Arizona-based real estate development and investment company ViaWest Group has broken ground on a new 172,845-square-foot Class-A speculative warehouse building in Salt Lake City, Utah.
The new 5 South Commerce Center development is scheduled for completion in the second quarter of next year.
Cushman & Wakefield director Phillip Eilers and colleagues, Jon Schreck and Rick Newton, are handling project leasing efforts.
Marking its entry into the Salt Lake City industrial market, ViaWest Group acquired the 18-acre site in early-2022, subsequently subdividing it to create a separate 11-acre parcel on which the new 172,845-sf Class-A warehouse building will sit. The remaining 7-acre parcel contains an existing, modern 37,000-sf industrial building constructed in 2016 that will have approximately 3 acres of secure, paved storage yard.
“I am thrilled to be part of ViaWest’s entrance into Salt Lake City and in leading marketing efforts for this highly attractive industrial project that will support the continued demand from today’s users that are establishing, expanding or upgrading their presence here,” says Eilers. “Delivering on speculative basis also speaks to the confidence and outlook ViaWest has in Salt Lake, and the overall strength of local industrial market fundamentals.”
The building will be divisible to ±57,615 sf and features a 2,500-sf spec office suite plus additional office space to-suit. Other key features include 32’ clear height, 56’ x 54’ column spacing, 35 dock high doors, 4 grade level doors, ESFR sprinkler system, 146 car parking stalls, ample power, clerestory windows, as well as, a paved and fenced outdoor storage yard.
“It has been great collaborating with Salt Lake City staff and our design and construction consultants to get this project out of the ground.”
Tom Glissmeyer, Market Leader, Mountain West, ViaWest Group
Tom Glissmeyer, Market Leader, Mountain West for ViaWest Group, says: “5 South Commerce Center will be a great expansion of the ViaWest portfolio. We are excited to deliver a facility that can accommodate the needs of manufacturers, distributors, and all types of today’s modern industrial users. It has been great collaborating with Salt Lake City staff and our design and construction consultants to get this project out of the ground.”
Located at 3175 West 500 South in a heavy industrial-zoned area (M-2), the new building is convenient to multiple logistical freeway routes including Interstates 80, 215, 15 and SR 201 as well as the Mountain View Corridor, a key local corridor for manufacturing and distribution. It is also close to the expanded and renovated Salt Lake City International Airport—currently undergoing a US $4.1 billion phased expansion scheduled for full completion by 2025. Downtown Salt Lake City is also within a few miles of the property.
According to Cushman & Wakefield’s Q2-2022 report, Salt Lake City’s overall industrial market vacancy stood at just 2.3 per cent at midyear. The average asking rent was US $0.71 per square foot per month on a triple net basis, up 23.6% year-over-year. Tenants absorbed approximately 4 million square feet market-wide in the first half of 2022, slightly outpacing the record-setting 7.7 msf of annual absorption in 2021 per the firm’s tracking.
