Salt Lake City’s position as a logistics hub is rooted in its robust, multimodal infrastructure network. Historically known as “The Crossroads of the West,” the city sits at the convergence of three major interstate highways—I-15, I-80, and I-84—providing direct connectivity across the western United States.¹ Utah’s advanced road network provides access to approximately 80 million consumers within an 18-hour drive, and roughly 25% of the continental U.S. can be reached within a single day by truck. On the rail side, Salt Lake City benefits from dual Class I railroad service through both Union Pacific and BNSF Railway.² In July 2025, BNSF opened a new 43-acre intermodal facility in partnership with Patriot Rail and the Utah Inland Port Authority (UIPA), further strengthening supply chain connections between the West Coast and the Intermountain West.³

Recent industrial momentum continues to reinforce IOS demand. Despite moderating leasing activity, the Salt Lake City industrial market recorded positive net absorption in 2025, with non-bulk and specialized product types remaining significantly tighter than bulk distribution space. Industrial vacancy across non-bulk asset classes remains near historical lows, reflecting sustained occupier demand for functional, infill-oriented facilities.

As the region grows, competition for well-located IOS sites is increasing. Industrial development pressure, limited flat infill land along the Wasatch Front, and zoning friction across multiple municipalities are expected to intensify demand for functional IOS properties with strong access, circulation, and security characteristics.

Rent performance in the Salt Lake City industrial market continues to diverge by product type. While achieved rents declined year over year due to increased landlord concessions in traditional industrial and bulk distribution assets, general-purpose, flex, and incubator properties continued to post rent growth, reflecting sustained demand for smaller, functional, and operationally flexible space. This trend underscores why well located IOS and yard oriented service sites, which often compete with flex and general purpose product, have remained resilient despite broader market recalibration.

The Salt Lake City, Utah IOS market experienced sustained tenant and buyer demand throughout 2025, driven by limited availability of functional outdoor storage sites and steady industrial activity across the Wasatch Front.

Eli Priest of Newmark notes that “the Salt Lake City IOS market continues to see strong tenant and investor demand, driven by limited availability of functional outdoor storage sites and steady industrial activity across the Wasatch Front. Supported by I-15 and I-80 connectivity, proximity to Salt Lake City International Airport, Union Pacific rail infrastructure, and a rapidly growing population base, the region’s fundamentals continue to support long-term IOS demand.”

Priest adds that “one of the biggest challenges in the Salt Lake City IOS market is constrained supply, particularly for well-located infill yards that can accommodate immediate operational needs. Zoning inconsistency across municipalities, combined with increasing scrutiny of yard-heavy uses, has made it difficult to deliver new IOS product, leaving few functional options for tenants with specific layout, access, and circulation requirements.”

Long-term IOS fundamentals in Salt Lake City and along the Wasatch Front remain strong. Durable demand from construction, utilities, equipment rental, building materials, and fleet-based service operators continues to support the sector, while zoning friction, limited flat infill land, and development economics constrain future supply. As a result, well-located, functional IOS sites with clear zoning, strong access, and efficient operational layouts continue to outperform, even as less competitive assets face longer downtime and pricing pressure.

Please reach out to Eli Priest for more information on the below.

7305 W 2100 S | For Lease

An industrial outdoor storage site is available for lease or build-to-suit at 7305 W 2100 S in Magna, UT, offering 4.76 acres with M-2 heavy manufacturing zoning. The site features secure fencing, lighting, utility access, and immediate connectivity to SR-201, I-80, I-215, and I-15, with a 10-minute drive to Salt Lake City International Airport. Asking rent is $5,500 per acre per month, positioning the property as a well-located infill IOS option.

4582 W Skyhawk Dr | For Lease

An approximately 2.5-acre industrial land site is available for lease at 4582 W Skyhawk Dr in West Jordan, UT, offering immediate access to I-15 and strong connectivity across the Salt Lake Valley. The property is located just 0.8 miles from South Regional Airport and approximately seven minutes from I-215, making it well suited for yard-oriented service and fleet users. The site provides a functional infill option for operators seeking proximity to major transportation corridors and regional population centers.

Big thanks to all participants who helped shape this week’s Market Monday in Salt Lake City. If you’re looking to buy, sell or lease in Salt Lake City, the people below are the ones to call!

Eli Priest
Senior Managing Director
Newmark
[email protected]
801.746.4746

Lucas M. Burbank
Executive Managing Director
Newmark
[email protected]
801.578.5522

Kelsie Akiyama
Senior Associate
Newmark
[email protected]
801.578.5504

Canyon Czapla
Brokerage Services Specialist
Newmark
[email protected]
801.578.5515

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