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A Cushman & Wakefield Alliance Research Publication
of this building was prre-leased to Level 3. This brings the number of
Even with second quarter GDP raised to 2.5%
newly constructed “for-lease” buildings to six with 388,815 sf.
from the previous estimate of 1.7%, the second
Additionally build-to-own buildings have been completed for
part of 2013 is expected to come in below
FLSmidth and eBay adding another 320,000 sf of new construction.
earlier estimates and economists surveyed by
the Federal Reserve Bank of Philadelphia
Positive absorption will continue through Q4 13 setting 2013 up to
decreased their forecasted rate of 2.0% for the year to 1.5%. U.S.
come cclose to a record-setting year. This absorption will continue to
unemployment continued to fall to the current rate oof 7.3%, but
outpace new construction which will put downward pressure on
concerns abound as many of these jobs are lower paying and there is
vacancy rates. Concessions will continue to be phased out with free
still a large number of people working part-time that would prefer
rent diisappearing in many cases while tenant improvement allowances
will continue to shrink as landlords obtain the upper hand.
Despite some concerns with the overall U.S. economy, Utah continued to perform well with an unemployment rate of just 4.7%.
Trade, Transportation and Utilities led all categories with 10,500 new
jobs added over the past year while Information jobs had the highest
Vacancy rates continued to trend downward at a healthy rate. The
102 Tower in the Central Business District (CBD) is undergoing
renovations and is currently not available for lease. This removes 210,781 square feet (sf) of vacant product from the market, which
accounts for a 0.6 percentage point (pp) of the 2.8 pps decrease in
Absorption continued to track well above its ten-year average of
around 700,000 sf with year-to-date absorption at 983,104 sf, the
highest level of positive absorption since 2007, the majority of which
occurred in class A and B products with a very small amount in class
C. Although large expansions such as Sutter Physician Service’s
99,000 sf continued to play a large part in the occupancy gains, an increased amount of expansion came from smaller and mid-size
companies. Smaller space in the 1,000 to 3,000-sf range is becoming very competitive.
Although direct full service average asking lease rates dipped by 1.7%
from Q3 12 to $20.05 per square foot per year (psf/yr), this was
mainly attributable to higher-end space leasing, while lower-end space
remained available. Furthermore, the trend of fewer concessions
continued as free rent became less of a negotiable part of lease
transactions, resulting in landlords achieving higher effective rents.
CONSTRUCTION The Airport Technology Park Building X, comprised of 85,158 sf in the Northwest submarket completed in Q3 13. Approximately 50%
The market terms and definitions in this report are based on NAIOP standards. No
warranty or representation, express or implied, is made to the accuracy or completeness
Scott Lovell, Corporate Research Director
of the information contained herein, and same is submitted subject to errors, omissions,
change of price, rental or other conditions, withdrawal without notice, and to any special
listing conditions imposed by our principals.
2013 Cushman & Wakefield, Inc. All rights reserved.
DIRECT RENTAL RATES Average asking rental rates are based on the average asking rent
across the market and are weighted based on the vacancy in a
As higher-end space has leased up, average asking rental rates have
decreased; this is not an indication of weakness in the office
market but rather a mathematical nuance of how this rate is
Concessions continued to decline with net effective rental rates
increasing as the market becomes more of a Landlord’s market
The Northeast submarket has seen the most dramatic increase in
rental rates in all property classes over the past year
Vacancy rates on average dropped by 2.8 pps across the entire Salt
The 102 Tower, located in the CBD, was removed from the study
as it undergoes renovations; the removal of this 100% vacant
building reduced the overall vacancy rate by a 0.6 pp
The Central West’s year-over-year decrease of 7.7 pps was the
result of space leased up across all property classes and not
attributable to any single large transaction
The Northeast submarket has increased by 2.3 pps with the addition
of two new buildings comprising of 123,000 sf
Absorption of 983,104 sf through Q3 13 has already exceeded full
year absorption in all but two of the last ten years and remains on
track to achieve the second highest level in Utah history
Higher quality assets continued to dominate absorption with class
A and B space accounting for 95% of this absorption, while class A
alone accounts for 56% of the total absorption in the market
The Northwest submarket absorbed 70,533 sf during Q3 13 as L-3
took 42,579 sf in the newly constructed Airport Technology Park Building X
Airport Technology Park Building X, comprised of 85,158 sf, was
the only newly constructed building during Q3 13
Currently there are 487,000 sf under construction, of which 32%
Minuteman IV, in the Southeast submarket and Wilmington
Gardens, in the Northeast submarket, are both being built on a
speculative basis with no pre-leasing commitments
FLSmidth and eBay each had new buildings completed for a total of
320,000 sf that are not included in our study as they are owner-
The market terms and definitions in this report are based on NAIOP standards. No
warranty or representation, express or implied, is made to the accuracy or completeness
Scott Lovell, Corporate Research Director
of the information contained herein, and same is submitted subject to errors, omissions,
change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.
2013 Cushman & Wakefield, Inc. All rights reserved.
32,456,875 13.6% 12.0% 983,104 487,000
Significant Q3 2013 Construction Completions SUBMARKET
The market terms and definitions in this report are based on NAIOP standards. No
warranty or representation, express or implied, is made to the accuracy or completeness
Scott Lovell, Corporate Research Director
of the information contained herein, and same is submitted subject to errors, omissions,
change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.
2013 Cushman & Wakefield, Inc. All rights reserved.
Corresponding author available concerning management of patients who have Samuel J. Mann, MD New York Presbyterian Hospital-Weill/Cornell Medical School, a pheochromocytoma, fewer than two dozen papers deal 450 East 69th Street, New York, NY 10021, USA. with the 98% who do not. Doctors and researchers simply do not know how to manage these patients. Current Hypertension Reports 2008, 1
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