Q2 2012 Salt Lake City, Utah Retail Property Sales Analysis

CRE Resources

View our Salt Lake City, Utah Submarket Map

Q2 2012 Salt Lake City, Utah Retail Property Sales Analysis


Retail property sales transactions meeting Reis’ criteria have been minimal in the recent term: only two deals have completed since the second quarter of 2011, one of which, for $11.2 million, closed during the latest quarter. In the transaction at hand, Woodbury Strategic Partners Fund paid Legacy Commercial LLC $106 psf for the 105,973-square-foot Midvale Plaza property in Midvale. The sale closed in June at a 12.7% cap rate. The 12-month rolling cap rate per quarter-end also was 12.7%, up from 11.6% a year earlier. These rates, however, reflect only small numbers of transactions.

Marcus & Millichap’s third quarter 2012 report notes strong demand for “credit-tenant assets, such as Walgreens and corporate fast-food locations.” Meanwhile, although “elevated investor interest persists for multi-tenant deals, the pool of available, high-quality assets remains limited.”