Industrial Space and Warehouse Space in Salt Lake City, Utah

Salt Lake City, Utah was originally a farming community. It also depended on the industry of mining until the early 1980s when foreign competition took its toll and reduced profits from that industry. Today it is a diverse economic region with the modern economy based around the major industries of professional services, transportation, and utilities as opposed to its past where steel, mining and railroad operations provided its primary source of income. These newer industries have increased the demand for warehouse space in Salt Lake City, Utah.

As the state capital and county seat of Salt Lake County, the city is a government, commercial, and industrial center for Utah. Known as the "Crossroads of the West" for its central geography, Salt Lake is situated in a major corridor for freight traffic and is host to many regional centers of national companies requiring industrial space in Salt Lake City, Utah. Utah's free port law makes Salt Lake an ideal location for the import and export of goods, attracting more companies to seek warehouse space in Salt Lake City, Utah.

The service sector produces the majority of jobs in the city, primarily in computer and health care services. Government is a big employer, while national financial institutions make the city the center of banking and finance for the area. Salt Lake City is the largest retail and wholesale region of Utah, and has a thriving tourist industry. The construction industry also has a big presence here. Some of the larger firms based in Salt Lake include Bonneville International Corporation, Overstock.com, Sears Grand, and American Stores, increasing the need for distribution and warehouse space in Salt Lake City, Utah.

Salt Lake City's industrial sector saw significant growth in 2005 with a 7% overall vacancy rate. Construction began on large speculative projects which will add almost 1 million square feet of new industrial space in Salt Lake City, Utah. Several new industrial projects included a Costco Distribution Center and Kraftmaid Cabinets' Western distribution facility.

The industrial real estate market offers exceptional opportunities for tenants looking to rent industrial space in Salt Lake City, Utah. Although the supply of available quality warehouse space in Salt Lake City has begun to diminish, there are good deals still available on the market. The 2005 trends in industrial space in Utah indicate that lease rates are up while vacancy rates have dropped and construction costs have risen. The forecast for 2006 is an increase in construction, higher lease rates, and continued strong demand for industrial space due to economic growth—an overall positive outlook for developers, investors, and existing landlords.

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