Salt Lake City is a “renter’s market,” say experts. Landlords are offering perks — just don’t expect them to lower the rent.
The firm plans to close its Cottonwood Heights and downtown offices and consolidate all its employees in one space on 650 Main, Joffee said. “I think that reflects our commitment to the state, our commitment to building our brand stronger here,” he said. By volume, there is more available office space to rent downtown today than there was in 2019, before the pandemic redefined the workforce and turned dining tables into office desks.
It’s not rental rates on the bargaining table, Munson said. Rent is the last thing landlords and property owners are going to change. That’s because the building’s overall value drops “exponentially” for every dollar in decreased rent, Munson said. And while landlords aren’t likely to offer decreased rent, there are plenty of other things with which to bargain, Munson said. Some landlords might offer a few months of free rent as an incentive — which doesn’t technically change the rental rate, Munson explained, so does not lower the building’s overall value. Residential buildings sometimes make the same offer, based on the same principle.
Subleasing and subdividing are also becoming more popular, Munson said. More than 1 million units have been put on the sublease market in 18 months, according to Hughes Marino data. Businesses just need less space, Munson said, and some are willing to share.