Energy Firm Leases 40 KSF in Salt Lake City

HF Sinclair has signed a 40,367-square-foot, long-term lease at The 324, an office building in Salt Lake City. The firm will occupy the entire top floor of the 221,245-square-foot property.

A joint venture between Mortenson Properties and Hamilton Partners has owned the LEED Gold-certified asset since 2020. JLL brokered the deal on behalf of the landlord, while CBRE represented the energy company.

Located at 324 S. State St. in the city’s downtown, the transit-oriented, five-story building is less than 8 miles from Salt Lake City International Airport. The University of Utah is some 2 miles east.

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Originally completed in 1911 and previously known as Broadway Building, the low-rise served as a retail destination until 1980, when it was converted into office. The property then went into multiple renovations, which included a new lobby and amenity upgrades.

The 324 has floorplates averaging 36,144 square feet, a fitness center, a wellness room and bike storage, as well as conference and training facilities. The property features EV charging stations and a connected parking garage.

JLL Executive Vice President Jami Marsh and Vice President Amanda Lawson represented Mortenson Properties and Hamilton Partners in the leasing agreement.

Salt Lake City office vacancy rate declines

Salt Lake City’s office vacancy rate clocked in at 24.6 percent at the end of the first quarter, down 50 basis points year-over-year, according to a Cushman & Wakefield report. The overall average asking rate as of March was $25.6, 40 basis points lower when compared to a year ago.

One of the largest leasing deals of last quarter was Zion’s Bank’s renewal of 320,455 square feet at 10 E. South Temple, the same report shows. Property Reserve owns the 18-story building, according to CommercialEdge.