Commercial landlords in Salt Lake County would need to make sure that their buildings are well-maintained, due to an increasing industrial leasing activity in the region.
Some maintenance services may range from major work such as fixing structural problems to as simple as flat roof repair. In Salt Lake City, some industrial centers will serve as a key driver for commercial lease deals.
A CBRE report showed that industrial leasing deals in Salt Lake County surpassed 1 million square feet in the last six quarters. Some of these contracts included space for the 3,000-acre Salt Lake City Port Global Logistics Center.
CBRE senior vice president Jeff Richards said that the logistics center’s first state would comprise 10 buildings with around 7.5 million square feet of industrial space. On the other hand, demand for office property leasings stemmed from suburban areas in the county. Vacancies in existing buildings remain low due to tenants that look for 100,000 square feet of commercial space. A likely reason for the increase in rental demand may involve the recent federal tax reforms.
Corporate Tax Cuts
A survey showed that small enterprises across the U.S. became more optimistic about doing business this year, following the implementation of new tax policies. Many of the survey’s respondents believe that the changes would be beneficial for their business.
As a result, small businesses have more reason to expand their operations in 2018. The country’s improving economy also served as one reason for their improved confidence. These factors will help in sustaining demand for industrial space in Salt Lake County, where a slowdown seems unlikely in the near future.
An increasing demand for commercial real estate space in Salt Lake County bodes well for landlords, but this trend requires them to ensure that buildings remain structurally sound and well-maintained.