2016
FIRST HALF
GREATER SALT LAKE AREA
MULTIFAMILY MARKET REPORT
Salt Lake • Utah • Davis • Weber
CBRE is pleased to introduce the H1 2016 (first half of 2016) Greater Salt Lake Area Multifamily Market Report—the
most current and comprehensive multifamily data available for the Salt Lake area/Wasatch Front market. Produced
by Patrick Bodnar and Eli Mills of CBRE, this report has been assembled to empower multifamily investors interested
in the Utah market.
This report has been prepared with current data sourced from a comprehensive survey of over 50,000 units along the
Wasatch Front area inclusive of Salt Lake, Utah, Davis and Weber Counties. Minimum reporting requirements were
identified for each city and county by class, type and size.
As the global leader in commercial real estate, CBRE understands the critical nature of transparency in a marketplace.
This Wasatch Front Market Report was created to fill the void of reliable and detailed data formally provided to the
market by Equimark Properties prior to its business closing in 2015. To represent vacancy and rents for 2015 in this
report, the average between 2014 Equimark and 2016 CBRE numbers were utilized. For 2016 H1 rent increases, Yardi
Matrix data was used. Historic numbers shown in this report are from previous Equimark reports. Additionally, the
data collected was compared to—and validated by—the most trusted national data sources. Data contributions and
validations to this publication were made by:
•CBRE Research
•CBRE Econometric Advisors
•Yardi Matrix
•Axiometrics •Western States Multifamily
•Utah Department of Economics
•University of Utah Bureau of Economics and Business Research
•Equimark Properties (Historical Data)
•Construction Monitor
Whatever your multifamily data needs may be, please feel free to reach out to us. We have the most comprehensive
data on the market and can provide information on a macro or micro level based on class, city, submarket, zip code,
location, age, size, proximity to rail stops, and many other variations.
We welcome your inquiries into the Utah multifamily market and look forward to working with you.
Best Regards,
TABLE OF CONTENTS
PREFACE
TABLE OF CONTENTS
EXECUTIVE SUMMARY................................ 4
FORWARD
MARKET
ECONOMIC SUMMARY.......... 5
SALT LAKE COUNTY
Rent/Vacancy/Concessions
Greater Salt Lake Area............................................. 6
Multifamily
Construction
Activity
Supply
vs. Demand
and Absorption..........................
7
Wasatch
.......................................... 8
100+Front
UnitSummary.
Properties
Historical
RentalExpenses
Rates & Vacancy.............................. 9
Operating
SALT LAKE/WASATCH FRONT
1. SALT
LAKECOUNTY
COUNTY
DAVIS
Vacancy and Rent Growth...................................... 10
Rental Rate Comparison
Rental Rate Review................................................. 10
Vacancy&and
Rent Growth
Downtown
Sugarhouse
Spotlight......................... 11
Concessions
Historical Rental Rates............................................ 12
Multifamily Housing Maps.................................13-15
UTAH COUNTY
Rental
Rate Comparison
2. UTAH
COUNTY
Vacancy
andand
Rent Growth......................................
16
Vacancy
Rent Growth
Rental
Rate Review................................................. 16
Concessions
Multifamily Housing Pipeline Map........................... 17
WEBER COUNTY
3. DAVIS
COUNTY
Rental
Rate Comparison
Vacancy
andand
Rent Growth......................................
18
Vacancy
Rent Growth
Rental Rate Review................................................. 18
Concessions
Multifamily Housing Pipeline Map........................... 19
WASATCH FRONT
Patrick BodnarEli Mills
4. WEBER
COUNTY
Unemployment/Job
Growth
Vacancy and Rent Growth...................................... 20
Concessions
Rental Rate Review................................................. 20
WasatchHousing
Front Rents
Unit Type
Multifamily
Pipelineby
Map...........................
21
Wasatch Front Rent/Vacancy by County
DEBT & CAPITAL MARKETS.................... 22
CBRE MULTIFAMILY.................................... 23
For a market analysis on your property or
more information contact:
Patrick Bodnar Senior Associate
+1 801 869 8053 [email protected]
Eli Mills
Senior Vice President
+1 801 869 8029 [email protected]
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
EXECUTIVE SUMMARY
MARKET ECONOMIC SUMMARY
HEADLINES
•Wasatch Front overall vacancy is 4.5%
For the seven years following 2009, the multifamily market in Utah
has seen significant year-over-year improvement with falling vacancy
rates and climbing rental rates. Coupled with continued growth of
new construction projects, the Greater Salt Lake area has increased
its total unit count by 16,673 since 2011. With almost 9,000 units
under construction, and potential starts over the next 12 months of
over 10,500 units, developers in Utah have continued to introduce
apartment communities to the market, outpacing typical expectations.
•Rents increased in Salt Lake County by 26% since 2011, while vacancies reduced by 60 basis points from 5.2% to 4.6%
Utah typically absorbs approximately 2,500 units per year, a growth
rate of about 2%. Careful and thoughtful review of multifamily market
data suggests that over the years, demand has outpaced supply and
Utah is now “catching up,” providing the overdue supply Utah has
been lacking. Investors and developers will continue to enjoy a healthy
multifamily business climate with relatively minimal change over the
next 12 months while it continues to “catch up” with demand.
•Davis County showed the lowest vacancy rate out of all four counties along the Wasatch Front at 2.9%
•Wasatch Front rent reaches all-time average high of $1.15 per square foot
•Along the Wasatch Front, new projects have absorbed units at a rate
of approximately 18 per month with Salt Lake County absorbing units at approximately 20 per month
•Downtown and Sugarhouse lead the multifamily market, driving
rental rates to new levels
•Permits for 3,278 multifamily units in Salt Lake County were issued in the past 12 months from June 2016, up 639 units from the prior year
The Greater Salt Lake market is as active as ever and looking forward,
is expected to remain vibrant.
LOOKING FORWARD
•The market vacancy rate is expected to stay below 5% through the balance of 2016 and well into 2017, but is projected to be above 7% by 2019
•Demand is anticipated to remain robust in the near term, although some overbuilding will delay stabilization periods in the latter part of 2017
ECONOMIC DRIVERS OF DEMAND
Utah’s economy has performed well in recent years. With job growth
near its historical average—in the low three percent range—Utah has
easily outpaced the nation as a whole. A continuation of growth near
historical averages was observed during the first half of 2016 and
looking ahead—barring any major external shocks—healthy growth is
expected during coming quarters.
Population, personal income, and most importantly, total employment
are the primary economic drivers of apartment demand. The graph
below shows the annual growth rates of these variables from 2004
through year-end 2017.
TOTAL EMPLOYMENT, POPULATION & REAL PERSONAL INCOME GROWTH
Consistent strong job growth has underpinned positive dynamics
playing out in the state’s commercial real estate markets. This will
continue to be the case and will be supportive of demand for multifamily
housing. The area’s positive performance is not the only characteristic
that should be noted in terms of economic trends interacting with
commercial real estate markets; the diversity of Utah’s economy is
also an important factor to consider, providing economic stability and
less volatile demand for commercial real estate.
8.0%
6.0%
4.0%
2.0%
There are many factors that will continue to support growth; Utah’s
business friendly culture and lower cost of doing business will continue
to attract and support business expansion. In addition, strategic
investments such as the terminal redevelopment program at the Salt
Lake City International Airport—a $2.5 billion project—will inject
investment dollars into the regional economy and pay dividends for
years to come.
0.0%
-2.0%
-4.0%
-6.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TOTAL EMPLOYMENT
Generally speaking, Utah’s economy is strong. Moving forward, its
diverse economy, growing population, business friendly culture and
continued investment in infrastructure all support a positive outlook.
20%
NAICS CATEGORY
•Over the next 12 months, financial markets will continue to be eager to invest in multifamily projects
FINANCIAL
ACTIVITIES
12%
7%
11%
•8,894 units are currently under construction along the Wasatch Front and will be brought to market within the next 18 months— 6,226 are located in Salt Lake County
17%
RETAIL
TRADE
GOVT.
16%
•Wasatch Front potential starts over the next 12 months or later total 10,627 units
PROF. &
BUSINESS
SERVICES
9%
MFG.
8%
HOSP. &
LEISURE
Source: CBRE EA
© 2016 CBRE, Inc.
4
© 2016 CBRE, Inc.
REAL PERSONAL INCOME
EMPLOYMENT LEVELS AND GROWTH RATES: SALT LAKE AREA VS. U.S.
EDUCATION
& HEALTH
OTHER
POPULATION
Source: CBRE EA
LARGEST EMPLOYMENT SECTORS IN THE GREATER SALT LAKE AREA
•Annual effective rent growth will slow to approximately 3% in 2017
TOC
TOC
The multifamily market in the Greater Salt Lake area—Salt Lake, Utah,
Davis and Weber Counties—is experiencing strong construction and
rental growth due to pent up demand that is now beginning to be met.
LEVEL
(X 1000)
LOCATION
QUOTIENT
Agriculture & Mining
3
0.67
0.6
Construction
54
1.25
5.1
4.0
Manufacturing
87
1.08
1.9
1.1
1.5
-0.3
Wholesale Trade
39
1.01
1.3
Retail Trade
101
0.98
3.0
1.8
Transportation & Warehousing
40
1.26
3.8
2.7
Information
20
1.12
1.8
0.7
Financial Activities
65
1.22
3.7
1.4
Prof. & Business Srvcs.
148
1.14
4.5
3.2
Education & Health
109
0.75
3.3
2.2
Hospitality & Leisure
81
0.81
3.7
3.2
Other Services
27
0.74
2.6
1.2
Government
156
1.09
1.4
-0.1
Total
931
n/a
3.0
1.8
Source: Moody’s Economy.com, CBRE EA
5
LAST 5 YEARS
METRO
U.S.
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
GREATER SALT LAKE AREA (WASATCH FRONT)
SUPPLY VS. DEMAND AND ABSORPTION
The Greater Salt Lake area, also known as the Wasatch Front, consists of four counties—Salt Lake, Utah, Davis and Weber. Ogden City is located on the
north end of the Wasatch Front, Salt Lake City sits in the middle, and Provo is on the south end in Utah County. Ogden City is located 40 minutes to the
north of Salt Lake City, while Provo is located 45 minutes to the south of Salt Lake City. Approximately 2,262,207 people (80% of Utah’s population) live
within this four-county area. The counties are connected via Interstate 15, the primary north-south freeway through Utah around which the majority of
development occurs. The Wasatch Front, from Weber County to Utah County, is connected by FrontRunner—a high speed passenger train line that also
connects with a lightrail system (TRAX) that runs throughout Salt Lake County. The Greater Salt Lake Metro population is growing by more than 200% of
the national average.
For many years there was a lack of rental supply in the Greater Salt Lake market. Class A projects with amenities renters desired weren’t being
constructed and pent up demand existed. From 2011-July 2016, approximately 16,602 units were added to the Wasatch Front. During this
same time period, rents went up by 26% in Salt Lake County from $791 to $996 per month, while vacancies decreased by 60 basis points
from 5.2% to 4.6%.
THE WASATCH FRONT
COUNTY
OGDEN
GREAT
SALT
LAKE
DAV IS
COUNTY
80
215
SALT LAKE CITY
COUNTY
POPULATION
Salt Lake
2015 GROWTH
1,107,314
14,426
1.3%
575,205
13,671
2.4%
Davis
336,043
6,349
1.9%
Weber
243,645
3,145
1.3%
Totals
2,262,207
37,591
1.7%
1.7%
UTAH
LAKE
2015 GREATER SALT LAKE POPULATION GROWTH RATE
Source: U.S. Census Bureau
UTAH TRANSIT AUTHORITY TRAX LINE
6
SALT LAKE COUNTY 3 YEAR PROJECTED SUPPLY ADDITIONS
PROJECT STATUS
CONSTRUCTION SUMMARY
# OF PROJECTS
TOTAL UNITS
COUNTY
COMPLETED 2011 - CURRENT
UNDER CONSTRUCTION
POTENTIAL STARTS
Under construction - not leased - to complete next 18 months
32
6,320
Salt Lake
9,457
6,720
7,127
Likely starts next six months
21
2,312
Utah
3,959
1,492
3,128
50% of potential starts 2017 or later*
13
2,510
Davis
2,448
538
1,222
Estimated new deliveries over next 3 years
80
11,142
Weber
738
780
742
Totals
16,602
9,530
12,219
*There are currently 27 properties containing 5,020 units that are potential starts beginning 2017 in Salt Lake County. This
analysis assumes that 50% of those projects begin construction in the next 18 months and are completed within 3 years.
Source: Western States Multifamily
Source: Western States Multifamily
If the assumptions shown on the graph above hold true there will be 11,142 units added to the market over the next 3 years.
Absorption from 2010-2014 has averaged approximately 2,500 units per year. If absorption continues at 2,500 units per year for the next
3 years, 7,500 units will be absorbed leaving 3,548 units unabsorbed. This will increase the vacancy rate in Salt Lake County from 4.6% to
approximately 7.4% by the end of 2019.
© 2016 CBRE, Inc.
7
TOC
0.8%
2015 U.S. POPULATION GROWTH RATE
UTAH
PROVO
PROVO
COUNTY
% INCREASE
Utah
Source: Utah Population Estimates Committee, Governor’s Office
SALT LAKE
COUNTY
TOC
80
© 2016 CBRE, Inc.
Jeff Neese, MAI of Western States Multifamily, has projected future supply additions in Salt Lake County as follows:
GREATER SALT LAKE METRO 2015 POPULATION GROWTH
WEBER
Significant construction is underway along the Wasatch Front; 9,530 units are currently under construction, 6,720 of which are in Salt Lake
County. Another 12,219 units have been identified as potential starts along the Wasatch Front, 7,127 of which are in Salt Lake County.
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
WASATCH FRONT HISTORICAL RENTAL RATES & VACANCY: SUMMARY TABLES BY COUNTY AND CITY
WASATCH FRONT SUMMARY
The multifamily market along the Wasatch Front continues to be vibrant, with overall low vacancy and strong rent growth. This supports a strong
trend toward renting in Utah; people are getting married later, starting families later and desire to be mobile, enabling them to move away to pursue
additional schooling or a new career path. Lifestyle is a top priority, and living in downtown areas or walkable communities has become more
desirable. Coupled with favorable financing, this trend is promoting the development of many new apartment communities. Developers are eager to
get projects off the ground, securing long-term, low-cost debt while possible.
VACANY BY COUNTY
SF
RENT
SF
RENT
SF
SF
$/SF
VACANCY
954 $0.93
5.9%
$938
901 $1.04
4.5%
$961
918 $1.05
4.5%
$1,011 910 $1.11
4.8%
$1,061 901
$1.18
5.1%
Draper
$993
983 $1.01
6.2%
$980
964 $1.02
6.9%
$978
964 $1.01
2.2%
$1,023 903 $1.14
3.4%
$1,068 842
$1.27
4.5%
Midvale
$815
860 $0.95
5.6%
$860
860 $1.00
4.8%
$888
876 $1.01
4.8%
$969
848 $1.15
5.4%
$1,051 821
$1.28
5.9%
Murray
$804
838 $0.96
5.5%
$839
894 $0.94
5.2%
$863
888 $0.97
4.0%
$936
861 $1.09
3.3%
$1,008 834
$1.21
2.6%
Riverton
$916 1,005 $0.91
3.1%
$921 1,043 $0.88
6.7%
$918 1,043 $0.88
7.2%
$962
971 $1.00
3.6%
$1,005 898
$1.12
0.0%
Salt Lake City
$772
728 $1.06
3.5%
$865
793 $1.09
5.4%
$886
782 $1.13
4.9%
$960
748 $1.29
5.2%
$1,035 715
$1.45
5.5%
Sandy
$932
904 $1.03
4.7%
$943
846 $1.11
6.0%
$975
884 $1.10
5.5%
$1,061 889 $1.19
4.8%
$1,148 893
$1.28
4.1%
South Jordan
$1,152 1,117 $1.03
9.8%
$1,140 1,094 $1.04
9.2%
$1,137 1,034 $1.10
6.9%
$1,115 984 $1.14
5.3%
$1,093 934
$1.17
3.7%
South Salt Lake
$638
708 $0.95
4.1%
$709
656 $1.08
4.2%
$725
673 $1.08
6.0%
$761
705 $1.08
4.1%
$798
738
$1.08
2.1%
Taylorsville
$749
823 $0.91
5.6%
$787
814 $0.97
4.6%
$817
812 $1.01
6.1%
$855
811 $1.06
6.0%
$892
809
$1.10
5.8%
West Jordan
$837
888 $0.94
6.7%
$866
923 $0.94
4.7%
$861
832 $1.04
4.9%
$921
884 $1.04
3.7%
$980
936
$1.05
2.6%
West Valley City
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$750
791 $0.95
4.2%
$828
775 $1.07
4.3%
$907
760
$1.19
4.4%
$400
Downtown
N/A
N/A
N/A
N/A
$941
797 $1.18
3.7%
$757
783 $1.26
5.4%
$968
779 $1.39
5.3%
$200
Overall
$1,200
$1,000
6.0%
$800
$600
4.0%
0.0%
2005
2006
2007
2008
2009
SALT LAKE
2010
2011
2012
2013
UTAH
2014
2015
DAVIS
$0
2016
1 BED 1 BATH
2 BED 1 BATH
SALT LAKE
2 BED 2 BATH
UTAH
3 BED 2 BATH
DAVIS
OVERALL
WEBER
Source: CBRE, Inc.
HISTORICAL RENTAL & VACANCY RATES
2012
WASATCH FRONT RENT
SF
2013
$/SF VACANCY
RENT
SF
2014
$/SF VACANCY
RENT
SF
$/SF VACANCY
N/A
2015
$/SF VACANCY
RENT
SF
MID - 2016
$/SF VACANCY
RENT
SF
$/SF
VACANCY
2012
UTAH COUNTY
RENT
SF
Orem
$925
953 $0.97
Pleasant Grove
$863
973 $0.89
Provo
$863
973 $0.91
2013
$/SF VACANCY
RENT
SF
3.8%
$883
958 $0.92
3.1%
$922
946 $0.97
2.9%
$633
714 $0.89
853 $0.95
5.0%
$850
867 $0.98
5.1%
$892
851 $1.06
4.9%
$944
837 $1.13
4.7%
$996
823
$1.19
4.6%
$788
857 $0.92
6.1%
$678
929 $0.73
6.9%
$698
845 $0.75
4.2%
$740
899 $0.79
5.1%
$950
952
$1.08
3.2%
Davis
$720
837 $0.86
6.6%
$756
889 $0.85
4.6%
$796
846 $0.88
4.7%
$802
800 $0.98
3.8%
$871
755
$1.07
2.9%
DAVIS COUNTY
RENT
SF
Weber
$684
912 $0.75
3.2%
$807
887 $0.91
4.4%
$868
900 $0.99
6.0%
$956
902 $1.07
4.7%
$783
904
$0.82
3.4%
Bountiful
$783
942 $0.83
5.1%
$840 1,012 $0.83
Wasatch Front
$790
849 $0.93
5.1%
$830
874 $0.95
5.2%
$854
862 $1.00
4.9%
$912
848 $1.08
4.69%
$970
834
$1.15
4.5%
Clearfield
$731
890 $0.83
6.0%
$748
857 $0.87
Layton
$669
751 $0.89
8.0%
$749
North Salt Lake
$874
934 $0.94
8.9%
Source: CBRE, Inc.
OTHER INDICATORS
CLASS A
CLASS B
CLASS C
CATEGORY
RENT $/SF VACANCY
RENT $/SF VACANCY
RENT $/SF VACANCY
LOCATION
RESIDENTS
5YR AVG. INCREASE
Studio
$844 $1.54
$647 $1.65
$641 $1.81
Salt Lake
1,107,314
1.50%
1 Bed 1 Bath $1,060 $1.51
$813 $1.28
$717 $1.28
Davis
336,043
1.92%
2 Bed 1 Bath $1,063 $1.21
$902 $1.03
$842 $1.02
Utah
575,205
2012
POPULATION
SF
2.26%
Ogden
$633
827 $0.77
$769
990 $0.78
$613
875 $0.70
$1,039 $1.09
$1,000 $0.85
Weber
243,645
1.08%
$1,162 $0.99
$1,204 $0.93
Wasatch Front
2,262,207
1.69%
West Haven
State of Utah
3,000,000
1.68%
Overall
7.1%
Source: CBRE, Inc.
© 2016 CBRE, Inc.
Source: U.S. Census Bureau
8
RENT
SF
$/SF VACANCY
4.7%
$946
913 $1.04
5.3%
3.2%
$921
946 $0.97
3.2%
5.2%
$685
714 $0.96
2.8%
$1.52
5.3%
$1.19
4.6%
$996
823
RENT
SF
$/SF
VACANCY
$970
942
$1.03
2.9%
$1,124 995
$1.13
3.1%
MID - 2016
RENT
SF
$958
928 $1.03
4.1%
$1,023 970 $1.05
3.1%
$722
$/SF VACANCY
708 $1.02
2014
RENT
SF
3.9%
$839
960 $0.87
5.4%
$723
898 $0.80
898 $0.83
3.9%
$789
$815 1,063 $0.77
3.6%
$907
2012
RENT
3 Bed 2 Bath $1,469 $1.21
$773 $1.12
SF
2013
$/SF VACANCY
WEBER COUNTY
2 Bed 2 Bath $1,286 $1.27
4.1%
$1,178 774
3.0%
$759
702
$1.08
3.1%
$950
881
$1.08
3.19%
$/SF VACANCY
RENT
SF
MID - 2016
2015
$/SF VACANCY
$/SF VACANCY
$/SF
VACANCY
RENT
SF
6.0%
$862
909 $0.95
4.9%
$886
857
$1.03
3.8%
3.7%
$797
873 $0.91
3.0%
$871
849
$1.03
2.4%
898 $0.88
4.8%
$792
821 $0.98
4.1%
$794
743
$1.07
3.4%
924 $0.98
5.5%
$942
908 $1.04
3.7%
$976
893
$1.09
1.9%
$871
755
$1.07
2.91%
RENT
SF
$/SF
Source: CBRE, Inc.
Roy
$946 $1.11
RENT
2015
RENT
Overall
BY CLASS
4.5%
$/SF VACANCY
Overall
$810
$1,126 $1.29
SF
Source: CBRE, Inc.
Utah
Overall
RENT
2014
$/SF VACANCY
Salt Lake
WASATCH FRONT CURRENT RENTAL & VACANCY RATES
$/SF VACANCY
Source: CBRE, Inc.
STUDIO
WEBER
Source: CBRE, Inc.
$/SF VACANCY
TOC
TOC
2.0%
MID - 2016
2015
2014
Cottonwood Heights $891
$1,400
8.0%
2013
SALT LAKE COUNTY RENT
CURRENT RENTAL RATES BY UNIT TYPE
10.0%
2012
2013
RENT
SF
8.3%
$622
833 $0.75
6.0%
$783 1,105 $0.71
3.4%
$756
$/SF VACANCY
2014
$/SF VACANCY
885 $0.85
RENT
SF
7.4%
$622
790 $0.79
6.1%
$812 1,106 $0.73
3.9%
$756
885 $0.85
Source: CBRE, Inc.
© 2016 CBRE, Inc.
9
MID - 2016
2015
$/SF VACANCY
$/SF VACANCY
VACANCY
RENT
SF
5.6%
$682
830 $0.82
4.0%
$742
870
$0.85
2.5%
3.3%
$852 1,161 $0.73
2.8%
$892
1215 $0.73
2.2%
3.9%
$829
2.2%
922 $0.90
$903
958
$0.94
0.5%
$783
952
$0.82
3.5%
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
SALT LAKE COUNTY
SPOTLIGHT:
Salt Lake County reached new heights with its overall average monthly rental rate, topping out at $996/month and achieving mid-year rent growth of
2.7%. Vacancy in suburban markets was the highest at 4.6%; these markets also reported the lowest rental rate with an average of $1.14/sq. ft. Overall,
newer communities built after 2010 carried the lowest vacancy of 2.8%. This data validates that current market trends are holding steady. Newer product
located downtown or in select communities such as Sugarhouse commanded the highest rents. Suburban markets tend to be more affordable alternatives.
DOWNTOWN & SUGARHOUSE MULTIFAMILY STATS VACANCY
4.6%
RENT
$996
RENT GROWTH (H1 2016)
2.7%
OVERALL VACANCY AND RENT
10.0%
$1,100
RENT ($)
VACANCY (%)
9.0%
$1,000
8.0%
$900
7.0%
$800
5.0%
$700
4.0%
$600
3.0%
$500
2.0%
$400
1.0%
0.0%
2005
Source: CBRE, Inc.
2006
2008
2007
2009
2010
2011
2012
2013
2014
2015
MID-2016
$300
RENTAL RATE & VACANCY SUMMARY TABLES
BY YEAR
BY UNIT TYPE
CATEGORY
VACANCY
1990 - 1999
2000 - 2009
BUILT AFTER 2010
RENT $/SF VACANCY
RENT $/SF VACANCY
RENT $/SF VACANCY
$625 $1.14
$765 $1.65
CATEGORY
RENT
SF
$/SF
Studio
$715
398
$1.79
Studio
1 Bed 1 Bath
$879
666
$1.32
1 Bed 1 Bath $973 $1.30
$967 $1.32
$970 $1.27
2 Bed 1 Bath
$939
880
$1.07
2 Bed 1 Bath $989 $1.04
$949 $1.07
$1,125 $1.31
2 Bed 2 Bath
$1,159
1,016
$1.14
2 Bed 2 Bath $1,225 $1.18
$1,152 $1.13
$1,152 $1.13
3 Bed 2 Bath
$1,288
1,227
$1.05
3 Bed 2 Bath $1,286 $1.04
$1,210 $1.03
Overall
$1,012
868
$1.19
Overall
4.6%
Source: CBRE, Inc.
n/a
n/a
$1,126 $1.15
3.8%
$1,071 $1.16
BY LOCATION
DOWNTOWN
SUGARHOUSE
SUBURBAN
CATEGORY
RENT $/SF VACANCY
RENT $/SF VACANCY
RENT $/SF VACANCY
Studio
$668 $1.90
$978 $1.23
$747 $1.78
1 Bed 1 Bath
$1,043 $1.50
$1,152 $1.52
$869 $1.31
2 Bed 1 Bath
$1,011 $1.15
$1,211 $1.59
$932 $1.06
2 Bed 2 Bath
$1,614 $1.63
$1,655 $1.36
$1,132 $1.11
3 Bed 2 Bath
$1,653 $1.36
Overall
$1,178 $1.52
N/A
5.3%
$1,143 $1.26
50 - 99 UNITS
100+ UNITS
VACANCY
880
Average rents for both the Downtown and Sugarhouse locations are
$1.52 and $1.48/sq. ft., respectively. For all Class A communities
with more than 50 units, Downtown rents are higher than Sugarhouse.
Some Class A Downtown units are reporting rents as high as $2.15/
sq. ft. Downtown’s studio and 2 bed/2 bath units have achieved
higher rents than Sugarhouse, while Sugarhouse has higher rents
in the 1 bed/1 bath and 2 bed/1 bath units. This is primarily due to
Downtown having a greater quantity of older units leased at lower
rates which drops the downtown average rents.
860
Both submarkets will continue to be of great interest to Salt Lake
County’s renters.
720
SIZE (SF)
CLASS A
CLASS B
CLASS C
RENT
$/SF
RENT
$/SF
CATEGORY
RENT $/SF VACANCY
RENT $/SF VACANCY
RENT $/SF VACANCY
Studio
$625
$1.19
$714
$1.83
Studio
$844 $1.54
$676 $1.71
$781 $2.32
1 Bed 1 Bath
$679
$1.12
$884
$1.38
1 Bed 1 Bath $1,070 $1.50
$833 $1.33
$742 $1.33
2 Bed 1 Bath
$822
$0.91
$947
$1.11
2 Bed 1 Bath $1,058 $1.15
$936 $1.08
$936 $1.08
2 Bed 2 Bath
$1,063
$0.99
$1,159
$1.16
2 Bed 2 Bath $1,319 $1.25
$1,064 $1.14
$1,000 $0.85
3 Bed 2 Bath
$1,118
$0.91
$1,303
$1.09
$842
$0.95
$1,008
$1.23
3 Bed 2 Bath $1,520 $1.16
4.6%
Overall
$901 $1.15
3.7%
$956 $1.17
$1,223 $0.92
4.4%
$815 $1.20
5.10%
SUGARHOUSE APARTMENTS BY URBANA
10
© 2016 CBRE, Inc.
4.5%
8.0%
820
800
6.0%
5.3%
4.5%
780
3.1%
760
4.0%
2.0%
740
Source: CBRE, Inc.
DOWNTOWN
4TH WEST APARTMENTS
Source: CBRE, Inc.
Source: CBRE, Inc.
© 2016 CBRE, Inc.
$1,182 $1.31
$1,001 $1.15
10.0%
VACANCY (%)
840
2.8%
CATEGORY
3.3%
VACANCY
BY CLASS
$1,279 $1.04
3.1%
SQUARE FOOT & VACANCY COMPARISON BY LOCATION
$1,390 $1.12
5.3%
N/A
$1,249 $1.48
Source: CBRE, Inc.
Source: CBRE, Inc.
BY SIZE
Overall
RENTAL RATE COMPARISON BY LOCATION
11
SUGARHOUSE
SUBURBAN
0.0%
TOC
TOC
6.0%
The Downtown and Sugarhouse submarkets have been the center
of attention for multifamily development in Salt Lake County. Cranes
have dominated the skyline in both areas. Over the past few years,
these two locations have undergone significant redevelopment
of several infill parcels for both commercial and multifamily
development. New approaches to construction and design have
elevated competition and attracted renters of all demographics
to these locations. These submarkets offer walkability to amenities
that are simply unavailable in most suburban markets—everything
from trendy eateries and shopping districts to public services such as
parks, libraries and post offices. These communities, coupled with
lifestyle amenities, have driven rental rates to new heights.
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
SALT LAKE COUNTY: COMPLETED MULTIFAMILY PROJECTS 2011 - AUGUST 2016
SALT LAKE COUNTY
HISTORICAL RENTAL RATES BY UNIT TYPE (AVERAGE MONTHLY AND PER SF RATES)
# NAME
$1.80
$1,400
$1.79
$1,288
$1,200
$1,159
$1.60
$1,000
$800
$600
$1.43
$739
$715
$800
$781 $1.37
$996
$850
$844
$1.60
$1.50
$892
$1.40
$632
$599
$1.30
$1.21
$1.09
$0.99
$0.97
$1.02
$0.91
1 BED 1 BATH
$0.97
$1.10
$1.06
$1.05
$0.98
$1.00
$0.91
2 BED 1 BATH
2 BED 2 BATH
2013
2014
$1.20
$0.90
3 BED 2 BATH
OVERALL
2016
Source: CBRE, Inc.
As displayed in the bar chart above, monthly rents have been on the
rise. Most significant were the increase in monthly rental rates for
studio, 1 bed/1 bath and 2 bed/2 bath units, each at—or just over—
19% rent growth since end-of-year 2013. Following close behind are
the 2 bed/1 bath and 3 bed/2 bath units, realizing monthly rental rate
increases at 17% and 16%, respectively. The overall monthly rental
rate increase is over 17% between 2013 and 2016 across all unit
types. This validates the insatiable appetite of Salt Lake County’s renter
base. They have shown a continued willingness to pay the increase in
monthly rental rates.
OTHER INDICATORS
POPULATION
SINGLE FAMILY HOUSING
LOCATION
RESIDENTS
5YR AVG. INCREASE
YEAR
AVERAGE HOME PRICE
Salt Lake County
1,107,314
1.30%
2013
$240,000
Salt Lake City
192,672
0.66%
2014
$273,000
West Valley
136,208
1.04%
2015
$287,000
State of Utah
3,000,000
1.68%
2016
$306,000
Source: U.S. Census Bureau
© 2016 CBRE, Inc.
VIA APARTMENTS
Source: WFR Multiple Listing Service
UNITS
36 ViA
80
1
West Station
2
Rendon Terrace
70
37 Bud Bailey
136
3
644 City Station
132
38 Birkhill
202
4
Seasons at City Creek
130
39 Lionsgate at Fireclay
400
5
North Sixth
115
40 Birkhill Seniors
105
6
Bridges at Citifront - Phase 2
91
41 Brickgate
268
7
Liberty Gateway
160
42 Silvercrest
186
8
City Creek Landing
105
43 Lotus Madrona
37
9
The Lotus
84
44 Canyon Crossing at Riverwalk
180
10 Providence Place
125
45 Tuscany Villas
76
11 Cityscape
122
46 Talavera at the Junction
252
12 Mercer
73
47 Florentine Villas
214
13 Eastside Apartments
173
48 Lofts at 7800
192
14 Encore
189
49 Jordan Valley Seniors
72
15 Seasons on the Boulevard
99
50 Victoria Woods - Sandy
100
16 Newhouse
61
51 Rosegate
159
17 SEG028
28
52 Willow Cove VII
72
18 Seasons at Library Square
119
53 Hills at Sandy Station
55
19 Prana Townhomes
21
54 Drycreek at East Village
282
20 Aire Condominiums
30
55 Legacy Cottages
186
21 Enclave
210
56 Jordan Station
302
22 Lotus Bluekoi
20
57 South Ridge
145
23 Taylor Springs
95
58 The Gardens
60
24 Sugarhouse Apartments
70
59 District Heights
258
25 21st and View
29
60 Promenade at the District
170
26 Liberty Village
171
61 San Tropez - Phase II
84
27 The Vue at Sugarhouse Crossing
211
62 Victoria Woods - Draper
42
28 Wilmington Gardens
105
63 Parc at Day Dairy
228
29 Sage Gate at Haynes Landing
278
64 Terrameer
174
30 2550 South Main
112
65 Solameer at Harriman Towne Center
134
31 Pinnacle Highbury
290
66 Rosegate in Draper
277
32 Element 31 at Brickyard
208
67 Beacon Hill
168
33 Millcreek 9
27
68 Ballpark Apartments
62
34 Residence at Fairbourne Station
225
69 Meadows at Park Avenue
121
35 Millcreek Towers
38
70 Triton Terrace
177
9,817 Total Units
Source: Western States Multifamily. Maps as of June 2016.
12
145
# NAME
© 2016 CBRE, Inc.
13
TOC
TOC
$200
STUDIO
$1.19
$1.14
$1.12
$400
$0
$1,157
$1,017
$970
$939
$879
$1,113
$1.70
UNITS
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
SALT LAKE COUNTY: POTENTIAL MULTIFAMILY STARTS AS OF AUGUST 2016
SALT LAKE COUNTY: MULTIFAMILY DEVELOPMENT UNDER CONSTRUCTION - AUGUST 2016
1
4th West Apartments
493
2
Liberty Crest
177
3
Alta Gateway
264
4
Laporte*
180
5
The Bonneville
158
6
360 Apartments
151
7
Liberty Boulevard
266
8
9th East Lofts
68
9
616 South State
274
10 Ball Park Apartments*
61
11 Taylor Gardens
112
12 Zeller Beach
292
13 Oquirrh Hills
288
14 Riverfront
288
15 Artesian Springs
118
16 Metro at Fireclay
175
17 The Ridge
261
18 The Station at Midvale
102
19 Kimpton Square
97
20 Pinnacle Sandy
332
21 Novi at Jordan Valley Station
267
22 Cobblegate at Quarry Bend
416
23 Park at City Center*
330
24 Hills at Sandy Station - Phase 2
146
25 East Village
271
26 Rosegate in Herriman
298
27 Draper Village
181
28 Sagegate at Anthem*
422
29 Meadows at Park Avenue
14
30 Draper Lofts
249
31 Triton Terrace*
177
32 Independence
60
33 Bodhi Salt Lake City
80
34 Paragon Station Lofts
38
35 S-Line Townhomes
32
36 Park at City Center
330
37 Sagegate at Anthem
# NAME
UNITS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
422
6,720 Total Units
Source: Western States Multifamily. Maps as of June 2016. *Construction has since been completed.
© 2016 CBRE, Inc.
Source: Western States Multifamily. Maps as of June 2016.
14
© 2016 CBRE, Inc.
15
Marmalade Flats
North 4th Apartments
West Station - Phase II
North Temple Micro
North Temple Flats
Sharon Gardens
Hardison
PEG
The Morton
Artspace Macaroni Flats
4th and 4th
Liberty Square
Granary Place
Central 9th Studios
965 Central
Central Ninth
TenFifteen
The East Village Phase 2
1701 South 1100 East
Liberty on Main
21 By Urbana
Liberty Place
Sugarmont
Liberty Crossing
NW Pipeline
2265 South State
Rockwell Lofts
Highland 40 Townhomes
Via
Lotus Tapestry
Artesian Springs - Phases 2 & 3
Flats at the District
Spring Run Townhomes
Murray Crossing
Canyon Centre
Station at Midvale - Phase 2
Station at Gardner Mill
The View at 5600
Little Cottonwood
The Prestige
Cliffs at Jordan Station
Daybreak Condos
Liberty Pointe
Veranda
Draper Vista Station
Independence
Triton Terrace
UNITS
300
110
145
350
168
58
77
182
136
13
210
138
134
12
50
43
54
65
19
120
126
200
435
157
248
300
21
40
58
43
260
120
54
280
123
84
272
192
264
350
237
180
100
239
250
244
320
7,332 Total Units
TOC
TOC
# NAME
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
UTAH COUNTY: MULTIFAMILY COMPLETED/PIPELINE - 2011-2016
UTAH COUNTY
VACANCY
3.2%
# NAME
RENT
$950
RENT GROWTH (H1 2016)
4.3%
OVERALL VACANCY AND RENT
8.0%
$1,000
7.0%
$900
6.0%
$800
5.0%
$700
4.0%
$600
3.0%
$500
2.0%
$400
TOC
1.0%
0.0%
2005
2006
2007
2008
2009
2010
2011
VACANCY (%)
Source: CBRE, Inc.
2012
2013
2013
2014
2015
MID-2016
$300
RENT ($)
HISTORICAL RENTAL & VACANCY RATES
BY YEAR
2012
OTHER INDICATORS
2014
2015
MID - 2016
POPULATION
SINGLE FAMILY HOUSING
RENT
$/SF
RENT
$/SF
RENT
$/SF
RENT
$/SF
RENT
$/SF
LOCATION
RESIDENTS
5YR AVG. INCREASE
YEAR
AVERAGE HOME PRICE
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Orem
93,130
1.38%
2013
$243,000
1 Bed 1 Bath $672
$1.06
$693
$1.02
$755
$1.15
$779
$1.18
$804
$1.20
Provo
118,148
0.50%
2014
$259,000
2 Bed 1 Bath $720
$0.86
$685
$0.81
$756
$0.88
$799
$0.93
$843
$0.98
Utah County
551,891
2.26%
2015
$275,000
2 Bed 2 Bath $899
$0.92
$953
$0.96
$959
$0.93
$985
$1.01 $1,011 $1.10
State of Utah
3,000,000
1.68%
2016
$284,000
3 Bed 2 Bath $952
$0.83
$975
$0.88 $1,014 $0.92 $1,092 $0.96 $1,170 $1.01
Overall
$0.92
$807
$0.91
CATEGORY
Studio
$788
$820
$1.00
$885
$1.04
$950
Source: U.S. Census Bureau
Source: WFR Multiple Listing Service
$1.08
Source: CBRE, Inc.
CURRENT RENTAL & VACANCY RATES
BY SIZE
50 - 99 UNITS
100+ UNITS
OVERALL
CATEGORY
RENT $/SF VACANCY
RENT $/SF VACANCY
RENT $/SF VACANCY
Studio
$409 $0.89
$709 $1.36
$592 $1.19
1 Bed 1 Bath $688 $1.06
$815 $1.22
$826 $1.27
2 Bed 1 Bath $889 $0.89
$836 $1.00
$843 $1.03
2 Bed 2 Bath $955 $0.95
$1,011 $1.10
$1,138 $1.20
$1,182 $1.01
3 Bed 2 Bath $1,057 $0.97
Overall
$811 $0.97
1.3%
$961 $1.09
$1,209 $1.07
3.3%
$950 $1.08
THE ALLOY AT GENEVA
3.2%
Source: Western States Multifamily. Maps as of June 2016.
Source: CBRE, Inc.
© 2016 CBRE, Inc.
16
© 2016 CBRE, Inc.
17
Aldara
Saratoga Springs
Seasons at Traverse Mountain
Cresthaven
Lofts at Ivory Ridge
Traverse Towns
American Fork
Vintaro
Meadows
Millpond
Bella Grace
Viewpointe
Residences at Mayfield
Grove Crest Villas
Avalon Senior Living
Lincoln Square
Waters Edge
Concord at Geneva
Mill Pointe at Geneva
Alloy at Geneva
Siena Villas
The Boulevard
Cherry Hill
Residences at Montveal
Canyon View Crossing
Sun Canyon Villas
The Aston at University Place
Midtown 360
Parkway Lofts
Parc on Center
The Aston at University Place - Ph 2
Midtown Village
Ridgeline Townhomes
Arbors on the Avenue
Riverview
Lakeview Court
Rowland Heights
Village at South Campus
Woodland Heights
The Old Chapel
St. Francis
Eighty East
63 Center
Savoy
Liberty Center
200 Cityview
Central Park Station
Startup Crossing
Outlook
Springville Seniors on Main
The Depot
UNITS
240
252
440
344
45
92
270
252
142
213
24
288
214
162
90
239
227
304
468
324
81
110
74
132
180
84
237
286
332
168
241
225
85
68
48
44
128
236
71
15
42
77
41
121
120
139
59
100
260
25
120
STATUS
Completed
Potential Start
Completed
Completed
Completed
Under Construction
Potential Start
Potential Start
Potential Start
Potential Start
Under Construction
Completed
Completed
Completed
Completed
Potential Start
Potential Start
Completed
Potential Start
Completed
Completed
Completed
Completed
Completed
Completed
Under Construction
Under Construction
Under Construction
Under Construction
Completed
Potential Start
Potential Start
Potential Start
Potential Start
Under Construction
Completed
Potential Start
Completed
Under Construction
Completed
Completed
Potential Start
Completed
Potential Start
Under Construction
Under Construction
Under Construction
Completed
Completed
Completed
Potential Start
8,579 Total Units
Completed
(24)
3,959 Units
Under Construction
(11)
1,492 Units
Potential Start
(16)
3,128 Units
TOC
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
DAVIS COUNTY
DAVIS COUNTY: MULTIFAMILY COMPLETED 2011 - 2016/PIPELINE
VACANCY
2.9%
# NAME
RENT
$871
RENT GROWTH (H1 2016)
4.3%
OVERALL VACANCY AND RENT
$900
9.0%
8.0%
$800
7.0%
$700
6.0%
5.0%
$600
4.0%
$500
3.0%
2.0%
$400
0.0%
2005
2006
2007
2008
2009
2010
2011
VACANCY (%)
Source: CBRE, Inc.
2012
2014
2015
MID-2016
OTHER INDICATORS
2013
2014
2015
POPULATION
MID - 2016
CATEGORY
RENT
$/SF
RENT
$/SF
RENT
$/SF
RENT
$/SF
RENT
$/SF
LOCATION
Studio
$437
$1.19
$437
$1.05
$439
$1.05
$563
$1.54
$551
$1.49
Bountiful City
1 Bed 1 Bath $625
$1.05
$666
$0.98
$721
$1.09
$707
$1.16
$740
$1.22
2 Bed 1 Bath $677
$0.78
$717
$0.82
$769
$0.83
$818
$0.92
$895
$1.01
2 Bed 2 Bath $830
$0.88
$868
$0.91
$827
$0.94
$903
$1.00
$954
$1.05
3 Bed 2 Bath $915
$0.79
$887
$0.76
$970
$0.82 $1,016 $0.89 $1,123 $0.98
Overall
$0.86
$756
$0.85
$796
$0.92
$720
2013
RENT ($)
RENTAL & VACANCY RATES
BY YEAR
2012
$300
$793
$1.00
$871
SINGLE FAMILY HOUSING
Under Construction
2
Clearfield Station
216
Potential Start
3
West Square
149
Potential Start
4
Greyhawk Homes
114
Under Construction
5
Eastgate at Greyhawk
108
Completed
6
Seasons at Layton
164
Completed
7
Villas Apartments
144
Completed
8
Angels Landing Townhomes
24
Completed
9
Fernwood Place
74
Completed
10 Village at Church & Main
56
Completed
11 Legacy Cottages
150
Completed
12 Kay’s Crossing
156
Completed
13 Creekside Oaks
24
Completed
14 Orchard Farms
80
Completed
15 Farmington Crossing
93
Completed
16 Park Lane Village
324
Completed
17 Farmington Station
140
Under Construction
18 Residences at Station Park
431
Potential Start
19 Legacy Crossing
206
Completed
20 The Park at Legacy Trails
162
Under Construction
5YR AVG. INCREASE
YEAR
AVERAGE HOME PRICE
43,784
0.56%
2013
$237,000
21 Huntington
70
Completed
Layton City
74,143
1.96%
2014
$238,000
22 Olson Apartments
112
Potential Start
Davis County
336,043
1.92%
2015
$263,000
23 Hills at Renaissance
107
Completed
State of Utah
3,000,000
1.68%
2016
$281,000
24 Woods Cross
242
Potential Start
25 Woods Cross Townhomes
72
Potential Start
26 Hampton Place
210
Completed
27 Ridgeview
122
Completed
28 Eaglewood Lofts
122
Completed
Source: U.S. Census Bureau
Source: WFR Multiple Listing Service
$1.07
CURRENT RENTAL & VACANCY RATES
CATEGORY
122
RESIDENTS
Source: CBRE, Inc.
BY SIZE
STATUS
Sand Ridge
4,208 Total Units
50 - 99 UNITS
100+ UNITS
OVERALL
RENT $/SF VACANCY
RENT $/SF VACANCY
RENT $/SF VACANCY
Studio
$450 $1.25
$571 $1.54
$551 $1.49
1 Bed 1 Bath
$680 $1.09
$745 $1.23
$729 $1.21
2 Bed 1 Bath
$793 $0.86
$898 $1.01
$895 $1.01
2 Bed 2 Bath
$831 $0.90
$968 $1.06
$961 $1.07
3 Bed 2 Bath
$947 $0.88
Overall
$739 $0.95
$1,134 $0.98
1.47%
$882 $1.08
$1,086 $0.95
3.03%
$871 $1.07
EAGLEWOOD LOFTS
2.9%
Source: CBRE, Inc.
© 2016 CBRE, Inc.
Source: Western States Multifamily. Maps as of June 2016.
18
© 2016 CBRE, Inc.
19
Completed
(18)
2,448 Units
Under Construction
(4)
538 Units
Potential Start
(6)
1,222 Units
TOC
TOC
1.0%
UNITS
1
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
WEBER COUNTY: MULTIFAMILY COMPLETED/PIPELINE - 2011-2016
WEBER COUNTY
VACANCY
3.5%
# NAME
RENT
$783
RENT GROWTH (H1 2016)
5.4%
OVERALL VACANCY AND RENT
10.0%
$900
9.0%
$800
8.0%
7.0%
$700
6.0%
$600
5.0%
4.0%
$500
3.0%
2.0%
1
Station at Pleasant View
144
Completed
2
Station at Pleasant View - Phase 3
128
Completed
3
The Cove at Pleasant View
88
Completed
4
Mountain View Townhomes
58
Completed
5
Mountain View Townhomes Ph 2&3
87
Under Construction
6
North Ogden Townhomes
79
Potential Start
7
Village at Prominence Point
339
Potential Start
8
Lomond View
38
Under Construction
9
The View on 20th
148
Completed
10 Colonial Court
73
Completed
2005
2006
2007
2008
2009
2010
2011
VACANCY (%)
Source: CBRE, Inc.
2012
2013
2014
2015
MID-2016
$300
RENT ($)
RENTAL & VACANCY RATES
BY YEAR
2012
11 View at the Junction
40
Completed
12 Tower View Apartments
144
Under Construction
OTHER INDICATORS
13 Imagine Jefferson
59
Completed
2013
2014
2015
MID - 2016
SINGLE FAMILY HOUSING
POPULATION
14 Imagine Jefferson - Phase 2
113
Under Construction
15 Garden City
61
Under Construction
CATEGORY
RENT
$/SF
RENT
$/SF
RENT
$/SF
RENT
$/SF
RENT
$/SF
LOCATION
RESIDENTS
5YR AVG. INCREASE
YEAR
AVERAGE HOME PRICE
Studio
$460
$1.15
$429
$1.11
$432
$1.11
$482
$1.28
$532
$1.45
Ogden City
84,444
0.64%
2013
$243,000
1 Bed 1 Bath $587
$0.82
$638
$0.82
$653
$0.80
$679
$0.88
$705
$0.96
Riverdale
41,900
1.08%
2014
$168,000
16 Bouwhuis Apartments
216
Potential Start
2 Bed 1 Bath $681
$0.73
$662
$0.71
$710
$0.76
$728
$0.77
$747
$0.79
Weber County
243,645
1.68%
2015
$182,000
17 Claradon Village
192
Under Construction
2 Bed 2 Bath $774
$0.72
$820
$0.71
$826
$0.68
$856
$0.75
$885
$0.81
State of Utah
3,000,000
1.58%
2016
$213,000
3 Bed 2 Bath $837
$0.73
$869
$0.64
$897
$0.66
$924
$0.69
$950
$0.72
18 Claradon Village - Phase 2
108
Potential Start
Overall
$0.75
$678
$0.73
$698
$0.75
$740
$0.79
$783
$0.82
19 Station Square
31
Under Construction
20 Aderra
114
Under Construction
$655
Source: U.S. Census Bureau
Source: WFR Multiple Listing Service
Source: CBRE, Inc.
CURRENT RENTAL & VACANCY RATES
BY SIZE
2,260 Total Units
50 - 99 UNITS
100+ UNITS
OVERALL
CATEGORY
RENT $/SF VACANCY
RENT $/SF VACANCY
RENT $/SF VACANCY
Studio
$469 $1.23
$532 $1.45
$532 $1.42
1 Bed 1 Bath $652 $0.85
$710 $0.97
$701 $0.95
2 Bed 1 Bath $799 $0.83
$737 $0.78
$738 $0.78
2 Bed 2 Bath $870 $0.84
$887 $0.80
$885 $0.81
$952 $0.73
3 Bed 2 Bath $928 $0.63
Overall
$791 $0.78
9.8%
$783 $0.83
$926 $0.72
2.6%
$783 $0.82
CLARADON VILLAGE
3.5%
Source: CBRE, Inc.
© 2016 CBRE, Inc.
Source: Western States Multifamily. Maps as of June 2016.
20
© 2016 CBRE, Inc.
21
Completed
(8)
738 Units
Under Construction
(8)
780 Units
Potential Start
(4)
742 Units
TOC
TOC
STATUS
$400
1.0%
0.0%
UNITS
2016
FIRST HALF
GREATER SALT LAKE AREA MULTIFAMILY REPORT
DEBT MARKETS
CBRE’S UNPARALLELED MULTIFAMILY RESOURCES ARE NOW IN UTAH
As depicted in the graph below, overall multifamily finance volume has risen for six consecutive years, increasing by 335% between 2009-2015.
Agency lenders (Fannie Mae, Freddie Mac and HUD) represented 88% of overall volume in 2009 vs. 51% in 2015, as the full range of capital
sources has become increasingly active and competitive for multifamily assets.
CBRE welcomes Patrick Bodnar as a multifamily specialist. Patrick has been selling multifamily properties for over 15 years and joins Eli Mills,
who has been advising clients in commercial real estate investment for over 20 years. Throughout their careers Patrick and Eli have closed over
500 transactions and sold or advised on several billion dollars of investment real estate for private and institutional clients.
To create the most comprehensive multifamily market data available for the Greater Salt Lake marketplace, CBRE has also added a local
market research team.
ESTIMATED MULTIFAMILY FINANCE VOLUME BY LENDER TYPE (BILLIONS)
$250
$213
$225
$200
$169
$175
$149
$150
$101
$100
2015 U.S. APARTMENT RANKINGS (BILLIONS)
$124
$119
$125
25.0
$88
$75
$64
$56
$49
$50
20.0
TOC
TOC
Nationally, CBRE’s multifamily investment sales totaled $24.69 billion in 2015 with the nearest competitor closing less than half as much sales
volume. With 65 locations and over 300 multifamily professionals, including direct lending services, CBRE’s unparalleled multifamily platform
now has a presence in Utah, providing clients with the greatest market exposure available.
$25
$0
2006
(% Change YoY)
2007
Up 18%
Fannie Mae
2008
Down 46%
2009
Down 23%
Freddie Mac
2010
Up 14%
HUD
2011
Up 57%
2012
Up 41%
2013
Up 20%
Banks & Credit Unions
Other
2014
Up 13%
2015
Up 26%
Life Companies
15.0
CMBS
Source: CBRE, Inc.
CURRENT LENDING PARAMETERS
LENDER
TYPE
MAX
LTV
AMORTIZATION TERM
Fannie Mae
75-80% 30 years
10-YR
PRICING*
PREPAYMENT
PENALTY
5-12 years up to 30/30 1-5 years
3.75 - 4.00%
Yield Maintenance (YM) No
• Favorable interest rate environment continues
Freddie Mac 75-80% 30 years
5-10 years up to 30/30 1-5 years
3.75 - 4.00%
Defeasance or YM
No
HUD
85-90% 35 years
35/35 years
None
3.50 - 3.75%
Stepdown (10-1%)
No
• Diminishing lender appetite for new
construction projects
Banks
70-75% 25 years
5-10 years
None (typically) 4.00 - 4.25%
Stepdown (3-1%)
Yes
• Agency emphasis on deal types that don’t
count against their lending cap:
Credit Unions 70-75% 25 years
5-10 years
None (typically) 4.00 - 4.25%
None
Yes
o
Life Companies 65-70% 25-30 years
5-10 years up to 25/25 At lower leverage 3.25 - 3.50%
YM
No
CMBS
5-10 years
Defeasance or YM
No
70-75% 30 years
INTEREST
ONLY
2-4 years
4.00 - 4.25%
RECOURSE
MULTIFAMILY FINANCE MARKET:
HIGHLIGHTS/TRENDS
• 2016 year-to-date volume on pace with
2015 levels
Source: Fannie Mae and Freddie Mac 10-Ks, American Council of Life Insurers (ACLI), FDIC, Trepp, Mortgage Bankers Association & Fannie Mae Multifamily Economic
Research Group
*Approximate pricing as of September 2016; Credit Union pricing assumes 5-year rate resets
Small: Fewer than 50 units
Affordable: More than 50% of units at or below 80% AMI
10.0
5.0
0.0
CBRE
o
Green: Qualifies for recognized green building certification
HFF
MARCUS & MILLICHAP
NEWMARK GRUBB
KNIGHT FRANK
EASTDIL SECURED
22
BERKADIA
CUSHMAN &
WAKEFIELD
Source: Real Capital Analytics
o
With the powerful resources of CBRE’s national multifamily platform, along with the most comprehensive local market research, CBRE
Multifamily in Salt Lake City is ready to help investors maximize the value of their assets.
Disclaimers: Terms represent typical parameters by lender type; actual loan terms are deal-specific; will vary based on leverage, term, quality, location, etc. Terms assume
standard permanent loans for each lender type additional options available on floating rate and/or shorter term (bridge) options.
© 2016 CBRE, Inc.
JLL
© 2016 CBRE, Inc.
23
For a market analysis on your property or more information contact:
CAPITAL MARKETS
Patrick Bodnar Senior Associate
+1 801 869 8053 [email protected]
Eli Mills
Senior Vice President
+1 801 869 8029 [email protected]
DEBT & STRUCTURED FINANCE
Doug Birrell First Vice President
+1 801 869 8029 [email protected]