Retail in Salt Lake City, Utah, has suffered its second straight quarter of subdued demand. As highlighted in a CBRE report, negative net absorption widened to -303,000 square feet in the first three months of the year.
The amount has roughly tripled from the fourth quarter. And in the 12 months prior, absorption was in positive territory.
This came as "neighborhood, community, and strip centers collectively accounted for 116,000 sq. ft. of negative net absorption due to suburban move-outs," according to CBRE.
Recommended For You
Power retail produced the next highest amount of negative absorption, at -99,000 square feet. By submarket, the Outer Salt Lake Metro performed the poorest in the category by negatively absorbing -237,000 square feet.
Also, retail availability increased by 0.5 percent year-over-year to 4.2 percent in the first quarter. Malls and lifestyle centers registered in at the highest under the category, at 8.5 percent. That said, the overall availability remains down from the five-year average of 4.5 percent.
Rents were a little more mixed. The average ask of $22.30 per square foot NNN suggests a 1.8 percent increase from the previous three months but a 0.8 percent decrease year-over-year.
In addition, tariffs and economic uncertainty are already weighing on developments in the market, as noted by CBRE. Just 15,000 square feet of retail product was completed in the first quarter, representing a 33,000 square feet drop from the last three months of 2024. CBRE warned that this could bring both positive and negative trends in the short term for retail in Salt Lake City.
"Low levels of new construction are expected to keep retail fundamentals tight, but economic uncertainty, including tariff policies, may slow decision-making in the near-term," it explained.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
