Utah's commercial real estate market is experiencing some positive growth. The Salt Lake market added 176,000 sf of new construction to the Central Business District during the 1st qtr of 2012. The Salt Lake market is expected to add another 673,000 sf of new construction by the year-end. More than half of this new construction is pre-leased, which signals an increase in tenant confidence.
Grocery was one of the more dynamic segments of the market. Winco has entered the market, and a local company, Harmons opened a brand new store in downtown Salt Lake City which will cater to the growing residential community in the city, as well as employees coming to work downtown. Smaller and specialty grocery stores have also opened in Salt Lake, including Whole Foods and Sunflower Market.
Construction in Salt Lake City's central business district has slowed some with the completion of the new City Creek Center. The new City Creek Center, one of only two large-scale retail developments in the country,opened in March 2012 with new retail, restuarants, office and housing. The Salt Palace Convention Center just expanded to make way for larger conventions and meetings. About 4,000 hotel rooms have been added to the Salt Lake Valley in the past 10 years, which is a 49 percent increase. The increased convention space and hotel rooms have made way for larger conventions to come to the state. The additional space was also a key component for keeping The Outdoor Retailers (Winter & Summer shows) to host their shows here.
Salt Lake is considered one of the most promising retail markets in the nation. Valuation International Ltd., an Atlanta-based real estate consulting and appraisal group, has ranked Salt Lake as the most lucrative retail market in the country. The Fashion Place Mall, owned by General Growth Properties, is currently renovating portions of the mall which include the state's only Crate & Barrell and H&M stores.
Scheels is constructing a new store in Sandy. The company broke ground in spring, 2011 and will be open for business in September 2012.