Salt Lake City—September 4, 2019—The Salt Lake City office of CBRE has released its semi-annual Greater Salt Lake Area Multifamily Market Report, offering detailed insight into the multifamily market along the Wasatch Front. Encompassing data from the first half of 2019, the report reflects a market that continues to experience record sales volume, with current demand meeting new supply at a healthy pace. As of mid-year 2019, sales volume was just over $585 million and is on track to beat last year’s record high of $1.44 billion. Vacancy rates have also remained steady at 3.9% for the third straight year, signifying a balanced market with steady demand.
“Multifamily continues its commanding presence and is the preferred investment vehicle over all other asset types—both locally and nationally.” stated CBRE vice president and multifamily specialist, Patrick Bodnar. “This has caused cap rates to experience a downward pressure as competition to purchase assets has greatly increased from institutional investors, private equity firms and high net worth family offices.”
Eli Mills, senior vice president, noted, “The greater Salt Lake multifamily market has experienced robust mid-year rent growth of 5.1% year-over-year, in addition to healthy absorption numbers and consistent low vacancy.”
- In-migration for employment remains the top driver for multifamily demand and is contributing to low vacancy, which remains at 3.9% for the third straight year
- Year-over-year rent growth is strong and at 5.1%, with an overall average monthly rent of $1,157 across all property classes. Salt Lake County experienced the greatest rent growth, rising to an average of $1,187 through mid-year 2019.
- Many out-of-state developers are looking to participate in Salt Lake as it is a high-growth, secondary market that is largely untapped by outside developers. So far in 2019, close to 3,000 units have delivered, and an additional 4,764 units are expected to be completed across the four-county area by year-end 2019. The majority of this new development is taking place in Salt Lake County, which is expected to see a total of 5,565 new units this year.
This report has been prepared with current data sourced from a survey of over 60,000 units along the Wasatch Front. It highlights local market trends on rental, vacancy and cap rates; the status of the current construction pipeline; transaction volume; and much 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. 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 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 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.