SOLID DEMOGRAPHICS TO SUPPORT
SALT LAKE CITY RETAIL FUNDAMENTALS

SALT LAKE CITY, Utah, March 11, 2010 – The most significant softening of fundamentals has already occurred in Salt Lake City, and operations in pockets of the metro will begin to stabilize later this year, with close-in retail corridors expected to stabilize ahead of the market, according to the 2010 National Retail Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Specifically, established retail districts east of Interstate 15 in the South Central submarket of the Salt Lake Valley will outperform the metro in 2010, as elevated household incomes and a higher population density will support steadier operations.

“Single-tenant deal flow increased in 2009 and should remain steady this year as investors focus on wealth preservation,” says Richard A. Bird, regional manager of Marcus & Millichap’s Salt Lake City office.

Following are some of the most significant aspects of the Salt Lake City Retail Research Report:

• Approximately 11,000 jobs are forecast to be created this year, a 1.8 percent gain. In 2009, employers cut 26,600 workers.
• After builders delivered 926,000 square feet of retail space last year, 180,000 square feet will come online in 2010.
• Vacancy is expected to push up 40 basis points to 11.8 percent this year. In 2009, vacancy increased 160 basis points as job cuts deepened and new space came online.
• Asking rents are forecast to dip 1.5 percent to $15.53 per square foot in 2010, while effective rents will fall 3.9 percent to $12.69 per square foot.

Also included in the report is the firm’s annual National Retail Index (NRI), a snapshot analysis that ranks 44 retail markets based on a series of 12-month forward-looking supply and demand indicators. Salt Lake City moves up six places this year to No. 25. Washington, D.C., claimed the top spot in this year’s National Retail Index (NRI) for the second year in a row due to a low vacancy rate and healthy job growth. Projected job gains boosted San Diego one place to No. 2 and a lack of significant construction in recent years moved San Francisco up one notch to No. 3. Forecasted job growth elevated New York City four places to No. 4 and continued layoffs dropped New Jersey three places to No. 5, despite low vacancy and the state’s relatively steady economy.

For a copy of Marcus & Millichap’s National Retail Report and the complete NRI rankings, visit www.MarcusMillichap.com.

With more than 1,200 investment professionals in offices nationwide, Marcus & Millichap Real Estate Investment Services is the largest firm specializing in commercial real estate investment services in the nation. Marcus & Millichap closed 3,441 transactions in 2009, the highest of any commercial real estate brokerage firm. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology and relationships with the largest pool of qualified investors nationally.

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