Salt Lake-Provo Office Figures Q4 2023

January 10, 2024 5 Minute Read

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-       The Salt Lake-Provo office market experienced an unprecedented peak in vacancy and availability rates in 2023, concluding the year at 23.8% and 24.2%, respectively.

-       Sublease availability reached a historic high of 3.4 million sq. ft. in Q3 2023, making up 6.1% of the total market’s net rentable area. Despite a slight 44 basis point decrease in Q4 2023, sublease availability has more than doubled since the onset of COVID-19 in Q1 2020.

-       The Salt Lake-Provo office market saw positive net absorption of 313,129 sq. ft. in Q4 2023. However, despite this quarterly improvement, the total net absorption for 2023 remained negative, at 983,390 sq. ft.

-       Leasing activity continued to slow in Q4 2023, securing just 564,258 sq. ft. in lease transactions. This represented a 51.3% decrease quarter-over-quarter and a 22.2% decline year-over-year.

-       The total area leased during 2023 amounted to 3.4 million sq. ft., down 30.4% since year-end 2022, constituting the slowest year for leasing since the onset of COVID-19 in 2020.

-       The Salt Lake-Provo office market is comprised of both Salt Lake County and Utah County. It spans the state’s two major metropolitan cities: Salt Lake City and Provo.