| REAL ESTATE OFFICE BUILDINGS
Class A office space in Salt Lake City's central business district (CBD) averaged
$17-$22 per square foot in 1996, Table 1. The rate for office space in suburban Salt Lake
County in 1996 was $20 per square foot. Commercial lease rates, rising during 1996, were
seen to be softening during early 1997, though pent-up demand was creating a tight market
for buyers or renters of commercial space. Speculative building has eased the crunch and
created opportunities for tenants to obtain good space at competitive prices.
CONSTRUCTION COSTS
Construction costs in Utah are generally lower than other Mountain States.
The listing in Table 2 of construction cost indexes for various Western cities is based on
a national average for materials and installation for typical buildings.
|
Comparison
of Class "A"
Office Rent
Major Western Markets
1996 |
Table 1 |
|
Class A Office |
| Markets |
CBD
Weighted Average |
Outside CBD
Weighted Average |
| Salt Lake City |
$19.50 |
$20.00 |
| Phoenix |
20.70 |
18.88 |
| Denver |
16.00 |
16.35 |
| Reno |
18.60 |
17.40 |
| Las Vegas |
28.80 |
23.76 |
| Albuquerque |
16.34 |
16.25 |
|
| Source: Society of
Industrial and Office Realtors, Comparative Statistics of Industrial and Office Real
Estate Markets, 1997. |
Construction Cost Indexes
Typical Residential and Commercial Buildings Selected Cities, 1996
(U.S. Average = 1.00) |
Table 2 |
| City |
Residential |
Commercial |
| Salt Lake City |
.88 |
.87 |
| Boise |
.93 |
.93 |
| Phoenix |
.94 |
.91 |
| Los Angeles |
1.15 |
1.13 |
| Sacramento |
1.12 |
1.13 |
| San Diego |
1.14 |
1.09 |
| San Francisco |
1.24 |
1.26 |
| Denver |
.97 |
.93 |
| Las Vegas |
1.03 |
1.03 |
| Albuquerque |
.88 |
.90 |
| Portland |
1.07 |
1.06 |
| Seattle |
1.02 |
1.06 |
|
| Source: R.S. Means Co., Means Facilities
Construction Cost Data, 1996 (residential data from 1995). |
|