Utah's Most Dynamic Development Area.

• Position: Office Market Overview: Point of the Mountain

The Center of Gravity for absorption and construction activity along the Wasatch Front continues to be centered in the submarket area surrounding the Point of the Mountain --comprised of the communities in both South Salt Lake County and North Utah County. This dynamic area continues to thrive with additional new buildings being announced quarterly. Progressive contemporary architecture is driving new master planned projects such as 136 Center, Grove Tower, Lone Peak Plaza, Sojo Station and Lehi Spectrum, while established developments such as Thanksgiving Station and Mountain Tech continue into their next phases. The most high profile building currently under construction is the iconic 11-story Mountain America Credit Union headquarters at Sandy Center Plaza, totaling 327,600 square feet.

There is currently just over 1.6 million square feet of new office buildings under construction in this submarket area--a stunning statistic, given the record absorption already observed over the past several years. With this new construction, the market is grappling with an increase in construction costs overall, relative to both core/shell and tenant improvement work.

Although Lehi has continued to show momentum and activity with 3 new Class A buildings breaking ground in the last few months alone, significant office development is now seen in Pleasant Grove, Lindon, Draper and Sandy--bringing a diversity of options to the market to accommodate growth.

The Point Of The Mountain

Activity Forecast

Class A activity remains strong at the Point of the Mountain. Significant corporate expansion announcements involved companies such as Adobe, AutoPoint, Sorenson Media, Podium, Symantec, Jive Communications, Tolero Pharmaceuticals, Eveiar Solar, Nature's Sunshine and other companies currently moving to the area. As a result of continued dynamic activity, sublease space in the North submarket decreased tremendously. During 2nd quarter alone, over 100,000 square feet of sublease space was absorbed in the North Utah County submarket. Increased absorption will continue as major construction projects reach completion by mid-year 2018. The announcement of additional on/off ramps and planned 1-15 reconstruction in the Lehi area as part of the $1 Billion funding package approved by the legislature will ultimately help alleviate the mounting traffic congestion, with completion of this enhanced infrastructure scheduled in 2020.

This explosive office growth continues to...