Multifamily Market Remains Active with Sales Volume Expected to Reach $1.0 Billion by Close of 2018
Salt Lake City—September 12, 2018—The Salt Lake City office of CBRE has released its semi-annual Greater Salt Lake Area Multifamily Market Report, offering insight into the multifamily market along the Wasatch Front. This volume of the report highlights a market that is maintaining a steady course, with growing rental rates, low vacancies and aggressive pricing. The local market is on momentum to follow 2017’s banner performance, with multifamily sales volumes projected to be at or above $1.0 billion, illustrating the strong interest investors have in the state of Utah.
“Multifamily investment opportunities across the Wasatch Front continue to attract out-of-state investors, yielding greater returns than competing western markets,” noted multifamily specialist, Patrick Bodnar. “Utah’s strong economic fundamentals are sustaining consistent growth in the local multifamily market.”
Utah’s employment growth rate remains strong at 3.4%, with in-migration as a top driver for multifamily demand across the Wasatch Front. Overall rent growth is up year-over-year at 5.3% with an average monthly rent of $1,101. This high demand is leading to a growing interest for high-rise residential in the downtown area, though no projects have been developed yet. 2,196 units were delivered along the Wasatch Front during the first half of 2018, with an additional 4,300 anticipated to deliver before year-end. Even with all this activity, vacancy remains tight at 3.9%.
The majority of new multifamily development is taking place in Salt Lake County, which houses approximately 64% of all active and planned construction. Lease-up velocity holds strong at 19 units per month, up from 17 units at the close of 2017. Of all units delivered during the previous 12 months, over 68% have been leased; local demand is presently keeping up with supply.
This report has been prepared with current data sourced from a survey of over 60,000 units along the Wasatch Front. The report highlights local market trends on rental, vacancy and cap rates; the status of the current construction pipeline; transaction volume; and more. Produced by multifamily investment specialists Patrick Bodnar and Eli Mills, the report contains the most current and comprehensive multifamily data available for the Wasatch Front, detailing market performance from Salt Lake, Utah, Davis and Weber Counties. Click here to download a full copy of the report.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.