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Commercial Real Estate

Utah's commercial real estate market has continued to expand during 2006. All sectors of commercial real estate in Salt Lake County saw remarkable growth.   Utah's booming economy attracted a number of new retailers into the area including Cabella's and IKEA. 

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. The renovation, City Creek Center,  is expected to include new retail, office and residential 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). 

Downtown office vacancy has declined in the past year. Vacancy rates dropped from 17 percent at year-end 2004 to 10 percent at year-end 2006.   New CBD offic-space construction is expected to begin in 2007 bringing more class A space into downtown Salt Lake.

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 Southe Towne, have both announced expansions that will begin late 2007.

A significant new project on the west side of Salt Lake County is currently under development. Kennecott Utah Copper owns more than 93,000 acres on the benches of the Oquirrh Mountains. Working together with Salt Lake County and other communities in the valley, the West Bench Planning process began in 2005 to discuss planned residential, retail, office, industrial and recreational uses of the land. The plan will address future development of the entire west side of Salt Lake County.

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