Salt Lake Chamber-Commercial Real Estate Market Review CBRE Salt Lake City 222 South Main Street, 4th Floor
Lloyd Allen Managing Director & Principal Broker +801 869 8044 lloyd.allen@cbre.com
Nadia Letey Senior Vice President +1 801 869 8037 nadia.letey@cbre.com
February 11, 2022
CBRE OVERVIEW
About CBRE
CBRE Group, Inc. (NYSE:CBRE) is the world’s largest commercial real estate services and investment firm, with the #1 global market position in leasing, property sales, property management, occupier outsourcing and valuation. Additionally, our development business (Trammell Crow Company) is the largest in the U.S. and we operate one of the largest investment management businesses (CBRE Global Investors) globally. CBRE has acquired a 60% ownership interest in Turner & Townsend Holdings Limited, a global professional services company specializing in program management, project management, and cost consulting across the commercial real estate, infrastructure and natural resources sectors. We are the largest shareholder in Industrious, a provider of premium flexible workplace solutions, and our SPAC, CBRE Acquisition Holdings (NYSE:CBAH.U) has entered into a planned business combination that is expected to result in Altus Power, Inc., a major provider of solar energy solutions, becoming a NYSE - listed public company in the fourth quarter of 2021.
At a Glance
$23.8B 2020 Revenue
115 Years
Continuous Operation inInc.the U.S © 2022 CBRE,
100,000+ Employees
#1
Fortune Most Admired Real Estate Company (2021, 2020, 2019)
100+
~500
Countries
Offices
#122
90+
2021 Fortune 500 ranking
of the Fortune 100 are clients Salt Lake Chamber of Commerce | Real Estate Market Review
2
CBRE OVERVIEW
Our World-Class Aspiration To be recognized among the world’s best large companies.
© 2022 CBRE, Inc.
Our Rise Values
Respect
Integrity
Service
Excellent
Accolades • • • •
#1 brand for 20 consecutive years • Forbes America’s Best Employers World’s Most Ethical Companies • Bloomberg Gender-Equality index Media’s 2021 Best Corporate • Human Rights Campaign Barron’s 100 Most Sustainable Companies
Salt Lake Chamber of Commerce | Real Estate Market Review
3
GLOBAL REAL ESTATE MARKET
Key Factors for Global Real Estate Activity Swoosh There it is - 5.5% GDP Growth in 2021, A Stunning Economic Rebound
GDP Forecast Weaker But U.S. Still Expanding Strongly October 2021 GDP Forecast – United States
Quarterly Year Over Year GDP Growth Q4 2021 Forecast
Q2 2021 Forecast
5.4
8
5.2 USD (Trillions)
GDP Growth (%)
6 4 2 0
5.0 4.8 4.6 4.4
-2
4.2
-4 2018
2019
Source: CBRE House View, October 2021.
© 2022 CBRE, Inc.
2020
2021
2022
2023
4.0 2018Q1
2018Q3
2019Q1
2019Q3
2020Q1
2020Q3
2021Q1
2021Q3
Source: CBRE House-View, CBRE Research, 25 Jan 2022.
Salt Lake Chamber of Commerce | Real Estate Market Review
5
GLOBAL REAL ESTATE MARKET
Key Factors for Global Real Estate Activity Job Openings are Super Strong, But the Labor Market Seems to Have Shrunk Job Openings Rate Percent Job openings rate, Leisure & Hospitality (%) 12
U.S. Civilian Labor Force, 16 Years & Over Millions of People
Job openings rate, Total (%) 167
10
165
8
163
6
161
4
159
2
157
0 2000
2002
2004
2006
2008
Source: BLS, CBRE Research, January 2022.
© 2022 CBRE, Inc.
2010
2012
2014
2016
2018
2020
3.0 Million Workers Missing
155 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Source: BLS, CBRE Research, October 2021.
Salt Lake Chamber of Commerce | Real Estate Market Review
6
GLOBAL REAL ESTATE MARKET
2021 Global Investment Volume Hits Record Level Global Commercial Real Estate Investment Volume, Q4 2021 (US$ Billions - Floating)
Share of Global Investment Volume
Source: CBRE Research, Real Capital Analytics, Q4 2021. © 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
7
GLOBAL REAL ESTATE MARKET
Cap Rates Trending Down - National National Cap Rates by Sector, Percent Industrial
10%
8%
8%
7%
6%
6%
4%
5%
Multifamily
4%
2% 09Q1 10Q1 11Q1 12Q1 13Q1 14Q1 15Q1 16Q1 17Q1 18Q1 19Q1 20Q1 21Q1 Retail
9%
09Q1 10Q1 11Q1 12Q1 13Q1 14Q1 15Q1 16Q1 17Q1 18Q1 19Q1 20Q1 21Q1 Office 9% 8%
8%
7% 7%
6%
6%
5%
5%
4% 09Q1 10Q1 11Q1 12Q1 13Q1 14Q1 15Q1 16Q1 17Q1 18Q1 19Q1 20Q1 21Q1
09Q1 10Q1 11Q1 12Q1 13Q1 14Q1 15Q1 16Q1 17Q1 18Q1 19Q1 20Q1 21Q1
Source: CBRE Research, RCA Q4 2021. © 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
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GLOBAL REAL ESTATE MARKET
Cap Rates Broadly Stable Multifamily Infill
9%
Multifamily Suburban
8% 7% 6% 5% 4% 2009
U.S. Cap Rates by Sector U.S. Cap Rate Survey H1 2021, Percent Retail Neighborhood
11%
2011
10%
2015
Office CBD
12%
Retail Power Center
2013
2017
2019
2021
Office Suburban
10%
9% 8%
8% 7%
6%
6%
4%
5% 2009
2011
2013
2015
2017
2019
2021
2009
2011
2013
2015
2017
2019
2021
Source: CBRE Econometric Advisors, CBRE Research, H1 2021. © 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
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GLOBAL REAL ESTATE MARKET
Real Estate in Full Recovery - National Industrial Net Absorption
U.S. Net Absorption by Sector With Q4 Forecast Thousands of Sq Ft
Positive
140
Multifamily Net Absorption 240
120 100
190
80
140
60
90
40
40
20
-10
0 -20 2010 Q1 2011 Q2 2012 Q3 2013 Q4 2015 Q1 2016 Q2 2017 Q3 2018 Q4 2020 Q1 2021 Q2 20
Positiv e
Retail Net Absorption
Positive
-60 2010 Q1 2011 Q2 2012 Q3 2013 Q4 2015 Q1 2016 Q2 2017 Q3 2018 Q4 2020 Q1 2021 Q2 40
Office Net Absorption
Positive
15 10 5 0 -5
20 0 -20
-10 -15 2010 Q1 2011 Q2 2012 Q3 2013 Q4 2015 Q1 2016 Q2 2017 Q3 2018 Q4 2020 Q1 2021 Q2
-40 2010 Q1 2011 Q2 2012 Q3 2013 Q4 2015 Q1 2016 Q2 2017 Q3 2018 Q4 2020 Q1 2021 Q2
Source: CBRE Econometric Advisors, CBRE Research, Q3 2021. © 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
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GLOBAL REAL ESTATE MARKET
Q4 Caps Record Year for U.S. Industrial Market $9.10
3.2%
5.2% Availability Rate
Vacancy Rate
121.9 MSF
Net Asking Rent
Net Absorption
81.0 MSF Completions
Note: Arrows indicate change from previous quarter Source: CBRE Research, Q4 2021.
Net Absorption at Record Level
U.S. Industrial Cap Rates U.S. Cap Rate Survey H1 2021, Percent Industrial
12% 10% 8% 6% 4% 2% 2009
2011
2013
2015
2017
Source: CBRE Econometric Advisors, CBRE Research, H1 2021. © 2022 CBRE, Inc.
2019
2021 Sources: CBRE Econometric Advisors, Q4 2021. Salt Lake Chamber of Commerce | Real Estate Market Review
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GLOBAL REAL ESTATE MARKET
Utah Economic Dashboard
The Utah Economic Dashboard provides recent data and key insights into Utah’s economy in an interactive format. Economic information and trends on this page cover various topics, including employment and wages, macroeconomic indicators, housing and construction, population, and more. Data on this page are updated monthly to coincide with the state-level Bureau of Labor Statistics release.
1st Most Favorable
More Utahns Work
2nd Lowest
Annual Employment Growth
5th Highest Labor Force Participation Rate
Unemployment Rate
2nd Lowest
5th Highest
Poverty Rate
Median Household Income
Utah (3.7%) US (-1.8%)
Still Youngest
Still Largest
Median Age
Household Size
Utah (31.3) US (38.2)
© 2022 CBRE, Inc.
Utah (3.08) US (2.61)
Utah (7.1%) US (11.9%)
Utah (2.1%) US (3.9%)
Utah ($83,670) US ($67,521)
Salt Lake Chamber of Commerce | Real Estate Market Review
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UTAH REAL ESTATE MARKET
Accolades for Utah Real Estate PWC Emerging Markets 2021
PWC Emerging Markets 2022
1. Raleigh/Durham, NC
1. Nashville, TN
2. Austin, TX
2. Raleigh/Durham, NC 3. Phoenix, AZ
3. Nashville, TN 4. Dallas/Fort Worth, TX 5. Charlotte, NC 6. Tampa/St. Petersburg, FL 7. Salt Lake City, UT 8. Washington D.C.
4. Austin, TX 5. Tampa/St. Petersburg, FL 6. Charlotte, NC 7. Dallas/Fort Worth, TX 8. Atlanta, GA
9. Boston, MA
9. Seattle, WA 10.Boston, MA
10.Long Island, NY
11.Salt Lake City, UT
Source: Emerging Trends In Real Estate 2021.
Source: Emerging Trends In Real Estate 2022.
© 2022 CBRE, Inc.
CBRE Tech Talent 30 1. San Francisco 2. Seattle 3. Washington D.C. 4. Toronto 5. New York Metro 6. Boston 7. Austin 8. Atlanta 9. Los Angeles/Orange Co. 10. Ottawa 11. Vancouver 12. Denver 13. Dallas/Ft. Worth 14. Raleigh-Durham 15. Baltimore
16. Montreal 17. Phoenix 18. Salt Lake City 19. San Diego 20. Portland 21. Waterloo Region 22. Minneapolis/St. Paul 23. Chicago 24. Madison 25. Detroit 26. Philadelphia 27. Charlotte 28. Calgary 29. Pittsburgh 30. Kansas City
Source: CBRE Research, CBRE Econometric Advisors, U.S. Bureau of Labor Statistics, Statistics Canada, Oxford Economics, The National Center of Education Statistics, National Science Foundation, Axiometrics, 2021.
Salt Lake Chamber of Commerce | Real Estate Market Review
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UTAH REAL ESTATE MARKET
Accolades for Utah Real Estate Milken Institute Analysis, Multifamily Development (2021) – #1 Provo-Orem – #4 Salt Lake City – #9 Ogden-Clearfield
Source: Milken Institute Analysis (2021) © 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
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UTAH REAL ESTATE MARKET
12.0
5.0
10.0 8.0
3.0
6.0 4.0 2.0 -
2.9
1.4
2.0
YTD Deliveries
Note: Arrows indicate change from previous quarter Source: CBRE Research, Q4 2021.
2018
2020
Under Construction
Overall Vacancy Rate (%)
$0.54
$0.46
$0.43
$0.64
$0.59
$0.51
$0.63
$0.58
$0.50
$0.20
$0.72
$0.40
$0.70
$0.60
$0.60
$0.80
$0.81
$1.00
$0.69
Under Construction
0.0
2016
$0.58
Avg. Asking Lease Rate
9.9 MSF
1.0
Average Achieved Lease Rates ($/SF/Mo NNN)
$0.53
$0.67 NNN 4.8 MSF
Total Vacancy
2.0
4.8
4.0
2.9
New Completions (MSF)
$0.50
YTD Leasing Activity
1.4%
6.0
4.7
2014
12.6 MSF
4.0
9.9
$0.71
INDUSTRIAL Record high lease activity outpaces record high new development
Construction (MSF) and Vacancy (%)
$0.00 Market Average
1,000 9,999 SF 2019
10,000 19,999 SF 2020
20,000 49,999 SF
50,000 99,999 SF
100,000+ SF
2021 Source: CBRE Research, Q4 2021
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
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UTAH REAL ESTATE MARKET
RETAIL: Lack of available product and growing demand compresses Salt Lake retail vacancy 428K SF YTD Leasing Activity
6.5%
Total Vacancy
Note: Arrows indicate change from previous quarter Source: CBRE Research, Q4 2021.
$17.44 NNN
-
792K SF
YTD Deliveries
Under Construction
Avg. Asking Lease Rate
Demand and Supply Indicators - Utah
Household Income Median Household Income 2021
$76,052
Average Household Income 2021
$95,347
Population Growth Total Population
2020 Census
3.16M
17.6%
Gross Taxable Sales Annual Change
8.4%
2020 Volume
$74.7T
Source: ESRI Demographics; Utah Department of Workforce Services, June 2021; US Census Bureau, 2020. © 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
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UTAH REAL ESTATE MARKET
Utah Land – 2021 in Review •
Salt Lake and Utah Counties remain uniquely geographically constrained
•
15-20% YOY Price Increase in all sectors except Office land
•
Industrial land is pricing on par with Retail in many geographies -some class C Office being repurposed as Flex Industrial -some Industrial is pricing higher that periphery Office
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
19
UTAH REAL ESTATE MARKET
Historical Investment Sales Volume, Excluding Multifamily ($, billions)
UTAH’s Investment Market
1.86
1.54
2015
2.65
2.20
2016
2018 Multifamily
2018 Industrial
2.38
2019 Office Retail
3.55
1.97
2020
2021
Source: CBRE Research, 2021
Average Cap Rate 8.0 7.0 6.0 5.0 4.0 2015
2016
Multifamily
2018 Industrial
2018
2019 Office
2020
YTD 2021 Retail
Source: CBRE Research, 2021 © 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
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UTAH REAL ESTATE MARKET
Total Sales Volume ($, billions)
2.60
UTAH’s Multifamily Investment Market
1.44 2018
1.26
1.63
2019
2020
2021
COUNTY
RENT
RENT GROWTH
VACANCY
Salt Lake County
$1,465
19%
2.7%
Utah County
$1,503
15%
2.3%
Davis County
$1,394
18%
2.2%
Weber County
$1,311
17%
2.4%
Source: Mills and Bodnar Team, 2021
Multifamily Rent Growth
Source: Mills and Bodnar Team, 2021
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
21
3
The Future of Office
UTAH’S OFFICE MARKET JANUARY 2022
Where are we today?
© 2022 CBRE, Inc.
Leasing momentum paints positive picture for 2022 and beyond
Net Absorption by Market (MSF) and Vacancy (%)
Salt Lake Chamber of Commerce | Real Estate Market Review
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THE FUTURE OF OFFICE
Where will be different in the future?
© 2022 CBRE, Inc.
1 2 3 4 5
Remote work is here to stay.
The office is here to stay, too. Space allocations will favor “we space” over “me space.”
Conferencing will adapt to “mixed presence” collaboration. Amenities strategies will focus on hospitality and services.
6 7 8 9 10
Desk-sharing occupancy strategies will continue to grow in popularity. Employees will demand more “elbow room.” Design changes and hybrid work may not necessarily mean decreased office space. Healthy building design and operation will take center stage. Partnerships between CRE, HR, and IT will strengthen.
Salt Lake Chamber of Commerce | Real Estate Market Review
24
WHAT WILL BE DIFFERENT IN THE FUTURE?
Remote work is here to stay.
85%
of employees prefer to work remotely at least two to three days a week in the future.
© 2022 CBRE, Inc.
CBRE believes that COVID-19 revealed three key principles about the modern workforce: 1. Employees value flexibility and the ability to more freely balance their professional and personal lives. 2. The digital infrastructure to support virtual work is already available. 3. There is widespread agreement among employees and companies that different kinds of work are best done in different types of spaces.
Salt Lake Chamber of Commerce | Real Estate Market Review
26
NAVIGATION HEADER
Remote work is here to stay. In a post-COVID world, where do you prefer to work? 29%
Unique Client Average
6% Fully at the office
© 2022 CBRE, Inc.
28% 28%
10% Mostly at the office (3+ days/week)
Equal mix of both (2-3 days/week of each)
Mostly remote (3+ days/week)
Fully remote
Salt Lake Chamber of Commerce | Real Estate Market Review
27
WHAT WILL BE DIFFERENT IN THE FUTURE?
FUTURE WORKPLACE ECOSYSTEM
The office is here to stay, too.
60%
of responders will return to the office in the future for community and collaboration.
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
29
WHAT WILL BE DIFFERENT IN THE FUTURE?
The office is here to stay, too.
Looking ahead, which best describes your workplace policy intentions in a steady state for most of your employees?
Office-Based: Employees are expected to be primarily in the office occasional flexibility. Hybrid: Employees have choice to work from the primary office or remote locations with varying levels of guidance based on company policy (guided flexibility vs. full). Virtual-First: Employees are expected to be primarily remote with situational in-person meetings. Source: April 2021, United States Occupier Sentiment Survey.
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
30
WHAT WILL BE DIFFERENT IN THE FUTURE?
Looking ahead, which best describes the cultural norm in a steady state that your organization aspires to with workplace policy?
The office is here to stay, too.
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
31
WHAT WILL BE DIFFERENT IN THE FUTURE?
Space allocations will favor “we space” over “me space.” What Are the Top Three Areas that Workplace Solutions Need to Support? Collaboration, culture and employee engagement are the key value-adds of the office among large companies with more than 10,000 employees – edging out talent attraction.
83%
60%
57%
50%
Team Collaboration Employee Engagement
Corporate Culture
Talent Attraction
Source: CBRE 2021 Occupier Sentiment Survey.
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
33
WHAT WILL BE DIFFERENT IN THE FUTURE?
As you plan for steady state, what workplace strategy steps are you currently undertaking?
Space allocations will favor “we space” over “me space.”
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
34
WHAT WILL BE DIFFERENT IN THE FUTURE?
Which of the following CRE technology are you using or considering for the future steady state?
Conferencing will adapt to “mixed presence” collaboration.
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
36
WHAT WILL BE DIFFERENT IN THE FUTURE?
Amenities strategies will focus What will be the most in demand building amenity of the future? on hospitality and services.
”If you only provide a basic workplace, you should have an expectation that the employee experience might not entice people to come into the office. But if you approach workplace design with the desire to make your office the best place your employees can do their work, you’ll see ripple effects across your organization – adoption of hybrid work.”
Wouter Oosting Senior Director CBRE Workplace
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
38
WHAT WILL BE DIFFERENT IN THE FUTURE?
Amenities strategies will focus on hospitality and services. Salt Lake-Provo Net Absorption by Class (MSF) 2.5 2.0 1.5 1.0 0.5 -
Class A
© 2022 CBRE, Inc.
Class B
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020
Q4 2020
Q3 2019
(0.5)
Class C
Salt Lake Chamber of Commerce | Real Estate Market Review
39
WHAT WILL BE DIFFERENT IN THE FUTURE?
Desk-sharing occupancy strategies will continue to grow in popularity.
Enhance office design to improve collaboration. In CBRE’s 2021 Occupier Sentiment Survey, 37% of large companies with 10,000 or more employees said they plan to invest in a activity-based working. Moreover, 47% are revisiting their office design standards and 60% are enhancing collaboration spaces in and around the office, indicating a recognition that the role of the office will change under a hybrid work model. In fact, 97% of those large organizations anticipate embracing more shared workplace environments with at least targeted if not full mobility around seating for employees – underscoring a move away from assigned desks and towards a free-address model.
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
41
WHAT WILL BE DIFFERENT IN THE FUTURE?
Desk-sharing occupancy strategies will continue to grow in popularity.
Versus pre-pandemic, what best describes the type of seating plans you anticipate in most of your workplace?
Before the pandemic, occupancy studies revealed that office space was underutilized much of the time. Today, this is more widely acknowledged, especially as we anticipate the return of workers who use the office much differently than in the past. As a result, companies are looking to shift their seating plans away from one-to-one ratios and toward a desk-sharing basis. The return to the office will allow for a better understanding of how space should adapt to best support the workforce. Targeted Mobility: A combination of dedicated and shared seats driven by workstyle and functional needs. Activity-Based: A shared departmental neighborhoods with more variety in work setting choices. Hot Desking: A majority of seats are unassigned and reservable.
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
42
WHAT WILL BE DIFFERENT IN THE FUTURE?
Employees will demand more “elbow room.”
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
44
WHAT WILL BE DIFFERENT IN THE FUTURE?
Design changes and hybrid work may not necessarily mean decreased office space.
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
46
WHAT WILL BE DIFFERENT IN THE FUTURE?
Design changes and hybrid work may not necessarily mean decreased office space.
Estimating the Impact on Space Demand (All other things being equal) Average Firm’s 10,000 SF lease #1 Average Days Per Week In the Office 2018
4.40
Future
3.35
Impact (= 3.35/4.40)
0.76
Lease Footprint
The average U.S. employee will spend 24% less time working in the office
7,600 SF
#2 Efficiency Factor
0.55
Net Effect of changing working patterns = (1.00) – [(1.00 - 0.76) * (0.55)]
0.87
Lease Footprint
8,700 SF
#3 De-Densification Effect
0.05
Overall Net Impact = (0.87) * (1.05)
0.91
Overall Net Impact: Lease Footprint
9,100 SF
Source: CBRE Econometric Advisors, CBRE Research, Q2 2021. © 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
47
WHAT WILL BE DIFFERENT IN THE FUTURE?
WELLNESS, TECHNOLOGY & FLEXIBILITY TOP BUILDING AMENITY EXPECTATIONS
Healthy building design and operation will take center stage.
What will be the most in demand building amenity of the future?
10 Key Areas of WELL air water nourishment light movement
© 2022 CBRE, Inc.
thermal comfort sound materials mind community
Salt Lake Chamber of Commerce | Real Estate Market Review
49
WHAT WILL BE DIFFERENT IN THE FUTURE?
Healthy building design and operation will take center stage.
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
50
WHAT WILL BE DIFFERENT IN THE FUTURE?
Desk-sharing occupancy strategies will continue to grow in popularity. More than ever before, delivering a high-performing workplace experience will depend on the thoughtful integration of space, people and technology. To navigate this interdisciplinary field, we will likely see an evolution in the role of “Head of corporate Real Estate” towards a more elevated and strategic position of “Chief Places Officer.”
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
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UTAH REAL ESTATE MARKET
Downtown Skyline Tour 1. Union Pacific Hotel 2. 95 State 3. Liberty Sky 4. West Quarter 5. Convention Center Hotel 6. 255 South State 7. Mya & Avia 8. 650 Main Street
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
54
CURRENT & FUTURE DEVELOPMENT
Kensington Astra Tower • 39-story tower • 380 proposed residential units • Multiple communal areas at the low, mid, and high-rise levels. • Developed by Kensington Group (KIC)
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
55
CURRENT & FUTURE DEVELOPMENT
The West Quarter • 100 South 300 West • 240 luxury apartments available to rent • 11,655 SF of ground retail • Two 11-story buildings • The second phase: – Add 400,000-500,000 SF of office space – Additional 500-600 residential units – Subterranean parking structure for the second phase buildings.
• Developed by The Ritchie Group
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
56
CURRENT & FUTURE DEVELOPMENT
Liberty Sky • 151 South State Street • 24-story apartment, 300 Units • Developed by The Boyer Company and Cowboy Partner
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
57
CURRENT & FUTURE DEVELOPMENT
Mya & Avia • 447 South Blair Street • Avia - 286 Units, Mya – 126 Units • 15,000 SF of retail • 30,000 SF of co-working space • A $36 million mixed-income, mixed-use project • Developed by Domain Companies
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
58
CURRENT & FUTURE DEVELOPMENT
Convention Center Hotel • 255 South State Street
• A 28-story glass skyscraper • 616,000 SF • 725 guest rooms • Developed by Portman Holdings and Hensel Phelps
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
59
CURRENT & FUTURE DEVELOPMENT
650 South Main • 10 Story, 327,000 Rentable Square Feet • LEED Gold V4 Certified • Impressive Onsite Amenities • Very Convenient location (600 South Freeway Off Ramp) • Developed by Patrinely’s Development in partnership with USAA Rea; Estate
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
60
CURRENT & FUTURE DEVELOPMENT
95 State • 25-story tower • 515,000 rentable SF • Fitness/Recreational Space • 1,100 Designated Parking Stalls within 300 feet of the Building • 28 Foot Grand Lobby • Developed by City Creek Reserve
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
61
CURRENT & FUTURE DEVELOPMENT
255 South State Street • 14 stories • Mixed-use residential • Brinshore Development
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
62
CURRENT & FUTURE DEVELOPMENT
Union Pacific Hotel • 400 West South Temple • 225 guest rooms, 26 suites • 6,700 SF of restaurant space
© 2022 CBRE, Inc.
Salt Lake Chamber of Commerce | Real Estate Market Review
63
THANK YOU!!! CBRE Salt Lake City 222 South Main Street, 4th Floor
Lloyd Allen Managing Director & Principal Broker +801 869 8044 lloyd.allen@cbre.com
Nadia Letey Senior Vice President +1 801 869 8037 nadia.letey@cbre.com
February 11, 2022