BOUNTIFUL — The North Salt Lake Business Park is in “good economic health at the moment.”
That word from Ken Leetham, North Salt Lake City’s community and economic development director appears indicative of an improving economy.
“We continue to approve new construction in the park,” he said.
He also reported 15-20 percent of what he called “under-utilized” and/or “undervalued” land in the park that could be developed.
Such land could potentially be used for small and medium-sized industrial-based tenants Р a demand for which the city gets frequent requests.
In Davis County overall, industrial vacancies are down and the sector is “doing quite well” in terms of leasing levels, said Rob Lindsey, chief Davis County broker for Commerce Real Estate Solutions.
“We’re very optimistic. Leasing activity has been very strong over the last six months,” he said.
A 2012 Year in Review report released late last week by Commerce Real Estate Solutions provides a snapshot of leasing activity for office, retail and industrial space.
Class A office vacancy rates are still on the rise in Davis County, having gone from 14.2 percent to 24 percent.
Lindsey attributes that to the opening of a new 151,000-squar- foot office building for Northrop-Grumman at Hill AFB.
Class A office space availability is predicted to rise in the county, because 150,000 square feet of new office space os under construction at Station Park in Farmington, Lindsey said.
Class B office space ended 2012 at an 18.6 percent vacancy rate and Class C at 14.6 percent.
The industrial market’s overall vacancy rate in 2012 dropped from 5.7 percent the year before to 4.6 percent.
The county’s biggest industrial complex, the eight million-square-foot Freeport Center in Clearfield, is at 100 percent occupancy and the adjacent Freeport West’s vacancy rate has dropped from 30.9 percent in 2011 to 12.6 percent, the Commerce Real Estate Solutions report said.
“The residential market is starting to come back also, but the apartment market has been very, very hot over the last couple of years,” Lindsey said.
Major new apartment communities range from Eaglewood Village in North Salt Lake to Park Lane Village in Farmington, plus several others underway in Layton.
On the retail side, Farmington’s Station Park “has really done better than expected,” Lindsey said. “It’s been very impressive what they’ve done.”