Market Overview
Retail remains one of Southern Utah’s most stable sectors.
At mid-2025, vacancy increased slightly to 2.2%, while average asking lease rates rose to $26.50 NNN
New construction continues to push rental averages upward, though smaller second-generation spaces are leasing fastest.
Key Developments
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River Crossing & Nichols Landing: Multiple new buildings delivered, showing demand for neighborhood retail.
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Costco (Exit 2) & WinCo (Exit 11): Major anchors announced, boosting regional traffic and land values.
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St. George Place Redevelopment: 230,000 SF project along South Bluff under construction, expected to reshape downtown retail activity.
Performance Drivers
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Population Growth: St. George remains one of the fastest-growing metros in the U.S.
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Tourism & Visitor Spending: Seasonal surges sustain retail absorption year-round.
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Tenant Mix: Service-based, fitness, and QSR (quick-service restaurant) tenants continue expanding.
Investor Snapshot
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CAP Rates: 5.5–6.5% (attractive compared to national averages).
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Land Values: $18–35 PSF, depending on frontage and zoning.
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Vacancy Composition: Primarily smaller inline spaces, not anchors—indicating strong fundamentals.
Leasing Perspective
Demand remains strong for well-located neighborhood centers.
Landlords are achieving record lease rates in new construction but should remain flexible on concessions for smaller tenants.
For tenants:
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Seek second-generation spaces for cost efficiency.
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Leverage competition among new builds for improvement allowances.
CTA:
Looking to invest or lease retail property in St. George? Contact me!