Salt Lake City Industrial & Warehouse Market Report | Q3 2026

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Salt Lake City’s industrial market held steady in Q3 2026. Vacancy edged down to 7.6% as direct vacancy improved, and net absorption stayed positive at 391,387 SF, led by manufacturing users in the North West. Sublease space is the drag. Direct absorption was 721,000 SF, but sublease absorption was negative 330,000 SF. With 4.0 million SF under construction and only 15.3% preleased, C&W expects vacancy to rise modestly before trending down by 2027.

Figures are from Cushman & Wakefield’s Q3 2026 Salt Lake City Industrial MarketBeat unless noted, and prior-quarter comparisons use the figures stated in that report. C&W’s national tables, which earlier versions of this page relied on, carry slightly different Salt Lake City figures, and we do not mix the two. C&W quotes Salt Lake City rents per month; this page gives $/SF/mo NNN with an annual equivalent (monthly times 12).

Market Snapshot: Q3 2026

Source: Cushman & Wakefield, Salt Lake City Industrial MarketBeat Q3 2026, with Q2 2026 and year-ago values as stated in that report. C&W’s Q3 2026 U.S. Industrial MarketBeat tables show different Salt Lake City figures (7.6% vacancy, up from 7.4% in Q2, and 120,797 SF of Q3 absorption); this page uses the local report throughout. Annual rents are WareCRE conversions. n/a = not published.

Rent Trends: Flat at $0.85/SF/mo, Up $0.05 on the Year

Salt Lake City’s average asking rent across all industrial types held at $0.85/SF/mo NNN in Q3 2026, about $10.20/SF/yr, unchanged since Q2 and up from $0.80 a year earlier. C&W calls the rent outlook neutral, with upward pressure in small and mid-size buildings offset by softer conditions in larger warehouse/distribution properties.

The split by building size is sharp. Buildings of 10,000 to 100,000 SF posted 1.5% vacancy, and 10,000 to 50,000 SF facilities asked an average of $1.14/SF/mo. Buildings over 100,000 SF were at 5.6% vacancy and asked $0.85/SF/mo, and C&W says landlords there are adopting more competitive pricing. By product type, office service/flex asks $1.00/SF/mo, manufacturing $0.87/SF/mo and warehouse/distribution $0.84/SF/mo.

Construction Pipeline: 4.0M SF Underway, 15.3% Preleased

C&W counted 4.0 million SF under construction across 26 buildings at the end of Q3 2026, dominated by speculative warehouse projects in the North West. The largest is the fourth phase of SLC Global Logistics Center, three buildings totaling about 962,500 SF with 797,500 SF still available for prelease, followed by 5400 Commerce Center at about 470,000 SF, all of it available. Only 15.3% of the pipeline is preleased, and completions are scheduled through 2027.

Four warehouse buildings delivered in Q3, led by Northpoint Commerce Center (175,383 SF) and 201 Commerce Center Buildings 2 and 3 (130,733 SF each), bringing year-to-date completions to 650,154 SF. Aerovironment took Building 2, while Northpoint and Building 3 delivered vacant.

Submarket Breakdown: North West Leads Absorption and Construction

C&W’s Salt Lake City statistics cover six submarkets, and the North West holds about 73% of inventory. Figures below are from C&W’s Q3 2026 Salt Lake City MarketBeat.

North West

121.8 million SF and, in C&W’s description, the region’s primary hub for large-scale industrial activity. Vacancy is 8.5%. The North West absorbed 383,377 SF in Q3 and 1.4 million SF year to date, signed 1.3 million SF of Q3 leases (77% of the metro total) and has 2.8 million SF under construction. Asking rents average $0.80/SF/mo. The largest move-ins were Biovation Labs (253,231 SF at Freeport West Landmark 5), Systima Technologies (173,000 SF at West Valley Logistics Center III) and GOFO Inc. (159,201 SF at Westport Distribution II).

Central West

14.0 million SF at 4.6% vacancy. It lost 67,375 SF of occupancy in Q3 and has 689,345 SF under construction. Asking rents average $1.07/SF/mo.

South West

18.0 million SF at 6.9% vacancy, with the metro’s second-strongest Q3 absorption at 204,557 SF. It has 457,834 SF under construction and asks $0.99/SF/mo. Pacific Bridge Advisors subleased 100,226 SF at Synergy Business Park IV, and 9425 S. 670 W. (23,255 SF) sold for $4.7M, or $202/SF.

North East

5.8 million SF at 4.3% vacancy, with asking rents of $1.00/SF/mo. It posted 74,074 SF of negative absorption in Q3 and has no construction underway.

Source: Cushman & Wakefield, Salt Lake City Industrial MarketBeat Q3 2026, market statistics table (rents are weighted net asking, all types, $/SF/mo NNN).

C&W tracks two neighboring markets, Utah County and Northern Utah, in separate reports.

Co-Warehousing & Flexible Warehouse Space in Salt Lake City

Smaller formats are the tightest part of Salt Lake City’s industrial market. In C&W’s Q3 data, office service/flex vacancy was 2.8% and vacancy in buildings of 10,000 to 100,000 SF was 1.5%. That makes co-warehousing a practical way in for businesses that need space without a long-term commitment.

Outdoor recreation and sporting goods brands account for much of Salt Lake City’s flexible-space demand, alongside e-commerce sellers serving the Mountain West. Tech hardware firms, food and beverage distributors and construction trades working along the Wasatch Front also lease short-term space.

Browse available co-warehousing and small-bay warehouse listings on WareCRE’s Salt Lake City marketplace.

Key Trends to Watch: Salt Lake City Industrial Market Trends 2026

1. Absorption Stayed Positive, Led by Manufacturing

Net absorption totaled 391,387 SF in Q3, after about 621,000 SF in Q2. Manufacturing accounted for most of the gain at just over 268,000 SF, mainly in the North West, while office service/flex space gave back 69,000 SF. Leasing totaled 1.6 million SF excluding renewals, down from 2.4 million SF in Q2 but up from 1.0 million SF a year earlier, and renewals reached about 1.1 million SF, including Boart Longyear’s 256,000 SF extension and Boeing’s 100,000 SF renewal.

2. Small and Mid-Size Space Stays Tight

The gap between 1.5% vacancy for 10,000 to 100,000 SF buildings and 5.6% for big boxes is the defining feature of the market, and warehouse/distribution vacancy is higher still at 9.5%, concentrated in larger facilities. C&W reports that small freestanding buildings with yard space continue to lease quickly and attract owner-users. Read more: Small-Bay vs. Big-Box: What the Vacancy Gap Means in 2026.

3. Sublease Space Is Still a Drag

Direct absorption was 721,000 SF in Q3, but sublease absorption was negative 330,000 SF. New sublease offerings included 150,000 SF at SLC Global Logistics Center Building 6 and 113,000 SF at 4625 W. 1730 S. Sublease vacancy held at 1.1% while direct vacancy fell to 6.5%.

Outlook: What to Watch in Early 2027

C&W’s year-end 2026 MarketBeats are expected in mid-January.

Watch whether vacancy turns up. C&W expects it to rise modestly in the near term as the 4.0 million SF pipeline delivers with only 15.3% preleased.

Watch big-box rents. Landlords of buildings over 100,000 SF are already pricing more competitively, and C&W calls the rent outlook neutral.

Watch rail and power. C&W says rising fuel costs may lift demand for rail-served facilities, and power constraints are shaping site selection as data center and advanced manufacturing demand grows.

Data sources: Cushman & Wakefield Salt Lake City Industrial MarketBeat Q3 2026 (metro totals, submarket, property-type, size-segment, leasing, construction, sale and outlook detail; rents NNN, $/SF/mo); Cushman & Wakefield U.S. Industrial MarketBeat Q3 2026 (national-table figures noted for comparison and U.S. averages). Each report reflects the most recent vacancy, rental, and construction data available at the time of publication. We refresh our reports as new market data is released, and we’re continually expanding coverage to additional metros.