Salt Lake City had the highest rate of residential construction growth in the nation in 2018.
Since then, it has seen a large decrease in the residential market, with this decrease continuing through Q4 2019 and Q1 2020. The education and manufacturing sectors are set to be the only two sectors with a positive impact on the market in Salt Lake City this quarter, with both expected to see continued growth over the next year. Commercial construction will experience a slight decrease in growth, but has a lot of potential for future developments. Looking ahead, this downturn should begin to rebound in 2020. There is healthy demand from both existing companies looking to expand and new enterprises entering the market, which in turn is fueling the need for Class A office space. The construction of the new 95 State office building at City Creek will add 500,000 square feet of new office space in late 2021. Over the next 18 to 24 months, demand for just-in-time flexible workspace will increase. These types of projects will add a further 300,000 – 400,000 square feet to the market. Projects such as the Utah State Prison and the Lake Park Commerce Center continue to take up much of the local construction labor force. Obvious issues for the future of 2020 include COVID-19 and the recent earthquake in Salt Lake City, both of which could continue to impact the industry in the coming months.