Salt Lake City-Provo Office Figures Q4 2025

Office fundamentals in the Salt Lake City–Provo market showed signs of improvement in 2025, supported by strong leasing activity, positive net absorption, and rent growth in key submarkets. Demand remained focused on newer, high-quality assets, pushing Class A direct vacancy down to 14.1%, well below the overall direct vacancy rate of 19.6%. However, sublease availability continued to weigh on this segment, accounting for 5.1% of Class A inventory. Investment activity strengthened in 2025 amid improved lender sentiment and pricing stability. The Lehi submarket posted the year’s largest sale as X Development acquired the 750,000-sq.-ft. Thanksgiving Station portfolio, consisting of five Class A office buildings that were 95% leased at closing.

Supply conditions also improved as overall vacancy fell to its lowest level since early 2023, supported by declining sublease availability, a pause in new development, and a reduction in new supply as conversions and demolitions outpaced new deliveries in 2025. In total, 391,425 sq. ft. was removed from inventory compared to one new delivery of 120,000 sq. ft. Looking ahead, tightening supply and steady demand should sustain positive absorption. Even at modest levels, this will translate to lower vacancy in the absence of new construction. These dynamics position the market for continued momentum and improvement heading into 2026.