Salt Lake City Industrial Figures Q1 2025

The Salt Lake City Industrial market in Q1 2025 experienced mixed trends with an increase in both vacancy and availability rates, negative net absorption, and a nine-quarter high in quarterly leasing activity. The market wide availability rate increased by 40 basis points (bps) quarter-over-quarter and reached a new peak. Total net absorption was negative for the first time since Q2 2023, largely due to occupied sublease listings switching to vacant direct listings. Despite these negative trends, leasing activity finished Q1 2025 at just over 3.5 million sq. ft., the highest single quarter in terms of total leasing activity since Q3 2022.

Construction activity continued to slow with the lowest amount of space delivered in a quarter since Q2 2020. This coupled with total space under construction falling just shy of Q3 2024’s 8-year low, highlights the nation-wide trend of a slow down in industrial construction activity. Direct average asking lease rates experienced no change in Q1 2025. As available space reached new peaks continued strong leasing activity will be vital to stabilize the Salt Lake City industrial market key indicators.