In the latest release of the June Employment Summary, the Department of Workforce Services noted that Utah’s unemployment rate is the second-lowest in the nation at 2.7%, significantly lower than the national average of nearly 6%. Low unemployment rates, though, are only one small piece of what’s fueling the booming commercial real estate market in Utah. The state’s long reputation for excellence in infrastructure, economic growth, and high quality of life has made it an attractive location for both businesses and employees.
In short, businesses in Utah are thriving and commercial realtors are busy. Vacancy rates in the retail and industrial sectors are decreasing, and commercial real estate agents are active in the office sector too.
Whether you’re local to Utah or considering relocating your business to the state, take a look at what the market looks like and how a commercial broker can help you find the perfect space to grow your business.
The Outlook for Utah Commercial Real Estate
The National Association of Realtors recently named Salt Lake City, Utah, one of the top 20 metro areas with the strongest commercial real estate conditions through the first quarter of 2021. The NAR compiled its list by examining 25 indicators pertaining to economic conditions like GDP growth, employment, wage growth, and instances of migration.
Perhaps the brightest sector for commercial real estate right now is the industrial market. In 2019, seven million square feet of new construction were added to the market, more than double the new construction in 2018.
Construction hasn’t slowed in the last two years. In the same NAR report, both the office and industrial sectors in Utah have more construction underway than the rest of the country.
As the market continues to boom, more and more businesses and employees are choosing Utah. But we know leasing or purchasing during a hot market can seem overwhelming for companies looking to establish themselves or expand in the state. Skilled commercial realtors, like our team at Woodley, know exactly how to navigate the market.
Getting the best space for your company is all about knowing how to find it. Whether you need larger conference rooms, smaller offices, long or short-term leasing, commercial brokers have access to diverse inventory and tenured expertise to help you purchase or lease the space that best suits your business.
A Smart Move for Businesses
Utah’s reputation for being among the best states for businesses has only strengthened across the last five years. The state is consistently named Forbes’ Best State for Business, most recently earning the honor in 2018.
A recent Spectrum piece noted, “Utah companies drew in nearly $1.2 billion in venture capital funding in 2018, equal to $369 per state resident, more per capita than all but four other states.”
A majority of the venture capital funding is drawn in by startups. With large increases in capital, these once small startups have quickly outgrown their leased spaces, now opting to purchase larger buildings to accommodate their rapid growth.
Also largely responsible for the influx in capital are tech companies, which started flocking to Utah years ago. As they relocated to Utah, they brought along some of the industry’s top talent to areas like Silicon Slopes.
“Our land costs, our university research, our advantages all became apparent to people in the technology world,” said Natalie Gochnour, associate dean at the University of Utah’s David Eccles School of Business, in a 2018 interview with Site Selection.
The same Site Selection article also points to a quote from Val Hale, executive director of the Governor’s Office of Economic Development, who said, “We have a business-friendly legislature that is intent on enacting business-friendly laws and regulations, including low corporate and individual taxes.”
From ample infrastructure to tax breaks, the economics are clear; it’s a smart move to relocate your business to Utah. No matter the industry, there’s proven opportunity for organizations ranging from small startups to large corporations to grow their business efficiently, while also attracting some of the brightest minds.
The Expertise You Need in a Hot Commercial Real Estate Market
Choosing to lease or purchase in a booming commercial real estate market is a big decision. Whether you’re in retail, industrial, office space, or other commercial real estate sectors, the experts at Woodley Real Estate bring the experience you need to invest with confidence.
Whatever your needs, Woodley is Utah’s choice for commercial real estate. Contact our commercial real estate experts today.
