Unico's final sale wipes out its entire Salt Lake City real estate footprint

Unico Properties is selling its final office building in Utah, a move that ends the Seattle-based firm's ownership history in the state. The property is 250 Tower, a 16-story glass structure located at 250 E. 200 S. in Salt Lake City. Unico lists the building as the only remaining asset in its local portfolio after scaling back its holdings in recent years.

CBRE's National Office Partners team is leading the marketing efforts for the sale. Brokers Phil Brierley, Cole Macadaeg, and Charley Will are handling the transaction, though no asking price has been disclosed. The firm describes the 374,772-square-foot tower as a Class A, LEED Gold asset. Built in 1984 and formerly known as the CenturyLink building, it underwent a renovation in 2017 that included an auditorium, outdoor terrace, and fitness center.

The University of Utah serves as the anchor tenant, occupying 38% of the building's leased space. The university renewed its lease in 2022 and implemented a three-day-a-week return-to-office mandate in August. Brokers state this policy is generating new demand for space. Other tenants, including Forvis Mazars, Reaveley Engineers, and Stride Bank, have also renewed or signed leases since 2021.

The building currently has 108,638 square feet of vacant space spread across contiguous full floors. CBRE positions this vacancy as the primary opportunity for buyers willing to lease up the property. Brokers note that no other block larger than 50,000 square feet is available downtown, making 250 Tower a rare option for large tenants seeking to move into the urban core. The remaining leases have an average term of 4.6 years.

CBRE argues that the building offers a stabilized cost more than 70% below the price of constructing a comparable tower today. The listing cites a lack of new supply, noting that no new office building has been delivered downtown since 2022. Brokers point to Class A leasing activity from 2021 to 2025, which exceeded the 2018-2019 average by 1.4 times. Competing buildings in the area average 83.5% occupancy.

Surrounding development supports the pitch for the tower. Seven residential projects have added more than 1,500 apartments within four blocks of the building over the past five years. Additionally, the rebuild of 200 South as a bus rapid transit corridor has improved access. The adjacent CenturyLink Switching Center is slated for demolition in 2027 to make way for a hotel, a project that follows Unico's 2023 sale of that property to Dart Interests.

The sale aligns with market trends observed by Phil Brierley, who noted at a conference in October that office markets are more divided than average statistics suggest. Prime vacancy near downtown stood at 6.5%, while overall vacancy reached 21.8%. Class A asking rents in the central business district hit a record $40.08 per square foot, up 10.9% from a year earlier. With no office projects under construction, tenants are increasingly turning to existing space like 250 Tower.