The Salt Lake City-Provo office market absorbed 196,654 sq. ft. on net in Q1 2020, which was predominantly attributed to activity in the Sandy South Towne, Central Valley East, and Sugarhouse submarkets.
The abundance of incoming supply (over 3.0 million sq. ft) with substantial preleasing reaffirms that there is still strong confidence in the Salt Lake-Provo marketplace. Tech and financial services firms are the driving forces.
Vacancy increased by 90 bps quarter-over quarter as a result of upward pressure from new development and increased sublease availability.
Asking rates have held steady quarter-over-quarter, matching $23.82 per sq. ft. FSG from Q4 2019.