Salt Lake City-Provo Office Figures Q2 2026

Office fundamentals in the Salt Lake City–Provo market continued to improve in Q2 2026 as tenant demand remained resilient and fewer occupiers shed excess space. Net absorption totaled 295,000 sq. ft. during the quarter, extending the market's streak of occupancy growth to seven consecutive quarters. Direct availability held steady at 20.3%, maintaining its lowest level since 2022. Meanwhile, a 30-basis-point increase in sublease availability pushed total availability to 23.7%, though sublease space remained nearly 50% below its late-2023 peak.

Supply conditions continued to tighten as overall vacancy declined to 22.6%, its lowest level in more than three years. This improvement was supported by the absence of new supply, as the market recorded a second consecutive quarter with no office projects under construction, along with the cumulative effects of office conversions and demolitions that reduced inventory over the past year. Inventory removals totaled 603,000 sq. ft. over the past 12 months, compared with a single 120,000-sq.-ft. office delivery. Looking ahead, steady leasing momentum is expected to sustain positive absorption, while the lack of new construction should support further vacancy compression as tenants remain largely limited to renewing in place or absorbing existing vacant space.