The Salt Lake City-Provo office market absorbed negative 289,713 sq. ft. on net in Q2 2020, bringing year-to-date net absorption to negative 2,475 sq. ft.—a year-over-year decrease of 103% from Q2 2019.
Vacancy increased by 170 bps to 13.4% as a result of upward pressure from new development and a market-wide increase in sublease availability—particularly within the CBD, Lehi and Sandy South Towne submarkets.
Average asking rates decreased by a small margin, falling from $23.82 to $23.81 per sq. ft. FSG in Q2 2020.
The high volume of incoming supply (over 3.0 million sq. ft.) with a quarter-over-quarter increase in preleasing (currently at 55.5%) reaffirms that users are finding the market to be longstanding and resilient.