Salt Lake City Retail Market Report

Availability stays historically tight, aided by demographics. Salt Lake City’s population of 20- to 34-year-olds is growing at one of the fastest rates nationally, reinforcing consumer spending and retail space demand. Job growth and rising household incomes further support leasing momentum, while retail construction remains subdued. Just 670,000 square feet is slated for completion this year, roughly half the historical average. Regardless, vacancy will edge up to 3.5 percent in 2025, though this is only 30 basis points from its all-time low. Over half of the metro’s retail stock lies in submarkets with sub-3 percent vacancy, with the South Valley — plus Davis, Weber and Utah counties — poised to capture much of 2025’s net absorption. Meanwhile, the CBD should hold near 4.6 percent vacancy this year, supported by steady foot traffic from high residential density, as well as from major employers and the University of Utah. Despite broader economic uncertainties, the metro’s demographic tailwinds and historically tight inventory should maintain healthy leasing activity through year-end.