According to NAI Utah South’s 2014 report, overall vacancy for industrial areas has stayed at about 4.9 percent in the last two years, showing improved absorption and momentum in owner-occupied industrial construction. NAI predicts the industrial market will strengthen and — along with increased demand — lease rates and land prices will rise.
The office market continued to trail behind other sectors, showing a 9 to 11 percent vacancy rate at year end. Of the actual transactions, 83 percent were spaces less than 2,500-square feet. NAI forecasts the office market will pick up as other markets such as commercial and residential continue showing growth.
Retail is also showing its muscle throughout Southern Utah, with increased demand for “unanchored” space. The unanchored vacancy rate declined from 10.8 percent at the year’s end in 2013 to 5.2 percent for year-end 2014. According to the report, many unanchored centers have reached 100 percent. The Spectrum