Provo, Utah, Industrial Construction Concentrated in Southern Half of Market

Industrial development in Provo, Utah, has cooled off from all-time highs, and two pockets of growth compose the bulk of the remaining pipeline. Nearly 1.2 million square feet are underway across the metropolitan area, with roughly 60% in Spanish Fork and Springville. The number of feet under construction is far from the 4.2 million square feet peak in early 2023. Since then, fewer projects have broken ground following a 600 basis points rise in the vacancy rate, on top of a sharp rise in borrowing costs for new construction.