SALT LAKE CITY, UT– Mountain West Commercial Real Estate (MWCRE), a prominent and full-service commercial real estate brokerage, has released its highly anticipated 2023 Year End Report, providing a comprehensive overview of the commercial real estate landscape across various markets in the Mountain West region of the United States.
The report, meticulously curated by MWCRE’s team of experts, delves into the intricate details of the commercial real estate markets, offering valuable insights, trends and analysis that paint a vivid picture of the region’s economic landscape.
Key Highlights from the 2023 Year End Report:
- Retail commercial real estate fundamentals are strong across MWCRE’s coverage area as low retail-building-square-footage growth since the early 2010s combined with strong tenant demand fueled by consumer spending is keeping vacancy low and supporting continued rent growth.
- Industrial vacancy is rising in most of MWCRE’s markets after three years (2020-2022) of low vacancy driven by tenant demand from robust consumer goods spending. Developers ramped up construction in 2021-2022 to accommodate demand for space with much of the construction delivering in 2022-2023, just as consumer spending for goods began shifting more to services. The industrial market remains strong as tenant demand resembles pre-pandemic norms. With more space now available, tenants will have more leverage in lease negotiations in 2024, after having very little the last few years.
- Office vacancy remains near historic highs for the Salt Lake City, UT MSA and the Provo-Orem, UT MSA and little-to-no rent asking rent growth as companies determine space needs against the backdrop of work from home and return to office trends. Most of the other metro areas in MWCRE’s coverage area are experiencing much lower office vacancy and stronger rent growth. Office construction deliveries in the lead-up to the start of the pandemic appears to be a significant factor. A lot of office square footage was added to the Salt Lake City, UT and Provo-Orem, UT MSAs between the Great Recession and the Pandemic Recession, and that wasn’t as much the case with the lower vacancy markets.
- Investment transaction activity declined markedly from 2022 to 2023 in all coverage states as rising interest rates created a more challenging debt financing environment. The steepest rate hiking cycle in the Fed’s history effected a bid-ask chasm for commercial real estate assets as buyers and sellers adjusted to new market realities. Looming debt maturities over the next few years and the Fed’s rate cuts are likely to produce more transaction activity and create a better understanding of value for each asset type.
Click Here to View the Report###
About Mountain West Commercial Real Estate
Mountain West Commercial Real Estate is a full-service commercial real estate firm that specializes 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. The company’s commitment to integrity, innovation, and excellence has made it a trusted partner in the commercial real estate industry.
Media Contact:
Jerad Giottonini
Marketing & Communications
Mountain West Commercial Real Estate
Phone: 385-501-2928
Email: jgiottonini@mwcre.com
