Research & Forecast Report

UTAH COUNTY | RETAIL

Mid-Year 2019

Retail Snapshot Market Indicators

Relative to prior period Current Year Over Year
The retail market in Utah County got off to a slow start
this year, but the landscape is changing. The once-dying VACANCY 5.33%
big-box industry is being resurrected for various creative
uses, including entertainment, multifamily and office. YTD ABSORPTION 216,590 SF
These big-box renovations are impacting communities as
they figure out what to do with large, vacant spaces. CONSTRUCTION* 291,882 SF

Quick-service restaurants are finding the most RENTAL RATE** $20.51 NNN
constrained availability in smaller blocks of space.
*Change in under construction
Vacancy went down from 5.51 percent in the first quarter **For existing product — does not include asking rents currently under construction
of the year to 5.33 percent currently, following a pattern
of overall decline over the last six years. Not surprisingly,
vacancy rates are highest in spaces more than 350,000
square feet in size.
Under Construction
Absorption increased due to tenants like Knights 291,882 Total Square Feet
Furniture moving into 18,153 square feet and several 21%
smaller tenants leasing up anchorless space. Construction
also went up a bit, from 226,800 square feet to 291,882, North
with almost 80 percent of new construction happening in
the North quadrant.

Lease rates increased from $19.48 NNN in quarter one of West

2019 to $20.51 currently. Lease rates should remain
consistent until older big-box space gets leased up.
79%

Historical Vacancy Rates

By Quadrant

14.00%

12.00%
11.95%

11.84%
11.35%

10.00%
11.25%
11.00%

10.75%
9.56%

9.49%

8.00%
9.25%
9.00%

8.41%
8.25%
8.00%

7.90%

7.90%

7.90%
7.80%

7.35%
7.35%

6.00%
7.15%

6.98%

6.32%
6.27%

6.20%

6.13%
6.01%

5.87%

5.48%

5.33%

4.00%
4.75%

4.73%
4.65%

4.25%
4.23%
4.00%

3.91%

3.59%
3.27%

3.32%

2.57%

2.00%

0.00%
2012 2013 2014 2015 2016 2017 2018 2019

Anchorless Community Neighborhood Regional Overall

1 Utah County Research & Forecast Report | Mid-Year 2019 | Utah | Colliers International
Research & Forecast Report

UTAH COUNTY | RETAIL

Mid-Year 2019

Historical Lease Rates Market View Map

By Quadrant By Submarket
$32.95

$32.85

$38.00
$29.40
$28.83
$25.00
$40.00
$18.72

$18.17
$15.85

$15.37
$14.99

$30.00
$14.13
$13.47

NORTH
$20.00

$0.00

$0.00
$0.00
$10.00
$0.00
Central North South West
CENTRAL
WEST
UTAH
LAKE
Market View
By Product Type

ABSORPTION YTD AVERAGE ASKING LEASE

CENTRAL INVENTORY (SF) AVAILABLE (SF) VACANCY
(SF) RATE
Anchorless 2,184,451 83,639 3.25% 14,024 $13.47
Community 3,073,871 233,611 5.20% (90,481) $14.13
Neighborhood 1,913,700 437,679 5.80% (7,834) $18.72
Regional 467,512 91,978 19.36% 0 $15.85
SOUTH
TOTAL 7,639,534 846,907 5.66% (84,291) $16.47
ABSORPTION YTD AVERAGE ASKING LEASE
NORTH INVENTORY (SF) AVAILABLE (SF) VACANCY
(SF) RATE
Anchorless 920,041 55,020 2.76% (2,410) $14.99
Community 1,981,065 75,500 1.21% 146,384 $32.95
Neighborhood 1,558,474 23,396 1.39% 1,200 $15.37
Regional 843,430 133,538 15.83% (24,507) $32.85 Product Type
TOTAL 5,303,010 287,454 3.86% 120,667 $28.50
ABSORPTION YTD AVERAGE ASKING LEASE
SOUTH INVENTORY (SF) AVAILABLE (SF) VACANCY
(SF) RATE
Anchorless
Anchorless 723,075 4,197 0.58% 8,809 $25.00
(0 – 50K SF)
Community 1,212,041 33,676 2.78% 76,624 $28.83
Neighborhood 539,383 14,764 2.74% 87,406 $29.40 Neighborhood
Regional 600,000 2,183 0.36% 1,575 $38.00 (50,001 – 100K SF)
TOTAL 3,074,499 54,820 1.78% 174,414 $29.06

WEST INVENTORY (SF) AVAILABLE (SF) VACANCY

ABSORPTION YTD AVERAGE ASKING LEASE Community
(SF) RATE (100,001 – 350K SF)
Anchorless 91,858 0 0.00% 4,800 -
Community 578,640 202,107 34.93% 1,000 $18.17
Regional
Neighborhood 94,435 0 0.00% 0 -
(350,001 SF or greater)
Regional 0 0 0.00% 0 -
TOTAL 764,933 202,107 26.42% 5,800 $18.17
ABSORPTION YTD AVERAGE ASKING LEASE
OVERALL INVENTORY (SF) AVAILABLE (SF) VACANCY
(SF) RATE
Anchorless 3,919,425 142,856 2.57% 25,223 $15.77
Community 6,845,617 544,894 6.13% 133,527 $20.20
Neighborhood 4,105,992 475,839 3.59% 80,772 $18.31
Regional 1,910,942 227,699 11.84% (22,932) $26.08
TOTAL 16,781,976 1,391,288 5.33% 216,590 $20.51

2 Utah County Research & Forecast Report | Mid-Year 2019 | Utah | Colliers International
 Population
Utah has a strong internal birth rate that increases the statewide population year-over-year, but a steady increase in immigration
over the last several years is having more of an impact that ever before. For the past several years, economic growth in Utah has
added between 40,000 and 60,000 people to the state each year, with an annual population growth rate of 1.9 percent.

Source: Utah Department of Workforce Services

FOR MORE INFORMATION

Megan Grangroth Kathy Sturzenegger

Office Research | Utah Communications Coordinator
+1 801 453 6822 +1 801 947 8300
megan.grangroth@colliers.com kathy.sturzenegger@colliers.com

Colliers International | Utah

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