Utah's retail market is currently operating on two distinct tracks, according to a report published October 28. While suburban areas in northern Utah County experience a boom in big-box and grocery expansion, mixed-use buildings and Salt Lake City restaurants face higher vacancy rates and significant closures.
Andy Moffitt, a partner at Newmark Mountain West, noted at the Urban Land Institute Utah’s Trends conference that the most significant retail expansion is occurring in the northern half of Utah County. A primary example is the new Whole Foods in Lehi, the first new Whole Foods announced in Utah since the 2017 relocation of the Kimball Junction store in Park City. Moffitt also highlighted the impact of Trader Joe's, which is expanding along the Wasatch Front with approximately 10 locations currently open, under construction, or proposed. Other major retailers in the pipeline include Target, Walmart, WinCo, and Harmons, alongside 35 new big-box retailers total.
The fitness sector is also shifting, with Life Time becoming an anchor for new developments rather than just an amenity. One such project is The Shops at Sky View in Lehi, a 97-acre development by Gardner Group and Plumb Holdings that is scheduled for its first phase in 2027. While entertainment remains a factor, such as Megaplex theaters planning two new locations, the restaurant sector in Salt Lake City is facing headwinds. Moffitt reported significant closures near Downtown Salt Lake City, including Market Street Grill, Cucina, Buca, and Carson Kitchen.
Vacancy rates vary significantly by building type. Traditional retail built between 2016 and 2025 in Salt Lake City's core averaged a 2.9 percent vacancy rate, meaning there is essentially no available space. In contrast, mixed-use retail vacancy is approximately 10.3 percent. While mixed-use vacancy has improved from 30 percent four years ago, suburban retail continues to perform much stronger than mixed-use projects.
Looking toward the future, Smith Entertainment Group has released plans for a Downtown entertainment district and Salt Palace overhaul. The proposal includes retail along a paseo linking the Delta Center and Salt Palace, and retail replacing loading docks on 100 South. Moffitt noted that neighborhoods such as the Granary, Sugar House, and the East Bench are currently drawing significant national attention.
