West Valley Industrial: Full-Year 2025 Review
West Valley City closed 2025 as the Salt Lake Valley's dominant large-format industrial submarket, absorbing approximately 2.1 million SF of space over the calendar year despite two major new deliveries. Year-end vacancy settled at 5.1%, above the metro average, but structurally appropriate for a submarket that added nearly 800,000 SF of new Class A inventory in the second half of the year.
Full-year 2025 West Valley metrics:
- Year-end vacancy: 5.1%
- Total inventory: 18M SF
- Net absorption (full year): 2.1M SF
- Asking rent (Class A): $9.50–$10.00/SF NNN
- Asking rent (Class B/C): $7.50–$8.75/SF NNN
- New deliveries: 780,000 SF (two buildings)
The SR-201 Corridor: Still the Logistics Center of the Valley
The SR-201 freeway corridor, running east-west through the heart of West Valley's industrial core, remained the primary driver of leasing activity throughout 2025. Its direct connections to I-80, I-215, and the Salt Lake City International Airport (approximately 7 miles) make it the preferred address for logistics operators needing Intermountain-wide distribution coverage.
Two of the year's largest lease signings occurred in this corridor: a national food distribution company took a 145,000 SF building with 36-ft clear heights and cross-dock configuration, and a regional 3PL operator expanded from 62,000 SF to 98,000 SF in a renewal and expansion transaction that represented one of the stronger rent growth stories of the year.
Rent Trends
Class A industrial rents in West Valley ended 2025 at $9.50–$10.00/SF NNN for premium dock-high product, up approximately 2.8% from the prior year. Older functional product in the $7.50–$8.75/SF NNN range experienced slower growth, as tenants with some flexibility on specifications migrated toward newer Class A stock when the economics were competitive.
Owners of older functional product found that concessions (primarily in the form of TI allowances and free rent) were needed to compete with the more attractive physical attributes of newer buildings. However, demand from smaller tenants in the 10,000–40,000 SF range kept older product from going fully stale.
New Supply: Two Buildings Delivered, Two More on the Way
Two Class A buildings totaling 780,000 SF were delivered in West Valley during the second half of 2025. As of year-end, 68% of this new supply was leased or committed, a healthy absorption rate that reflects strong underlying demand even in a market experiencing new supply pressure.
Two additional buildings totaling approximately 420,000 SF are scheduled for Q2 and Q3 2026 delivery. Both are being developed on a speculative basis, reflecting developer confidence in sustained West Valley demand. Pre-leasing discussions are reportedly active on both projects.
2026 Outlook for West Valley Industrial
West Valley industrial enters 2026 with a constructive outlook. The new supply pipeline is manageable relative to historical absorption rates, and demand from logistics users, cold storage operators, and large-format manufacturing tenants remains strong. We expect vacancy to tighten modestly through mid-2026 as the existing vacant space is absorbed and the new deliveries stabilize.
For tenants seeking west valley warehouse space or large-format industrial facilities in the Valley, West Valley remains the best submarket for bulk square footage, but move quickly. The available blocks above 50,000 SF are limited, and the two under-construction projects will reduce future optionality once pre-leased.
Contact CRES Utah for a broker opinion of value, current availability data, or to discuss your West Valley industrial requirements.
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