When one thinks of Salt Lake Metropolis, what possible springs to thoughts is its spectacular mountain views, world-class ski resorts or namesake Nice Salt Lake.
What might not happen to you is town’s booming tech business and evolving startup tradition. However Utah’s capital is without doubt one of the fastest-growing cities within the nation fueled by a business-friendly surroundings, sturdy job market, well-educated workforce and entrepreneurial spirit.
In his Might 2023 Forbes Submit, KBS CEO Marc DeLuca described the higher Salt Lake Metropolis space as one of many nation’s most original enterprise districts, a “suburban/city node” that bridges the hole between central enterprise district (CBD) and suburb — providing walkable, much less population-dense environments than conventional main city markets, akin to New York, Chicago and San Francisco. He says these markets “enchantment to youthful staff magnetized by the power and vibrance of city environments in addition to to maturing millennial staff taken with elevating their youngsters in much less dense areas.”
The Crossroads of Livability and Commerce
Based in 1847, Salt Lake Metropolis has lengthy shed its repute as a pioneer settlement and mining city. Immediately, the moniker “Crossroads of the West” displays Salt Lake’s emergence as a world-class vacationer vacation spot, extremely livable neighborhood and hub for worldwide enterprise, which has reworked town into a various mixture of cultures, religions and ethnicities. Town is dwelling to greater than 201,000 folks with roughly 1.2 million residents occupying the bigger metropolitan space.
There’s loads to entertain, enlighten and expertise in Salt Lake Metropolis, together with numerous out of doors sporting actions, the annual Sundance Movie Pageant, Utah Museum of Nice Arts, NBA skilled basketball and a crème de la crème culinary scene. And getting round to all of them has been made exponentially extra handy with the area’s not too long ago added 150 miles of sunshine and commuter rail — a transit system that additionally hyperlinks Salt Lake Worldwide Airport to downtown Salt Lake, the higher valley and native ski resorts.
Salt Lake’s economic system is on the upswing with the healthcare, training, finance and tech industries taking middle stage. The escalating want for authorized providers has additionally ignited a rise in regulation companies increasing or organising store in Salt Lake.
Based on Bankrate, Salt Lake is the sixth-best U.S. metropolis to start out a profession based mostly on evaluation of the 50 largest metro areas within the U.S. and contemplating such components as native job market, potential for long-term profession constructing, affordability and on a regular basis life.
Positioned between Salt Lake Metropolis and Provo, the Silicon Slopes area is flourishing because of its well-planned web infrastructure and the expansion of main tech firms, like SanDisk, IM Flash Applied sciences, Adobe Techniques, Cisco, Qualtrics and plenty of others.
Benefiting from what Forbes calls Utah’s “tech ecosystem,” Salt Lake is served by a big, interconnected community of people that have shut private {and professional} relationships from working and collaborating collectively, prepared to assist somebody out as a way to create a stronger ecosystem.
Evaluating the 50 highest- and lowest-cost North American markets wherein to function a tech firm, CBRE ranked Salt Lake Metropolis because the fifteenth most reasonably priced. The examine exhibits {that a} enterprise can doubtlessly save $16 million to $33 million in mixed wage and actual property expenditures by steering clear of upper profile areas, akin to Seattle, San Francisco Bay and New York Metro, in favor of Salt Lake Metropolis.
For years now, KBS has skilled a bullish leasing market in Salt Lake Metropolis. Tim Helgeson, senior vp for KBS and asset supervisor Salt Lake Metropolis, notes that “leasing energy of the belongings in our Utah portfolio displays the progressive and entrepreneurial spirit that defines Salt Lake Metropolis. It’s why Utah has been one of many main occupancy markets for KBS.”
Along with a brand new multifamily mission in growth, KBS has a number of well-positioned properties within the space, together with Salt Lake {Hardware} Constructing, 222 South Foremost Road, Second + State and Millrock Park. All are benefiting from the market’s constant progress.
Salt Lake {Hardware} Constructing
Described as “one of many coolest buildings within the KBS portfolio,” Salt Lake {Hardware} Constructing has skilled persistently excessive demand from workplace tenants looking for a artistic workspace. The five-story, 210,938-square-foot constructing has gone by way of an exterior redesign that includes an unmistakable uncovered brick and timber design. Initially in-built 1909, the Class A workplace property has additionally been infused with important inside facilities that embody a brand new health middle and a enterprise/convention lounge.
“The {Hardware} Constructing is a really differentiated product that not solely resonates with tech outfits however with many cutting-edge monetary companies,” mentioned Helgeson.
Location is a first-rate, extremely engaging characteristic of the {Hardware} Constructing, which is a brief stroll from the Delta Heart and residential of the Utah Jazz, the Delta Enviornment. It’s additionally near The Gateway, a mixed-use growth billed as Salt Lake Metropolis’s downtown sizzling spot for eating, leisure, city dwelling and inventive workplace house.
Salt Lake {Hardware} Village II Luxurious Residences on the Horizon
In mid-2016, KBS started ground-up development on the extremely amenitized 453-unit Salt Lake {Hardware} Village Residences, a mixture of penthouse, loft, studio, one-bedroom and two-bedroom flats, townhomes and brownstone row homes — all strategically located subsequent to the Salt Lake {Hardware} Constructing.
Simply 4 years after its groundbreaking, the immensely in style, totally leased {Hardware} Village Residences was offered by KBS, which instantly turned its consideration to extra alternatives within the rising {Hardware} District that would match its super success.
Consequently, KBS is now within the growth section to construct a complementary multifamily constructing proper subsequent door to the primary section {Hardware} Village I. The brand new eight-story mission, {Hardware} Village II, will cowl 2.4 acres and have industrial house in addition to present greater than 330 residential items that relaxation atop a four-story parking construction and embody facilities akin to an inside courtyard, health and yoga middle, canine run and spa, sky lounge and handy ground-floor retail house.
“Whereas KBS focuses totally on workplace,” says Helgeson, “once we see a chance like this one that can add to such a vibrant market, we do every little thing in our energy to make it occur.”
Mixing into the already distinguished character, design and structure of the local people, {Hardware} Village II flats will additional evolve the elevated expertise of Salt Lake Metropolis’s downtown and the {Hardware} District.
222 South Foremost Road
Often called considered one of downtown’s most unique workplace developments, 222 South Foremost Road is a more recent Class A constructing with 433,346 sq. toes of leasable house. It has skilled a better stage of return-to-work in comparison with different buildings within the space.
“Traditionally, leasing exercise in downtown Salt Lake has been largely from companies that primarily deal in finance and insurance coverage,” notes Helgeson, “however for a time now, we’ve seen a number of main regulation companies relocate to town.” Amongst them are Kirkland and Ellis, Greenberg Traurig, and Mayer Brown, which is simply one of many newest companies to affix the market.
Following an growth by Greenberg Traurig and including a brand new state-of-the-art health middle, 222 South Foremost Road is 100% leased. “To have a constructing totally leased on this surroundings is fairly distinctive while you take a look at different downtown metros,” mentioned Helgeson. “It was a problem earlier than the pandemic, however on this surroundings, it’s simply excellent and why we actually just like the Salt Lake market.”
Second + State
Positioned within the coronary heart of Salt Lake’s Central Enterprise District, the 13-story Class A workplace constructing Second + State serves as the best dwelling for Mayor Erin Mendenhall’s marketing campaign headquarters. Having served Salt Lake Metropolis since 2020, she runs on a platform of “We’re shifting ahead collectively.”
Second + State gives beautiful panoramic views of the mountains, metropolis and valley, and it has helped KBS successfully reposition the property, which has undergone latest enhancements that embody a brand new convention middle, tenant lounge and an expanded health middle designed with outdoor-loving locals in thoughts.
Explains Helgeson, “When constructing a health middle in Salt Lake Metropolis, we wished to include the out of doors life-style for which the neighborhood is famously recognized. Since so many individuals bike to work, we included quite a lot of bicycle storage and a workstation the place they will make repairs to their rides.”
Millrock Park
Southeast from Salt Lake is Millrock Park, KBS’ lovely four-building workplace park in Cottonwood Heights. Located on the base of the Wasatch Mountains, it gives unobstructed 360-degree views from each constructing and underground parking. This distinctive 22-acre property website options 37% inexperienced house and received the Constructing House owners and Managers Affiliation (BOMA) Worldwide Utah Kilowatt Cup and Highest Performing Constructing awards in 2017.
Millrock is dwelling to a various group of tenants that embody Magnum Improvement. The superior clear power firm was bought by Chevron in September 2023. On account of the acquisition, Magnum is increasing its house by a further 8,000 sq. toes, successfully doubling its measurement inside the constructing.
In marking the event, Governor Spencer Cox commented, “Individuals look to Utah because the place the place we work collectively to search out options addressing at this time’s greatest challenges. This announcement demonstrates that our state has fostered a panorama the place clear power innovation is feasible.”
Conclusion
Salt Lake’s tourism slogan is “Totally different by nature” — a phrase that fits it properly — given the infinite array of pure wonders that encompass town. Coupled with a extremely livable neighborhood and an equally brilliant enterprise outlook, Salt Lake and its denizens can depend on KBS to be there for regardless of the future has in retailer.
Be taught extra about KBS and the industrial actual property business at kbs.com/news-and-insights/.
