Trying to read the tea leaves on office and medical leasing in Salt Lake County right now? You are not alone. Between hybrid work, fast population growth, and expanding health systems, the market is moving in different directions depending on building type and location. In this outlook, you will see what is driving demand, how submarkets are likely to perform, and practical steps you can take over the next 1 to 3 years.
Let’s dive in.
Salt Lake County drivers to watch
Tech and professional services
Salt Lake County continues to benefit from growth in software, fintech, and professional services. This supports demand for both core and suburban offices where teams can collaborate, meet clients, and recruit talent. Tenants are favoring buildings with transit access, amenities, and flexible floorplates that support hybrid work. Older properties that do not adjust to this reality risk longer lease-up timelines.
Health systems and outpatient care
Large health systems, including major hospital campuses within the county, keep medical office demand comparatively steady. Care delivery continues shifting from inpatient to outpatient settings. That fuels need for exam-heavy clinics, imaging, ambulatory surgery centers, and specialty practices. Proximity to hospitals and diagnostic hubs remains a key value driver for medical suites.
Demographics and location shifts
Population growth and an aging population increase utilization of primary care and specialty services. That supports well-located medical properties near residential neighborhoods and along commuter corridors. For general office users, access to transit, amenities, and a broad labor pool is still decisive. Buildings that align with these patterns attract more tours and stronger terms.
Office vs medical: performance gap
General office realities
Hybrid work is a persistent constraint on traditional office demand. Expect elevated vacancy in older Class B and C suburban buildings and selective strength in well-amenitized Class A product. Sublease availability remains an influence in some submarkets and can weigh on direct asking rents. Owners that invest in air quality, collaboration areas, and flexible configurations are better positioned to win tenants.
Why medical office is steadier
Medical office tends to track more stable occupancy because patient care requires physical space. Practices also invest heavily in buildouts and equipment, which supports longer lease terms. Landlords who can meet higher infrastructure needs and provide parking and accessibility see lower turnover. Shell-ready suites near hospital campuses can command rent premiums versus non-medical space.
Submarket outlook highlights
Downtown Salt Lake City / CBD
You can expect continued bifurcation. Well-located, amenity-rich towers near transit should compete well for legal, finance, government, and professional services. Historic buildings without upgrades may need concessions and creative programming to attract hybrid teams. Specialty clinics and outpatient practices may cluster near downtown hospitals and academic medical centers where referral networks are strong.
University and Foothill
This area benefits from proximity to University of Utah Health and research activity. Medical office space with higher MEP capacity can see steady interest from clinics and specialty groups. Biotech and research spillover may support niche office uses and conversions. Early coordination on mechanical capacity, floor loading, and ventilation is essential if you target medical tenants here.
South County corridor (Draper, Sandy, Lehi)
Tech and corporate users continue to shape demand for suburban campuses and flexible office layouts. Newer product with parking, fitness, and food access tends to outperform. For medical, satellite clinics that serve growing residential areas can do well, especially near hospital campuses and major arterials. Site competition with industrial uses may influence new project feasibility.
Murray and Midvalley
Proximity to Intermountain Medical Center and related facilities supports medical leasing. Redevelopment corridors can create adaptive reuse opportunities for older office stock. Mixed tenant rosters that combine medical anchors with professional services can stabilize income. If you own older buildings here, evaluate medical conversion feasibility early, including plumbing and HVAC upgrades.
West Valley and suburban nodes
These areas often have older buildings that need capital improvements. Smaller office tenants and local medical practices can be a fit if access and parking meet expectations. Adaptive reuse is a realistic strategy for functionally obsolete properties. Targeted upgrades to visibility, signage, and accessibility can materially improve leasing velocity.
Lease terms and concessions
General office expectations
Tenants are prioritizing flexibility. Shorter base terms, with expansion and renewal options, are common. Concessions such as free rent periods and tenant improvement allowances remain part of the playbook, especially for older product. Sublease terms can be shorter and discounted, which affects direct deal economics.
Medical office specifics
Medical users often accept longer terms because of higher buildout costs and stable operations. TI requirements are higher for exam rooms, imaging, and procedure suites, and you should plan for robust HVAC, plumbing, and power. Parking ratios, accessible entries, and clear patient flow are core leasing considerations. Lease structures may be modified gross or triple net and often pass through specialized maintenance costs.
Buildouts, MEP, and parking
Plan for higher TI in medical
Medical suites require enhanced mechanical, electrical, and plumbing capacity. Think additional plumbing for sinks, higher ventilation and filtration, and power for imaging. Some procedures may require shielding and structural adjustments. Budget for longer permitting windows and inspections tied to specialized equipment.
Accessibility and patient flow
Ground-floor or direct-entry suites help patient access and wayfinding. Strong signage, ADA compliance, and practical waiting areas all matter. For multi-tenant buildings, coordinate elevator capacity and patient privacy in shared corridors. Re-striping and traffic plans can be low-cost wins that improve experience.
Conversion and new projects
Office to medical conversion
Not every building is a candidate, but many are. Feasible conversions typically have adequate floor-to-ceiling heights, capacity for added plumbing, and efficient vertical circulation. Buildings that lack mechanical capacity or require major structural changes may face higher costs and longer timelines. Underwrite with realistic TI budgets and confirm zoning and parking early.
Build to suit and pipeline
Speculative office projects have slowed in many markets, while medical build-to-suit remains viable where health systems or large groups anchor demand. Competition from industrial and logistics users can influence land pricing. Early engagement with local planning departments can help you gauge permit timing and requirements. Align delivery schedules with equipment lead times and provider staffing plans.
12 to 36 month scenarios
Base case
- General office demand stays bifurcated, with Class A and well-amenitized space outperforming older suburban stock.
- Sublease inventory remains a near-term headwind in select nodes.
- Medical office holds relatively stable with steady leasing near hospital campuses and high-growth residential areas.
Upside case
- Employers refine hybrid models and increase in-office collaboration needs, supporting incremental absorption of quality space.
- Health systems expand outpatient services and diagnostics, lifting demand for shell-ready medical suites.
- Targeted building upgrades and repositioning unlock leasing velocity in mid-tier assets.
Risk factors
- Prolonged uncertainty in corporate space planning suppresses larger office deals.
- Rising construction and financing costs slow conversions and medical buildouts.
- Permit bottlenecks extend delivery timelines for specialized improvements.
Practical steps you can take
For landlords and owner-users
- Audit building readiness for hybrid work or medical use. Prioritize HVAC upgrades, flexible layouts, and parking access.
- Structure a lease mix. Anchor with longer medical terms and layer in flexible options for professional services.
- Offer targeted concessions tied to move-in dates and workplace programming. Time-limited incentives can catalyze decisions.
- Quantify conversion feasibility and returns before committing capital. Include TI, mechanical upgrades, and expected lease term.
For medical and office tenants
- Start planning early. Budget conservatively for TI, permitting, and equipment lead times.
- Negotiate rights that fit your growth path. Consider expansion options, renewal flexibility, and sublease rights.
- Choose locations that support your team or patients. Weight transit, parking, and proximity to referral networks.
- Clarify operating responsibilities. Align lease language on utilities, maintenance, and specialized systems.
For developers and investors
- Focus on sites near hospital campuses and transit for durable demand.
- Underwrite with realistic TI and contingency assumptions for medical programs.
- Engage planning staff early to validate parking ratios, use approvals, and permit timing.
- Consider adaptive reuse where floorplates, mechanicals, and access align with medical needs.
How Dan Rip can help
If you are weighing a move, a lease renewal, or a conversion, you deserve senior-level guidance that blends local knowledge with practical execution. From TI budgeting and lease structuring to entitlement strategy and targeted marketing, you can leverage a single point of contact who coordinates the details and protects your interests. If you want clear next steps tailored to your building or practice, connect with Dan Rip for an expert, no-pressure conversation.
FAQs
Is the Salt Lake County office market recovering?
- Conditions are mixed. High-quality, transit-connected buildings and suburban campuses with amenities are leasing, while older Class B and C properties face longer timelines and may rely on concessions.
How does medical office compare to general office in the county?
- Medical office is typically steadier. Patient care requires physical space, and practices invest in costly buildouts, which supports longer leases and more stable occupancy.
Where is demand strongest for medical suites in Salt Lake County?
- Locations near major hospital campuses and high-growth residential corridors tend to perform well, especially where parking and ground-floor access are available.
Should I convert an office building to medical or residential use?
- It depends on mechanical capacity, plumbing potential, floorplate efficiency, parking, and zoning. Run a side-by-side feasibility and stabilized income comparison before committing.
How long do medical office buildouts and permits take?
- Timelines are often longer than general office because of inspections and specialized equipment. Start design and permitting early and sequence equipment orders with expected approvals.
What lease terms are typical in the next 1 to 3 years?
- General office tenants often prefer 3 to 7 year base terms with options, while medical tenants commonly sign longer terms due to higher TI costs and operational stability.
