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Commercial Real Estate

Utah's commercial real estate market is experiencing a slowdown due to the national economy and slower job growth. Office vacancy was at 11.29% at mid-year 2008, which was up slightly from 10.75% at year end 2007.   Salt Lake is continuing to add retail to the market, but also at a much slower pace.

Salt Lake City's central business district has seen an increase in office, hotel and retail space during the past 5 years. The Gateway, a mixed-use venue with retail and office space, condominiums and apartments, an event plaza, restaurants, a hotel and a 16-screen movie theater, added new retail and office space during 2006. A new office building for Fidelity Investments is expected to be completed by late 2007.

Plans to completely renovate Salt Lake City's two downtown malls on Main Street was launched in early 2007 and is currently underway. The new City Creek Center is expected to include new retail, office and residential space, as well as more open space. The Salt Palace Convention Center just expanded to make way for larger conventions and meetings. About 4,000 hotel rooms have been added to the Salt Lake Valley in the past 10 years, which is a 49 percent increase. The increased convention space and hotel rooms have made way for larger conventions such as the International Rotary Convention (June 2007) and The Outdoor Retailers (Winter & Summer shows). 

Utah's rising incomes are drawing higher end retailers to the market. Salt Lake is considered one of the most promising retail markets in the nation. Valuation International Ltd., an Atlanta-based real estate consulting and appraisal group, has ranked Salt Lake as the most lucrative retail market in the country. Cabelas recently opened at 185,000 square foot store in Lehi, Utah-- just 30 minutes from downtown Salt Lake City. IKEA opened a 340,000 square foot store located in Draper, 20 miles from downtown Salt Lake City. Two retail malls in Salt Lake County, Fashion Place and South Towne, have both announced expansions that will begin late 2007.  The Cottonwood Mall will also see a complete overhaul from a traditional shopping mall to a mixed use development that will include housing, office and retail.  This project is expected to be complete by 2011.

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