The Salt Lake County industrial market has experienced another strong first part of the year as the robust construction activity of the past three years continues to increase. With persistent demand for large blocks of industrial space, large tenants are struggling to find ideal big-box space in Salt Lake County. This has increased the amount of pre-leasing activity throughout the second quarter, a trend that is expected to continue.
With over half of the 4 million plus square feet of industrial space in Salt Lake County under construction, and 53 percent of that made up of speculative projects, developers see a healthy Salt Lake market and expect enduring demand over the next few years. The completion of these industrial projects at year-end will briefly trigger slightly increased vacancy rates, but demand should continue to outpace supply.
The recent announcement of a possible inland port coming to the North West quadrant coupled with the Salt Lake City airport redevelopment will only further strengthen a synergistic industrial market. However, the uncertainty surrounding steel tariffs and a looming labor shortage may create cost pressure that will inevitably cause lease rates to increase throughout the year. Even so, national companies continue to identify Utah