Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3591 South 300 West in Salt Lake City, Utah occupied by the owner Craftsman Kitchens. The subject property consists of approximately 13,032 square feet of flex space and is situated on 0.5 acres of land. The single-tenant asset features a clear height between 10’ and 22’, three grade-level doors, masonry construction, a TPO roof, and a 4,680-square-foot two-story office space. Craftsman Kitchens plans to occupy the property until June 2024 with plans to sign a short-term sale-leaseback if the property is sold prior to that time. Located in an Opportunity Zone, buyers can acquire the property for owner use or as a lease-up investment opportunity. The property is primely situated in the South Valley submarket with close proximity to both Interstates 15 and 80.
South Valley is a mid-size submarket containing 17.3 million square feet of industrial space. Situated just south of Downtown, South Valley is one of the original industrial hubs in the Salt Lake City market with 75 percent of the inventory being developed before 1990. In 2023, net absorption marginally contracted by about -30,000 square feet, inching the vacancy rate up to just 1.1 percent. With limited available land, there were no industrial properties delivered in South Valley last year and there were no properties under construction at the start of 2024. Furthermore, the inventory has fallen over the last decade as demolitions outpace new supply. Tight supply kept the average lease-up time down to a historic low of 2.2 months while increasing asking rents by 9.3 percent in 2023, nearly three times the increase in the Consumer Price Index (CoStar). Although vacancy rates are projected to continue rising as industrial demand responds to the highest interest rate environment in more than 15 years, the level is expected to remain relatively low for the foreseeable future.
Salt Lake City, known as the Crossroads of the West, is centrally located among major Western US markets. The metro area encompasses Salt Lake and Tooele counties, nestled in the Great Salt Lake Valley in northern Utah. With a population of 1.3 million people, the region experiences significant suburban growth, particularly in areas like South and West Jordan. The presence of tech firms has brought higher-paying job opportunities, attracting skilled and educated workers. The Salt Lake City economy benefits from its status as Utah’s capital and the headquarters of the Church of Jesus Christ of Latter-day Saints. Major employers include Intermountain Healthcare, University of Utah, and eBay. The metro area is also renowned for its world-class ski resorts and offers numerous recreational and cultural attractions. The University of Utah and several other colleges and universities contribute to the region’s educational landscape. With projected population growth and above-average incomes, Salt Lake City remains an attractive and vibrant area for residents and businesses alike.
BROKER OF RECORD
Adam Lewis
Utah Broker of Record
1144 15th Street, Suite 2150
Denver, CO 80202
Tel: (303) 328-2000
Adam.Lewis@MarcusMillichap.com
License: 6250302-PB00
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0200124)
