Increased Corporate Expansion Fueling Positive Absorption and New Building Construction
Utah commercial real estate is experiencing dynamic construction activity and absorption—especially within North Utah County and South Salt Lake County. It has been exciting to see Utah join the national stage as a leading location for corporate expansion, and it’s no surprise to see Utah ranked again by Forbes as the No. 1 Best State for Business. We are working with a record number of companies and site selectors regarding major expansion.
“I have four large office buildings currently under construction in Lehi alone, totaling over 500,000 square feet,” Brandon Fugal says. “These will house expanding headquarters for companies such as Ancestry.com, Vivint Solar, MX and Weave.
“In Draper, headquarter buildings are under construction for 1-800 Contacts, StorageCraft, Progressive Finance and Crest Financial,” Fugal adds. “In Sandy, you have the new 5-story headquarters breaking ground for inContact across from the South Towne Expo Center. In Midvale, you have Overstock.com,one of the nation’s largest online retailers, under construction for their $100 million headquarters that will bring most of its 1,600 employees under one roof—in a building that will look like a peace sign from the air and the Roman Colosseum from land once it’s complete.”
Vibrant Utah commercial real estate growth isn’t just happening in the south end of the valley. “We are witnessing the entire Wasatch Front growing into one large Metroplex,” Fugal says. “It is no longer possible to simply focus primarily on Salt Lake, as so much construction and expansion has been taking place in Lehi all the way to Farmington.”
The exciting and dynamic growth in the Utah commercial real estate industry and business community is a reflection of the state’s robust economy. The credit lays in the state’s vigorous tech sector and industrial diversification as key influencers to the state’s overall economic dynamism.
“We’re now viewed as the nation’s Silicon Slopes and we are a prime destination for tech corporate expansion,” says Fugal. “Yet as much as technology seems to be the leading industry behind growth, it is important to note that Utah is the 4th most diverse economy. Financial services, manufacturing and other industries are contributing to our dynamic growth environment.”
As we look toward the future, expect to see continued growth within Utah commercial real estate sectors, including positive absorption and new building construction fueled by more corporate expansion.
“Watch Utah continue to garner attention and activity from both national and international investors as well,” Fugal says.