Data is out for Q1 2025 market performance across multiple product classes, including retail and multi-family.
Not surprisingly, along the Wasatch Front, asking rents in residential multi-family projects have declined for a full year, as absorption struggles to catch up to record production in apartment inventory.
For investors, retail space is the one bright spot for rent growth. Given a precipitous fall in construction starts over the last year and ongoing economic caution, the market’s energy to meet demand for retail space appears drained, and upward retail rents are likely to continue.
Let’s take a look at the Q1 housing and retail numbers for the counties along the Wasatch Front (Salt Lake, Utah, and Davis+Weber) according to the Q1 2025 Market Report from Mountain West Commercial Real Estate (MWCRE).
Multi-family in Salt Lake County
Multi-family in Utah County
Multi-family in Davis+Weber Counties
Multi-family vacancy rates are hovering around 10% on the Wasatch Front, which signals a decline in vacancies in both the Utah County and Davis/Weber contexts. Salt Lake County remained at 10% vacancy over the last year.
In addition, absorption was weaker across the Wasatch Front in Q1 2025 than in Q1 2024. Unit deliveries were down significantly in Salt Lake and Utah Counties, and up dramatically over the last year in Davis/Weber.
Retail in Salt Lake County
Retail in Utah County
Retail in Davis/Weber Counties
Retail lease rates are up from Q1 2024 to Q1 2025 in all four counties: to $25/SF in Salt Lake, $30.79/SF in Utah, and $19.38/SF in Davis/Weber.
Rental hikes were successful even as vacancies climbed in both Utah County (50 BPS) and Davis+Weber (90 BPS).
Construction starts are dramatically down all along the Wasatch – likely signaling even more competition for retail space.
Whether a softening economy and growing recession fears will put a halt to rising retail rents will be seen as we continue to watch 2025 unfold.
Meanwhile, multi-family growth along the Wasatch Front is unlikely to rebound until financing costs decline, construction costs stabilize, and absorption of current inventory is achieved.
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