APPENDIX A

EXISTING ECONOMIC CONDITIONS ANALYSIS

INTRODUCTION

This memorandum provides a baseline assessment of demographic, economic, and real estate market conditions of West Jordan City, Midvale City, Salt Lake County, and the half-mile radius around the Bingham Junction, West Jordan City Center and Historic Gardner TRAX stations. It also examines the moderate incoming housing needs of West Jordan and Midvale.

SOCIOECONOMIC EXISTING CONDITIONS

POPULATION & GROWTH PROJECTIONS

Table 5 illustrates population and population growth projections for Salt Lake County, West Jordan, Midvale, and all three station areas. According to data retrieved from ESRI, West Jordan and Midvale population has increased and will continue to increase. Midvale has experienced twice the annual growth rate (3 .14%) when compared to West Jordan (1.49%) and the county (1.58%) and will also continue to grow faster in the next five years.

For the station areas, large growths have occurred around the Bingham Junction (432.30%) and Historic Gardner (207.58%) stations. These station areas will continue to grow, although at a small rate, in the next five years. For the West Jordan City Center station, the least amount of growth occurred between 2010-2022 and will decrease in population slightly in the next five years.

HOUSEHOLD & GROWTH PROJECTIONS

Between 2010 and 2022, Midvale had the largest increase of households with a 3.47% annual growth rate. Like population growth, Midvale also had a higher annual growth rate from 2010 to 2022 when compared to West Jordan (1.93%) and the county (1.89%) .

Household growth for both Midvale (2 .35%) and West Jordan (0 .85%) are forecasted to grow at a positive rate annually over the next five years. Family households account for 81.94% of all households in West Jordan with an average family size of 3.31 persons. For Midvale, family households account for 58.38% of all households with an average family size of 2.48 persons.

When examining the station areas, Bingham Junction experienced the largest spike in number of households (29.92%) and has the highest annual growth rate for the next five years (3.60%). While West Jordan City Center appears to experience negative growth in the next five years (-0.05%), it presents the biggest opportunity to develop for future growth.

AGE

Midvale's median age is 33, which is the same median age as the county (33) and slightly higher than West Jordan (30.5). The largest age groups in Midvale are 0 to 9-year-old (18.71%), 30 to 39-year-old (17.92%), and 20 to 29-year-old (16.83%). Based on this analysis, the composition of age demographics in both Midvale City and West Jordan City are most likely residents with multiple young children.

In the half-mile radius of Bingham Junction TRAX station, nearly one-quarter of residents are 20 to 29-year-old (24.07%), while residents aged 30 to 39-years-old make up 19.74% of the population. The area has a higher percentage of children ages 0 to 9 (12.52%) than 10-19 (9.90%). This follows a similar pattern in the half-mile radius of both City Center and Historic Gardner.

Table 4: Population Growth Projections. Source: ESRI.

Table 5: Household Historic and Future Growth. Source: ESRI.

Table 6: Median Age and 2022 Age Distribution (% of Population). Source: ESRI.

INCOME

West Jordan's median household income is $89,967, which is higher than Salt Lake County ($85,944) and significantly higher than Midvale City ($67,373). At all levels, the median household income will continue to increase, growing by 3.60% annually for the county, 3.16% for West Jordan, and 3.25% for Midvale. By 2027, West Jordan ($105,105) will still have the highest income compared to the county ($102,572) and Midvale ($79,044). When examining the median household incomes around the station areas, West Jordan City Center has the highest income at $81,125 and Bingham Junction has the lowest at $74,908. All three station areas will continue to see increases in median household income in the next five years.

Table 7: Median Household Income and 2022 Household Income Distribution (% of Households). Source: ESRI.

Table 8: 2022 Race and Ethnicity. Source: ESRI.

Table 9: Employment Trends. Source: ESRI.

RACE & ETHNICITY

The ethnicity of West Jordan and Midvale are predominantly white at 70.68% and 65.88% respectively. This compares to Salt Lake County, which is 71.22% white. When compared to the county (19.51%), both West Jordan City (22.25%) and Midvale City (23.72%) have a higher percentage of Hispanic population.

"Other" races/ethnicity make up for 10.01% (West Jordan) and 11.36% (Midvale), which are both higher when compared to the county (9.35%). In West Jordan, 11.34% reported at "two or more races," compared to 12.09% in Midvale City and 10.02% at the county level. Smaller percentages of the population reported as Pacific Islander, American Indian/Alaska Native, Asian, and Black/African American. The half-mile radius around Bingham Junction has the highest Diversity Index (73) compared to both station areas, cities, and the county.

EMPLOYMENT

Unlike Salt Lake County, daytime population for both West Jordan and Midvale decreases during work hours. The decrease in population indicates the area is not a net attractor for employees and residents commute outside of the area for work. West Jordan City Center is the only area that has more residents (56%) during the day than workers (44%) . The unemployment rate for Salt Lake County, West Jordan, and Midvale are relatively low, with West Jordan at the lowest rate (1.8%).

Bingham Junction and West Jordan City Center station areas follow the same pattern as the county with an increase in population during the day. The Historic Gardner station, however, has a decrease in population during the day. At all three station areas, the number of employees is more than 50% of their daytime population. The unemployment rate for all three station areas is relatively low, with West Jordan City Center at the lowest (1.1%).

BUSINESS

Retail Trade Business is the largest sector of employment at both the city (West Jordan = 14.6%, Midvale = 16.0%) and county level (13.4%). When comparing West Jordan and Midvale, West Jordan's second largest sector of employment is in Health Care & Social Assistance (11 .4%) while Midvale's is Other Services (11.8%). The third and fourth highest percentage of workers within West Jordan are in Construction Businesses (10.6%) and Other Services (9.6%). For Midvale, it's in Professional, Scientific & Tech Services (10.2%) and Accommodation & Food Services (9.1%). West Jordan has a significantly lower percentage of workers in the Professional, Scientific & Tech Services but higher in Construction Businesses when compared to county and Midvale. Midvale has a lower percentage of workers in Health Care & Social Assistance compared to the county and West Jordan.

When examining the station areas, Bingham Junction (17.8%) and Historic Gardner (20.8%) follow the same patterns as the cities and county with the largest percentage of employers in Retail Trade Businesses. While the West Jordan City Center station has the most employers in Other Services (14.0%), its second largest is in Retail Trade Businesses (11.7%). Bingham Junction has a large number of Professional, Scientific & Tech Services employees compared to the other stations. Construction businesses also have a decent presence in all three station areas.

HOUSING STOCK

SINGLE VS. MULTI-FAMILY HOUSING

To determine what type of housing should be in the station areas, it is important to understand the housing conditions and needs of West Jordan and Midvale.
Based on the 2022 ESRI data, West Jordan has a total of 37,805 housing units and Midvale has 16,382 housing units. Table 12 breaks down these units into three categories: single-family units, multi-family units and mobile homes.

Single family homes are defined by the U.S. census bureau as "fully detached, semi-detached, semi- attached, side-by-side, row houses, and townhouses." For the purpose of this analysis, townhomes are considered a type of single-family home. At 81.0%, or approximately 30,622 units, nearly all of West Jordan housing stock is comprised of single-family homes.

This is significantly higher than the county, in which single-family homes comprise about 70% of all housing. Midvale does not follow the same pattern though, where only 47.6%, or approximately 7,798 units, are classified as single-family homes.

Multi-family homes are defined by the U .S . census bureau as "residential buildings containing units built one on top of another and those built side-by-side which do not have a ground-to-roof wall and/or have common facilities (i. e., attic, basement, heating plant, plumbing, etc.)." At 16.7%, or 6,313 units, West Jordan has significantly fewer multifamily units as proportion of total housing than the county (27.7%). Midvale's largest housing type is multi-family at 51.8%, or 8,486 units.

TOTAL OCCUPIED UNITS AND HOUSING TENURE

Out of West Jordan's 37,805 housing units, 96.5%, or 36,482 units are occupied. 93 .6%, or 15,334 units of Midvale's housing are occupied. Both cities are consistent with the county's occupancy rate of 94.4%. West Jordan and Midvale's high occupancy rates can be interpreted to mean that housing units are being absorbed by the market as they become vacant or are built. Table 13 breaks down the housing tenure between the county, West Jordan, and Midvale.

West Jordan has a higher proportion of owner-occupied units than both the county and Midvale. Based on 2022 ESRI data, 74.4% of West Jordan's housing units are owner occupied, higher than owner occupied units within the county (66.3%), and drastically higher than Midvale (41.9%). Inversely, West Jordan has a lower renter population (25.6%) than both the county (33.8%) and Midvale (58.1%), likely due to the limited number of multi-family units within the city. Midvale has a larger portion of rental occupied than owner occupied homes, although it overall has less than 50% of housing units compared to West Jordan.

HOUSING UNITS BY NUMBER OF BEDROOMS

The number of available bedrooms within an area's housing stock is important to accommodate living situations, from single person to multi-generational households and larger families. At 79.7%, West Jordan has more three-, four- and five plus-bedroom units than both the county (66.7%) and Midvale (47.5%).

West Jordan's high number of three plus bedroom dwelling units is a result of the city's high contention of single-family homes and large family size. While large dwelling units are common in West Jordan, one- and two-bedroom units are limited, with only 19 .8% of housing units having one and two bedrooms. With too few one-and-two-bedroom units available, smaller households may be forced to look elsewhere to find size appropriate housing options. Midvale's housing stock is more evenly balanced, with 49 .5% of the housing stock's are one- and two-bedroom units, 47 .5% are three or more bedrooms, and 3% studio units.

Table 10: Business Profile. Source: ESRI.

Table 11: Housing by Type. Source: ESRI.

Table 12: Ownership Status. Source: ESRI.

Table 13: Number of Bedrooms by Structure. Source: American Community Survey Five-year

MODERATE INCOME HOUSING ANALYSIS

INTRODUCTION

WHAT IS MODERATE INCOME HOUSING

Moderate income households are considered by the State of Utah to be those making less 80% of the area median income (AMI). AMI is determined by the county in which the city is located. Other targeted income groups are defined as those making less than 50% and 30% of AMI. According to U .S . Department of Housing and Urban Development (HUD), the affordable monthly housing payment for either mortgage or rent should be no more than 30% of gross monthly income (GMI) and should include utilities and housing costs such as mortgage, property taxes, and hazard insurance. To calculate affordability in relation to household size, HUD estimates median family income (MFI) annually for each metropolitan area and non-metropolitan county.

It is not clearly stated in the Utah Code whether those of moderate income must be able to purchase a home, so the allowance is applied to both rental rates and mortgages. Affordable housing is considered to be any housing option that accommodates the targeted income groups and meets the payment requirements.

AREA MEDIAN INCOME

The area median income (AMI) is the midpoint of a region's income distribution - half of the households in the region earn more and half earn less. AMI is important because each year HUD calculates the median income for every metropolitan region in the country and this statistic is used to determine whether families are eligible for certain affordable housing programs.

HUD focuses on the entire region, not just the city, because families searching for housing are likely to look beyond the city itself to find a place to live. AMI is typically distinguished between three types of households. Households earning less than 80% of the AMI are considered low-income households by HUD. Very low-income households earn less than 50% of the AMI and extremely low-income households earn less than 30% of the AMI. The AMI for Salt Lake City MSA, is $102,400 per year. While this number is often used to determine eligibility for certain government sponsored housing assistance programs, it can also be used to calculate a household's projected expenditures on rent and/or mortgage payments .

HUD AREA MEDIAN INCOME LIMITS

Table 15 illustrates the approximate distribution of households in Salt Lake City MSA by AMI threshold . Because AMI thresholds established by HUD do not exactly match the distribution of households by income bracket as recorded by the U .S . Census Bureau, the estimated number of households within each income level are matched as closely as possible with their corresponding income bracket . However, because it is not an exact match by census income bracket, the number of households within each AMI threshold should be considered an approximation .

The distribution of households within Table 15 show that approximately 55 .4% of households falls below the 80% AMI threshold . This has implications for housing within Salt Lake City MSA and can be interpreted to mean there is a need for low- and moderate-income housing .

AFFORDABILITY MONTHLY ALLOWANCE FOR RENTAL AND FOR-SALE PRODUCTS

Using HUD's defined AMI for the Salt Lake City MSA, we can calculate an affordable monthly allowance for households making 30% to 120% of the AMI. This monthly allowance can be used to gauge affordable monthly rent and mortgage payment levels for households at different income levels. For example, a family of four living in the Salt Lake City MSA at the median income could afford $2,560 per month for housing (Table 16).

To translate these affordability levels into home values, we assume mortgage rates of 5%, 6%, and 7% with a 30-year term, current property tax rates, insurance costs, a 10% down payment, and a monthly utility expenditure of $275 per month. Table 17 list the range of home prices that are attainable at varying AMI thresholds and mortgage rates. For example, a family of four living in the Salt Lake City MSA at the median income would need to make an average of $102,400/ year to afford a home price of $383,939 with a 5% mortgage.

To calculate affordability levels into price appropriate rental rates, it was assumed that households would pay rental costs no larger than 30% of their monthly income and that rent would be paid monthly. Table 16 illustrates rental price ranges that are attainable to households at the varying AMI thresholds.

Table 14: Distribution of Salt Lake City, UT MSA Households by AMI. Source: ESRI, HUD.

Table 15: Monthly Housing Allowance by Household Size. Source: HUD.

Table 16: Home Affordability by AMI Threshold.

ESTIMATE OF EXISTING HOUSING SUPPLY: WEST JORDAN

In 2020 the West Jordan City completed their Moderate-Income Housing Assessment, a component of the City's General Plan. Assessment used data from the US Census Bureau and US Department of Housing and Urban Development (HUD) to quantify the city's existing and anticipated supply of moderate-income housing. Since 2012, 4,853 dwelling units have been constructed in West Jordan. Of these dwelling units, many are only affordable to household earning more than 100% of the area's median income. Demand for moderate income housing will continue to increase as population and households increase. According to HUD, 22% of households are expending more than 30% of their household income on housing costs. Table 19 displays the approximate housing cost burden ratio based on AMI level.

Within the past 50 years, West Jordan has transformed from its previous rural farming community to a now predominately low to medium density single family suburban community with a lack of multi-family available.

While the zoning for West Jordan does not prohibit the development of low to moderate income housing, the lot size and house size requirements for the zoning districts make is difficult to develop low to moderate income housing. West Jordan are making initiatives to plan more multi-family dwellings, particularly in areas with mass transit and building in density of at least 45 units per acre.

Table 17: Supportable Monthly Rent by AMI Threshold.

Table 18: Housing Cost Burden Ration at HUD's 80%, 50%, and 30% Income Limits based

Source: West Jordan 2020 Moderate Incoming Housing Report.

ANTICIPATED NEED FOR MODERATE INCOME HOUSING: WEST JORDAN

West Jordan predicted that population growth will create a demand for 2,586 additional units by 2025 to fulfill the moderate-income housing need. 187 of the 2,586 units will be designed for extremely low-income (<30% AMI) households, 392 units for very-low income (30-50% AMI) households, and 375 new units for low- income (50%-80% AMI) households. From 2016 to 2018, West Jordan has made progress to fulfill these needs.

West Jordan has provided 75 units for extremely low-income (<30% AMI) households, 475 units for very-low income (30-50% AMI) households, and 150 new units for low-income (50-80% AMI) households. Tables 20 and 21 show this progression between 2016 and 2018 and Table 22 shows the current housing availability for each AMI. There is still a need for those in the low- income households, but there is a surplus for extremely low-income and very-low income households.

Table 19: 2016 Moderate Income Housing Supply. Source: West Jordan 2020 Moderate Incoming Housing Report.

Table 20: 2018 Moderate Income Housing Supply. Source: West Jordan 2020 Moderate Incoming Housing Report.

Table 21: Progress of Supply and Moderate Income Housing Supply Need Remaining. Source: West Jordan 2020 Moderate Incoming Housing Report.

ESTIMATE OF EXISTING HOUSING SUPPLY AND HOUSING: MIDVALE

In 2019 Midvale City completed their Moderate- Income Housing Assessment, a component of the City's Housing Plan. Midvale's housing market today is driven by the short-term nature of its residents, where people move to Midvale as young adults and then will leave when their economic status grows, they start a family, etc. Currently, Midvale households live in their current home for less than five years and the median home value of Midvale is $201,000, which is much lower than the county. Even though there is a lack of high-end housing in Midvale, there are still needs that need to be addressed for the low- and moderate- income residents. Currently, low- and moderate-income residents of Midvale live in homes that are too small, in poor condition, or have cost burdened rental rates. As of 2019, 46% of households are expending more than 30% of their household income on rental housing. For homeowners, 22% fall into this cost-burdened category. 8% of homeowners are severely cost burdened, meaning 50% or more of a household's income is being spent on housing. Figure 52 breaks down the wages and affordable rent/home targets per AMI.

The AMI for Midvale is $73,800. At 80% AMI, this equates to $59,050, with rent that should cost around $1,476/month and home-ownership around $265,000 ($1,193/month for mortgage).

As of 2018, it was evident that Midvale had affordable housing stock available in the 80% AMI, but 50% or lower AMI needs were not being met. Midvale had a deficit of 15 units for households making 80% of the AMI, a deficit of 1,620 units available to those making 50% of the AMI, and a deficit of 1,435 units for those making 30% of the AMI. Table 23 depicts the gap between Midvale households at HUD defined income limits and available dwelling for rent.

Table 22: Residential Distribution in West Jordan. Source: West Jordan 2020 Moderate Incoming Housing Report.

Figure 57: AMI Categories. Source: 2019 Midvale City Housing Plan.

ANTICIPATED NEED FOR MODERATE INCOME HOUSING: MIDVALE

Midvale will experience an increase of approximately 15,330 new residents by 2040, which will require an additional 5,334 new housing units of all types to support this growth. Midvale has limited undeveloped land, so in order for the city to meet this growth needs, land use policies will need to be considered. Table 24 displays the projected growth by structure type for 2024 and compares with the current occupancy. While there has been progression of adding new units, there will still be a need to fulfill. This will be addressed with mixed-use development, which will include residential, office, and retail.

Table 23: Affordable Housing Demand. Source: 2019 Midvale City Housing Plan.

Table 24: Supply Housing Units in Midvale by Structure. Source: 2019 Midvale City Housing Plan.

REAL ESTATE TRENDS & FORECASTS

Understanding the current conditions of the real estate market for both West Jordan and Midvale will help program what will be needed for each station area plan. The following sections analyze the real estate trends for West Jordan and Midvale.

RETAIL - WEST JORDAN CITY

INVENTORY & VACANCY

West Jordan has approximately 307 buildings and 5 .5 million square feet of existing retail inventory. Occupancy within the market is extremely high, with 98.4% of all available retail space currently occupied. The majority of West Jordan's retail space is concentrated along Bangerter Highway, Redwood Road, 7800 S, W 9000 S. The majority of retail development within West Jordan is Neighborhood Center style development (e. g., mid-scale strip malls), General Retail development (e. g., standalone strip centers or pad site retail space), and Community Centers development (e. g., big box retailers and supermarkets). Figure 58 illustrates the distribution of retail throughout West Jordan.

Vacancy rates within the West Jordan market have historically ranged between 2.00% and 6.21%, indicating a strong retail market that can absorb new retail space as it is made available or introduced into the market. Vacancy rates have trended downward over the past year, dropping from 2.7% in 2022 to the current rate of 1.57%. Vacancy rates are projected to continue to remain low over the next five-year period, ranging between 1 .6% and 2 .4% between 2023 and 2027. Figure 59 illustrates historic and predicted future vacancy trends in West Jordan. Given historic and projected vacancy trends, it is predicted that vacancy within the West Jordan Market will continue to remain low, even as more retail products are introduced into the market.

RENTAL RATES AND PRICING

Current market rent per square foot in West Jordan is $22.02. Rental rates within West Jordan have been climbing steadily for the past ten years, rising from $16.16 in 2013 to their current high of $22.02, and are forecasted to continue rising, growing to $24.45 by 2027.

Figure 58: West Jordan Retail Locations. Source: CoStar.

Figure 59: West Jordan Retail Vacancy Trends. Source: CoStar.

Asking rent, or the rent paid after concessions are applied to rental rates, has remained steady with the market rent in West Jordan. Since 2021, there has been a spike and the current asking rent was greater than market rent. This positive within the market can be interpreted to mean that there is sufficient demand within the market to both lease space without offering incentives or lease to competing tenants who are offering rental rates greater than the market rate. Figure 55 illustrates historic and projected market and asking rent in West Jordan.

NEW DELIVERIES & ABSORPTION

West Jordan has experienced a significant amount of new retail development, with 313,000 square feet of new retail space delivered since 2013. Retail deliveries have since slowed, with only 46,500 square feet of new retail delivered in 2020 and 2023. Currently, there are five proposed and under construction retail projects in West Jordan totaling 55,090 square feet, none of which are adjacent to or nearby the UTA stations.

Absorption within the West Jordan market has varied, with approximately 77,000 square feet of retail space leased between 2022 and 2023. Historic trends indicated that as existing or new retail space is introduced, the market is quick to absorb it, with a 50% chance that space will be leased within 6.2 months. Figure 56 illustrates historic and predicted future absorption, deliveries, and vacancy in West Jordan.

Figure 60: West Jordan Historic and Projected Rent. Source: CoStar.

Figure 61: West Jordan Absorption, Deliveries, and Vacancy Trends. Source: CoStar.

OFFICE - WEST JORDAN

INVENTORY & VACANCY TRENDS

West Jordan has approximately 122 buildings and two million square feet of existing office inventory. Of the two million square feet of office inventory, 613,000 square feet are located within a 1.0-mile radius of the UTA station areas. Occupancy of office space is mostly strong, with approximately 98 .1% of all available office space occupied. Approximately 86% of West Jordan's office space is rated as Class B. Class B buildings are well maintained and overall functional, with adequate mechanical, electrical and safety and security systems, a mid-quality level of interior finish, and tend to compete for a wide range of tenants within a market area. The remaining office space within West Jordan consists of 14% Class C office space. Figure 57 illustrates the distribution of offices throughout West Jordan.

Vacancy rates within the West Jordan office market have historically ranged between 1.60% and 5.34%, indicating a mostly strong office market that generally maintains lower levels of vacancy and absorbs new square footage as it is introduced into the market. Office vacancy rates have trended downward over the past year for office space, with rates dropping slightly from 2.5% in 2021 to the current rate of 1.9%.

Figure 58 illustrates historic and current vacancy trends for office space in West Jordan. Given historic and projected vacancy trends, it is predicted that vacancy within the West Jordan market will continue to remain low, though the introduction of new office space may cause rates to increase.

RENTAL RATES AND PRICING

Current market rent per square foot for office space in West Jordan is $21.01. Rental rates within West Jordan have been increasing steadily for the past ten years, with year-over-year increases typically fluctuating between 1.3% to 6.0%. Rental rates for office products are projected to continue increasing, reaching $22.64 by 2027.

Asking rent, or the rent paid after concessions are applied to rental rates, has mostly tracked with market rental rates since 2014, with a small fluctuation between 2020 and 2021. Current asking rent in West Jordan is $19.04, only slightly below market rent. The lack of a gap between asking rent and market rent for both products can be interpreted to mean that a limited number of tenants are requiring rent concessions.

Figure 62: West Jordan Office Locations. Source: CoStar.

Figure 63: West Jordan Office Vacancy Trends . Source: CoStar

NEW DELIVERIES & ABSORPTION

West Jordan has experienced significant new office construction, with 130,000 square feet of new office space delivered since 2013. The rate of new office construction has slowed down in recent years, with 27,000 square feet of new office space added starting in 2020. Only one new office development is planned in West Jordan, equaling a total of 15,900 new square feet. The new office development is not near any UTA station areas.

Absorption of office space within the West Jordan market has been steady. Historic trends indicate that as existing or new office space is introduced, the market will absorb it, though the rate at which space is leased tends to vary by year and market conditions. Office space is leased quickly in the West Jordan market, with a 50% probability that it will be leased within 4.7 months. Figure 60 illustrates historic and current absorption, deliveries, and vacancy in West Jordan.

MULTI-FAMILY RENTALS - WEST JORDAN CITY

INVENTORY & VACANCY TRENDS

West Jordan has 36 multi-family rental apartment developments (with 10 or more units) with 6,490 total dwelling units. A portion of multi-family inventory in West Jordan is available for both senior and low-income tenants, with one apartment development (797 units) currently designated affordable, and one apartment development (185 units) designated for senior housing. Most multi-family housing in West Jordan is older, with only five developments and 23% of all units built within the last 10 years. Figure 61 illustrates the distribution of multi-family rentals throughout West Jordan.

Occupancy rates within the West Jordan multi-family market have historically ranged between 94.39% and 96.82%, with a current occupancy rate of 93.96%. While occupancy rates have remained mostly stable, there have been periods of reduced occupancy over the past ten years, typically induced by the delivery of a large number of units into the market during a short time frame. Figure 62 illustrates historic and current occupancy trends for rental multi-family units in West Jordan. Given historic and projected vacancy trends, it is predicted that occupancy within the West Jordan market will decline. This may be due demand balancing with the new housing availability from construction.

Figure 64: West Jordan Historic and Projected Rent. Source: CoStar.

Figure 65: West Jordan Absorption, Deliveries, and Vacancy Trends. Source: CoStar.

Figure 66: West Jordan Multi-Family Rental Locations. Source: CoStar.

RENTAL RATES

The current median market rent per unit in West Jordan is $1,517 per month. Multi-family rental rates have mostly increased over the past years, typically rising between 1.1% to 9.6% annually. Within the last year though, rental rates have risen significantly at 3.4%. This may be due to inflation, demand, etc.

Effective rent, or the monthly rental rate paid after concessions are applied, has historically been equal to asking rent. Forecasts predict that over the next five years rental rates will increase significantly, reaching a median of $1,733 per month by 2027. Figure 68 illustrates historic and predicted rental rate increases and market and asking rent in West Jordan.

NEW DELIVERIES & ABSORPTION

The West Jordan market has experienced mostly both positive and negative absorption over the past 10-years. Since 2013, the market has experienced several large deliveries of new multi-family rental units, adding 1,472 units. Historic trends indicate that the market recently has not been absorbing new units as they are introduced, with vacancy rates increasing in the next five years. Figure 69 illustrates historic and current absorption, deliveries, and vacancies in West Jordan for multi-family rental units.

Currently, there is only one known proposed multi- family project. The project, named the Jordan Fields, is a 240-unit development located on Bangerter Highway. The development will be completed in July of 2023.

RETAIL - MIDVALE

INVENTORY & VACANCY

Midvale has approximately 318 buildings and 3 .2 million square feet of existing retail inventory. Occupancy within the market is extremely high, with 97.8% of all available retail space currently occupied. The majority of Midvale's retail space is concentrated along State Street, 700 W, 900 E, 7200 S, and W Center Street. The majority of retail development within Midvale is Neighborhood Center style development (e. g., mid- scale strip malls), General Retail development (e. g., standalone strip centers or pad site retail space), and Community Centers development (e. g., big box retailers and supermarkets). Figure 65 illustrates the distribution of retail throughout Midvale.

Figure 67: West Jordan Multi-Family Rentals Occupancy Trends. Source: CoStar

Figure 68: West Jordan Historic and Projected Rent. Source: CoStar.

Figure 69: West Jordan Absorption, Deliveries, and Vacancy Trends. Source: CoStar.

Vacancy rates within the Midvale market have historically ranged between 2 .81% and 6 .34%, indicating a strong retail market that is capable of absorbing new retail space as it is made available or introduced into the market. Vacancy rates have remained steady within the past year at 2 .18%. Vacancy rates are projected to continue to remain low over the next five-year period, ranging between 2 .1% and 3 .0% between 2023 and 2027. Figure 66 illustrates historic and predicted future vacancy trends in Midvale. Given historic and projected vacancy trends, it is predicted that vacancies within Midvale will continue to remain low, even as more retail products are introduced into the market.

RENTAL RATES AND PRICING

The current market rent per square foot in Midvale is $21.80. Rental rates within Midvale have been climbing steadily for the past ten years, rising from $16 .00 in 2013 to their current high of $21.80, and are forecasted to continue rising, growing to $24.17 by 2027.

Asking rent, or the rent paid after concessions are applied to rental rates, has remained steady with the market rent in Midvale over the past 10 years. The current asking rent being less than the market rent is something to keep an eye out for, as it can be interpreted that there is not enough demand within the market, despite the high occupancy rates. Figure 67 illustrates historic and projected market and asking rent in Midvale.

NEW DELIVERIES & ABSORPTION

Midvale has experienced a significant amount of new retail development, with 122,000 square feet of new retail space delivered since 2013. Retail deliveries have since slowed, with only 40,700 square feet of new retail delivered in 2020 and 2023. Currently, there are no proposed and under construction retail projects in Midvale.

Figure 70: Midvale Retail Locations . Source: CoStar .

Figure 71: Midvale Retail Vacancy Trends. Source: CoStar.

Figure 72: Midvale Historic and Projected Rent. Source: CoStar.

Absorption within the Midvale market has varied, with approximately 26,000 square feet of retail space leased between 2022 and 2023. Historic trends indicate that as existing or new retail space is introduced, the market is steady to absorb it, with a 50% chance that space will be leased within 8 .4 months. Figure 68 illustrates historic and predicted future absorption, deliveries, and vacancy in Midvale.

OFFICE - MIDVALE CITY

INVENTORY & VACANCY TRENDS

Midvale has approximately 122 buildings and 4 million square feet of existing office inventory. Of the 4 million square feet of office inventory, 2.6 million square feet (66%) are located within a 1.0-mile radius of the UTA station areas. Occupancy of office space is strong, with approximately 94.2% of all available office space occupied. Approximately 57% of Midvale's office space is rated as Class B. Class B buildings are generally well maintained and overall functional, with adequate mechanical, electrical and safety and security systems, a mid-quality level of interior finish, and tend to compete for a wide range of tenants within a market area. The remaining office space within Midvale consists of 36% Class A office space and 7% Class C office space. Figure 69 illustrates the distribution of offices throughout Midvale.

Vacancy rates within the Midvale office market have historically ranged between 3.39% and 5.77%, with its current vacancy rate higher at 5.78%. This pattern indicates the office market that generally maintains mid-levels of vacancy and is slower to absorb new square footage as it is introduced into the market. Office vacancy rates have trended upward over the past year for office space, with rates increasing from 5.0% in 2022 to the current rate of 5.78%.

Figure 70 illustrates historic and current vacancy trends for office space in Midvale. Given historic and projected vacancy trends, it is predicted that vacancy within the Midvale market will continue to raise and remain around 6.8%.

Figure 73: Midvale Absorption, Deliveries, and Vacancy Trends. Source: CoStar.

Figure 74: Midvale Office Locations. Source: CoStar.

Figure 75: Midvale Office Vacancy Trends. Source: CoStar

RENTAL RATES AND PRICING

The current market rent per square foot for office space in Midvale is $25.08. Rental rates within Midvale have been increasing steadily for the past ten years, with year-over-year increases typically fluctuating between 1.8% to 4.5%. Rental rates for office products are projected to continue increasing, reaching $27.08 by 2027.

Asking rent, or the rent paid after concessions are applied to rental rates, has followed the same pattern market rental rates since 2015 at a lower rate. Starting in 2021, the asking rate is above the market rate at $25.15. The lack of a gap between asking rent and market rent for both products can be interpreted to mean that a limited number of tenants are requiring rent concessions. Figure 71 illustrates the historic and current market and asking rent in Midvale.

NEW DELIVERIES & ABSORPTION

Midvale has experienced significant new office construction, with 1 .5 million square feet of new office space delivered since 2013. The rate of new office construction has remained steady in recent years, with 584,000 square feet of new office space added from 2020. Only one new office development is planned in Midvale, equaling a total of 75,000 new square feet. The new office development is within a mile of all UTA station areas.

Absorption of office space within the Midvale market has been somewhat steady but recent trends show the market is slowing down on absorption of existing and new office space. Office space is leased quickly in the Midvale market, with a 50% probability that it will be leased within 7 .4 months. Figure 72 illustrates historic and current absorption, deliveries, and vacancy in Midvale.

MULTI-FAMILY RENTALS - MIDVALE CITY

INVENTORY & VACANCY TRENDS

Midvale has 66 multi-family rental apartment developments (with 10 or more units) with 7,060 total dwelling units. A portion of multi-family inventory in Midvale is available for both senior and low-income tenants, with one apartment development (878 units) currently designated affordable, and one apartment development (289 units) designated for senior housing. Most multi-family housing in Midvale is older, with only five developments and 27% of all units built within the last 10 years. Figure 73 illustrates the distribution of multi-family rentals throughout Midvale.

Figure 76: Midvale Historic and Projected Rent. Source: CoStar.

Figure 77: Midvale Absorption, Deliveries, and Vacancy Trends. Source: CoStar.

Figure 78: Midvale Multi-Family Rental Locations. Source: CoStar.

Occupancy rates within the Midvale multi-family market have historically ranged between 92.91% and 96.20%, with a current occupancy rate of 93.99%. While occupancy rates have remained mostly stable, there was a significant reduction in occupancy in 2020, potentially due to the COVID-19 pandemic. Figure 74 illustrates historic and current occupancy trends for rental multi-family units in Midvale. Given historic and projected vacancy trends, it is predicted that occupancy within the Midvale market will slowly decline but stay above 90%.

RENTAL RATES

The current median market rent per unit in Midvale is $1,514 per month. Multi-family rental rates have mostly increased over the past years, typically rising between 1.9% to 10.1% annually. Within the last two years though, rental rates have risen significantly at 3.7%. This may be due to inflation, demand, etc.

Effective rent, or the monthly rental rate paid after concessions are applied, has historically been equal to asking rent. Forecasts predict that over the next five years rental rates will increase significantly, reaching a median of $1,691 per month by 2027. Figure 75 illustrates historic and predicted rental rate increases and current and asking rent in Midvale.

NEW DELIVERIES & ABSORPTION

The Midvale market has experienced mostly positive absorption over the past 10 years. Since 2013, the market has experienced several large deliveries of new multi-family rental units, adding 1,910 units. Historic trends indicate that the market recently has not been absorbing new units as they are introduced, with vacancy rates increasing in the next five years.

Currently, there are no proposed multi-family projects. Figure 76 illustrates historic and current absorption, deliveries, and vacancies in Midvale for multi-family rental units.

Figure 79: Midvale Multi-Family Rentals Occupancy Trends. Source: CoStar

Figure 80: Midvale Historic and Projected Rent. Source: CoStar.

Figure 81: Midvale Absorption, Deliveries, and Vacancy Trends. Source: CoStar.