More office space is available in Salt Lake City, but expert says there’s a catch
Sep 2, 2024, 3:00 PM
Downtown Salt Lake City is pictured on Monday, Oct. 12, 2020. (Steve Griffin/Deseret News.)
(Steve Griffin/Deseret News.)
SALT LAKE CITY — Office vacancy rates went up in Salt Lake City in the second quarter of 2024. However, one expert said the office space that’s available in Salt Lake right now isn’t necessarily the most appealing.
Roman Bernardo with CBRE Commercial Real Estate said there’s still a deficit in the amount of high-end, Class-A, office space in Salt Lake City.
What are Class-A office spaces?
Class-A office spaces are the “most prestigious buildings competing for premier office users,” according to the Building Owners and Managers Association.
Class A spaces often offer more amenities like more parking, security systems and attended lobbies.
These spaces come with a higher price tag, with rent usually exceeding the average in the area.
What’s the deal with Class-A office space in Salt Lake City?
Bernado said that the lack of high-end spaces is putting a squeeze on businesses that want to move up into nicer surroundings.
Six downtown buildings are being converted from office spaces to living spaces, putting more of a pinch on the shortage.
“The groups that aren’t able to get into something sooner than later are going to be stuck probably looking at alternative options or potentially a renewal in place,” Bernardo said.
And, to top it off, nothing new is being built.
Bernardo said if interest rates start to decline, construction will ramp up again. But that probably won’t be until at least 2027.
What does that mean for those who want to move up, but can’t right now?
“Find a lesser quality option and try to amenitize the buildings themselves, or stay in place and kick the can down the road until some new construction comes out of the ground,” Bernardo said.
