Utah commercial real estate recovering after downturn

After a few years of struggling, the local commercial real estate market may be moving toward a comeback.

Where the market has stabilized throughout 2011 and last year, 2013 is expected to start an upward climb as lease rates begin to rise, construction activity continues to be strong, absorption remains positive and investment sales pricing continues to increase, according to the Cushman & Wakefield Commerce 2012 Year-End Market Review.

Net absorption is defined as the difference between tenant move-ins and move-outs over a period of time. When more tenants move in than leave, absorption is positive. When more tenants vacate then move in, that is considered negative absorption.

The overall vacancy rate increased from 13.8 percent to 14.8 percent, with the Salt Lake downtown central business district experiencing the greatest increase as its rate climbed from 13.2 percent to 18.2 percent. Deseret News