MWCRE Releases Q3 2024 Market Report for Intermountain West Regions
MWCRE Releases Q3 2024 Market Report for Intermountain West Regions
Mountain West Commercial Real Estate (MWCRE), a full-service commercial real estate brokerage, has released its Q3 2024 market report, covering a range of markets in Utah, Nevada, Idaho, and Montana. The report provides an overview of office, retail, industrial, and investment data, offering insights into various market metrics, giving stakeholders a valuable look into the commercial real estate landscape.
Highlights:
· The retail market remains supply-constrained overall, applying upward pressure on rents. Vacancy ranged from 1.5% (Eastern Idaho) to 5.1% (Las Vegas) across the Intermountain West in Q3 2024, with six markets below 3.0% vacancy (Billings, Boise, Eastern Idaho, Logan, Provo-Orem, and Salt Lake City). Deliveries totaled 1.3 million square feet for Q3 2024 in the MWCRE coverage area, below the five-year quarterly average of 2.2 million square feet, which indicates supply will continue to be dependent on store closures for the near future.
· While industrial vacancies remain near recent highs for several markets (Billings, Boise, Las Vegas, Logan, Provo-Orem and Salt Lake), four markets have seen vacancy rates decline in 2024 (Billings, Logan, Provo-Orem, and Salt Lake). The construction pipeline has slowed in all markets, but Las Vegas still has a notable 9.1 MSF still under construction. For perspective, all other markets in this report combined have just over 9.1 MSF under construction as of Q3 2024.
· The office market has seen declining vacancy rates since 2023 in five of the nine market areas, (Billings, Davis and Weber Counties, Logan, St George, and Las Vegas). For most markets, rent growth has been flat since 2022. The Billings, Davis and Weber Counties, Eastern Idaho, Logan, and St. George office markets are experiencing much lower vacancy (2.7%-4.7%) than Las Vegas, Provo-Orem and Salt Lake City (10.0%-12.3%). Thanks in part to lowered construction activity and companies now having a better understanding of office needs, vacancy is likely to begin moderating over the next several quarters, with rising rents expected to follow.
· The Federal Reserve’s September 2024 50-basis-point rate cut along with the prospect of another rate cut or two for the remainder of the year is likely to encourage more investment transaction activity and drive cap rates lower. Based on activity through the first three quarters of the year, 2024 is on track to eclipse activity in 2023 in every MWCRE coverage state.
Read the full Q3 Market Report here
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About Mountain West Commercial Real Estate Mountain West Commercial Real Estate is a full-service commercial real estate firm specializing in Brokerage, Property Management, development services, and Capital Markets. With a team of experienced professionals, Mountain West Commercial delivers personalized solutions to clients across the Western United States.
Media Contact: Jerad Giottonini MWCRE Director of P.R. & Communications Phone: 385-501-2928 Email: jgiottonini@mwcre.com