Robust Salt Lake Industrial Market Shines First Quarter 2016
SALT LAKE CITY, April 20, 2016 – The Salt Lake industrial market experienced tightening during first quarter 2016 with overall vacancy down and leasing activity outpacing first quarter 2015 by 17.7, percent according to Cushman & Wakefield/Commerce. These indicators along with net absorption reaching more than 400,000 square feet validate high market demand.
Industrial development remains strong with more than 2.9 million square feet (msf) under construction, following in-line with 2015’s impressive 2.5 msf in completed projects. Big-box, warehouse/distribution buildings being added in the northwest make up the majority of construction.
“An exciting trend we’re seeing is the influx of ecommerce users focusing in on our market,” said Trigger Reital, market leader and managing director of the Cushman & Wakefield/Commerce Salt Lake City office. “We expect more of this ecommerce activity to come to market due to the proximity Salt Lake offers by way of distribution and logistics chains.”
Looking forward, industrial tenants will begin taking occupancy of previously leased buildings, driving net absorption numbers up. Leasing activity will likely rise considerably as several large transactions will come to completion second or third quarter of this year.
About Cushman & Wakefield/Commerce
Cushman & Wakefield/Commerce operates the Cushman & Wakefield business in Idaho, Nevada, Utah and Washington. The firm partners with its sister company Cushman & Wakefield/NorthMarq to provide innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory. Together the firms manage 52 million sq. ft. of retail, industrial, and office assets, have transaction revenues of more than $2 billion, and employ more than 750 professionals. Learn more at www.comre.com.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit http://www.cushmanwakefield.com or follow @CushWake on Twitter.