Utah County Commercial Real Estate Market Year End 2009

UTAH COUNTY
Overview
- 2009 still slow, but ends on an up-note with a rise in transactions
- Utah County performs well versus other nearby markets, although businesses continue to hold off on making commitments
- In addition to the growth provided by the BYU and Utah Valley University, the country’s largest road construction project is underway in Utah County. The 2 billion dollar reconstruction of I-15 will provide a significant investment, both in dollars and jobs, to the local market.
Retail
- Vacancy rates increased almost 6% from year end 2008 due to newly completed projects, slower expansions. Mall vacancies lead the decline as vacancy rates rise to over 10 percent
- Landlords aggressive in concessions to attract and keep tenants
- Activity driven by local and regional retailers; expect this to continue through 2010.
Office
- Office hardest hit of all commercial real estate markets in 2009
- Vacancies see dramatic increase over year ago due to completed projects, reduced demand and 50% office condo vacancy rate in North County
- High levels of owner-user product flooded the market as businesses scaled back, shut down operations
- Lease rates fell and landlords competed to get new, keep current tenants. Look for this trend to continue.
Industrial
- Industrial healthiest of all segments in Utah County in 2009
- Demand as relatively high--particularly in the North County--due to good access to Salt Lake County
- Decreased demand, lack of viable sites limited new construction
- Vacancies highest in South County, although 2009 increase was small
- Lease rates fell along with demand.