As Salt Lake City’s economy slowly rises, improvement is extending to the retail market, a recent report shows.
The Wasatch Front has added approximately 36,900 new jobs over the past year, an annual growth rate of 3.6 percent. According to Marcus & Millichap Real Estate Investment Services Inc., professional and business services sector have led the charge, growing by 10,900 new jobs. By the end of the year, job growth should reach 41,000, reflecting an annualized 3.9 percent increase and outpacing 2012’s performance by about 4,300.
On the retail front, the flow of new product has fallen off dramatically since the openings of City Creek Center and Station Park. Of the 1.3 million square feet completed during the past twelve months, 1.1 million came on line before the end of 2012. Only 300,000 square feet are scheduled for completion by the end of the year, less than 10 percent of 2012’s 3.4 million-square-foot total.
One positive result of this year’s dearth of new retail product is declining vacancy. During the past 12 months, vacancy has dipped 80 basis points to 4.7 percent, well below the national average. Four years ago, average vacancy for all retail property types stood at 7.2 percent.
Chart courtesy of Marcus & Millichap Real Estate Investment Services @ marcusmillichap.com