Sizzling QSR expansion headlines the Intermountain Q3 Retail Mark Overview.

1. Historical Vacancy Rates
Retail Market Overview
Salt Lake County
Overall Market Information 3Q 2014
Active Retail Tenants
Market Forecast
While the market continues to grow exponentially, there are
still signs of uncertainty. Big and mid-box tenants remain
hesitant to expand, with the few grocery exceptions that
continue to attempt to increase market share.
Most current activity and expansions are a result of aggressive
acquisitions by QSR’s, fast food and discounters. Tenants like these,
are driving rising market rates. Class A properties are seeing high
absorption as demand out paces supply. Indicators suggest this
trend will remain constant in the Salt Lake County market for the
foreseeable future.
Overall vacancy rates across the valley dropped by 1.25 percentage
points from the last quarter, with these rate improvements being
fairly consistent in each submarket. Despite a slight 1% decrease
in average asking rents, they still exceed last year’s averages.
Notwithstanding marginally sluggish rent gains, the decrease in
concessions provided has transitioned the market to a more landlord
friendly climate.
Expect to see continued growth throughout the remainder of the year. With
steady economic improvements, consumer and retail developers’ confidence
will continue to grow in the Utah market.
16%
12%
8%
4%
0% OVERALL VACANCY RATE
TOTAL NEIGHBORHOOD COMMUNITY REGIONAL
RETAIL
2009
9.69%
2010
8.58%
2011
9.56%
2013
9.49%
3Q-2014
8.56%
“MOST CURRENT EXPANSION IS THE RESULT OF AGGRESSIVE
AQUISITIONS BY QSR’S, FAST FOOD AND DISCOUNTERS.”
TENANT LOCATION COUNTY
Container Store Fashion Place Mall Salt Lake
Nordstrom Rack University Crossing Utah
PizzaRev Wasatch Front All
Harmons Traverse Mountain Utah
Even Stevens Wasatch Front Salt Lake
Smiths Wasatch Front All
Malawis Pizza Wasatch Front All
Corner Bakery Wasatch Front All
CVS Pharmacy Wasatch Front All
Average Vacancy Rates
8.56%
Average Lease Rates
$16.26
Net Absorption
376K SF
YTD Under Construction
313K SF
ANCHORLESS
2012
8.41%
Under Construction
CENTER TYPE PROPERTY SIZE SF SUBMARKET
Neighborhood Sugar House Crossing 52,705 NE
Anchorless Highland Crossroads 12,000 NE
Community
Oquirrh Mtn. Market-place
100,000 SW
CURRENT UNDER
CONSTRUCTION
BY TYPE
164,705 SF
Neighborhood (50,001-100K SF)
Community (100,001-350K SF)
Regional (350K SF or greater)
Anchorless (0-50K SF)
100,000 9,955
YTD overall numbers compared to Year-End 2013
52,705

2. With vacancy rates continuing to decrease, land is becoming
a need, after having been dormant for much of the last few
years. Expect developers to start to purchase retail land in
ideal locations for the future anticipation of growth by both local and
national retail tenants. Expansion are also starting to occur more
frequently by existing retailers in the market as Utah continues to be
recognized nationally for it’s dynamic economy. According to Mike
Gorrell of the Salt Lake Tribune, Utahns were more confident than ever
in recent months in the state of the economy. Zions Bank’s Consumer
Attitude Index increased 2.5 points from August to September, the
109.3 reading representing a gain of 16.7 points over the past year.
Zions Bank President and CEO Scott Anderson attributed Utah’s steadily
increasing confidence level to a “solid” labor market. The state had an
August unemployment rate of 3.6 percent (compared to 6.1 percent
nationally). As we continue to see economic conditions improve the
retail market will continue to benefit from these positive changes.
Market Statistics
Information contained herein, including projections, has been
obtained from sources believed to be reliable. While we do not
doubt its accuracy we have not verified it and make no guarantee,
warranty or representation about it. It is your responsibility to
confirm independently its accuracy and completeness. Each Office
Independently Owned and Operated. © 2014.
6550 South Millrock Drive, Suite 200
Salt Lake City, UT 84121 | (801) 947.8300
www.coldwellutah.com
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Salt Lake County Map
$40
$30
$20
$10
$0
PRICE PER SQUARE FEET
NEIGHBORHOOD COMMUNITY REGIONAL Lease Rates by Property Type
NE CE SE CW SW
ANCHORLESS
NW
NORTH EAST INVENTORY AVAILABLE SF VACANCY ASKING RATE
Anchorless 1,170,899 85,274 7.18% $17.68
Neighborhood 403,332 15,599 3.87% $21.13
Community 1,519,180 264,499 17.41% $14.01
Regional 1,202,227 175,938 14.63% $22.68
TOTAL 3,162,864 541,310 6.48% $21.76
CENTRAL EAST INVENTORY AVAILABLE SF VACANCY ASKING RATE
Anchorless 1,272,028 73,384 5.77% $12.95
Neighborhood 1,419,001 83,514 5.89% $21.13
Community 2,016,314 133,792 6.56% $14.01
Regional 1,236,191 100,471 8.13% $22.68
TOTAL 5,943,534 391,161 6.55% $17.05
SOUTH EAST INVENTORY AVAILABLE SF VACANCY ASKING RATE
Anchorless 1,042,871 155,325 14.89% $12.64
Neighborhood 1,578,921 187,304 11.86% $14.67
Community 3,580,717 310,685 8.68% $12.57
Regional 804,319 46,326 5.76% $22.68
TOTAL 7,006,828 699,640 9.56% $13.80
NORTH WEST INVENTORY AVAILABLE SF VACANCY ASKING RATE
Anchorless 340,062 21,813 6.41% $13.20
Neighborhood 390,726 19,870 5.09% $16.00
Community 471,357 126,968 26.94% $28.33
Regional - - - -
TOTAL 575,972 168,651 9.48% $26.25
CENTRAL WEST INVENTORY AVAILABLE SF VACANCY ASKING RATE
Anchorless 976,995 92,650 9.48% $12.95
Neighborhood 1,096,889 72,946 6.65% $21.13
Community 3,984,860 462,543 10.20% $10.40
Regional 813,164 53,213 6.54% $10.28
TOTAL 6,871,908 681,352 9.10% $11.25
SOUTH WEST INVENTORY AVAILABLE SF VACANCY ASKING RATE
Anchorless 999,747 113,735 11.38% $17.62
Neighborhood 1,386,925 223,625 16.12% $13.65
Community 2,616,188 127,791 4.88% $20.37
Regional 4,899,525 154,783 3.16% $25.47
TOTAL 9,902,385 619,934 6.26% $18.55
OVERALL INVENTORY AVAILABLE SF VACANCY ASKING RATE
Anchorless 5,802,602 542,181 9.32% $15.32
Neighborhood 6,275,794 602,858 9.58% $15.00
Community 14,188,616 1,426,278 9.45% $14.35
Regional 8,955,426 530,731 5.93% $24.16
TOTAL 35,222,438 3,102,048 8.56% $16.26