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+1 801 947 [email protected]
Greg Pavich+1 801 453 [email protected]
Bri Midas
SALE OFFERING MEMORANDUM
MULTI-TENANT OFFICE BUILDING2948 SOUTH REDWOOD RD | SALT LAKE CITY, UTAH
+1 801 947 [email protected]
Greg Pavich+1 801 453 [email protected]
Bri Midas
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FINANCIAL ANALYSIS
PHOTOS
PROPERTY OVERVIEW
OFFERING SUMMARY
DISCLAIMER
SALES COMPARABLES
MARKET OVERVIEW
AERIAL
Colliers International (the “Agent”) has been engaged as the exclusive sales representative for the sale of 2948 South Redwood Rd, Salt lake City, Utah (the ”Property”) by _____ or ‘Ownership’ (the “Seller”).
The Property is being offered for sale in an “as-is, where-is” condition, and the Seller and the Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include confidential information and are being furnished solely for the purpose of review by prospective purchasers (“Purchasers”) of the interest described herein for which it shall be fully and solely responsible. Neither the enclosed materials, nor any information contained herein, are to be used for any other purpose, or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed information, should be registered with the Agent as a “Registered Potential Investor” or as a “Buyer’s Agent” for an identified “Registered Potential Investor”.
The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by the Agent or the Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners, and directors, as to its accuracy or completeness. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Seller nor the Agent shall have any liability whatsoever for any other written or oral communication or information transmitted, or made available, or any action taken, or decision made by the recipient with respect to the Property.
The Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from the market for sale at any time and for any reason without notice, to reject any and all expressions of interest or offers regarding the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. The Agent is not authorized to make any representations or agreements on behalf of the Seller. The Seller shall have no legal commitment or obligation to any recipient reviewing the enclosed materials, performing additional investigation,
and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions required under the contract for title to pass from the Seller to the buyer have been satisfied or waived.
By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents will be held and treated in the strictest of confidence; and (b) the recipient shall not contact tenants, employees, contractors, sub-contractors or lien-holders of the property directly, or indirectly regarding any aspect of the enclosed materials or the Property, without the prior written approval of the Seller or the Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or the Agent or as otherwise provided in the Confidentiality Agreement executed and delivered by the recipient(s) to Agent.
DISCLAIMER
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
+1 801 947 [email protected]
Greg Pavich+1 801 453 [email protected]
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PROPERTY OVERVIEW | SUMMARY
THE PROPERTY2948 South Redwood Road is approximately 13,948 SF building located in Salt Lake City, UT. Salt Lake is the capital of Utah with a population of 181,743 in the Metro area and 1.3 million in the Salt Lake Area. This building is strategically placed with great access to public transportation, I-215, I-15 and SR-201. It’s just two blocks from the TRAX “Green Line” and within close proximity to several retail and restaurant amenities.
PRICING• Price: $2,238,000
• Price/SF: $160.45
• CAP Rate: 7.25%
• Address: 2948 S Redwood Road, Salt Lake City
• Year built: 2012
• Square footage included in the sale: 13,948
• Property type: Office
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
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PROPERTY HIGHLIGHTS
HIGHLIGHTS1. Central location
2. Attractive building
3. Overall strength of market
4. Attractive financing
5. 100% Leased
6. Good I-15 freeway access
The Salt Lake County Market continues to be one of the strongest in the nation. Increased market activity continues, proving that the Salt Lake County office market has not reached its fullest potential.
Utah’s June 2018 employment grew by an estimated 3.3 percent, adding 47,900 jobs to the economy since June 2017. Utah’s current employment level registers 1,591,400. May’s year-over job growth rate was revised downward to 3.1 percent.
Unemployment is currently lower than the US average at 3%. Two nationally renowned hospitals reside in Salt Lake City, Primary Children’s Medical Center and Huntsman Cancer Institute. Salt Lake City is a star in the midsize tech hub category. Hot tech jobs in Salt Lake City include technical support engineer, software engineer, and product manager. The Utah city has 23,013 job openings and a job satisfaction rating of 3.4. Employees earn a median base salary of $58,700, and the median home value is $234,400. “
Salt Lake City’s modern economy is service-oriented. Today the city’s major sectors are government, trade, transportation, utilities, and professional and business services. The daytime population of Salt Lake City proper swells to over 315,000 people, not including tourists or students.
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
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TENANTS OVERVIEW
Valley Behavioral Health is a nonprofit network of clinics providing treatment for behavioral issues, addictions, psychiatric conditions, autism and other chronic health conditions. We treat chronic lifelong issues as well as temporary conditions triggered by traumatic life events. Our programs are tailored to people of all ages and every social, cultural and economic situation.
P4 Pharmacy Private pharmacy that caters to assistant living & senior citizen industry.
HEI spun off from a 50-year-old banking security company in 2009. We took proven security business practices, added IT expertise, invested in technical infrastructure and process management, and assembled the best team of role players ever assembled to tackle the challenges of our customers. The results have been impressive. HEI expanded to cover 6 western states in 2011, 11 states in 2012, went national in 2014, and is just getting ready to announce global contracts in 2015.HEI Security is based in the fastest growing technical economy in the US, Utah. Awarded #1 place to do business several years consecutively by Forbes, best known for pioneers, it is also known for fantastic education, skilled workforce, and a culture that values hard work and deeply rooted ethics.
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
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FLOOR PLANS
LEGENDVALLEY MENTAL HEALTH
ALLEGIANT HEALTH
HEI SECURITY
4,693 RSF
2,579 RSF
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
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Produced By: brandon.daltonGIS/Mapping Services
Utah_11x175/2/2016 1:22:50 PM
Stark Industries2948 S Redwood Rd
0 0.35 0.7 1.05 1.4 1.750.175Miles
CBC Advisors6550 South Millrock Dr, Suite 200Salt Lake City, Utah 84121
phone 801.947.8300fax 801.947.8301web www.cbcadvisors.com
SITE
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
+1 801 947 [email protected]
Greg Pavich+1 801 453 [email protected]
Bri Midas
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PROPERTY PHOTOS
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
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ANNUALIZED OPERATING DATA
Scheduled Gross Income $247,743
Less Vacancy (5%) $12,687
Less Reserve (2%) $5,075
Total Income $235,356
Less Expenses $72,926
Net Operating Income $162,237
Debt Service $(98,624)
Cash on Cash (7.65%) $63,609
Debt Reduction $28,990
Total Return (11.1%) $92,599
NEW LOAN SUMMARY
New Financing (70% LTV) $1,406,000
Terms 5.0% Fixed
25 Year Amortization - 10 Year Call
Scheduled Monthly Payment $8,219
ESTIMATED ANNUALIZED EXPENSES2017 ACTUAL
PRICE $2,238,000
ACTUAL CAP RATE 7.25%
DOWN PAYMENT (37%) $832,000
Average Rent / SF $18.19
Approx. Rentable SF 13,948
Cost per Rentable SF $160.45
Year Built 2012
Approximate Lot Size (acres) 1.06 Acres
2017 PROFORMA EXPENSES:
Management Fee 5% $12,687
Real Estate Tax $24,500
Electricity $10,164
Elevator Contract $2,083
Fire Safety $180
Landscape Maint. Contract $2,812
Building & Equip. Repairs $5,392
Janitorial $7,706
Cleaning Supplies $1,143
Snow Removal $2,025
Trash Removal $508
Water/Sewer $1,538
Insurance Other $2,190
Total 2017 Expenses: $72,926
CAM Per Square Foot: $5.23
FINANCIAL SUMMARY
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
+1 801 947 [email protected]
Greg Pavich+1 801 453 [email protected]
Bri Midas
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TENANT SQ. FT. MONTHLYRENT
RATE / SQ. FT.
ANNUAL RENT
LEASE COMMENCE
LEASE EXPIRE
RENT INCREASES
RENEWAL OPTIONS
SECURITY DEPOSIT
Valley Mental Health 9,333 $14,440 $18.57 $173,280 6/1/16 9/30/21 3% 1 (3yr) $15,778.00
P4 Pharmacy 2,036 $2,800 $16.50 $33,600 2/1/15 1/31/20 3%
HEI Security 2,579 $3,405 $15.84 $40,863 10/13/14 10/12/19 3% None $3,116.30
TOTALS 13,948 $20,645 $16.97
Actual Annual Gross Rent $253,743
Occupied Sq. Ft.: 13,948 (100%)
Vacant Sq. Ft.: 0
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
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1. Sold Office Space (ID: 82879) Cloverland BuildingGermania Garden
5242 S. College Dr. Murray, UT 84123 Market: CW / Sub-Market: Central Valley WestTotal Building SF: 36,921 SF
Comp SF: 36,921 SFSale Price: $5,800,000
Sale Price/SF: $157.09Cap Rate(%): 7.60%
Building Class: CYear Built: 1986
Off-Market : 10/19/2018Months on Market: 4
# Floors: 3Typical Floor: 12357
Parking Spaces: 126Parking Ratio: 3.46/1000
Load Factor: 15%
2. Sold Office Space (ID: 73596) Creek Road PlaceCreek Road Office Condos Phase III
7440 S. Creek Rd. Sandy, UT 84093 Market: SE / Sub-Market: Union Park DistrictTotal Building SF: 41,207 SF
Comp SF: 44,825 SFCap Rate(%): 7.20%
Building Class: AYear Built: 2008
Off-Market : 01/11/2018
# Floors: 4Typical Floor: 8933
Parking Spaces: 145Parking Ratio: 3.5/1000
Comments: **Confidential Comp** Cap Rate is Estimate - Sold To Investor
All information contained herein is from sources deemed reliable and is submitted subject to errors, omissions and to change of price or terms without notice.December 18, 2018 Page 1 of 5
Pavich Comps - RevisedPrepared For: 12/18/2018
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
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3. Sold Office Property (ID: 74139) Pony Express Center
12894 South Pony Express Road Draper, UT 84020 Market: SW / Sub-Market: DraperTotal Building SF: 40,509 SF
Comp SF: 40,509 SFSale Price: $5,600,000
Sale Price/SF: $138.24Cap Rate(%): 7.70%
Building Class: CYear Built: 2000
Off-Market : 12/18/2017Months on Market: 7
# Floors: 1Typical Floor: 0Parking Ratio: 4/1000
4. Sold Office Space (ID: 73845) Sorenson Research 10Sorenson Research Park
4179 S. Riverboat Rd. Taylorsville, UT 84123 Market: CW / Sub-Market: Central ValleyTotal Building SF: 41,226 SF
Comp SF: 41,226 SFSale Price: $5,600,250
Sale Price/SF: $135.84Cap Rate(%): 7.40%
Building Class: BYear Built: 1998
Off-Market : 11/16/2017Months on Market: 4
# Floors: 2Parking Ratio: 5/1000
Load Factor: 16.6%
All information contained herein is from sources deemed reliable and is submitted subject to errors, omissions and to change of price or terms without notice.December 18, 2018 Page 2 of 5
Pavich Comps - RevisedPrepared For: 12/18/2018
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5. Sold Office Property (ID: 73357) Sorenson Research 4Sorenson Research Park
849 W. Levoy Dr. Taylorsville, UT 84123 Market: CW / Sub-Market: Central ValleyTotal Building SF: 39,439 SF
Comp SF: 39,439 SFSale Price: $5,900,000
Sale Price/SF: $149.60Cap Rate(%): 7.72%
Building Class: BYear Built: 1996
Off-Market : 07/31/2017
# Floors: 2Parking Ratio: 5/1000
Load Factor: 15%
Comments: Buyer (Out-of-State-California, Private, New to Market), Seller (Out-of-State, Institutional).
6. Sold Office Space (ID: 65411) South Pointe ISouth Pointe
859 W. South Jordan Pkwy. South Jordan, UT 84095 Market: SW / Sub-Market: Sandy South TowneTotal Building SF: 25,775 SF
Comp SF: 24,010 SFSale Price: $4,075,000
Sale Price/SF: $169.72Cap Rate(%):
Building Class: BYear Built: 1997
Off-Market : 12/30/2016Months on Market: 3
# Floors: 2Typical Floor: 13165Parking Ratio: 4/1000
Load Factor: 19%
Comments: Sold to owner/occupant - valuation for sale based in part on estimated value if occupied at an investment of approximately 7%+ CAP - did not include cost to re-tenant
All information contained herein is from sources deemed reliable and is submitted subject to errors, omissions and to change of price or terms without notice.December 18, 2018 Page 3 of 5
Pavich Comps - RevisedPrepared For: 12/18/2018
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
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7. Sold Office Space (ID: 70482) Lake Pointe Corporate Center (Portfolio)Lake Pointe Corporate Center
2850-2882 S. Decker Lake Dr. Salt Lake City, UT 84119 Market: NW / Sub-Market: West Valley/Lake ParkTotal Building SF: 178,547 SF
Comp SF: 178,547 SFSale Price: $25,700,000
Sale Price/SF: $143.94Cap Rate(%): 7.49%
Building Class: BYear Built: 1998
Off-Market : 09/30/2016
# Floors: 5Parking Ratio: 7/1000
8. Sold Office Space (ID: 63842) Convergys PortfolioSorenson Research
860 W. Levoy Dr. Taylorsville, UT 84123 Market: CW / Sub-Market: Central ValleyTotal Building SF: 107,062 SF
Comp SF: 107,062 SFSale Price: $16,846,000
Sale Price/SF: $157.35Cap Rate(%): 7.80%
Building Class: BYear Built: 1997
Off-Market : 05/27/2016
# Floors: 3Typical Floor: 35588Parking Ratio: 5/1000
Comments: Sold to investor. 7.80% CAP. 100% Occupied. Purchase price of $17M less concession of $153,900.00 for building deferred maintenance.
All information contained herein is from sources deemed reliable and is submitted subject to errors, omissions and to change of price or terms without notice.December 18, 2018 Page 4 of 5
Pavich Comps - RevisedPrepared For: 12/18/2018
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SALES COMPARABLES MAP
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REGION OVERVIEW
> SALT LAKE COUNTYSalt Lake County, Utah is the largest County in the state having a population of 1.11M people with a median age of 32.3 and a median household income of $65,694. During the five year period 2011 to 2016 the population grew 8.35%, far outpacing the national average of 3.68%.
The median property value in Salt Lake County, UT is $256,800, and the homeownership rate is 65.6%. Most people in Salt Lake County, UT commute by driving, and the average commute time is 20.8 minutes. The average car ownership in Salt Lake County, UT is 2 cars per household.
The economy of Salt Lake County, Utah employs 563,382 people. The most common job groups by number of people are Management, Business, Science, & Arts, Sales & Office, and Service. Compared to other counties, Salt Lake County has an unusually high number of residents working in Production; Administrative; and Life, Physical, & Social Science.
The Utah Transit Authority operates public bus and rail service throughout Salt Lake County and beyond to the entire Wasatch Front. The light rail system, known as TRAX, currently has three lines. The Blue Line runs from Downtown Salt Lake City to Draper, the Red Line from South Jordan to the University of Utah, and the Green Line from West Valley City to the Salt Lake City International Airport (via Downtown Salt Lake City). There are currently 50 stops in the system. The FrontRunner commuter rail line provides all-day service to Ogden on the north and Provo on the south.
UTAH
Salt Lake County, Utah
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WHY UTAH?
> UTAH TOP RANKS• Utah is a national leader in job growth,
unemployment, low cost of doing business, and talented labor. Utah regularly tops rankings for best states for business, careers, living, health, and quality of life.
• Utah Named #10 Among Best Places to Live - U.S. News and World Report
• Utah Ranked #3 Best Economy - WalletHub
• Salt Lake Am ong Top 15 Cities Where Millennials are Moving - Time Magazine
• Salt Lake City (and the Wasatch Front) Ranked #1 Among Cities Poised to Become Tomorrow’s Tech Meccas - Forbes
• Two Utah Cities (Provo-Orem and Logan) Voted among the Best in America for “Successful Aging” - Milken Institute
• America’s 25 Best Cities For Young Professionals in 2017 - Forbes
• Salt Lake City Named #1 City Where Young People Want to Be - realtor.com
• Utah the Best Place in the Country to Find a Job - U.S. News
• Utah Tops the List of Happiest States in America 2016 - WalletHub
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2018 SALT LAKE OFFICE MARKET REPORT
Research & Forecast Report
SALT LAKE COUNTY | OFFICE3rd Quarter 2018
Continued Strength and RecognitionThe Salt Lake County office market continues to be one of the strongest in the nation as increased market activity proves it has yet to reach its fullest potential.
During the third quarter an increasing number of tenants looking for generous floor space, anywhere from 20,000 to 50,000 square feet, was noted. Most of the market activity focused in the southern portion of the county where there is an abundance of newly completed Class A office space available.
Currently, absorption rates recorded a YTD positive 600,279 square feet, with the largest amount of absorption in the South West Valley at 523,500 square feet. Vacancy rates in Salt Lake County decreased by 0.34 percentage points from third quarter 2017 to 9.47 percent currently.
The overall weighted average asking lease rate increased slightly from this same time last year, landing at $24.07 full service overall. With over 1.1 million square feet of additional Class A office space currently under construction and expected to be completed within the next two quarters, the adjusted asking lease rate for class A properties should increase significantly, ranging from $25.00 to $32.00 full service gross in ideal locations. Vacancy rates will also increase slightly as new construction projects are completed.
Office Growth Office Snapshot | Salt Lake County
Salt Lake County Research & Forecast Report | 3rd Quarter 2018| Utah | Colliers International
Vacancy RatesHistoric Overview By Class
Under Construction Total Under Construction: 1,117,925 Over 65% Pre-leased
3%
24%
9%
14%
29%
21% Central Valley West
Draper
Sandy South Towne
South West Valley
Sugarhouse
West Valley/LakePark
VACANCY
CONSTRUCTION
RENTAL RATE*
Note: Construction is the change in Under Construction.*FS Rent for existing product, does not include asking rents currently under construction
YTD ABSORPTION
Year OverYear Change % Change
Previous Quarter % Change
Market Indicators
59.84 %
-12.72 %
-6.84 %
0.17 %
- 8.94 %
34.03 %
-21.91 %
0.75 %11
.21% 13
.14%
7.27
%
7.35
%
7.60
%
8.06
%
7.94
%
12.3
3%
11.1
9%
10.3
2%
7.43
% 8.67
%
11.4
4%
10.1
8%
14.0
7%
13.2
2%
13.6
0%
12.7
1%
9.88
%
9.88
%
8.84
%
12.3
1%
12.4
3%
10.0
2%
8.60
% 9.81
%
9.81
%
9.47
%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
YE-2012 YE-2013 YE-2014 YE-2015 YE-2016 YE-2017 Q3-2018
Class A Class B Class C Overall
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Research & Forecast Report
SALT LAKE COUNTY | OFFICE3rd Quarter 2018
Continued Strength and RecognitionThe Salt Lake County office market continues to be one of the strongest in the nation as increased market activity proves it has yet to reach its fullest potential.
During the third quarter an increasing number of tenants looking for generous floor space, anywhere from 20,000 to 50,000 square feet, was noted. Most of the market activity focused in the southern portion of the county where there is an abundance of newly completed Class A office space available.
Currently, absorption rates recorded a YTD positive 600,279 square feet, with the largest amount of absorption in the South West Valley at 523,500 square feet. Vacancy rates in Salt Lake County decreased by 0.34 percentage points from third quarter 2017 to 9.47 percent currently.
The overall weighted average asking lease rate increased slightly from this same time last year, landing at $24.07 full service overall. With over 1.1 million square feet of additional Class A office space currently under construction and expected to be completed within the next two quarters, the adjusted asking lease rate for class A properties should increase significantly, ranging from $25.00 to $32.00 full service gross in ideal locations. Vacancy rates will also increase slightly as new construction projects are completed.
Office Growth Office Snapshot | Salt Lake County
Salt Lake County Research & Forecast Report | 3rd Quarter 2018| Utah | Colliers International
Vacancy RatesHistoric Overview By Class
Under Construction Total Under Construction: 1,117,925 Over 65% Pre-leased
3%
24%
9%
14%
29%
21% Central Valley West
Draper
Sandy South Towne
South West Valley
Sugarhouse
West Valley/LakePark
VACANCY
CONSTRUCTION
RENTAL RATE*
Note: Construction is the change in Under Construction.*FS Rent for existing product, does not include asking rents currently under construction
YTD ABSORPTION
Year OverYear Change % Change
Previous Quarter % Change
Market Indicators
59.84 %
-12.72 %
-6.84 %
0.17 %
- 8.94 %
34.03 %
-21.91 %
0.75 %
11.2
1% 13.1
4%
7.27
%
7.35
%
7.60
%
8.06
%
7.94
%
12.3
3%
11.1
9%
10.3
2%
7.43
% 8.67
%
11.4
4%
10.1
8%
14.0
7%
13.2
2%
13.6
0%
12.7
1%
9.88
%
9.88
%
8.84
%
12.3
1%
12.4
3%
10.0
2%
8.60
% 9.81
%
9.81
%
9.47
%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
YE-2012 YE-2013 YE-2014 YE-2015 YE-2016 YE-2017 Q3-2018
Class A Class B Class C Overall
Lease RatesHistoric Overview By Class
2 Salt Lake County Research & Forecast Report | 3rd Quarter 2018| Utah | Colliers International
Research & Forecast Report
SALT LAKE COUNTY | OFFICE3rd Quarter 2018
Square Feet Submarket Tenant/Landlord Leased/Sold
477,903 Periphery Beacon Capital Partners Sold
348,217 Draper Pluralsight Pre-Leased
160,855 Sandy South Towne Ivanti Pre-Leased
100,000 Sandy South TowneAmerican Express Travel
Related Services Company
Pre-Leased
36,339 Sandy South Towne DM South Creek Sold
AbsorptionDowntown (CBD + Periphery) vs.Suburban(All other submarkets)
Significant Deals3rd Quarter Only
Submarket ActivityWith the majority of leasing activity falling within the Draper and Sandy South Town submarkets, things will not slow throughout the remainder of the year. Although the downtown market did not see large amounts of net positive absorption this quarter, tenants have been looking at the downtown area for future expansions and relocations. An increase of larger sized tenants looking for high-quality office space ranging from 20,000 to 60,000 square feet during the first part of 2018 occurred triggering an increased amount of pre-leasing activity as tenants secure ideal Class A space.
9%
91%
Downtown Suburban
$24.
74
$24.
55
$24.
81 $27.
36
$28.
94
$29.
52
$26.
67
$18.
69
$18.
71
$19.
42
$20.
34
$21.
05
$22.
06
$21.
83
$14.
95
$15.
54
$15.
22 $17.
37
$18.
61
$17.
39
$18.
54
$19.
57
$20.
42
$20.
10 $22.
40
$23.
45
$23.
66
$24.
07
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
YE-2012 YE-2013 YE-2014 YE-2015 YE-2016 YE-2017 Q3-2018
Class A Class B Class C Overall Linear (Overall)
2018 SALT LAKE OFFICE MARKET REPORT
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300
+1 801 947 [email protected]
Greg Pavich+1 801 453 [email protected]
Bri Midas
20
MENU CLICK TONAVIGATE
FINANCIAL ANALYSIS
PHOTOS
PROPERTY OVERVIEW
OFFERING SUMMARY
DISCLAIMER
SALES COMPARABLES
MARKET OVERVIEW
AERIAL
2018 SALT LAKE OFFICE MARKET REPORT
Lease RatesHistoric Overview By Class
2 Salt Lake County Research & Forecast Report | 3rd Quarter 2018| Utah | Colliers International
Research & Forecast Report
SALT LAKE COUNTY | OFFICE3rd Quarter 2018
Square Feet Submarket Tenant/Landlord Leased/Sold
477,903 Periphery Beacon Capital Partners Sold
348,217 Draper Pluralsight Pre-Leased
160,855 Sandy South Towne Ivanti Pre-Leased
100,000 Sandy South TowneAmerican Express Travel
Related Services Company
Pre-Leased
36,339 Sandy South Towne DM South Creek Sold
AbsorptionDowntown (CBD + Periphery) vs.Suburban(All other submarkets)
Significant Deals3rd Quarter Only
Submarket ActivityWith the majority of leasing activity falling within the Draper and Sandy South Town submarkets, things will not slow throughout the remainder of the year. Although the downtown market did not see large amounts of net positive absorption this quarter, tenants have been looking at the downtown area for future expansions and relocations. An increase of larger sized tenants looking for high-quality office space ranging from 20,000 to 60,000 square feet during the first part of 2018 occurred triggering an increased amount of pre-leasing activity as tenants secure ideal Class A space.
9%
91%
Downtown Suburban
$24.
74
$24.
55
$24.
81 $27.
36
$28.
94
$29.
52
$26.
67
$18.
69
$18.
71
$19.
42
$20.
34
$21.
05
$22.
06
$21.
83
$14.
95
$15.
54
$15.
22 $17.
37
$18.
61
$17.
39
$18.
54
$19.
57
$20.
42
$20.
10 $22.
40
$23.
45
$23.
66
$24.
07
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
YE-2012 YE-2013 YE-2014 YE-2015 YE-2016 YE-2017 Q3-2018
Class A Class B Class C Overall Linear (Overall)
6550 S Millrock Dr, Suite 200 Salt Lake City, UT 84111 801.947.8300