Salt Lake City Retail Market Report
2023 Investment Forecast
Local Economic Growth a Boon for Retail Development;
Prior Reliance Clouds Investment Sales Outlook
Near-term influx of supply additions appears warranted. Following a two-year period in which retailers absorbed a net of more than 2.7 million square feet, availability in the metro reached its lowest point on record in the second half of 2022. Tight conditions have escalated construction efforts, with Salt Lake City anticipated to add nearly 1 million square feet of new space this year. Utah County, embodying Provo, will receive a notable portion of this development, highlighted by mixed-use projects that feature a combination of retail and office space. While an overall increase in supply additions across the metro has the potential to place upward pressure on vacancy, near-term deliveries should be well-received by expanding retailers. Continued net in-migration and an above-average rate of median income growth should fuel consumer demand for necessity and discretionary stores, positioning local vendors to handle oncoming headwinds. Locales to the south of downtown — including the Central Valley and Central Valley East submarkets — are particularly well-positioned, with vacancy in both submarkets at least 50 basis points below the metro average at the beginning of this year.