Big-box vacancies continue to headline Salt Lake County’s retail market with over 30 vacant spaces larger than 10,000 sq. ft. Fitness users are actively taking back these spaces. Planet Fitness leased a 23,000-sq-ft. vacant box in the Southeast submarket during Q1 2020.
Leasing slowed during Q1 2020, totaling less than 80,000 sq. ft. of new leases. Nearly 4,300 sq. ft. of negative net absorption was recorded in Q1 2020, pushing vacancy up 30 basis points from to 7.1% from 6.8% in Q4 2019.
The overall asking lease rate decreased to $16.87 NNN per sq. ft. The decline was due largely to the high amount of lower-priced big-box space available for lease.
Investors remained active in the Salt Lake market. Interpointe Shopping Center and Jordan Square Shopping Center sold during Q1 2020. Both neighborhood centers totaled more than 100,000 sq. ft. and had more than 90% occupancy at the time of the sale.