“Unprecedented: this word describes the state of high construction activity, low vacancy rates, achieved rent rates, preleasing commitments, low cap rates and record cost per square foot on investment sales in the Salt Lake County industrial market. Salt Lake is truly on the radar for logistics, manufacturing and investing. The concern for existing users is real, as sticker shock for rent, labor and construction costs is putting the pinch on operations.” - Randy Atkin, Vice President, CCIM
While absorption rates have almost been cut in half since the first quarter of 2021, indicating a significant lack of available space, construction remains strong. Even though high construction costs and supply chain delays have created some market instability, industrial product remains in high demand for e-commerce, manufacturing and cold-storage tenants.