Commercial Real Estate in Utah
Acccording to The Investment Market Overview for Utah's Commercial Real Estate Market, it is reported the overall investment activity is increasing, according to first quarter year over year results in both dollar volume and number of transactions completed. A notable increase in investment volume is projected through 2011. Cap rates are compressing for prime properties, while increasing for the rest. Overall cap rates increased in all categories of commercial real property types, excepting multi-family. This suggests a narrowing of the gap between buyers and sellers expectations and highlights the popularity of securing positions in the multi- family sector due to its ability to quickly adjust rental rates to improving market conditions.
Activity is partially spurred by the beginning flow of debt capital to the marketplace through a variety of lending sources.
During the first quarter of 2011 the Salt Lake office market direct vacancy rate reduced slightly to 15.41 %
Lease rates inched up slightly over the previous quarter and landlords are continuing to offer concessions to lure new tenants.
+ Direct absorption was a positive 166,103 sq. feet (sf ) for the first quarter of 2011, starting the year off strong.
+ There were no new buildings completed in the first quarter, however four buildings totaling 518,312 sf are currently under construction.
The office market is beginning to show signs that the recovery has begun.
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