Research & Forecast Report

UTAH COUNTY | OFFICE

Mid-Year 2019

Office Snapshot Market Indicators

Utah County has a healthy amount of available office Relative to prior period Current Year Over Year
product, enabling tenants to find ideal space for their
business. Vacancy rates decreased slightly from 8.67 VACANCY 8.00%
percent in the first quarter of 2019 to 8.0 percent
currently, where they’re expected to stay until current YTD ABSORPTION 757,897 SF
construction comes online.
CONSTRUCTION* 1,852,198 SF
Absorption went up from 466,950 square feet in the first
quarter of the year to 757,897 square feet currently,
including major tenants like WeWork leasing 61,712 RENTAL RATE** $21.21 FS
square feet of space and Collective Health taking 34,868 *Change in under construction
square feet, expanding into the North quadrant during **For existing product — does not include asking rents currently under construction
the second quarter. Thirty-six percent of studied
buildings currently under construction are preleased,
which will add to future positive absorption in the
market. Under Construction
1,852,198 Total Square Feet
Construction went up from 1,501,293 square feet in the
first quarter of 2019 to 1,852,198 square feet currently. 8% 1%
Over 90 percent of all construction is taking place in the
North quadrant of Utah County. Asking lease rates will
continue to increase as demand stays high. Lease rates North
went up slightly from $20.90 FS in the first quarter of the
Central
year to $21.21 currently, excluding all preleased space
currently under construction. South

Historical Vacancy Rates 91%

By Percentage
14.52%

16.00%
12.90%

14.00%

12.00%
9.29%
8.70%

8.00%

10.00%
7.40%

8.00%
4.30%

6.00%

4.00%

2.00%

0.00%
2013 2014 2015 2016 2017 2018 2019

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

UTAH COUNTY | OFFICE

Mid-Year 2019

Market Overview
By Quadrant

QUADRANT BUILDING CLASS INVENTORY VACANCY RATE YTD Absorption LEASE RATE
Utah County Central Class A 2,896,853 9.49% 154,508 $21.41
Utah County Central Class B 3,807,486 15.13% (28,799) $19.56
Utah County Central Class C 460,766 1.88% (3,135) $14.14
TOTAL 7,165,105 12.00% 122,574 $20.46
Utah County North Class A 5,028,091 5.36% 560,573 $24.34
Utah County North Class B 2,738,707 3.39% 83,455 $21.88
Utah County North Class C 132,602 0.88% (1,170) $18.69
TOTAL 7,899,400 4.60% 642,858 $23.29
Utah County South Class A 160,563 5.94% (9,535) $18.22
Utah County South Class B 170,835 7.65% 2,000 $14.09
Utah County South Class C 101,997 0.00% 0 N/A
TOTAL 433,395 5.22% (7,535) $17.16
Utah County West Class A 82,472 0.00% 0 N/A
Utah County West Class B 0 0.00% 0 N/A
Utah County West Class C 0 0.00% 0 N/A
TOTAL 82,472 0.00% 0 -
Overall Class A Class A 8,167,979 6.78% 705,546 $21.32
Overall Class B Class B 6,717,028 10.15% 56,656 $18.51
Overall Class C Class C 695,365 1.41% (4,305) $16.42
OVERALL 15,580,372 8.00% 757,897 $21.21

Significant Under Construction Market View Map

Buildings by Quadrant By Submarket

BUILDING QUADRANT SIZE SF

Adobe Expansion North 280,000 NORTH

Young Living HQ North 263,000

CENTRAL
Traverse Ridge Center III Central 220,000 WEST UTAH
LAKE
Valley Grove 1 North 165,493

Thanksgiving Station 2 North 150,000

North View Corporate Center North 150,000

SOUTH
Innovation Pointe Bldg 2 North 150,000

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

UTAH COUNTY | OFFICE

Mid-Year 2019

Historical Lease Rates (FS)

By Class (Excluding Under Construction)
$21.06

$21.81

$23.41

$21.34

$23.16

$22.69

$21.74

$21.32

$21.21
$20.91
$25.00
$18.70

$18.54

$18.51
$18.38
$18.09

$18.02

$18.02
$16.65

$16.42
$15.12
$20.00

$15.00
$14.98

$14.38
$11.17

$15.00

$10.00

$5.00

$0.00
2014 2015 2016 2017 2018 2019

Class A Class B Class C Overall Linear (Overall)

Significant Transactions
Product Type YTD 2019
Class A: Most prestigious buildings competing
for premier office users with rents above average Square Feet Quadrant Tenant/Landlord Leased/Sold
for the area. High quality standards and finishes Three Global
with state of the art systems and exceptional 127,741 North Sold
Investments
accessibility.
San Pietro
116,383 Central Sold
Class B: Buildings with a wide range of users with Properties
rents in the average range for the area. Building
Vineyard
finishes are good for the area and systems are 84,160 South Sold
Flagship 87
sufficient.
Temkin Lindon
Class C: Buildings that compete for tenants 74,000 North Sold
Tech Center
requiring functional space at rents below the
area average. 61,712 North WeWork Pre-Leased

YTD Absorption
By Class

Class A

Class B

Class C

(100,000) 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

3 Utah County Research & Forecast Report | Mid-Year 2019 | Utah | Colliers International
 Lease Rates
Construction Lease Rates Under Construction Averages
With increased land and construction cost landlords have been
$28.00 $27.56 $27.19
forced to increase rates in the Utah County Market. Additionally,
tenants are willing to pay the higher rates so they can ensure an $27.00
ideal location, look, and feel for their employees. With Silicon $26.00
Slopes receiving national attention for its dynamic tech industry, $25.00 $24.63
These trends will only continue, specifically in the North
$24.00
Quadrant.
$23.00
Central North Overall

FOR MORE INFORMATION CONTRIBUTORS

Megan Grangroth Kathy Sturzenegger Josh Smith

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

Colliers International | Utah

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Salt Lake City, UT 84121
+1 801 947 8300
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