St. John Properties Inc. continues to construct out Valley Grove, the industrial actual property agency’s $1 billion mixed-use enterprise neighborhood in Nice Grove, Utah, with the current groundbreaking on the Valley Grove III workplace constructing. The challenge will add roughly 140,000 sq. ft of Class An area to the Better Salt Lake Metropolis space.
Throughout the late-September groundbreaking ceremony for Valley Grove III, St. John revealed that the development of the property will transpire on an accelerated timeline. “Despite the fact that we’ve been constructing consistently in Utah since 2017, we’re at over 90 p.c occupancy with corporations lining up for area,” Daniel Thomas, regional companion with St. John Properties Inc. in Utah, advised Business Property Government.
Baltimore-based St. John made its entrée into the Utah industrial actual property market in 2014 and commenced improvement of the 130-acre Valley Grove neighborhood three years later. Sited in Utah County’s tech hub roughly 35 miles south of Salt Lake Metropolis’s central enterprise district, Valley Grove has change into a distinguished vacation spot for tenants in search of premier suburban workplace area in a centralized location.
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Valley Grove III, the twenty second constructing at Valley Grove, will take form alongside Interstate 15 at 1333 S. Valley Grove Method. The five-story property is designed to realize LEED certification and can characteristic such coveted design parts as floor-to-ceiling glass. The challenge is a welcome endeavor in Nice Grove; the Nice Grove Metropolis Planning Fee and the Nice Grove Metropolis Council accredited the positioning plan with unanimous votes in November 2021 and March 2022, respectively. Valley Grove III can be prepared for occupancy within the third quarter of 2023.
Workplace sector is alive and properly right here
Whereas the nationwide workplace market has but to regain its pre-pandemic well being, there are pockets sprinkled throughout the nation which might be experiencing notable demand for Class A office lodging, and Utah County is one such pocket. The full emptiness fee for Class A property in North Utah County, house to Valley Grove, was just below 8 p.c within the third quarter of 2022, in response to a report by JLL. The submarket is benefiting from the substantial addition of latest jobs in Utah during the last yr and some different statewide elements.
“Utah is experiencing probably the most speedy development within the nation, that features enterprise and inhabitants development,” Thomas famous. “The state has been on that upward trajectory for a while, and we forecast that it’ll proceed properly into the long run. Low enterprise tax charges, low regulation and an informed multi-lingual workforce are amongst contributing elements. The environmental great thing about the area can be an enormous contributor to high quality of life.”
Utah County’s workplace market can be experiencing a lift from the nation’s rising return-to-office pattern, in response to a second quarter 2022 report by Colliers. And with many employers requiring staff to work a number of days within the workplace, some Utah County tenants are upgrading their areas in an effort to supply a extra fascinating surroundings. “Additionally, over the previous few quarters, there was a pattern of bigger tenants leaving bigger markets—equivalent to Los Angeles—and coming to Utah to take pleasure in decrease rental prices and the excellent financial system, additional contributing to the reducing emptiness within the Utah County market.
With Valley Grove III underway, St. John is waiting for the way it could proceed to answer the rising demand for premier workplace area in North Utah County and past. “We nonetheless have important acreage to develop in Valley Grove and we’re in lively dialogue with future tenants. Keep tuned,” Thomas mentioned. “We’re in Utah for the long run and are happy to be so welcomed by neighborhood leaders.” As soon as Valley Grove III reaches completion, St. John’s Utah portfolio will exceed 1 million sq. ft.
