Salt Lake City-Provo Office Figures Q1 2026

Office fundamentals in the Salt Lake City–Provo market continued to improve in Q1 2026, supported by steady leasing activity, positive net absorption, and rent growth that expanded beyond top-tier assets. The market recorded 145,000 sq. ft. of positive net absorption during the quarter, driving overall vacancy down to 22.8%. Total availability also declined, falling 80 basis points quarter-over-quarter and 200 basis points year-over-year to 23.2%. Sublease availability continued to retreat, down 14.1% quarter-over-quarter and 50% from its late‑2023 peak to 1.7 million sq. ft. (3.2% of market inventory).

Supply conditions continued to improve as overall vacancy fell to its lowest level since 2022. This tightening was driven by reduced sublease availability, a pause in new development, and a net inventory contraction as office conversions and demolitions outpaced new completions for the fourth consecutive quarter. Inventory removals totaled 256,000 sq. ft. in Q1 2026 and 603,000 sq. ft. over the past 12 months, compared to a single 120,000 sq. ft. delivery. Looking ahead, steady leasing momentum is expected to sustain positive absorption. In the absence of new construction, even modest demand should drive further vacancy compression, as tenants are limited to either renewing in place or absorbing existing vacant space.