Salt Lake City—September 10, 2020—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 2020, the report reflects a market that continues to experience high sales volume. Though Utah’s multifamily market has been affected by the current economic challenges, the effects have been minimal relative to many comparable markets, and investment activity has remained strong. As of mid-year 2020, sales volume had hit $686 million and is on track to realize sales in excess of $1 billion for the fourth year in a row. Vacancy rates have stayed relatively flat as well, reaching 4.3% as of June 30th, indicating a well-balanced market that has weathered the storm quite well, thus far.
“2020 has certainly been a year to remember for a variety of reasons, but the data through the first half of the year continues to reflect a multifamily market experiencing steady demand and relatively low volatility,” stated CBRE vice president and multifamily specialist, Patrick Bodnar. “Multifamily rent collections have remained above 97% for the year, and properties are reporting that half of all leases coming due are being renewed, which is an indication of healthy demand. Though absorption—the total number of units being rented—has slowed slightly as the year has progressed, some properties have reported absorption levels of approximately 4-6 units per week, which is an encouraging number.”
Eli Mills, senior vice president, added, “Considering how much economic uncertainty is present, Utah’s multifamily market has been quite resilient and is still seen as a highly desired market by local and national investors. Utah was recently ranked as the #1 economy in the nation by 24/7 Wall Street, and the adaptable performance of the multifamily segment, despite vast market challenges, is evidence of this area’s relative insulation with respect to the recent uncertainty.”
- Rent collections have been strong, averaging levels greater than 97%
- Despite COVID-19, cap rates are extremely aggressive
- Rent growth has slowed slightly as a result of economic uncertainty
- Most apartment properties are reporting a renewal rate above 50%
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 hereto 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 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.