Commercial real estate is constantly evolving, shaped by economic trends, population growth, and industry shifts. In Salt Lake City, where Main Street Commercial Moving operates, we’ve seen significant changes across office, industrial, retail, and multifamily sectors. Meanwhile, some of the country’s largest commercial markets continue to experience rapid growth and investment.
Let’s take a closer look at what’s happening in Salt Lake City’s commercial real estate market and how it compares to the top five largest commercial markets in the U.S.
Salt Lake City: A Dynamic Commercial Hub
Salt Lake City has long been a hub for business and innovation, attracting tech companies, logistics firms, and retailers. The city’s real estate market has shifted in response to economic trends, remote work, and industrial growth.
Office Market: A Period of Transition
The office sector in Salt Lake City is in flux. By Q3 2024, office vacancy rates hit 25.2%, reflecting continued adjustments in how businesses use space. Class A buildings with modern amenities remain in demand, while older office spaces struggle to attract tenants. Median asking rents hover around $24 per square foot annually, with prime locations exceeding $40 per square foot.
📌 Read more about Salt Lake City’s office market.
Retail Market: Strong Demand, Limited Supply
Retail real estate in Salt Lake County is thriving. By Q3 2024, vacancy rates dropped to 2.57%, with lease rates rising to $21.93 per square foot annually. Major new developments, like Academy Village in Herriman, are expanding the retail landscape.
📌 See the latest on Salt Lake City’s retail real estate.
Industrial Market: A Cooling Trend
After years of rapid expansion, Salt Lake’s industrial market saw a slowdown in 2024. Leasing activity dropped to 957,838 square feet, the lowest since 2014. The availability rate reached 7.2%, due to high levels of new development.
📌 Learn more about Salt Lake’s industrial market.
Multifamily Market: Tight Vacancy and Rising Rents
Salt Lake City’s apartment market remains competitive, with a 2.2% vacancy rate and average rents climbing 15.1% year-over-year to $1,632 per unit. With over 12,000 new units under construction, developers are racing to keep up with demand.
📌 See the latest on Salt Lake City’s multifamily sector.
The Top 5 Commercial Real Estate Markets in the U.S.
Salt Lake City is a key player in the national real estate market, but some cities are experiencing even more dramatic growth. Here’s a look at the top five commercial real estate markets in the U.S.
- Dallas-Fort Worth, TX: The Nation’s Hottest Market
With 7.1% population growth since 2020, Dallas-Fort Worth (DFW) is booming. High demand for industrial, data centers, and multifamily properties is driving record development.
📌 Learn why Dallas is leading the U.S. real estate market.
- Houston, TX: A Powerhouse for Industrial and Retail Growth
Houston is thriving, adding 60,200 jobs in 2024 and seeing 2% population growth. The city’s industrial sector remains strong, with new developments supporting continued expansion.
📌 See Houston’s commercial real estate trends.
- West Palm Beach, FL: A New Business and Finance Hub
West Palm Beach is no longer just a vacation destination—it’s now a major financial center. Developers are investing in over 6 million square feet of new office space and 1.4 million square feet of condos, retail, and hotels.
📌 Read how West Palm Beach is transforming.
- Phoenix, AZ: A Manufacturing Boom Drives Growth
Phoenix is benefiting from a manufacturing explosion, with $65 billion in new factories, including investments from Taiwan Semiconductor Manufacturing Co. This has led to a surge in industrial, housing, and retail demand.
📌 See how Phoenix’s manufacturing sector is reshaping real estate.
- Salt Lake City, UT: A Fast-Growing Tech Hub
Salt Lake City rounds out the top five, thanks to its booming tech sector, known as Silicon Slopes. Over 1,000 tech companies, including Google, Adobe, and PayPal, have set up operations, increasing demand for commercial spaces.
📌 Discover why Salt Lake City is a top tech hub.
What This Means for Businesses and Investors
The commercial real estate market is evolving, with some cities seeing rapid expansion while others face high vacancies and shifting demand. Salt Lake City remains a key market for retail, multifamily, and tech-driven office space, but it faces challenges in the industrial and traditional office sectors.
For businesses, investors, and service providers like Main Street Commercial Moving, these trends highlight opportunities for growth. As we move through 2025, staying informed and adapting to market shifts will be crucial.
What trends are you seeing in your market? Let us know in the comments!
