Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1150 West 1220 South in Tooele, Utah. The subject property consists of approximately 92.45 acres of land. The asset features four parcels of land and potential access to a Union Pacific rail line. The property is part of a larger 324-acre business park known as the Tooele Rail Industrial Park. In June of 2023, the industrial park underwent approval and rezoning as the Tooele City Business Park (TCBP) district. Under the TCBP district, the land to the East adjacent to the residential area can accommodate commercial and office uses with a height of up to 35’. On the West side closest to the rail line, the land is approved for heavier industrial uses up to 70’ (Toole Transcript Bulletin). Buyers also have the opportunity to co-develop the property with the city of Tooele. Located just off of State Route 36, which feeds directly into Downtown Salt Lake City via Interstate 80, the subject property is primely situated in the Tooele County industrial submarket. The submarket is relatively small, containing 6.2 million square feet of industrial space. Logistics space is by far the largest subtype, making up 84 percent of inventory, followed by specialized space and flex space at 15 percent and 1 percent, respectively. By the end of Q3 2023, the vacancy rate in the Tooele County submarket remained steady at 3.7 percent, down significantly from 9.5 percent a year earlier. This comes at a time when the overall Salt Lake City market has experienced a 330-point bump in industrial vacancies to 6.2 percent. While annual rent growth has slowed down to 13.7 percent in Q3, the pace sits well above the 7.6 percent average over the last decade. Market rents now average $5.70 per square foot, offering tenants a 49 percent discount compared to the overall market. Affordable rents have helped spur development in Tooele County in recent years, including the construction of the 503,000-square-foot Lakeview Commerce Center due in the fourth quarter of 2023 (CoStar).