Salt Lake City’s commercial real estate market reflects the broader dynamics of a mid-sized American city navigating post-COVID shifts in how businesses use space. Office vacancy has risen, industrial demand remains strong, and select retail corridors are thriving. Here is a comprehensive look at commercial real estate in Salt Lake City for business owners, investors, and tenants.

Office Market

SLC’s office market has experienced elevated vacancy rates in the post-COVID era, with overall office vacancy exceeding 25% in some submarkets as hybrid and remote work have reduced demand for traditional office space. However, Class A space in prime locations remains in demand, particularly from tech and financial services tenants who want high-quality amenities to attract talent.

• Downtown SLC: Home to the city’s trophy office towers, including 222 South Main, 111 South Main (WeWork anchor), and One Utah Center. Tenants in downtown include financial services firms, law firms, and technology companies.
• Sugar House: Smaller office buildings and mixed-use developments attract creative agencies, professional services, and small tech teams.
• South Jordan and Draper: The Draper tech corridor along the I-15 corridor south of SLC has become a major tech office submarket, home to numerous Silicon Slopes companies including Qualtrics, Domo, and others.
• Murray: Mid-valley submarket with competitive lease rates, popular with healthcare-related businesses and back-office operations.

Office Leasing Tips for SLC

• Negotiate hard on Class B office space. Landlords in elevated-vacancy submarkets are offering significant concessions including free rent periods, tenant improvement allowances, and flexible terms.
• Class A downtown buildings are holding rates better. Budget $25-$40/SF for quality downtown space.
• TRAX accessibility is a legitimate differentiator for recruiting. Office space near a TRAX station can improve your talent pool.

Industrial Market

SLC’s industrial market is one of the strongest in the state, with historically low vacancy rates driven by e-commerce growth, distribution hub demand, and manufacturing expansion. The Salt Lake Valley’s position as a logistics hub for the Mountain West makes industrial space consistently competitive.

• Key Submarkets: North SLC (near the airport), West Valley City, Magna, South Salt Lake for industrial and warehouse users
• Vacancy: Well below the national average for industrial; expect competitive lease rates for quality space
• Development: New speculative industrial buildings have been delivered across the valley to meet demand

Retail Market

SLC’s retail market is bifurcated. Traditional big-box and suburban retail faces ongoing headwinds, while neighborhood and mixed-use retail in desirable corridors is performing well.

• Sugar House: One of SLC’s most vibrant retail corridors, with a mix of independent restaurants, specialty retail, and services. High foot traffic and a loyal residential base make this a premium retail location.
• 9th and 9th: A boutique retail district known for independent shops, coffee, and dining. Tight vacancy and community character make it a distinctive retail environment.
• Granary District: An emerging creative retail and food and beverage corridor that is attracting younger concepts and independent operators.
• Downtown Core: Main Street and the Gateway area face ongoing challenges. The city is actively working on downtown revitalization initiatives.

TRAX Light Rail and Office Tenant Location Strategy

SLC’s TRAX light rail system is a genuine asset for office tenants. The system runs from the airport through downtown to South Jordan and Murray on multiple lines, providing reliable transit access for employees across the valley. Office buildings with direct TRAX access command a premium, but that premium is often justified by reduced parking costs and the ability to recruit from a broader geographic area.

Top Commercial Real Estate Brokers in Salt Lake City

• CBRE Utah: The largest commercial real estate services firm in the world has a strong Salt Lake City office covering office, industrial, retail, and investment sales.
• JLL Salt Lake City: Jones Lang LaSalle’s SLC team serves institutional and corporate tenants and investors across all property types.
• Newmark SLC: Newmark has built a strong SLC team serving tenant rep, investment sales, and property management.
• Colliers Utah: Colliers International’s Utah operation covers brokerage, property management, and investment services across the Wasatch Front.
• NAI Utah: A locally-rooted firm with deep market knowledge covering commercial leasing and sales across Salt Lake County and beyond.

Working with a CRE Broker in SLC

For any commercial lease over 2,000 SF or any property purchase, engaging a tenant-rep broker at no cost to you is strongly recommended. SLC’s CRE brokers at firms like CBRE, JLL, Newmark, Colliers, and NAI have market data, landlord relationships, and negotiating leverage that a business owner simply cannot replicate independently.