JLL Arranges Sale of 325,215-SF Salt Lake City Industrial Facility to Ares Fund

JLL Capital Markets arranged the sale of a 325,215-square-foot Class A industrial facility at 5270 W. John Cannon Drive in Salt Lake City's Northwest Quadrant submarket to an Ares Real Estate fund, the firm announced Nov. 9, 2026. The transaction closed in October 2026.

Marq Logistics, Ares Real Estate's vertically integrated global logistics real estate platform, will manage the property. The facility is 100% leased on a triple-net basis through February 2033.

Property Details: Class A Industrial Facility in Salt Lake City

Completed in 2022 according to the JLL announcement, the building serves as a distribution facility for a home furnishings and lifestyle retailer. The tenant is McGee & Co. Partners LLC, which operates as Studio McGee. The lease includes 3% annual rent escalations, and the facility is the tenant's primary distribution and fulfillment center.

The building sits on approximately 20.5 acres and includes:

• 36-foot clear height
• 89 dock-high doors in a cross-dock configuration
• ESFR sprinkler system
• LED lighting throughout
• A full-perimeter truck court with 82 trailer parking stalls
• 354 automobile parking spaces

JLL's offering materials identified approximately 37.3% mark-to-market rent upside at lease expiration.

Northwest Quadrant Location

The property has access to Interstate 80 and Interstate 215 and is approximately five miles from Salt Lake City International Airport. JLL described the Northwest Quadrant as one of the region's more established industrial corridors, citing limited development opportunities, tenant demand and its role as a distribution hub serving western U.S. markets.

JLL Commentary on Investor Demand

The JLL Capital Markets team was led by Managing Director Todd Torok. The team has grown to include Julia Radu, Jeff Pew and Rex Buys, who are adding coverage from Salt Lake City to Boise and Reno.

"This transaction reflects the depth of institutional demand for high-quality industrial product in Salt Lake City and the continued evolution of the market as a destination for long-term investment," said Torok. "The level of investor engagement throughout the process underscores the importance of having a dedicated local team focused on serving investors and owners across the region. It also highlights the premium today's sellers continue to place on certainty of execution, particularly in competitive institutional transactions."

JLL said the process attracted strong institutional interest. The firm is also marketing Scannell Properties' approximately 630,000-square-foot Class A distribution facility in Provo, Utah, which it said highlights continued capital interest in logistics assets along the Wasatch Front and in the broader Intermountain West.

Salt Lake City Industrial Market Context

The sale comes as Salt Lake City's industrial fundamentals have become more mixed. Cushman & Wakefield reported 7.6% overall industrial vacancy in the third quarter of 2026, including 6.5% direct vacancy and 1.1% sublease vacancy. Average asking rents were $0.85 per square foot per month on a triple-net basis, up from $0.80 a year earlier.

CBRE reported Salt Lake City industrial vacancy of 7.3% and availability of 8.2% in the third quarter, with an average asking rent of $0.87 per square foot, up from $0.82 in the prior quarter. Colliers reported Salt Lake County average industrial asking rents of $0.88 per square foot triple-net, up from $0.84 a year earlier and 42.62% above five years earlier.

Larger buildings have faced particular pressure. Cushman & Wakefield reported 5.6% vacancy among big-box properties larger than 100,000 square feet and noted softer fundamentals for larger warehouse and distribution properties than for smaller and midsized buildings. Against that backdrop, the Ares acquisition involves a fully leased building with a lease running through February 2033 and contractual annual rent increases.

About the Firms

JLL (NYSE: JLL) reported annual revenue of $26.1 billion and a global workforce of approximately 112,000 as of Sept. 30, 2026. Ares Management Corporation (NYSE: ARES) is an alternative investment manager with approximately $691 billion of assets under management as of the same date, with a platform spanning credit, real estate, private equity and infrastructure.

Sources

JLL newsroom: JLL arranges sale of fully leased Salt Lake City industrial facility