Medical Office Investment in Salt Lake City
Salt Lake's medical office market runs tight. Intermountain Healthcare's footprint drives most institutional-grade deals. The aging Wasatch Front population creates solid fundamentals, but don't expect the cap rate compression you're seeing in Phoenix or Denver. Health system consolidation means fewer independent practices bidding for space. That's good for credit quality, bad for rental upside. Most buyers want triple-net leases with health system guarantees.
Market Context
Cap Rate Range
5.8% to 7.2%
Current Vacancy
8.5%
Rent Trend
Up 3.2% year-over-year
Absorption
142,000 SF absorbed in last 12 months
Price Per Unit Trend
$280-$420 per SF depending on health system proximity
Transaction Volume
$185M in trailing twelve months, down 18% from 2025
Submarket Analysis
University/Research Park
5.8%-6.5% capVacancy
6.2%
Avg Rent (1BR)
$32-$38 PSF NNN
Strong demand from University of Utah affiliates
OM Tip
Include distance to main hospital campus and any exclusive referral agreements
Murray/Cottonwood
6.2%-6.8% capVacancy
7.5%
Avg Rent (1BR)
$28-$34 PSF NNN
Intermountain Medical Center anchor drives activity
OM Tip
Highlight Intermountain Healthcare proximity and patient flow patterns
Downtown/Capitol Hill
6.5%-7.2% capVacancy
11.2%
Avg Rent (1BR)
$25-$31 PSF NNN
Mixed use development creating new opportunities
OM Tip
Address parking ratios and public transit access for patients
West Valley
6.8%-7.5% capVacancy
9.8%
Avg Rent (1BR)
$22-$28 PSF NNN
Population growth outpacing medical office supply
OM Tip
Emphasize demographics and underserved market positioning
South Jordan/Daybreak
6.0%-6.7% capVacancy
5.5%
Avg Rent (1BR)
$30-$36 PSF NNN
New construction pipeline serving growing suburbs
OM Tip
Include household income data and patient travel patterns from new developments
Performance by Vintage
0
P
1
r
2
e
3
-
4
1
5
9
6
9
7
0
8
9
b
10
u
11
i
12
l
13
d
14
i
15
n
16
g
17
s
18
19
t
20
r
21
a
22
d
23
e
24
25
a
26
t
27
28
7
29
.
30
0
31
%
32
+
33
34
c
35
a
36
p
37
s
38
39
u
40
n
41
l
42
e
43
s
44
s
45
46
t
47
h
48
e
49
y
50
'
51
v
52
e
53
54
h
55
a
56
d
57
58
m
59
a
60
j
61
o
62
r
63
64
T
65
I
66
67
u
68
p
69
g
70
r
71
a
72
d
73
e
74
s
75
.
76
77
B
78
u
79
y
80
e
81
r
82
s
83
84
w
85
o
86
r
87
r
88
y
89
90
a
91
b
92
o
93
u
94
t
95
96
A
97
D
98
A
99
100
c
101
o
102
m
103
p
104
l
105
i
106
a
107
n
108
c
109
e
110
111
a
112
n
113
d
114
115
m
116
e
117
d
118
i
119
c
120
a
121
l
122
123
g
124
a
125
s
126
127
i
128
n
129
f
130
r
131
a
132
s
133
t
134
r
135
u
136
c
137
t
138
u
139
r
140
e
141
.
142
143
1
144
9
145
9
146
0
147
s
148
-
149
2
150
0
151
0
152
0
153
s
154
155
p
156
r
157
o
158
p
159
e
160
r
161
t
162
i
163
e
164
s
165
166
p
167
e
168
r
169
f
170
o
171
r
172
m
173
174
b
175
e
176
s
177
t
178
179
-
180
181
m
182
o
183
d
184
e
185
r
186
n
187
188
e
189
n
190
o
191
u
192
g
193
h
194
195
s
196
y
197
s
198
t
199
e
200
m
201
s
202
,
203
204
l
205
o
206
w
207
e
208
r
209
210
b
211
a
212
s
213
i
214
s
215
216
f
217
o
218
r
219
220
s
221
e
222
l
223
l
224
e
225
r
226
s
227
.
228
229
2
230
0
231
1
232
0
233
s
234
235
c
236
o
237
n
238
s
239
t
240
r
241
u
242
c
243
t
244
i
245
o
246
n
247
248
c
249
o
250
m
251
m
252
a
253
n
254
d
255
s
256
257
p
258
r
259
e
260
m
261
i
262
u
263
m
264
s
265
266
b
267
u
268
t
269
270
w
271
a
272
t
273
c
274
h
275
276
f
277
o
278
r
279
280
o
281
v
282
e
283
r
284
-
285
i
286
m
287
p
288
r
289
o
290
v
291
e
292
m
293
e
294
n
295
t
296
297
t
298
h
299
a
300
t
301
302
t
303
e
304
n
305
a
306
n
307
t
308
s
309
310
w
311
o
312
n
313
'
314
t
315
316
p
317
a
318
y
319
320
f
321
o
322
r
323
.
324
325
P
326
o
327
s
328
t
329
-
330
2
331
0
332
2
333
0
334
335
b
336
u
337
i
338
l
339
d
340
s
341
342
p
343
r
344
i
345
c
346
e
347
348
a
349
t
350
351
r
352
e
353
p
354
l
355
a
356
c
357
e
358
m
359
e
360
n
361
t
362
363
c
364
o
365
s
366
t
367
,
368
369
t
370
o
371
u
372
g
373
h
374
375
t
376
o
377
378
m
379
a
380
k
381
e
382
383
r
384
e
385
t
386
u
387
r
388
n
389
s
390
391
w
392
o
393
r
394
k
395
.
What Your OM Needs to Address
Health System Relationships
Document any exclusive contracts or preferred provider arrangements
Data to Include
Referral volume data, contract terms, renewal probability scores from health system partners
Specialized Infrastructure
Medical gas, imaging shielding, and power requirements limit re-tenanting options
Data to Include
Recent infrastructure investments, capacity for CT/MRI equipment, backup power specifications
Parking and Access
Patient volume creates different traffic patterns than office users
Data to Include
Parking ratios, ADA spaces, drop-off areas, public transit proximity
Tenant Mix Strategy
Complementary practices vs single-specialty buildings perform differently
Data to Include
Current tenant specialties, cross-referral patterns, vacancy backfill timeline by specialty
Regulatory Environment
Utah's certificate of need laws and zoning restrictions
Data to Include
Current zoning allowances, surgery center restrictions, telemedicine impact analysis
TI and Leasing Costs
Medical buildouts cost $75-$150 PSF vs $35-$60 for general office
Data to Include
Historical TI costs by tenant type, lease-up timelines, broker commission structures
Investment Outlook
Short Term
Cap rates holding steady through 2026. New supply in South Jordan and West Valley could pressure older buildings. Intermountain's expansion plans will drive institutional demand.
Medium Term
Population growth of 2.1% annually supports fundamentals. Health system consolidation continues - fewer tenants but better credit. ASC development faces regulatory hurdles but commands premium pricing.
Long Term
Aging demographics create tailwinds. Telemedicine adoption may reduce space needs for some specialties. Climate migration to Utah supports long-term demand growth.
Buyer Profile
REITs dominate $15M+ deals. High-net-worth individuals and 1031 buyers active in $3M-$10M range. Health systems selectively acquiring strategic locations.
Marketing a medical office property in Salt Lake City?
DealDraft generates professional offering memorandums with market-specific data and property-type expertise built in.
Create Your OM