Mixed-Use Investment in Salt Lake City
Mixed-use in Salt Lake's heating up around transit nodes and the Silicon Slopes corridor. You've got ground-up development penciling better than acquisitions in most cases. The trick is component analysis — your residential might trade at a 4.8% cap while retail's pushing 7.5%. Don't blend the numbers in your OM without showing the breakdown. Buyers want to see how each use performs separately before they'll trust your weighted average.
Market Context
Cap Rate Range
5.2% - 6.8% blended, varies significantly by component mix and location
Current Vacancy
8% retail component, 4% residential component, 12% office component
Rent Trend
Residential up 6% YoY, retail flat to down 2%, office down 8% in suburban locations
Absorption
Positive for residential units, negative for office space over 50K SF
Price Per Unit Trend
Ground floor retail at $28-45 PSF, residential $1,850-2,400 per unit
Transaction Volume
Down 35% from 2024 peak, but active interest in transit-adjacent properties
Submarket Analysis
Downtown/Gateway
5.4% - 6.2% capVacancy
6% blended
Avg Rent (1BR)
$1,950
Strong for residential, retail struggling with Arena events driving traffic
OM Tip
Break out event-driven revenue spikes, show baseline performance
Sugar House
5.8% - 6.6% capVacancy
9% blended
Avg Rent (1BR)
$2,100
New supply pressuring rents, but good walkability scores
OM Tip
Address new competition, highlight S-Line proximity
South Jordan/Daybreak
6.0% - 6.8% capVacancy
7% blended
Avg Rent (1BR)
$2,250
Family-oriented mixed-use performing well, retail supporting residential
OM Tip
Show retail synergy with residential base, parking ratios matter
Murray/Millcreek
6.2% - 7.0% capVacancy
11% blended
Avg Rent (1BR)
$1,800
Value play but limited upside, transit access driving interest
OM Tip
Position as value-add opportunity, show rent growth potential
Performance by Vintage
0
P
1
r
2
e
3
-
4
2
5
0
6
0
7
0
8
9
p
10
r
11
o
12
p
13
e
14
r
15
t
16
i
17
e
18
s
19
20
n
21
e
22
e
23
d
24
25
m
26
a
27
j
28
o
29
r
30
31
c
32
a
33
p
34
i
35
t
36
a
37
l
38
39
f
40
o
41
r
42
43
c
44
o
45
m
46
p
47
e
48
t
49
i
50
t
51
i
52
v
53
e
54
n
55
e
56
s
57
s
58
,
59
60
t
61
r
62
a
63
d
64
i
65
n
66
g
67
68
a
69
t
70
71
7
72
%
73
+
74
75
c
76
a
77
p
78
s
79
.
80
81
2
82
0
83
0
84
0
85
-
86
2
87
0
88
1
89
0
90
91
v
92
i
93
n
94
t
95
a
96
g
97
e
98
99
s
100
h
101
o
102
w
103
s
104
105
s
106
o
107
l
108
i
109
d
110
111
b
112
o
113
n
114
e
115
s
116
117
b
118
u
119
t
120
121
d
122
a
123
t
124
e
125
d
126
127
r
128
e
129
t
130
a
131
i
132
l
133
134
c
135
o
136
n
137
c
138
e
139
p
140
t
141
s
142
.
143
144
2
145
0
146
1
147
0
148
-
149
2
150
0
151
2
152
0
153
154
d
155
e
156
v
157
e
158
l
159
o
160
p
161
m
162
e
163
n
164
t
165
s
166
167
h
168
i
169
t
170
t
171
i
172
n
173
g
174
175
t
176
h
177
e
178
i
179
r
180
181
s
182
t
183
r
184
i
185
d
186
e
187
188
w
189
i
190
t
191
h
192
193
p
194
r
195
o
196
v
197
e
198
n
199
200
t
201
e
202
n
203
a
204
n
205
t
206
207
m
208
i
209
x
210
211
a
212
n
213
d
214
215
e
216
s
217
t
218
a
219
b
220
l
221
i
222
s
223
h
224
e
225
d
226
227
r
228
e
229
s
230
i
231
d
232
e
233
n
234
t
235
i
236
a
237
l
238
239
b
240
a
241
s
242
e
243
.
244
245
P
246
o
247
s
248
t
249
-
250
2
251
0
252
2
253
0
254
255
p
256
r
257
o
258
j
259
e
260
c
261
t
262
s
263
264
s
265
t
266
i
267
l
268
l
269
270
i
271
n
272
273
l
274
e
275
a
276
s
277
e
278
-
279
u
280
p
281
282
o
283
r
284
285
c
286
o
287
n
288
s
289
t
290
r
291
u
292
c
293
t
294
i
295
o
296
n
297
,
298
299
l
300
i
301
m
302
i
303
t
304
e
305
d
306
307
t
308
r
309
a
310
n
311
s
312
a
313
c
314
t
315
i
316
o
317
n
318
319
d
320
a
321
t
322
a
323
324
b
325
u
326
t
327
328
s
329
t
330
r
331
o
332
n
333
g
334
335
p
336
r
337
e
338
-
339
l
340
e
341
a
342
s
343
i
344
n
345
g
346
347
w
348
h
349
e
350
r
351
e
352
353
t
354
r
355
a
356
n
357
s
358
i
359
t
360
-
361
c
362
o
363
n
364
n
365
e
366
c
367
t
368
e
369
d
370
.
What Your OM Needs to Address
Component-Level Financial Analysis
Show separate P&Ls for each use type, not just blended numbers
Data to Include
Individual cap rates, NOI by component, separate expense ratios, cross-subsidization if any
Shared Infrastructure Costs
How parking, utilities, and common areas get allocated between uses
Data to Include
Cost allocation methodology, shared services agreements, triple net vs gross lease structures
Transit and Walkability Scoring
Walk Score, TRAX proximity, bike infrastructure increasingly important to buyers
Data to Include
Walk Score, transit ridership data, planned infrastructure improvements
Zoning and Development Rights
Unused FAR or density bonuses can add significant value
Data to Include
Current vs maximum allowable density, parking requirements, any TIF or incentive participation
Tenant Mix Synergies
Show how retail supports residential and vice versa
Data to Include
Customer overlap studies, cross-shopping data, resident survey results on retail usage
Management Complexity Premium
Multiple use types require specialized expertise, affects buyer pool
Data to Include
Current management structure, separate vs integrated leasing, different lease terms by use
Investment Outlook
Short Term
Market's selective. Transit-adjacent properties with proven tenant mix will trade. Buyers want stabilized cash flow, not lease-up risk. Expect 90+ day marketing periods and detailed due diligence on management systems.
Medium Term
Silicon Slopes expansion should support mixed-use around employment centers. TRAX extensions and BRT improvements will create value along corridors. Office component remains weak but residential demand stays strong through 2027.
Long Term
Water constraints may limit suburban expansion, benefiting urban mixed-use with existing infrastructure. Climate concerns driving walkable development preferences. Generational shift toward car-optional living supports the asset class fundamentally.
Buyer Profile
REITs and opportunity funds dominating above $25M. Local family offices active in the $5-15M range but want management in place. Out-of-state buyers need local partners who understand the market's quirks around liquor licensing and Sunday retail restrictions.
Marketing a mixed-use property in Salt Lake City?
DealDraft generates professional offering memorandums with market-specific data and property-type expertise built in.
Create Your OM