Salt Lake City Office Market Report

Late-year momentum brightens the outlook for local office performance. The Salt Lake City market concluded 2024 on an upswing. Net absorption surpassed 1 million square feet during the fourth quarter of last year - the highest total since 2021 - lowering vacancy 80 basis points to 13.8 percent, the third-lowest rate among major metros west of Colorado. High-profile expansions by CleanJoule and Strider have buoyed demand, while office-to-multifamily conversions removed some existing buildings from stock. Although sublease listings reverting to direct availability are nudging landlords toward more flexible terms, only 500,000 square feet of new deliveries are slated for 2025 — the smallest tally since at least 2007. This pullback in construction may steer more prospective tenants to existing properties, a dynamic that is expected to fuel stronger rent growth and drive vacancy even lower by end of year.