SALT LAKE CITY—Demand for class-A space in Salt Lake City is not confined to the office and industrial sectors—the retail sector is clamoring for this space as well, according to CBRE. The market experienced steady demand in the first quarter of 2014, with particularly strong demand for class-A product.

As GlobeSt.com reported earlier, the office and industrial sectors in this market all exhibited stable performance during Q1 and are expected to gain momentum going forward, and the demand for high-quality space is high, according to CBRE. In the office sector, as companies work to recruit and retain Millennials, demand for newer class-A space has increased. Meanwhile, the supply of high-quality industrial space has been limited because speculative construction has been low, and those spec buildings that are in the pipeline have been sold to owner-users or leased to a single tenant early in the development phase.

Salt Lake's retail activity in class-B and –C product was primarily driven by local tenants during Q1, CBRE reports. Due to the limited supply of class-A space, many retailers are waiting for new product to come to market as opposed to leasing second-generation space. This is evident in current preleasing levels, often occurring before a project has broken ground.