report

Colliers Utah

Market Report

Q4

Accelerating success.

Salt Lake County

Headline

Office

The Salt Lake County office market ended 2024 with strong tenant demand for spec suites, enhanced amenities, and plug-and-play sublease spaces. Landlords worked to transform Class B properties to compete for tenants seeking high-quality environments, while new construction lagged thanks to elevated tenant improvement costs.

More tenants opted to renew longer lease terms in an effort to prioritize stability over uncertainty in a market evolving to meet changing preferences and navigate economic challenges.

24Q4

Current Market Indicators YTD Absorption

Under Construction

Direct Vacancy Rate

Lease Rate (FSG)

-424K SF

137K SF

18.37%

$27.55/ SF

YOY

FORECAST

YOY

FORECAST

YOY

Historic Comparison

FORECAST

YOY

FORECAST

Construction

23Q4

24Q3

24Q4

Total Inventory (SF)

42,673,391

42,471,944

42,187,511

New Supply (SF)

191,684

0

0

YTD Net Absorption (SF)

(1,085,596)

(436,115)

(424,351)

Direct Vacancy

16.23%

18.41%

18.37%

Sublease Vacancy

5.00%

4.73%

4.58%

Total Vacancy

21.23%

23.14%

22.95%

Under Construction (SF)

218,552

417,135

137,137

Overall Asking Lease Rates (FSG)

$27.21

$27.52

$27.55

12.50%

Cottonwood

43.75% Preleased South West Valley

87.50% No new office construction projects broke ground in Salt Lake County at year-end as developers grappled with sticker shock from escalating costs. Construction dropped from 218,552 square feet at the same time last year to 137,137 square feet currently.

Rising tenant improvement costs and persistently high vacancy rates have forced developers to pause on future projects while they wait for more favorable market conditions. With no projects on the horizon, landlords are instead focusing on upgrading existing properties to meet tenant demand for high-quality, amenity-rich space.

4th Quarter Transactions

Sale

380 W Data Dr Onset Financial 127,420 SF

Renewal

10855 S River Front Pkwy Cricut 127,012 SF

Colliers | Salt Lake County| 24Q4 | Office Report

Sale

950 N 2200 W JustAng Airport Center 87,657 SF

Renewal

440 W 200 S Bureau of Land Management 59,596 SF

Lease 13997 S Minuteman Dr Acima Credit 54,834 SF

Top Construction Projects

Salt Lake County

Office

24Q4

Avg. Asking Lease Rates Salt Lake County’s average asking lease rates for office space edged slightly up from $27.52 full-service gross (FSG) last quarter to $27.55 FSG at year-end, a modest increase thanks to steady demand for premium spaces despite broader market challenges. Spec suites and Class B upgraded to Class A space drove activity this quarter as tenants prioritized high-quality, move-in-ready options and pushed landlords to modernize older spaces and add amenities. Suburban markets with enhanced offerings like upgraded finishes are attracting tenants who are seeking a balance between quality and cost. Expect demand for these premium spaces to hold lease rates steady despite economic uncertainty and rising vacancy rates.

Class A

Class B

Class C

Overall

$35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00

2020

2021

2022

2023

2024

Absorption Absorption in Salt Lake County improved significantly this quarter from negative 1,085,596 square feet at year-end 2023 to negative 424,351 square feet currently. Several large transactions in key submarkets drove momentum and contributed to this rebound, including Granger Medical’s 20,618-square-foot lease in Sorenson Research 3, Echelon Biosciences’ 19,865 square feet in CentrePointe A, Franklin Covey’s 26,358 square feet in Minuteman V and Acima Credit’s 54,834 square feet in Minuteman I. Positive lease signings point to a stronger market outlook and increasing tenant confidence.

Class A

Colliers | Salt Lake County| 24Q4 | Office Report

Class C

Overall

1,000,000 500,000 0 (500,000) (1,000,000) (1,500,000)

2020

Vacancy

The overall direct vacancy rate for office space in Salt Lake County increased to 18.37 percent from 16.23 percent at year-end 2023 as tenants assessed their space needs and looked for high-quality properties. Sublease vacancy, however, decreased to 4.58 percent, a notable improvement as subleases expired to direct listings and sublease interest heightened thanks to their cost-effective and plug-and-play appeal. The combination of less sublease space and steady leasing activity reduced availability, reversing a long-standing growth trend in the sublease market. As landlords focus on speculative buildouts and upgrades, expect continued pressure from elevated Class B availability.

Class B

2021

2022

2023

2024

2023

2024

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

2020

Class A

2021 Class B

2022 Class C

Overall

Salt Lake County | 24Q4 | Office | Market Statistics Existing Properties Building Class

Total Inventory SF

Direct Vacancy

Sublease Availability

Total Vacancy

Absorption Square Footage

Avg Asking Rent

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (FS)

0.00%

0.00%

0

0

-

OFFICE MARKET Airport/International Center A

0

0

0.00%

0

B

1,705,349

553,493

32.46%

130,064

7.63%

40.08%

(18,672)

(21,272)

$25.21

C

575,417

32,365

5.62%

0

0.00%

5.62%

(1,194)

59,874

$20.19

TOTAL

2,280,766

585,858

25.69%

130,064

5.70%

31.39%

(19,866)

38,602

$24.90

3,804,491

554,669

14.58%

53,047

1.39%

15.97%

(32,375)

(84,523)

$37.17

B

3,875,520

1,069,700

27.60%

49,953

1.29%

28.89%

9,545

(8,022)

$28.14

C

1,578,733

289,410

18.33%

55,931

3.54%

21.87%

(7,675)

39,220

$24.54

TOTAL

9,258,744

1,913,779

20.67%

158,931

1.72%

22.39%

(30,505)

(53,325)

$30.51

0

0

0.00%

0

0.00%

0.00%

0

0

-

B

924,100

139,420

15.09%

0

0.00%

15.09%

3,547

(25,930)

$24.93

C

923,336

39,275

4.25%

0

0.00%

4.25%

(3,180)

(2,545)

$16.56

TOTAL

1,847,436

178,695

9.67%

0

0.00%

9.67%

367

(28,475)

$22.87

0.00%

5.67%

0

(3,361)

$28.30

CBD A

Central Valley East A

Central Valley West A

1,135,697

64,376

5.67%

64,623

B

660,591

72,391

10.96%

3,387

0.51%

11.47%

18,298

30,821

$21.81

C

523,853

13,735

2.62%

0

0.00%

2.62%

0

35,711

$17.54

TOTAL

2,320,141

150,502

6.49%

68,010

2.93%

9.42%

18,298

63,171

$24.48

A

1,946,380

289,865

14.89%

44,967

2.31%

17.20%

3,729

(44,749)

$32.07

B

347,543

204,274

58.78%

20,980

6.04%

64.81%

0

(101,916)

$29.55

C

0

0

0.00%

0

0.00%

0.00%

0

0

-

TOTAL

2,293,923

494,139

21.54%

65,947

2.87%

24.42%

3,729

(146,665)

$30.98

A

3,132,394

396,501

12.66%

261,958

8.36%

21.02%

(22,300)

(898)

$29.55

B

1,500,201

475,497

31.70%

83,084

5.54%

37.23%

30,001

(24,092)

$26.52

C

408,209

20,800

5.10%

5,949

0.00%

5.10%

1,875

4,463

$23.20

TOTAL

5,040,804

892,798

17.71%

350,991

6.96%

24.67%

9,576

(20,527)

$27.99

A

0

0

0.00%

0

0.00%

0.00%

0

0

-

B

219,230

46,436

21.18%

5,256

0.00%

21.18%

0

(1,354)

$24.57

C

99,883

1,053

1.05%

0

0.00%

1.05%

0

(56)

$20.95

TOTAL

319,113

47,489

14.88%

5,256

0.00%

14.88%

0

(1,410)

$24.50

Cottonwood

Draper

Foothill

Salt Lake County

Office

24Q4

Salt Lake County | 24Q4 | Office | Market Statistics Existing Properties Building Class

Total Inventory SF

Interchange A 150,000 B 0 C 519,237 TOTAL 669,237 Research Park A 278,880 B 313,380 C 376,262 TOTAL 968,522 Periphery A 1,374,960 B 1,531,602 C 724,164 TOTAL 3,630,726 Sandy South Towne A 4,002,544 B 1,445,133 C 231,435 TOTAL 5,679,112 South West Valley A 571,384 B 22,000 C 0 TOTAL 593,384 Sugarhouse A 401,448 B 330,026 C 197,910 TOTAL 929,384 Union Park District A 549,128 B 915,508 C 679,542 TOTAL 2,144,178 West Valley/Lake Park A 1,195,505 B 1,995,106 C 1,021,430 TOTAL

4,212,041

Direct Vacancy

Sublease Availability

Total Vacancy

Absorption Square Footage

Avg Asking Rent

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (FS)

0 0 79,474 79,474

0.00% 0.00% 15.31% 11.88%

5,864 0 0 5,864

3.91% 0.00% 0.00% 0.88%

3.91% 0.00% 15.31% 12.75%

0 0 0 0

0 0 (76,827) (76,827)

$19.50 $19.50

0 51,499 44,954 96,453

0.00% 16.43% 11.95% 9.96%

0 0 0 0

0.00% 0.00% 0.00% 0.00%

0.00% 16.43% 11.95% 9.96%

0 0 0 0

0 (38,311) (10,881) (49,192)

$28.18 $24.48 $27.05

253,972 236,119 64,191 554,282

18.47% 15.42% 8.86% 15.27%

77,594 57,102 6,037 140,733

5.64% 3.73% 0.83% 3.88%

24.11% 19.14% 9.70% 19.14%

4,711 (6,600) 0 (1,889)

(8,502) (26,715) (21,527) (56,744)

$34.89 $25.90 $18.56 $29.37

372,282 358,737 44,612 775,631

9.30% 24.82% 19.28% 13.66%

479,222 32,904 0 512,126

11.97% 2.28% 0.00% 9.02%

21.27% 27.10% 19.28% 22.68%

11,849 556 0 12,405

9,358 (138,145) (9,767) (138,554)

$27.98 $24.24 $19.81 $25.81

174,733 0 0 174,733

30.58% 0.00% 0.00% 29.45%

0 0 0 0

0.00% 0.00% 0.00% 0.00%

30.58% 0.00% 0.00% 29.45%

(1,795) 0 0 (1,795)

19,888 0 0 19,888

$29.61 $29.56

45,422 27,957 0 73,379

11.31% 8.47% 0.00% 7.90%

10,212 0 0 10,212

2.54% 0.00% 0.00% 1.10%

13.86% 8.47% 0.00% 8.99%

1,460 0 0 1,460

10,682 2,996 0 13,678

$33.26 $24.57 $30.52

78,783 140,123 34,253 253,159

14.35% 15.31% 5.04% 11.81%

30,292 37,286 1,689 69,267

5.52% 4.07% 0.25% 3.23%

19.86% 19.38% 5.29% 15.04%

7,471 1,631 (1,298) 7,804

4,121 (30,204) 3,691 (22,392)

$26.68 $26.49 $21.43 $0.00

687,694 681,895 109,369

57.52% 34.18% 10.71%

54,388 318,144 43,980

4.55% 15.95% 4.31%

62.07% 50.12% 15.01%

7,830 41,922 (7,365)

41,477 25,302 (32,358)

$28.51 $22.14 $19.16

1,478,958

35.11%

416,512

9.89%

45.00%

42,387

34,421

$24.75

Colliers | Salt Lake County| 24Q4 | Office Report

Salt Lake County | 24Q4 | Office | Market Statistics Existing Properties Building Class

Total Inventory SF

Direct Vacancy

Sublease Availability

SF

Rate

SF

Rate

Total Vacancy Absorption Square Footage

Avg Asking Rent

Rate

Current Period

YTD

Rate (FS)

Quarterly Totals A

18,542,811

2,918,297

15.74%

1,082,167

5.84%

21.57%

(19,420)

(56,507)

$31.45

B

15,785,289

4,057,541

25.70%

738,160

4.68%

30.38%

80,228

(356,842)

$25.82

C

7,859,411

773,491

9.84%

113,586

1.45%

11.29%

(18,837)

(11,002)

$21.32

TOTAL

42,187,511

7,749,329

18.37%

1,933,913

4.58%

22.95%

41,971

(424,351)

$27.55

Sublease Availability 2024

Class A

2023

Class B

2022

Class C

2021

Overall 0

500,000

1,000,000

1,500,000

Largest Sublease Availabilities BUILDING NAME

SUBMARKET

BUILDING SF

SUBLEASE SF

Towne Ridge Center I

Sandy South Towne

128,086

128,086

The Pointe I

Draper

106,758

106,758

SoJo Station 2

Sandy South Towne

179,019

76,736

Vista Station 6

Draper

127,420

74,916

Industry Office

Periphery

315,920

64,711

Lake Park Office Building

West Valley/Lake Park

81,170

54,388

Sandy Commerce Office Park

Sandy South Towne

120,958

53,888

2,000,000

2,500,000

Salt Lake County

Headline

Industrial

In the face of varied economic challenges, the resilient Salt Lake County industrial market ended the year with tenants actively pursuing large-scale spaces and landlords capitalizing on limited availability. Consistent tenant demand and a lack of new construction will keep lease rates steady throughout 2025. High interest rates and elevated construction costs have curtailed speculative projects, keeping supply constrained and competition strong.

24Q4

Current Market Indicators

YTD Absorption

Under Construction

Direct Vacancy Rate

4.2M SF

3.4M SF

4.41%

YOY

YOY

YOY

FORECAST

FORECAST

$0.84/ SF

FORECAST

YOY

FORECAST

Construction

Historic Comparison

8.46%

23Q4

24Q3

24Q4

Total Inventory (SF)

153,010,684

161,300,475

161,050,182

New Supply (SF)

2,330,881

130,210

0

YTD Net Absorption (SF)

3,736,680

4,266,301

4,169,878

Direct Vacancy

5.27%

4.65%

4.41%

Sublease Vacancy

2.11%

1.48%

1.57%

Total Vacancy

7.38%

6.13%

5.98%

Under Construction (SF)

4,896,078

3,365,310

3,365,310

$0.84

$0.84

$0.84

Overall Asking Lease Rates (NNN)

Avg. Asking Lease Rate (NNN)

Colliers | Salt Lake County| 24Q4 | Industrial Report

8.64%

Central West

5.05% Preleased

North West

82.90%

South West

Salt Lake County industrial developers have been hesitant to break ground on speculative projects thanks to elevated interest rates and construction costs. Year-end total current construction reached 3,365,310 square feet compared to 4,896,078 square feet recorded at the same time last year.

Any new developments in 2025 will likely be build-to-suit, as speculative projects are not financially feasible.

Top Construction Projects

Salt Lake County

Industrial

24Q4

Avg. Asking Lease Rates Industrial asking lease rates stabilized at $0.84 NNN compared to the previous quarter and the same time last year. With no anticipated substantial new construction and limited available space, landlords are likely to gradually increase rates throughout 2025. The South East submarket reported the highest year-end rate at $1.16 NNN with just one available space. Expect the lack of options to intensify competition among tenants.

$1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00

2020

0-20K SF

2021

2023

2024

100K+ SF

Overall

0-20K SF 20-50K SF 50-100K 100K+ SF SF

Overall

20-50K SF

2022 50-100K SF

Absorption Year-to-date industrial absorption reached a positive 4,169,878 square feet, a marked improvement compared to 3,736,680 square feet at the end of 2023. Western Partitions secured 216,027 square feet on Harold Gatty Drive in Salt Lake City, Cache Valley Electric Company took 48,281 square feet in West Jordan, and Smackin' Snacks leased 48,000 square feet in Salt Lake City, underscoring the market's capacity to attract a diverse range of tenants despite limited overall availability. A combination of pent-up demand and strategic tenant positioning helped drive positive momentum in the industrial sector.

Vacancy The direct vacancy rate for industrial space in Salt Lake County decreased from 5.27 percent to 4.41 percent year-over-year thanks to strong tenant activity and limited new supply. While spaces over 100,000 square feet in size dominate vacant inventory, landlords hesitate to divide buildings into smaller configurations. As the pace of new construction slows despite steady tenant demand, expect lease rates to rise. Landlords who offer more flexible and functional space configurations may see quicker absorption.

Colliers | Salt Lake County| 24Q4 | Industrial Report

10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 (2,000,000) 2020 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

2021

2020

0-20K SF

2021

20-50K SF

2022

2023

2024

2022

2023

2024

100K+ SF

Overall

50-100K SF

4th Quarter Transactions

Lease

5742 Harold Gatty Dr Western Partitions 216,027 Transaction Date: 11/01/2024

Lease

1736-1746 S 4250 W Smackin’ Snacks 48,000 SF Transaction Date: 11/01/2024

Renewal

Lease

615 S Gladiola St ESM 156,750 SF Transaction Date: 10/22/2024

835 W 2600 S American Refrigeration Supplies 55,582 SF 10/03/2024

Lease

1717 S 4800 W Peczuh Printing Company 44,105 SF Transaction Date: 12/19/2024

Salt Lake County

Industrial

24Q4

Market Overview Existing Properties Total Inventory Building Size SF

Direct Vacancy SF

% Vacant

Sublease Availability

Total Vacancy

Net Absorption Square Footage Avg Asking Rate

SF

% Vacant

% Vacant

Current Period

YTD

Rate (NNN)

INDUSTRIAL MARKET Central East 0-20,000

3,084,840

8,814

0.29%

0

0.00%

0.29%

5,100

16,338

$1.49

20,001-50,000

2,430,277

0

0.00%

0

0.00%

0.00%

0

10,432

$0.97

50,001-100,000

790,120

0

0.00%

0

0.00%

0.00%

0

15,000

-

100,001+

1,695,588

122,511

7.23%

28,163

1.66%

8.89%

14,892

0

$0.66

TOTAL

8,000,825

131,325

1.64%

28,163

0.35%

1.99%

19,992

41,770

$0.77

2,317,653

24,702

1.07%

7,800

0.34%

1.40%

0

(9,386)

$1.11

Central West 0-20,000 20,001-50,000

4,847,066

41,090

0.85%

0

0.00%

0.85%

0

44,575

$0.96

50,001-100,000

4,612,635

129,305

2.80%

43,980

0.95%

3.76%

(27,246)

(68,868)

$1.09

100,001+

4,890,622

65,700

1.34%

0

0.00%

1.34%

0

(65,700)

$0.84

TOTAL

16,667,976

260,797

1.56%

51,780

0.31%

1.88%

(27,246)

(99,379)

$0.97

0-20,000

1,979,312

37,438

1.89%

0

0.00%

1.89%

11,448

8,643

$1.03

20,001-50,000

1,715,557

31,243

1.82%

0

0.00%

1.82%

46,502

114,676

$0.79

North East

50,001-100,000

1,816,596

0

0.00%

0

0.00%

0.00%

0

19,879

-

100,001+

977,714

0

0.00%

0

0.00%

0.00%

0

0

-

TOTAL

6,489,179

68,681

1.06%

0

0.00%

1.06%

57,950

143,198

$0.91

North West 0-20,000

4,938,381

13,782

0.28%

11,500

0.23%

0.51%

10,043

25,979

$1.20

20,001-50,000

11,563,558

184,865

1.60%

37,820

0.33%

1.93%

1,988

101,500

$0.82

50,001-100,000

13,517,304

357,540

2.65%

106,397

0.79%

3.43%

68,473

30,353

$1.04

100,001+

74,159,294

5,139,723

6.93%

1,444,556

1.95%

8.88%

389,083

2,641,003

$0.78

TOTAL

104,178,537

5,695,910

5.47%

1,600,273

1.54%

7.00%

469,587

2,798,835

$0.80

$1.16

South East 0-20,000

441,766

3,646

0.83%

0

0.00%

0.83%

0

0

20,001-50,000

597,359

0

0.00%

0

0.00%

0.00%

0

19,630

-

50,001-100,000

235,975

0

0.00%

0

0.00%

0.00%

0

0

-

100,001+

670,144

0

0.00%

0

0.00%

0.00%

0

0

-

TOTAL

1,945,244

3,646

0.19%

0

0.00%

0.19%

0

19,630

$1.16

3,283,316

0

0.00%

0

0.00%

0.00%

12,046

33,638

$1.00

South West 0-20,000 20,001-50,000

3,968,157

33,011

0.83%

0

0.00%

0.83%

(1,572)

92,810

$1.17

50,001-100,000

4,810,753

16,373

0.34%

0

0.00%

0.34%

19,933

54,551

$1.23

100,001+

11,706,195

893,512

7.63%

843,243

7.20%

14.84%

76,138

1,084,825

$1.00

TOTAL

23,768,421

942,896

3.97%

843,243

3.55%

7.51%

106,545

1,265,824

$1.03

Colliers | Salt Lake County| 24Q4 | Industrial Report

Market Activity

North West

Direct Vacancy Rate: 5.47% YTD Absorption: 2,798,835 SF Lease Rate: $0.80 NNN

North East

Direct Vacancy Rate: 1.06% YTD Absorption: 143,198 SF Lease Rate: $0.91 NNN

Central West

Direct Vacancy Rate: 1.56% YTD Absorption: (99,379) SF Lease Rate: $0.97 NNN

Central East

Direct Vacancy Rate: 1.64% YTD Absorption: 41,770 SF Lease Rate: $0.77 NNN

South West

Direct Vacancy Rate: 3.97% YTD Absorption: 1,265,824 SF Lease Rate: $1.03 NNN

South East

Direct Vacancy Rate: 0.19% YTD Absorption: 19,630 SF Lease Rate: $1.16 NNN

Salt Lake County

Headline

Retail

Salt Lake County’s dynamic retail market ended the year by navigating strong demand and limited supply. Retailers have been adapting to a competitive environment and limited availability by considering more flexible and creative solutions, including repurposing underutilized office space and exploring smaller, neighborhood shopping centers as viable alternatives to traditional large-format locations. As construction activity increases in key areas, particularly the South West submarket, high-demand zones are putting continued upward pressure on lease rates. In the face of fierce competition, retailers who are willing to innovate and adjust to evolving space needs can expect a positive outlook.

24Q4

Current Market Indicators

YTD Absorption

Under Construction

Direct Vacancy Rate

Lease Rate (NNN)

63K SF

685K SF

2.49%

$23.37/ SF

YOY

YOY

YOY

FORECAST

FORECAST

YOY

FORECAST

Construction

Historic Comparison 23Q4

24Q3

24Q4

40,753,415

40,428,251

40,959,380

New Supply (SF)

17,856

0

55,139

YTD Net Absorption (SF)

639,374

77,561

63,147

Direct Vacancy

2.28%

2.57%

2.43%

Sublease Vacancy

0.10%

0.02%

0.06%

Total Vacancy

2.38%

2.59%

2.49%

Under Construction (SF)

474,575

637,837

685,177

Overall Asking Lease Rates (NNN)

$21.21

$21.93

$23.37

Total Inventory (SF)

FORECAST

8.73%

4.28% 1.09%

24.01% Preleased 85.90%

Central East Central West North West South West

Salt Lake County’s retail construction activity ramped up to a total of 682,677 square feet in development, a healthy year-over-year increase from 474,575 square feet at the end of 2023. The South West submarket accounted for nearly 86 percent of total construction with large projects like Academy Village and Midas Crossing in Herriman. However, persistent supply constraints leave retailers struggling to secure space in a market trying to keep up with growing demand.

4th Quarter Transactions

Lease

5300 S State St Evergreen Restaurant Group 15,205 SF

Lease

1732 W 5400 S Ulta 10,000 SF

Colliers | Salt Lake County| 24Q4 | Retail Report

Sale

13400 S Mountain View Corridor Logan Ventures of California Properties 6,890 SF

Lease

675 E 2100 S Kura Sushi USA 3,438 SF

Lease

12256 S Herriman Auto Row Southern Veterinary Partners 2,950 SF

Top Construction Projects

Salt Lake County

Retail

24Q4

Avg. Asking Lease Rates The average asking lease rate for retail space in Salt Lake County rose to $23.37 per square foot NNN by the close of the fourth quarter, a $0.16 increase quarter-over-quarter and a $2.16 increase year-overyear thanks to limited availability and continued high demand, particularly in high-traffic areas. The North West quadrant reached a high of $30.69 NNN due to limited availability and smaller, higher-priced space significantly influencing the overall rate. Lease rates in other areas of the county saw steady rates.

Absorption Retail absorption in Salt Lake County slowed to positive 63,147 square feet year-to-date compared to 639,374 square feet at the close of 2023.

Evergreen Restaurant Group leased 15,205 square feet in Murray and Ulta secured 10,000 square feet at Legacy Plaza @ 54th in Taylorsville, keeping absorption positive. In the face of continued historically low vacancy rates, tenants have limited options, leading to slower absorption across the county. As more new developments come online, expect absorption to gradually pick up at a tempered pace in tight market conditions.

Vacancy Salt Lake County’s retail vacancy rate increased slightly from 2.28 percent at the same time last year to 2.43 percent currently. Landlords are beginning to explore creative solutions to maximize available space, causing an uptick in adaptive reuse projects.

Underutilized office buildings and other nontraditional spaces are being transformed into retail environments, particularly on upper floors, alleviating some market pressure. Additionally, brands seeking a more localized presence have looked to neighborhood shopping centers as a viable alternative to traditional mall or lifestyle center locations.

Colliers | Salt Lake County| 24Q4 | Retail Report

$30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00

2020

2021

2022

2023

2024

Regional

Overall

2022

2023

2024

2022

2023

2024

Regional

Overall

Anchorless

Community

Neighborhood

2020

2021

800,000 600,000 400,000 200,000 0 (200,000) (400,000) 8.00% 6.00% 4.00% 2.00% 0.00%

2020

Anchorless

2021

Community

Neighborhood

Market Overview Existing Properties

Direct Vacancy

Sublease Availability

Total Vacancy

Absorption Square Footage

Avg Asking Rate

Total Inventory SF

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (NNN)

1,940,071

46,003

2.37%

0

0.00%

2.37%

(5,596)

6,569

$19.70

Community Center 1,659,686

6,500

0.39%

0

0.00%

0.39%

(14,445)

(17,445)

$32.41

Neighborhood Center

1,393,971

18,568

1.33%

0

0.00%

1.33%

0

(6,755)

$21.99

Regional Center

2,156,305

54,833

2.54%

0

0.00%

2.54%

(5,960)

(33,260)

$27.81

TOTAL

7,150,033

125,904

1.76%

0

0.00%

1.76%

(26,001)

(50,891)

$24.52

1,432,098

16,954

1.18%

0

0.00%

1.18%

0

(3,052)

$21.28

Community Center 3,615,901

55,809

1.54%

15,790

0.44%

1.98%

(3,484)

(476)

$17.59

Neighborhood Center

1,475,657

64,154

4.35%

0

0.00%

4.35%

9,150

8,122

$16.31

Regional Center

1,561,486

18,736

1.20%

0

0.00%

1.20%

(5,977)

26,065

$40.00

TOTAL

8,085,142

155,653

1.93%

15,790

0.20%

2.12%

(311)

30,659

$20.08

2,117,281

98,169

4.64%

4,568

0.22%

4.85%

1,289

(10,637)

$23.42

Community Center 2,128,302

53,455

2.51%

0

0.00%

2.51%

0

7,957

$30.57

Neighborhood Center

358,616

23,196

6.47%

0

0.00%

6.47%

1,500

13,496

$36.51

Regional Center

502,227

0

0.00%

0

0.00%

0.00%

0

4,782

-

TOTAL

5,106,426

174,820

3.42%

4,568

0.09%

3.51%

2,789

15,598

$25.67

Anchorless Strip

464,475

32,549

7.01%

0

0.00%

7.01%

1,452

(22,634)

$24.78

Community Center

871,337

14,400

1.65%

0

0.00%

1.65%

(1,655)

(1,655)

$32.59

Neighborhood Center

539,213

0

0.00%

0

0.00%

0.00%

0

0

-

Regional Center

0

0

0.00%

0

0.00%

0.00%

0

0

-

1,875,025

46,949

2.50%

0

0.00%

2.50%

(203)

(24,289)

$30.69

Center Type RETAIL MARKET Central East Anchorless Strip

Central West Anchorless Strip

North East Anchorless Strip

North West

TOTAL

Salt Lake County

Retail

24Q4

Market Overview Existing Properties Center Type

Direct Vacancy

Total Inventory SF

SF

Rate

Sublease Availability SF

Rate

Total Vacancy Rate

Absorption Square Footage

Avg Asking Rate

Current Period

Rate (NNN)

YTD

South East Anchorless Strip

1,462,593

33,909

2.32%

0

0.00%

2.32%

166

16,286

$31.38

Community Center 4,436,334

195,559

4.41%

0

0.00%

4.41%

(2,004)

(51,172)

$18.07

Neighborhood Center

1,675,674

48,511

2.90%

4,006

0.24%

3.13%

0

(19,237)

$24.35

Regional Center

804,319

15,429

1.92%

0

0.00%

1.92%

0

(5,030)

$25.00

TOTAL

8,378,920

293,408

3.50%

4,006

0.05%

3.55%

(1,838)

(59,153)

$21.03

1,666,108

33,559

2.01%

0

0.00%

2.01%

(5,289)

(6,502)

$28.87

Community Center 2,814,552

7,493

0.27%

0

0.00%

0.27%

0

3,901

$30.29

Neighborhood Center

2,154,647

41,231

1.91%

0

0.00%

1.91%

5,499

3,570

$19.17

Regional Center

3,728,527

118,015

3.17%

0

0.00%

3.17%

0

150,254

$20.96

TOTAL

10,363,834

200,298

1.93%

0

0.00%

1.93%

210

151,223

$21.74

Sublease Availability

Total Vacancy

Absorption Square Footage

Avg Asking Rate

Current Period

Rate (NNN)

South West Anchorless Strip

Overall Market Totals Existing Properties Center Type

Total Inventory SF

Direct Vacancy SF

Rate

SF

Rate

Rate

YTD

Quarterly Totals Anchorless Strip

9,082,626

261,143

2.88%

4,568

0.05%

2.93%

(7,978)

(19,970)

$23.82

Community Center 15,526,112

333,216

2.15%

15,790

0.10%

2.25%

(21,588)

(58,890)

$23.57

Neighborhood Center

7,597,778

195,660

2.58%

4,006

0.05%

2.63%

16,149

(804)

$21.29

Regional Center

8,752,864

207,013

2.37%

0

0.00%

2.37%

(11,937)

142,811

$24.80

TOTAL

40,959,380

997,032

2.43%

24,364

0.06%

2.49%

(25,354)

63,147

$23.37

Colliers | Salt Lake County| 24Q4 | Retail Report

Market Activity

North West

Direct Vacancy Rate: 2.50% YTD Absorption: (24,289) SF Lease Rate: $30.69 NNN

Central West

Direct Vacancy Rate: 1.93% YTD Absorption: 30,659 SF Lease Rate: $2.08 NNN

North East

Direct Vacancy Rate: 3.42% YTD Absorption: 15,598 SF Lease Rate: $25.67 NNN

Central East

Direct Vacancy Rate: 1.76% YTD Absorption: (50,891) SF Lease Rate: $24.52 NNN

South West

Direct Vacancy Rate: 1.93% YTD Absorption: 151,223 SF Lease Rate: $21.74 NNN

South East

Direct Vacancy Rate: 3.50% YTD Absorption: (59,153) SF Lease Rate: $21.03 NNN

Suburban vs.

Downtown

Office

24Q4

Current Market Indicators

YTD Absorption

Under Construction

Direct Vacancy Rate

Lease Rate (FSG)

-424K SF

137K SF

18.37%

$27.55/ SF

YOY

FORECAST

YOY

FORECAST

Lease Rates

23Q4

24Q3

24Q4

$40.00

Total Inventory (SF)

42,673,391

42,471,944

42,187,511

$35.00

New Supply (SF)

191,684

0

0

$30.00

YTD Net Absorption (SF)

(1,085,596)

(436,115)

(424,351)

$25.00

Direct Vacancy

16.23%

18.41%

18.37%

Sublease Vacancy

5.00%

4.73%

4.58%

Total Vacancy

21.23%

23.14%

22.95%

$20.00

$10.00 $5.00

Under Construction (SF)

218,552

417,135

137,137

Overall Asking Lease Rates (FSG)

$27.21

$27.52

$27.55

$0.00

$25.02 $28.20

$15.00

$20.28 $21.55

Historic Comparison

YOY

FORECAST

$25.29 $27.02

FORECAST

$29.50 $36.03

YOY

Class A

Class B

Class C

Overall

Suburban

Downtown

Overall

Significant Sublease Availabilities BUILDING NAME

SUBMARKET

BUILDING SF

SUBLEASE SF

Towne Ridge Center I

Sandy South Towne

128,086

128,086

The Pointe I

Draper

106,758

106,758

SoJo Station 2

Sandy South Towne

179,019

76,736

Vista Station 6

Draper

127,420

74,916

Industry Office

Periphery

315,920

64,711

Lake Park Office Building

West Valley/Lake Park

81,170

54,388

Sandy Commerce Office Park

Sandy South Towne

120,958

53,888

Colliers | Suburban vs. Downtown | 24Q4 | Office Report

4th Quarter Transactions

Sale

Renewal

380 W Data Dr Onset Financial 127,420 SF Transaction Date: 10/01/2024

10855 S River Front Pkwy Cricut 127,012 SF Transaction Date: 12/16/2024

Renewal

440 W 200 S Bureau of Land Management 59,596 SF Transaction Date: 10/31/2024

Sale

950 N 2200 W JustAng Airport Center 87,657 SF Transaction Date: 10/29/2024

Lease

13997 S Minuteman Dr Acima Credit 54,834 SF Transaction Date: 11/25/2024

Suburban vs.

Downtown

Office

24Q4 Absorption

Construction

1,000,000

Suburban

500,000 0

43.75% Preleased

(500,000) (1,000,000)

100.00%

Downtown

(1,500,000)

2020

2021

Suburban

2022

2023

Downtown

Construction Asking Lease Rates

Vacancy

$28.50

2024

$28.00

$28.20

$27.50

2023

$27.00 $26.50 $26.00

2022

$25.50 $25.00

2021

$24.00

2020 0.00%

$25.02

$24.50 $23.50

5.00% 10.00% 15.00% 20.00% 25.00% Downtown

Suburban

Colliers | Suburban vs. Downtown | 24Q4 | Office Report

$23.00

Downtown

Suburban

2024

Top Construction Projects

Suburban vs.

Downtown

Office

24Q4

Market Overview Existing Properties Building Class

Total Inventory SF

Direct Vacancy

Sublease Availability

Total Vacancy Absoprtion Square Footage

Avg Asking Rent

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (FS)

OFFICE MARKET Suburban A

13,363,360

2,109,656

15.79%

951,526

7.12%

$0.23

8,244

36,518

$29.50

B

10,378,167

2,751,722

26.51%

631,105

6.08%

$0.33

77,283

(322,105)

$25.29

C

5,556,514

419,890

7.56%

51,618

0.93%

$0.08

(11,162)

(28,695)

$20.28

TOTAL

29,298,041

5,281,268

18.03%

1,634,249

5.58%

$0.24

74,365

(314,282)

$25.02

A

5,179,451

808,641

15.61%

130,641

2.52%

$0.18

(27,664)

(93,025)

$36.03

B

5,407,122

1,305,819

24.15%

107,055

1.98%

$0.26

2,945

(34,737)

$27.02

C

2,302,897

353,601

15.35%

61,968

2.69%

$0.18

(7,675)

17,693

$21.55

TOTAL

12,889,470

2,468,061

19.15%

299,664

2.32%

$0.21

(32,394)

(110,069)

$28.20

Total Vacancy

Absoprtion Square Footage

Downtown

Overall Market Totals Existing Properties

Building Class

Total Inventory SF

Direct Vacancy

Sublease Availability

Avg Asking Rent

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (FS)

OFFICE MARKET Quarterly Totals A

18,542,811

2,918,297

15.74%

1,082,167

5.84%

$0.22

(19,420)

(56,507)

$31.45

B

15,785,289

4,057,541

25.70%

738,160

4.68%

$0.30

80,228

(356,842)

$25.82

C

7,859,411

773,491

9.84%

113,586

1.45%

$0.11

(18,837)

(11,002)

$21.32

TOTAL

42,187,511

7,749,329

18.37%

1,933,913

4.58%

$0.23

41,971

(424,351)

$27.55

Colliers | Suburban vs. Downtown | 24Q4 | Office Report

Market Activity

Downtown • • •

Suburban • • •

Vacancy: 18.03% YTD Abs: (312,282) SF Lease Rate (FSG): $25.02

Vacancy: 19.15% YTD Abs: (110,069) SF Lease Rate (FSG): $28.20

1/7/2025 Research & Forecast Report | Quarter Year or Date | <<Location / Sector>>

2 6

1/7/2025 Research & Forecast Report | Quarter Year or Date | <<Location / Sector>>

2 7

Point of the Mountain

Office

24Q4

Current Market Indicators

YTD Absorption

Under Construction

Direct Vacancy Rate

Lease Rate (FSG)

-158K SF

21K SF

13.38%

$26.44/ SF

YOY

FORECAST

YOY

FORECAST

YOY

Historic Comparison

FORECAST

YOY

FORECAST

Lease Rates

23Q4

24Q3

24Q4

$35.00

Total Inventory (SF)

22,331,571

22,295,799

22,219,460

$30.00

New Supply (SF)

130,000

0

0

YTD Net Absorption (SF)

(234,575)

(204,939)

(158,249)

Direct Vacancy

11.05%

13.37%

13.38%

Sublease Vacancy

8.32%

8.27%

8.31%

Total Vacancy

19.37%

21.63%

21.69%

$25.00 $20.00 $15.00 $10.00 $5.00

Under Construction (SF)

166,552

0

20,612

Overall Asking Lease Rates (FSG)

$26.65

$26.47

$26.44

$0.00

Class A South Valley

Class B

Class C

Overall

Utah County North

Overall

Significant Sublease Availabilities BUILDING NAME

SUBMARKET

BUILDING SF

SUBLEASE SF

Grove Technology Center

Utah County North

201,325

131,136

Towne Ridge Center I

South Valley

128,086

128,086

The Pointe I

South Valley

106,758

106,758

Lehi Spectrum Bldg 2

Utah County North

125,000

96,764

Mountain Tech South Bldg 2

Utah County North

154,647

89,437

SoJo Station 2

South Valley

179,019

76,736

Thanksgiving Station 5

Utah County North

150,000

75,775

Colliers | Point of the Mountain | 24Q4 | Office Report

4th Quarter Transactions

Sale

Renewal

380 W Data Dr Onset Financial 127,420 SF Transaction Date: 10/01/2024

10855 S River Front Pkwy Cricut 127,012 SF Transaction Date: 12/16/2024

Sublease

2600 N Ashton Blvd nCino Portfolio Analytics 50,411 SF Transaction Date: 11/15/2024

Lease

13997 S Minuteman Dr Acima Credit 54,834 SF Transaction Date: 11/25/2024

Extension

12936 S Frontrunner Blvd Truhearing 48,053 SF Transaction Date: 12/06/2024

Point of the Mountain

Office

24Q4 Absorption

Construction

1,400,000 1,200,000 South Valley

1,000,000 800,000 600,000 400,000 200,000 0

Utah County North

100.00%

(200,000) (400,000) Class A

2020

2021 Class B

2022

2023

Class C

2024 Overall

Year-to-Date Average Deal Size

Vacancy

900,000

120

2024

800,000 100 700,000

2023

600,000

80

2022

500,000 60 400,000

2021

40

300,000 200,000

2020

20 100,000

0.00%

5.00%

Class A

10.00% 15.00% 20.00% 25.00% Class B

Class C

Colliers | Point of the Mountain | 24Q4 | Office Report

Overall

0

0-5K SF

5-20K SF

20-50K SF

# of Transactions

50-100K SF

100K+ SF

Leased Square Footage

0

Top Construction Projects

Point of the Mountain

Office

24Q4

Market Overview

Existing Properties Building Class

Total Inventory SF

Direct Vacancy

Sublease Availability

Total Vacancy Absorption Square Footage

Avg Asking Rent

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (FS)

OFFICE MARKET South Valley A

7,706,322

943,516

12.24%

741,180

9.62%

21.86%

(12,246)

28,348

$28.94

B

2,967,334

834,234

28.11%

115,988

3.91%

32.02%

30,557

(162,237)

$25.49

C

639,644

65,412

10.23%

5,949

0.93%

11.16%

1,875

(5,304)

$20.89

TOTAL

11,313,300

1,843,162

16.29%

863,117

7.63%

23.92%

20,186

(139,193)

$27.18

Utah County North A

7,826,318

710,078

9.07%

897,644

11.47%

20.54%

73,791

(43,301)

$27.38

B

2,970,457

416,738

14.03%

85,821

2.89%

16.92%

(44,751)

24,641

$21.66

C

109,385

2,536

2.32%

0

0.00%

2.32%

(2,536)

(396)

$18.00

TOTAL

10,906,160

1,129,352

10.36%

983,465

9.02%

19.37%

26,504

(19,056)

$25.27

Overall Market Totals Existing Properties Building Class

Total Inventory SF

Direct Vacancy

Sublease Availability

Total Vacancy Absorption Square Footage

Avg Asking Rent

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (FS)

OFFICE MARKET Quarterly Totals A

15,532,640

1,653,594

10.65%

1,638,824

10.55%

21.20%

61,545

(14,953)

$28.29

B

5,937,791

1,250,972

21.07%

201,809

3.40%

24.47%

(14,194)

(137,596)

$24.19

C

749,029

67,948

9.07%

5,949

0.79%

9.87%

(661)

(5,700)

$20.68

TOTAL

22,219,460

2,972,514

13.38%

1,846,582

8.31%

21.69%

46,690

(158,249)

$26.44

Colliers | Point of the Mountain | 24Q4 | Office Report

Market Activity

South Valley • • •

Vacancy: 16.29% YTD Abs: (139,193) SF Lease Rate (FSG): $27.18

Utah County North • • •

Vacancy: 10.36% YTD Abs: (19,056) SF Lease Rate (FSG): $25.27

Utah County

Headline

Office

Utah County’s office market had a resilient fourth quarter in the face of shifting tenant preferences and continued economic uncertainty. With spec suites leasing faster than shell spaces, landlords decided to finish some suites to allow tenants who are eager for immediate occupancy to visualize their future space and avoid typical tenant improvement delays, offering a faster and more seamless transition.

Landlords also focused on enhancing Class B buildings with high-end finishes and amenities and positioning them as competitive Class A space. New construction remained stagnant, however, with escalating construction costs deterring any new development. The outlook seems cautiously optimistic as the office market navigates current conditions.

24Q4

Current Market Indicators

YTD Absorption

Under Construction

Direct Vacancy Rate

Lease Rate (FSG)

-210K SF

27K SF

13.90%

$24.00/ SF

YOY

FORECAST

YOY

FORECAST

YOY

23Q4

24Q3

24Q4

Total Inventory (SF)

18,852,133

19,155,762

18,720,251

New Supply (SF)

0

0

0

YTD Net Absorption (SF)

(128,825)

(60,638)

(209,851)

Direct Vacancy

11.12%

12.71%

13.90%

Sublease Vacancy

6.44%

5.51%

5.95%

Total Vacancy

17.56%

18.22%

19.84%

Under Construction (SF)

68,000

24,000

27,475

Overall Asking Lease Rates (FSG)

$24.38

$24.33

$24.00

4th Quarter Transactions

Sublease

YOY

FORECAST

Construction

Historic Comparison

2600 N Ashton Blvd nCino Portfolio Analytics 50,411 SF

FORECAST

Expansion

3401 N Thanksgiving Wy Cozy Earth 30,097 SF

Colliers | Utah County| 24Q4 | Office Report

12.65%

Central

39.12% Preleased

87.35%

West

The construction landscape in Utah County remained relatively quiet, with just 27,475 square feet under development at year-end compared to 68,000 square feet at the same time last year. Demand for medical office space continued, but developers are feeling cautious in the face of rising of construction and tenant improvements costs. Instead, they have focused on upgrading and repositioning existing properties to appeal to tenants seeking high-quality spaces.

Until vacancy rates improve, expect the pace of new construction to stay slow.

Lease

600-699 E Technology Ave Trajector Holdings 14,480 SF

Extension

2000 W Ashton Blvd Sales Rabbit 9,100 SF

Lease

1656 S East Bay Blvd The Basis of the Brain 8,433 SF

Avg. Asking Lease Rates $30.00 The average asking lease rate for office space in Utah County dropped slightly from $24.33 fullservice gross (FSG) last quarter to $24.00 FSG at year-end, reflecting market stability and ongoing tenant demand, particularly for welllocated, upgraded spaces. Strong demand for Class A space drove lease rates highest in the North quadrant. Despite a slight decrease in lease rates, the overall market is holding steady as tenants seek flexible, high-quality office space with modern amenities.

$25.00 $20.00 $15.00 $10.00 $5.00 $0.00

2020

2021

Class A

Absorption Year-to-date absorption in Utah County remained negative, increasing from negative 128,825 square feet at the end of 2023 to negative 209,851 square feet one year later.

Several significant leasing transactions helped mitigate overall negative absorption, including Cozy Earth’s 30,097 square foot expansion at Thanksgiving Park VI and Trajector Holdings 14,480 square feet at Canyon Park Technology Center. While the market faces challenges, demand for space in well-positioned locations remains strong.

2022

Class B

2023

Class C

2024 Overall

1,000,000 800,000 600,000 400,000 200,000 0 (200,000) (400,000)

2020

Class A

2021

2022

Class B

2023

Class C

2024 Overall

Vacancy Direct office vacancy in Utah County increased to 13.90 percent year-end compared to 11.12 percent at the end of 2023 as tenants honed in on their office needs and adjusted to shifting market conditions. Fortunately, sublease vacancy decreased to 5.95 percent from 6.44 percent year-over-year thanks to more than 20 sublease deals totaling more than 350,000 square feet leasing throughout the year. Fewer subleases are now coming online as tenants have met their space needs and are feeling more comfortable in their current offices, pointing to a more stable market moving forward.

2024 2023 2022 2021 2020 -4.00% Class A

1.00% Class B

6.00%

11.00% Class C

16.00% Overall

Utah County

Office

24Q4

Sublease Availability 1,500,000 1,000,000 500,000 0

2020 Class A

2021 Class B

2022

2023 Class C

2024 Overall

Significant Sublease Availabilities BUILDING NAME

SUBMARKET

BUILDING SF

SUBLEASE SF

Grove Technology Center

North

201,325

136,246

Lehi Spectrum Bldg 2

North

125,000

96,764

Mountain Tech South Bldg 2

North

154,647

89,437

Thanksgiving Station 5

North

152,120

75,775

Thanksgiving Station 1

North

152,120

60,848

Colliers | Utah County| 24Q4 | Office Report

Top Construction Projects

Utah County

Office

24Q4

Market Overview Existing Properties

Direct Vacancy

Sublease Availability

Total Vacancy

Absorption Square Footage

Avg Asking Rent

Total Inventory SF

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (FS)

1,991,576

489,281

24.57%

26,000

1.31%

25.87%

(70,111)

(37,946)

$25.98

4,909,456 414,605

892,049 11,505

18.17% 2.77%

103,465 0

2.11% 0.00%

20.28% 2.77%

(95,562) (12,746)

(141,623) (14,510)

$21.86 $19.55

7,315,637

1,392,835

19.04%

129,465

1.77%

20.81%

(178,419)

(194,079)

$23.08

7,826,318 2,970,457

710,078 416,738

9.07%

20.54%

73,791

(43,301)

$27.38

14.03%

897,644 85,821

11.47%

B

2.89%

16.92%

(44,751)

24,641

$21.66

C

109,385

2,536

2.32%

0

0.00%

2.32%

(2,536)

(396)

$18.00

10,906,160

1,129,352

10.36%

983,465

9.02%

19.37%

26,504

(19,056)

$25.27

A

84,160

79,817

94.84%

0

0.00%

94.84%

0

0

$21.50

B

238,811

0

0.00%

0

0.00%

0.00%

1,000

3,284

-

C

110,790

0

0.00%

0

0.00%

0.00%

1,943

0

-

433,761

79,817

18.40%

0

0.00%

18.40%

2,943

3,284

$21.50

A

0

0

0.00%

0

0.00%

0.00%

0

0

-

B

64,693

0

0.00%

0

0.00%

0.00%

0

0

-

C

0

0

0.00%

0

0.00%

0.00%

0

0

-

64,693

0

0.00%

0

0.00%

0.00%

0

0

-

Building Class OFFICE MARKET Central A B C TOTAL North A

TOTAL South

TOTAL West

TOTAL

Overall Market Totals Existing Properties

Direct Vacancy

Sublease Availability

Total Vacancy

Absorption Square Footage

Avg Asking Rent

Total Inventory SF

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (FS)

A

9,902,054

1,279,176

12.92%

923,644

9.33%

22.25%

3,680

(81,247)

$26.51

B

8,183,417

1,308,787

15.99%

189,286

2.31%

18.31%

(139,313)

(113,698)

$21.64

C

634,780

14,041

2.21%

0

0.00%

2.21%

(13,339)

(14,906)

$16.44

18,720,251

2,602,004

13.90%

1,112,930

5.95%

19.84%

(148,972)

(209,851)

$24.00

Building Class Quarterly Totals

TOTAL

Colliers | Utah County| 24Q4 | Office Report

Market Activity Utah County North

Direct Vacancy Rate: 10.36% YTD Absorption: (19,056) SF Lease Rate: $25.27 FS

Utah County West

Direct Vacancy Rate: 0.00% YTD Absorption: 0 SF Lease Rate: $0.00 FS

Utah County Central

Direct Vacancy Rate: 19.04% YTD Absorption: (194,079) SF Lease Rate: $23.08 FS

Utah County South

Direct Vacancy Rate: 18.40% YTD Absorption: 3,284 SF Lease Rate: $21.50 FS

Utah County

Headline

Industrial

Utah County’s industrial market ended a steady year with robust tenant activity and ongoing development. Developers continued to target opportunities in the southern quadrant, feeling confident about the market’s potential. Vacancy rates declined in the fourth quarter due to strong leasing momentum, while absorption demonstrated continued demand for large-scale space. Expect the market to maintain stability over the next three years with a leasing pace more aligned with 2019 pre-pandemic levels, and power supply considerations as a key discussion topic for new developments in 2025.

24Q4

Current Market Indicators

YTD Absorption

Under Construction

Direct Vacancy Rate

Lease Rate (NNN)

1.5M SF

2.9M SF

4.11%

$0.95/ SF

YOY

YOY

YOY

FORECAST

FORECAST

23Q4

24Q3

24Q4

Total Inventory (SF)

47,739,976

50,208,718

50,199,075

New Supply (SF)

882,769

86,916

0

1,718,544

1,147,638

1,485,707

Direct Vacancy

4.00%

4.63%

3.88%

Sublease Vacancy

0.31%

0.29%

0.23%

Total Vacancy

4.31%

4.92%

4.11%

Under Construction (SF)

2,251,623

2,907,821

2,933,934

$0.92

$0.96

$0.95

Overall Asking Lease Rates (NNN)

YOY

FORECAST

Construction

Historic Comparison

YTD Net Absorption (SF)

FORECAST

Colliers | Utah County| 24Q4 | Industrial Report

North 12.12%

74.65% Preleased

68.17%

19.72%

South

West

The drive to build industrial space in Utah County is gaining momentum, particularly in the southern quadrant. Total construction reached a strong 2,933,934 square feet, with nearly all industrial projects completed in 2023 fully leased or approaching full occupancy thanks to strong demand for highquality space. Developers who secured land in prior years are finally moving forward with new projects, feeling confident in the market’s long-term potential and laying the groundwork for measured but steady growth in the coming years.

Avg. Asking Lease Rates $1.40 The average asking lease rate reached $0.95 NNN at year-end compared to $0.96 NNN last quarter.

Businesses seeking space in the 20,000–50,000square-foot range are driving demand and showing no signs of slowing in the near future. Consistent lease rates reflect a balanced market that accommodates both tenant needs and developer expectations. Expect lease rates across Utah County’s industrial market to remain steady or increase modestly, further solidifying the area’s reputation as a desirable location for industrial tenants.

$1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00

2020

2021

0-20K SF 100K+ SF

Absorption

2022

2023

20-50K SF Overall

2024 50-100K SF

1,900,000 Year-to-date absorption reached positive 1,485,707 square feet at the end of 2024 compared to positive 1,718,544 square feet at year-end 2023. Alice Lane secured 71,043 square feet at Lakeshore in Springville, Top Health Manufacturing occupied 68,871 square feet in Payson Tech Center, and Total Facility Solutions took 49,461 square feet in Northshore Commerce Building 1 in Saratoga Springs. Utah County’s resilient industrial market is underscored by sustained demand for expansive, strategically located facilities.

Vacancy Vacancy rates in Utah County decreased significantly from 4.63 percent last quarter to 3.88 percent at yearend, highlighting robust leasing activity across all quadrants. Once current construction reaches completion, vacancy rates will likely rise for a quarter or two, but new spaces will fill quickly as demand continues to outpace supply. Limited available space underscores the market’s strength and consistent demand for industrial facilities.

1,400,000 900,000 400,000 (100,000)

4Q2020 4Q2021 4Q2022 4Q2023 2Q2024

0-20K SF

20-50K SF

50-100K SF

100K+ SF

Overall

2023

2024

7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

2020 0-20K SF 100K+ SF

2021

2022 20-50K SF Overall

50-100K SF

Utah County

Industrial

24Q4

4th Quarter Transactions

Lease

Lease

2111 W Center St Alice Lane 71,043 SF Transaction Date: 11/30/2024

Lease

68 W 1130 N Top Health Manufacturing 68,871 SF Transaction Date: 10/09/2024

Sale

560 & 572 E 1700 S M-Con Real Estate Holdings 43,614 SF Transaction Date: 12/09/2024 Colliers | Utah County| 24Q4 | Industrial Report

593-659 N Saratoga Rd Total Facility Solutions 49,461 SF Transaction Date: 10/31/2024

Lease

593-659 N Saratoga Rd Picklr 36,957 SF Transaction Date: 10/31/2024

Top Construction Projects

Utah County

Industrial

24Q4

Market Overview Existing Properties Building Size

Total Inventory SF

Direct Vacancy

Sublease Availability

Total Vacancy

Absorption Square Footage

Avg Asking Rate

SF

Rate

SF

Rate

Rate

Current Period

YTD

Rate (NNN)

3,143,307 4,850,848 3,006,063 3,715,600 14,715,818

46,044 102,225 80,324 372,658 601,251

1.46% 2.11% 2.67% 10.03% 4.09%

10,000 51,198 0 0 61,198

0.32% 1.06% 0.00% 0.00% 0.42%

1.78% 3.16% 2.67% 10.03% 4.50%

(13,000) (25,652) 16,000 0 (22,652)

(378) (45,711) 21,276 (107,430) (132,243)

$1.08 $1.10 $0.91 $0.95 $0.97

1,863,497 3,897,343 4,612,854 6,744,931 17,118,625

37,266 21,556 147,227 87,201 293,250

2.00% 0.55% 3.19% 1.29% 1.71%

0 2,720 18,899 29,724 51,343

0.00% 0.07% 0.41% 0.44% 0.30%

2.00% 0.62% 3.60% 1.73% 2.01%

(1,897) 17,289 13,428 21,191 50,011

(17,451) 98,517 138,486 499,647 719,199

$1.26 $1.10 $1.11 $1.07 $1.13

1,494,539 2,803,911 1,923,494 10,371,049 16,592,993

1,900 127,009 80,564 700,329 909,802

0.13% 4.53% 4.19% 6.75% 5.48%

0 2,992 0 0 2,992

0.00% 0.11% 0.00% 0.00% 0.02%

0.13% 4.64% 4.19% 6.75% 5.50%

500 27,178 0 221,077 248,755

4,000 77,084 45,875 577,723 704,682

$1.10 $1.35 $0.95 $0.96 $0.89

34,903

0

0.00%

0

0.00%

0.00%

0

0

-

INDUSTRIAL MARKET Central 0-20,000 20,001-50,000 50,001-100,000 100,001+ TOTAL North 0-20,000 20,001-50,000 50,001-100,000 100,001+ TOTAL South 0-20,000 20,001-50,000 50,001-100,000 100,001+ TOTAL West 0-20,000 20,001-50,000

27,727

0

0.00%

0

0.00%

0.00%

0

0

-

50,001-100,000 100,001+ TOTAL

90,369 1,618,640 1,771,639

20,055 124,885 144,940

22.19% 7.72% 8.18%

0 0 0

0.00% 0.00% 0.00%

22.19% 7.72% 8.18%

0 61,955 61,955

70,314 123,755 194,069

$1.20 $0.95 $0.99

Overall Market Totals Existing Properties Building Size

Total Inventory SF

Direct Vacancy SF

Rate

Sublease Availability SF

Rate

Total Vacancy

Absorption Square Footage

Rate

Current Period

YTD

Avg Asking Rate Rate (NNN)

Quarterly Totals 0-20,000

6,536,246

85,210

1.30%

10,000

0.15%

1.46%

(14,397)

(13,829)

$1.17

20,001-50,000

11,579,829

250,790

2.17%

56,910

0.49%

2.66%

18,815

129,890

$1.14

50,001-100,000

9,632,780

328,170

3.41%

18,899

0.20%

3.60%

29,428

275,951

$0.90

100,001+

22,450,220

1,285,073

5.72%

29,724

0.13%

5.86%

304,223

1,093,695

$0.85

TOTAL

50,199,075

1,949,243

3.88%

115,533

0.23%

4.11%

338,069

1,485,707

$0.95

Colliers | Utah County| 24Q4 | Industrial Report

Market Activity Utah County North

Direct Vacancy Rate: 1.71% YTD Absorption: 719,199 SF Lease Rate: $1.13 NNN

Utah County West

Direct Vacancy Rate: 8.18% YTD Absorption: 194,069 SF Lease Rate: $0.99 NNN

Utah County Central

Direct Vacancy Rate: 4.09% YTD Absorption: (132,243) SF Lease Rate: $0.97 NNN

Utah County South

Direct Vacancy Rate: 5.48% YTD Absorption: 704,682 SF Lease Rate: $0.89 NNN

Headline

Utah County

Retail

Utah County’s resilient retail market saw strong demand drive continued competition for space through the end of the year. Vacancy rates hovered at a tight 2.48 percent, while lease rates continued to rise as retailers competed for available locations. Construction activity increased year-over-year, and areas like Saratoga Springs and Eagle Mountain saw rapid development and premium prices. Retailers started exploring non-traditional spaces and flexible formats to adapt to and navigate a competitive market. With more favorable interest rates on the horizon, the market is well-positioned for continued growth and its accompanying challenges and opportunities for retailers and developers.

24Q4

Current Market Indicators

YTD Absorption

Under Construction

Direct Vacancy Rate

Lease Rate (NNN)

58K SF

474K SF

2.51%

$26.88/ SF

YOY

YOY

YOY

FORECAST

FORECAST

FORECAST

1.85%

23Q4

24Q3

24Q4

17,536,259

17,420,818

17,422,034

0

0

9,000

YTD Net Absorption (SF)

173,488

56,508

57,738

Direct Vacancy

2.39%

2.47%

2.48%

Sublease Vacancy

0.01%

0.03%

0.02%

Total Vacancy

2.40%

2.50%

2.51%

Under Construction (SF)

196,086

405,772

473,589

Overall Asking Lease Rates (NNN)

$24.67

$27.57

$26.88

New Supply (SF)

FORECAST

Construction

Historic Comparison

Total Inventory (SF)

YOY

Colliers | Utah County| 24Q4 | Retail Report

5.72%

3.07%

Central

North 62.45% Preleased South 89.37%

West

Retail construction in Utah County showed steady growth in the fourth quarter, reaching 473,589 square feet compared to 196,086 square feet at the same time last year. However, as developers faced ongoing financial challenges in bringing new space to the market, only build-to-suit retail projects were completed in 2024. With vacancy rates remaining well below 3 percent and no new speculative retail space on the horizon, tenants are facing increased difficulty in securing space amid tight market conditions.

4th Quarter Transactions

Sale

Sale

898 S 2550 E Bluefin Property Investments 24,394 SF Transaction Date: 12/17/2024

Lease

248-260 N Main St Altura Packaging 20,140 SF Transaction Date: 10/09/2024

Lease

6 W Main St The GoForth Foundation 2,342 SF Transaction Date: 12/20/2024

153 W Crossroads Blvd MB Pizza 2,576 SF Transaction Date: 10/15/2024

Lease

2235-2293 N University Pkwy Liberty Horizon 1,872 SF Transaction Date: 11/27/2024

Utah County

Retail

24Q4

Avg. Asking Lease Rates The average asking lease rate for retail space in Utah County rose to $26.88 per square foot NNN by the close of the fourth quarter of 2024, a significant increase compared to $24.67 NNN at the same time last year. In the face of high demand and limited availability, newer developments in high-growth areas like Saratoga Springs and Eagle Mountain are commanding premium prices. As vacancy rates remain low and competition for space intensifies, expect lease rates to continue to climb, making the market increasingly favorable for landlords and those able to secure space in these sought-after locations.

$40.00 $30.00 $20.00 $10.00 $0.00

Anchorless

Absorption Retail absorption in Utah County showed positive movement in the fourth quarter, with year-to-date absorption reaching 57,738 square feet, down from 173,488 square feet at the end of 2023. Given low availability and limited leasing activity, expect incremental increases in absorption as tenants compete for limited options. Absorption may see further increases as new developments come online, especially in high-demand areas.

2020

2021

Community

2020

2021

2022 Neighborhood

2023 Regional

2024 Overall

2022

2023

2024

2022

2023

2024

Regional

Overall

600,000 500,000 400,000 300,000 200,000 100,000 0 (100,000)

Vacancy Utah County’s retail vacancy remains exceptionally tight at 2.47 percent. As demand outpaces supply, landlords are getting more creative with the scarce available space. Zoning policies are expected to adapt to market conditions, potentially allowing developers to repurpose underutilized properties, converting office buildings into second- or third-floor retail spaces. As apparel, food and beverage, and experiential pursuit retailers continue to expand, the retail landscape will likely make room for new formats that meet current needs and capitalize on existing space, addressing ongoing vacancy constraints and providing additional opportunities in high-demand areas well into 2025.

Colliers | Utah County| 24Q4 | Retail Report

8.00% 6.00% 4.00% 2.00% 0.00%

2020

Anchorless

2021

Community

Neighborhood

Top Construction Projects

Utah County

Retail

24Q4

Market Overview Existing Properties Center Type

Absorption Square Footage

Avg Asking Rate

Rate

Current Period

YTD

Rate (NNN)

0.06% 0.00% 0.00%

1.48% 4.25% 2.32%

(1,393) 0 512

(8,670) 101,867 25,862

$19.99 $19.56 $24.08

Direct Vacancy

Sublease Availability

Total Inventory SF

SF

Rate

SF

Rate

2,367,812 3,157,922 1,789,281

33,561 134,288 41,578

1.42% 4.25% 2.32%

1,368 0 0

Total Vacancy

RETAIL MARKET Central Anchorless Strip Community Center Neighborhood Center Regional Center

231,042

22,000

9.52%

0

0.00%

9.52%

0

0

$36.00

TOTAL

7,546,057

231,427

3.07%

1,368

0.02%

3.08%

(881)

119,059

$21.78

North Anchorless Strip Community Center Neighborhood Center

995,960 1,995,959 1,727,805

8,950 20,572 25,600

0.90% 1.03% 1.48%

0 0 1,590

0.00% 0.00% 0.09%

0.90% 1.03% 1.57%

(1,700) 0 0

1,350 12,100 0

$28.66 $25.56 $31.30

Regional Center

665,430

4,058

0.61%

0

0.00%

0.61%

0

10,649

$30.10

TOTAL

5,385,154

59,180

1.10%

1,590

0.03%

1.13%

(1,700)

24,099

$31.02

South Anchorless Strip Community Center Neighborhood Center

749,976 1,209,042 534,887

2,460 19,000 72,148

0.33% 1.57% 13.49%

0 0 0

0.00% 0.00% 0.00%

0.33% 1.57% 13.49%

0 0 0

(2,460) (13,000) (72,148)

$32.75 $32.00 $27.26

Regional Center

734,943

18,440

2.51%

1,326

0.18%

2.69%

0

1,560

$40.00

TOTAL

3,228,848

112,048

3.47%

1,326

0.04%

3.51%

0

(86,048)

$30.23

West Anchorless Strip Community Center Neighborhood Center Regional Center

282,895 769,640 209,440 0

11,940 17,930 0 0

4.22% 2.33% 0.00% 0.00%

0 0 0 0

0.00% 0.00% 0.00% 0.00%

4.22% 2.33% 0.00% 0.00%

0 0 8,453 0

0 (7,825) 8,453 0

$38.00 $37.49 -

TOTAL

1,261,975

29,870

2.37%

0

0.00%

2.37%

8,453

628

$37.69

Overall Market Totals Existing Properties Center Type Quarterly Totals Anchorless Strip Community Center Neighborhood Center Regional Center TOTAL

Direct Vacancy

Sublease Availability

Total Inventory SF

SF

Rate

SF

Rate

4,396,643 7,132,563 4,261,413 1,631,415 17,422,034

56,911 191,790 139,326 44,498 432,525

1.29% 2.69% 3.27% 2.73% 2.48%

1,368 0 1,590 1,326 4,284

0.03% 0.00% 0.04% 0.08% 0.02%

Colliers | Utah County| 24Q4 | Retail Report

Absorption Square Footage

Avg Asking Rate

Rate

Current Period

YTD

Rate (NNN)

1.33% 2.69% 3.31% 2.81% 2.51%

(3,093) 0 8,965 0 5,872

(9,780) 93,142 (37,833) 12,209 57,738

$30.76 $23.18 $26.96 $35.37 $26.88

Total Vacancy

Market Activity Utah County North

Vacancy Rate: 1.10% YTD Absorption: 24,099 SF Lease Rate: $31.02 NNN

Utah County Central

Vacancy Rate: 3.07% YTD Absorption: 119,059 SF Lease Rate: $21.78 NNN

Utah County West

Vacancy Rate: 2.37% YTD Absorption: 628 SF Lease Rate: $37.69 NNN

Utah County South

Vacancy Rate: 3.47% YTD Absorption: (86,048) SF Lease Rate: $30.23 NNN

At Colliers, we are enterprising

Market Contact: Megan Donnell Research Manager | Utah Millrock Office | Salt Lake City +1 801 453 6822 megan.donnell@colliers.com

65 countries on 6 continents

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$98B assets under management

51,000 sale and lease transactions

2B square feet under management

18,000 professionals and staff

About Colliers Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

6440 S Millrock Dr. STE 500 Salt Lake City, UT 84121 +1 801 947 8300 colliers.com