The state exhibiting the most robust commercial real estate market fundamentals may surprise you – Utah, with a population just over that of Brooklyn, is seen as a very safe bet for sustained, multi-sector economic growth. Set against the beautiful backdrop of the Wasatch Range, the greater Salt Lake City area is attracting young, highly-skilled labor from denser, more expensive markets.
The SLC-Provo-Orem area has all the ingredients of a haven for tech startups – incubators are emerging and thriving at the state’s two large institutes of higher learning, there is a growing code school presence, the scenery appeals to young talent from all over, and venture capital is gravitating more and more to the region. In fact, the greater SLC metro area boasted the highest per-deal average for VC investment of any region in the country in 20141.
Here are a few of the many reasons Forbes dubbed Utah the country’s best state for business in 2015
- Utah led the nation in job growth for 2015
- Information technology jobs grew 7.7% for the year. Tech jobs sport an “employment multiplier” of 5, meaning that 5 additional jobs are created for each new tech job, on average
- The median household income grew 2.6% for the year, compared to 1% nationally
- Job growth extends across sectors, including leisure, hospitality, finance, and ecommerce
Accordingly, outlook for the commercial real estate market is sunny. The state added a record-breaking 2.9 million square feet of industrial space in 2015, with 1.6 million under construction2. Lease rates for high-end offices topped $30 per square foot for the first time in some locales, including Salt Lake City’s downtown business core. With a younger and more urban-inclined workforce growing steadily, vacancy rates remain low in multi-family, retail and office space.
These are a few of the reasons we’re exciting about our debt deal in Provo-Orem, the heart of Utah’s thriving tech corridor.