Based on current vacancy rates and highly desirable locations, however, landlords are still able to get premiums for their units. For example, Salt Lake City is experiencing a multifamily vacancy rate right around 4 percent. The average rent is around $1,349, while the highest rent per unit is dis-cretionary at about $1,901. These num-bers come from some of our property management groups, though they don’t take into consideration projects with fewer than 50 units. Concessions, incentives and tenant improvement A Landlord’s Market Still Exists allowances remain in a property’s fa-vor in desirable locations like down-town Salt Lake City, Holladay and Lehi, with the state average hovering at 4.7 percent. New development is taking place throughout the state. This is having a huge impact on neighborhoods, with the Salt Lake Valley seeing the highest development. According to a construction report from the State of Utah, there are about 21,535 units either under construction or planned as of today in a total of 103 projects. The high-rise living trend is a new one for Salt Lake City, but developers are jumping in feet rst with a number of projects in the pipeline. High Optimism For High Rises 11 NEW BUILDINGS AT BDO! SQUARE FEET TO BE COMPLETED IN 2021 1.2 MILLION 4,800–240,000 SQUARE FEET OF LEASABLE SPACE AVAILABLE One trend Utah has not historically experienced is multifamily high-rise development. A number of these proj-ects are currently under construction, including the 24-story, 300-unit Liberty Sky Apartments by Boyer Company and Cowboy Partners in downtown Salt Lake City. Many more are pro-posed, including the Kensington Tow-er on State Street and 200 South. Hines also proposed a project on Main Street on the site of the old Utah Theater and Worthington Tower at 300 S. 200 E. These high-rise projects will change the meaning of downtown living and raise the standard for new projects in the future. Some of the most active develop-ers in the city have been Woodbury, ICO/Ivory, Bridge Investment Group, dbUrban, Boyer Company and Cow-boy Partners. There has also been movement in the landlord and prop-erty management space over the past year. This includes Greystar, which acquired Property Management Busi-ness Alliance — a move that’s given them a signifi cant presence in the property management arena. Having Greystar in the Salt Lake market has been a huge bonus to the community. Though there’s no telling what will happen to the multifamily market — either locally or nationally — over the next year, Salt Lake developers are confi dent in what they’re seeing. And if the old adage is true, since they’re building it, renters will hopefully come. n UPCOMING FEATURES Los Angeles New Mexico Las Vegas San Diego Portland Orange County EDITORIAL OPPORTUNITIES: Nellie Day • nday@francemediainc.com ADVERTISING OPPORTUNITIES: Scott France • scott@francemediainc.com Cameron Cook | 801.399.9885 cameroncook@boyercompany.com 16 • March 2021 • Western Real Estate Business www.REBusinessOnline.com
Western Real Estate Business March 2021: Page 16
