“Utah County retail space is has become very competitive amongst tenants looking for space. New product is consistently on lease terms with an average of 10 years. Landlords are seeking higher escalations, but tenants are pushing back trying to keep costs affordable. With construction costs still going up, tenants are asking for higher tenant improvements but are settling for grey shell with tenant improvements averaging $30-$40 per square foot.” - Dan Moore
Vacancy rates dropped again slightly this quarter, however during this same time, more retail construction has begun which will help provide the much-needed space for national tenants that are actively looking to expand into Utah. Although the supply chain is still an issue, it’s not the deterrent that it was last year as retail continues to rebound from the pandemic.