BHHS Utah Commercial Real Estate uses a team approach to meet the needs of their clients. With a desert climate, Utah offers hot summers and cold winters. The Industrial market is expected to experience a substantial increase through the rest of 2022.
Multifamily rents grew by 5.5% during the quarter
During the third quarter, national multifamily rents reached an all-time high of $1,167 per month. This marks the highest quarterly rent growth since the end of the recession cycle in the second quarter of 2009.
The multifamily market posted strong performance in the third quarter, continuing to outperform the overall commercial real estate sector. This was due to steady demand, which supported a healthy multifamily market. The market will continue to expand, but will do so at a moderate pace.
According to the Yardi Matrix, multifamily fundamentals experienced unprecedented growth in the third quarter. The national average rent rose to $1,572 in October, which represents a 30-basis point increase over August. On a trailing 12-month basis, rents grew 5.6% year-over-year.
The top-performing metros on a year-over-year basis included Phoenix, Miami, Tampa-St. Petersburg, and Orlando. These markets led in both occupancy and rent growth.
Office space sector has decreased quarter-over-quarter
Vacancy rates in the Utah office space market have decreased by 145 basis points over the fourth quarter. This is the third consecutive quarter that the industry has posted positive net absorption.
However, the momentum of the recovery was not as consistent as it was during the first half of the year. Many companies held off adding new hires in order to preserve the amount of space they had in their existing locations. These policies had a negative impact on daytime office occupancy.
The average asking rent for industrial space increased by 3% over the quarter. This is the highest quarterly growth rate since 2018. On the other hand, the average rent for retail space was 0.4% lower than a year ago.
The GVA Office Market, which measures office space price per square foot, saw an increase in both the price and the vacancy rate in Q2 2022. The GVA market is one of the largest in the country and is expected to continue its momentum through 2022.
Industrial market is expected to grow substantially through the rest of 2022
Currently, the Salt Lake City industrial market is thriving. The vacancy rate is near 2.0%, and many large warehouses have been leased in the past three months.
The industrial market in Utah is expected to expand substantially through 2022. However, it won’t be able to meet demand.
Despite Utah’s robust economy and low unemployment rate, housing supply is tight and prices are high. That means first time homebuyers can be priced out of the market. A growing number of Californians are moving to the state, adding to the pressure on the supply side.
The average asking rent for industrial space increased by 3% quarterly. This is a small improvement over the year prior. But it still represents a 24 percent increase. This is not a surprise, as the local rental stock has increased by 6% in the last twelve months.
BHHS Utah Commercial Real Estate uses a team approach to meet client needs
BHHS Utah Commercial Real Estate uses a team approach to meet the needs of its clients. The team of seasoned professionals provides a full range of property management, leasing, and sales services for discerning clients. Each member of the team brings their own special strengths to the table. Combined, these attributes allow them to provide the highest level of service.
BHHS Utah Commercial Real Estate is an affiliate of the Berkshire Hathaway HomeServices real estate brokerage network, which includes 750 offices in 37 states. This affiliation will allow BHHS Utah Properties agents to receive new and enhanced tools to help them achieve the best possible results for their clients.
Tom Roney plays an important role in the strategic direction of the firm. He is involved in the technology, finance, and marketing departments. He has been in the real estate business for more than six years. He has earned an MBA from the University of Utah.
Salt Lake City’s desert climate supports hot summers and cold winters
Located in a semi-arid climate in the Wasatch Front, Salt Lake City experiences hot and dry summers, cold winters, and short but intense springs. This desert climate provides temperatures that are suitable for outdoor recreation. It is a major tourist destination and the world’s largest salt lake, giving the city its name.
In summer, the high temperatures in the valley can reach 41.5 degrees Celsius. However, the evenings can be cool. This temperature is tempered by the nearby mountains, which can be 20 degrees cooler.
The Wasatch Front is home to many tourist resorts, including Park City and Snowbird. It is also home to blue herons, white pelicans, and seagulls.
The summer monsoon brings intense thunderstorm activity to the Salt Lake area. The summer heat can lead to tornadoes and other severe weather events. It is important to dress in layers to protect yourself from the changing weather.
