Boyer to build office tower in downtown Salt Lake City
The Boyer Co., one of the most active developers in Salt Lake City, has started construction of a seven-story office building on the east side of the central business district.
The building, to be called 101 Tower, is being built on an empty lot at the southeast corner of 100 South and 200 East. It will be across the street from the former Questar building on 100 South, which Boyer bought in January. Questar, which also owned the lot, moved to a new headquarters a few blocks away.
101 Tower, covering 146,000 square feet, is scheduled to be finished in May 2014. Project manager Brent Pace wouldn't say what the building will cost to construct, but he noted that Boyer will charge lease rates commensurate with other Class A buildings in the area.
"Being brand new construction, we will be consistent with the nicest buildings downtown," Pace said.
In 2012, downtown lease rates averaged $28.86 per square foot per year, according to Cushman and Wakefield |Commerce, a Salt Lake City commercial real estate firm.
Parr Brown Gee and Loveless, a Salt Lake City law firm with 70 attorneys, has agreed to lease the fifth, sixth and seventh floors. Parr today is at 185 S. State Street.
Tenants haven't been lined up for the rest of the space, but Pace said Boyer has received "a lot of interest" from financial firms and law firms.
"We think there's a significant amount of demand," he said.
Michael Richmond, executive director of Cushman and Wakefield, said the vacancy rate in downtown Class A buildings was 13.1 percent in the first quarter, lower than last year. He's seen an upswing in demand for larger blocks of space recently from tenants who want to fill one or more floors in first-class buildings.
"I feel pretty good about that [project]. I think the market will accept it pretty well," he said.
101 Tower's exterior will be granite and glass. It will have parking at ground level and in a parking structure behind the building.
Pace said Boyer will rename the former Questar building 102 Tower, where it is renovating lobbies and other common areas. The exterior will be largely unchanged. Boyer is seeking city approval to construct a five-story parking garage on the 4.9-acre lot.
What • Seven-story office tower
Square feet •146,000
Where • 100 South and 200 East
Scheduled opening • May 2014