That’s according to NAI Utah, which tracks vacancy rates for commercial businesses in the state.
According to their report, direct vacancy in the industrial market has remained steady throughout the year and is currently at 4.45 percent, while total availability is still holding at 5.92 percent. Retail and office vacancies are also on the rise, as they have increased by 1.5 and two percent respectively.
Activity and leasing rates have been the main reasons behind the steady numbers, as total lease activity from last year totaled 917,000 square feet and is now at 1.2 million square feet since January 2008.
Pricing lease rates have decreased slightly since last January as well. In all, the price for a per square foot has fallen from 56 cents per square foot to 52 cents a square foot with a maximum space allowance of 10,000 square feet.
The numbers also change dramatically from 10,000-20,000 square feet; falling from 52 cents to 48 cents a square foot. From 20,000-50,000 square feet the price is 32 cents and beyond 50,000 square feet the price is down from 24 cents to 22.
“It should be an indicator that the time to lease a commercial real estate space is now,” said Jake Bowman, a commercial real estate agent. “If prices are down and the availability is up, people should be looking into leasing a space for their business.”
However, not everyone is comfortable about starting a business during the current economic recession. Mark Knold, an economist for the Department of Workforce Services said small businesses have had a difficult time remaining open.
“Big box stores too,” said Knold. “Circuit City is gone, Best Buy is trying to fight through their own situation. It’s difficult to gauge where some businesses are going and that’s why — even though there aren’t that many spaces available — there is a lot of space where those buildings are.”
NAI Utah is located in Salt Lake City. To find out more about vacancy rates in other areas of the state, visit their website at www.naiutah.com.
sgillet@davisclipper.com
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