Salt Lake City Commercial Office Space for Rent

Q3 2026

Q3 2026 Salt Lake City Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Salt Lake City office vacancy fell for the eighth straight quarter to 21.8% in Q3 2026, and year-to-date absorption of 577,000 SF already exceeds all of 2025. With no office space under construction, the market is tightening. On TenantBase, office demand nearly quadrupled to 67.8% of Salt Lake City tenant searches, up from 17.3% in Q2, with Utah County/Provo the most searched location.

Sector Snapshot

  • Office: Tightening. Vacancy fell 140 basis points year over year, with 161,000 SF of positive absorption in Q3.
  • Industrial: Stable. Vacancy was 7.3%, with asking rents rising to $0.87/SF per month.
  • Retail: Low vacancy. Vacancy was 4.0%, with first-half 2026 deliveries at a record low.
  • Multifamily: Absorbing supply. Occupancy was 94.7% after a decade-high 9,430 units delivered in 2025.

Salt Lake City Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Salt Lake City region are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Office: 67.8%
  • Retail/Storefront: 30.5%
  • Warehouse/Industrial: 1.7%

Three-Quarter Trend

  • Office: 19.4% in Q1, 17.3% in Q2, 67.8% in Q3
  • Retail/Storefront: 54.3% in Q1, 55.1% in Q2, 30.5% in Q3
  • Warehouse/Industrial: 26.3% in Q1, 28.2% in Q2, 1.7% in Q3

Key Takeaways

  • Office is now two-thirds of demand, rising from 17.3% of searches in Q2 to 67.8% in Q3.
  • Office tenants want flexibility. 62.5% of office searches sought terms under one year, up from 48.0% in Q2.
  • Longer office terms mean larger spaces. 3 to 5 year office searches averaged 3,833 to 7,833 SF.
  • Retail tenants want short terms. 56.3% of retail searches sought terms under one year.
  • Utah County/Provo led location interest, followed by Downtown, Weber County/Ogden, and West Valley.

Office Market

Key Metrics (Q3 2026, CBRE)

  • Vacancy: 21.8%, down 80 basis points quarter over quarter and 140 basis points year over year
  • Net absorption: 161,000 SF in Q3 and 577,000 SF year to date, compared with 488,000 SF in all of 2025
  • Direct asking rent: $26.87/SF full service, up 2.2% year over year, with Class A at $32.32/SF
  • Construction: no space under construction for the third straight quarter
  • Submarkets: Sugarhouse at 12.7%, Lehi at 13.2%, Sandy South Towne at 15.9% with 88,000 SF of Q3 absorption, and the CBD at 21.5%
  • Major lease: Swire Coca-Cola USA, 106,000 SF new in Sandy South Towne

TenantBase Office Activity

Demand share: 67.8% of Salt Lake City tenant searches, up from 17.3% in Q2 and 19.4% in Q1.

Lease terms:

  • Less than 1 year: 62.5%
  • 2 to 3 years: 17.5%
  • 3 to 5 years: 17.5%
  • 5+ years: 2.5%

Space requirements by term:

  • Less than 1 year: 1,056 to 2,220 SF
  • 2 to 3 years: 2,429 to 5,143 SF
  • 3 to 5 years: 3,833 to 7,833 SF

TenantBase data vs. the market: Salt Lake City office tenants on TenantBase are mostly seeking small, flexible spaces, with Utah County the top location. With no new construction and eight straight quarters of falling vacancy, tenants planning multi-year moves should start early, especially in Lehi and Sugarhouse.

Industrial & Warehouse Market

Key Metrics (Q3 2026, CBRE)

  • Vacancy: 7.3%, up 10 basis points quarter over quarter, below the cycle high of 8.2% in Q4 2025
  • Net absorption: 168,000 SF in Q3, down from 1.7 million SF in Q2
  • Leasing: 2.3 million SF
  • Asking rent: $0.87/SF per month NNN, up from $0.82
  • Major project: Motorola Solutions is building a $100 million, 165,000 SF facility with 200 jobs in the Utah Inland Port area (Utah Inland Port Authority)

TenantBase Warehouse Activity

Demand share: 1.7% of Salt Lake City tenant searches, down from 28.2% in Q2 and 26.3% in Q1.

TenantBase data vs. the market: Warehouse searches on TenantBase dropped sharply in Q3, while large users continued to lease space in the Northwest Quadrant. Rising rents mean small industrial tenants should lock in terms early.

Retail Market

Market Conditions (Marcus & Millichap, 3Q 2026)

  • Vacancy: 4.0%
  • Deliveries: 185,000 SF in the first half of 2026, the lowest January to June total on record
  • Absorption: on track for a 19th straight year of positive absorption

TenantBase Retail Activity

Demand share: 30.5% of Salt Lake City tenant searches, down from 55.1% in Q2 and 54.3% in Q1.

Lease terms:

  • Less than 1 year: 56.3%
  • 3 to 5 years: 18.8%
  • 2 to 3 years: 12.5%
  • 5+ years: 12.5%

Space requirements by term:

  • Less than 1 year: 1,000 to 2,500 SF
  • 2 to 3 years: 750 to 1,750 SF

TenantBase data vs. the market: Most Salt Lake City retail tenants on TenantBase are seeking small storefronts on short terms. With vacancy at 4.0% and little new construction, tenants should expect limited options in established corridors.

Development & Economic Drivers

  • Jobs: Utah added 20,600 jobs year over year, up 1.2%, with unemployment at 3.5% in August (Utah Department of Workforce Services)

Multifamily Market

Salt Lake City average asking rent was $1,525 in Yardi Matrix's April 2026 report, with occupancy at 94.7%, up 10 basis points year over year. The market delivered 9,430 units in 2025, a decade high.

Q4 2026 Outlook

  • Office: Expect vacancy to keep falling with no new supply in the pipeline.
  • Industrial: Expect steady leasing in the Northwest Quadrant as rents edge higher.
  • Retail: Expect low vacancy to persist as new construction stays limited.
  • Multifamily: Expect occupancy to hold as deliveries slow from 2025 levels.

Frequently Asked Questions

What type of commercial space are Salt Lake City tenants searching for in 2026?

In Q3 2026, 67.8% of Salt Lake City tenant searches on TenantBase were for office space, 30.5% for retail space, and 1.7% for warehouse space.

What is the office vacancy rate in Salt Lake City?

Salt Lake City office vacancy was 21.8% in Q3 2026, down 140 basis points year over year, according to CBRE.

What is the industrial vacancy rate in Salt Lake City?

Salt Lake City industrial vacancy was 7.3% in Q3 2026, with asking rents of $0.87/SF per month NNN, according to CBRE.

How can I find commercial space in Salt Lake City at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Salt Lake City region at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Salt Lake City, July 1 to September 30, 2026
  2. TenantBase, Salt Lake City Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Salt Lake City Commercial Real Estate Market Report, Q1 2026
  4. CBRE, Salt Lake City-Provo Office Figures, Q3 2026
  5. CBRE, Salt Lake City Industrial Figures, Q3 2026
  6. Utah Inland Port Authority, Motorola Solutions Facility, May 2026
  7. Marcus & Millichap, Salt Lake City Retail Market Report, 3Q 2026
  8. Utah Business, Utah Employment Summary, August 2026
  9. Yardi Matrix, Salt Lake City Multifamily Market Report, April 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.