New big-box vacancies (most notably including all of Utah’s 24-Hour Fitness locations) pushed up retail vacancy in Salt Lake County to 7.2% —a 40-basis-point increase year-to-date.
Vacancies were countered by new construction and positive user activity, leading to 73,818 sq. ft. of net absorption during Q2 2020 and a year-to-date total net absorption of 69,534 sq. ft.
Despite uncertainty, user activity was steady, with new leases totaling 437,320 sq. ft in the first-half, and 87,000 sq. ft. of vacant big-box space being purchased for retail use during Q2 2020.
The overall average asking lease rate increased 4.6% quarter-over-quarter to $18.19 per sq. ft. NNN, driven primarily by large, low-rent vacant space being purchased by a user and taken off the market.
An 85,000-sq.-ft. WinCo Foods completed construction in the Southwest, bringing year-to-date deliveries to 114,002 sq. ft. At quarter-end, nearly 163,000 sq. ft. remained actively under construction across the market.