Newmark year-end report says 2025 a time of balancing in commercial real estate
Newmark Mountain West, a commercial real estate brokerage based in Salt Lake City, has released its 2025 “Year-End Market Report,” an overview of the commercial real estate market in Utah, Nevada and Idaho.
“The Intermountain West spent 2025 optimizing its commercial real estate landscape, allowing demand drivers, investment activity and development pipelines to come into better balance,” stated Amelia Wolfe, director of research analysis with Newmark. “With that groundwork in place, the market is set for accelerated growth across all property types and will outperform national trends moving into 2026.”
Newmark’s report found that the state of Utah, and Salt Lake County in particular, continues to attract a deep bench of new and expanding retail tenants, underscoring the market’s long-term appeal even as conditions normalize.
In Las Vegas, retail vacancy has seen a slight increase since 2024 after hitting a 15-year low of 4.6 percent growth. The market remains competitive with a consistent, but limited, new supply of commercial properties.
Industrial construction activity in Salt Lake County slowed throughout the year but saw a sharp increase in the fourth quarter. Deliveries increase near-term availability while setting the stage for longer-term balance.
In Las Vegas, asking rents increased year-over-year across most building size categories, underscoring that landlords are still achieving pricing gains even as vacancy climbs and leasing activity moderates. In eastern Idaho, industrial space under construction and construction starts increased while deliveries declined, suggesting additional near-term supply pressure that could influence vacancy and pricing.
In Utah, Class A office rents continue to command a premium, while Class B and C space faces greater pricing pressure amid tenant flight to quality.
In Las Vegas, total office vacancy has held above 9.5 percent, with only modest year-over-year movement. This stability suggests the market is absorbing space incrementally.
The report also said that in the multifamily market in Utah, supply pressure is easing as under-construction units fall sharply, even as inventory grows modestly, setting the stage for improved balance.
Newmark’s full report is available at mwcre.com/market-reports.
Newmark Mountain West is an independently owned and operated member of the Newmark Licensee Group serving Utah, Idaho, Nevada, Wyoming and Montana with nearly 200 agents in 10 offices.