This story appears in the 2025 Advisor, a publication sponsored by Colliers Utah.
On March 16, 2022, University Place (UP) announced the grand opening of Dillard’s. Despite already having a location just miles down the road at the Provo Towne Center Mall, the department store opened a 160,000-square-foot, newly constructed building. In the announcement, store manager Robert Glodowski says, “Our previous location could be described as a B or C location as far as Dillard’s go. This will be an A.”
How did the 120-acre mall draw in the retail giant? Turnkey, mixed-use development.
Turnkey spaces are the perfect fit
Modern turnkey, multi-use spaces are fully functional, commercial offices that are ready for occupancy.
For tenants, owners and developers, turnkey properties check all the boxes, says Ajla Akšamija, professor at the School of Architecture at the University of Utah. They provide the ability to move into a fully functioning office space without sinking “major investments” into design, building and construction.
These properties often feature high, exposed ceilings; polished concrete floors; and a mix of open space, private offices, conference rooms, huddle rooms, and break rooms, says Rusty Lugo, VP at Colliers Utah.
“The submarkets with a better chance of leasing these kinds of suites are those that attract tenants that are nimbler in terms of how quickly they can move into spaces.”
— David Nixon
“Many tenants don’t allow enough time on the clock to build out a space,” Lugo explains. “Tenants want to hit the easy button. Also, [they] have a hard time envisioning a space in shell condition.”
In Utah, suites in the 4,000 to 8,000-square-foot range are typically snapped up quicker than larger floor plates “due to the move-in ready nature of these turnkey suites,” says David Nixon, senior managing director at JLL in Salt Lake City.
Tracking local trends like remote work helps developers better understand market conditions and demand, allowing them to plan accordingly when crafting new developments. “Flexibility becomes the key design consideration; thus, designing spaces that can work well for different tenants is crucial,” Akšamija adds.
Plenty of stock is also placed in amenities, such as wellness spaces and IT infrastructure. “These spaces provide all — or almost all — of the amenities for companies and organizations seeking to lease functional, commercial space for their operation,” Akšamija says.
For owners, the built-in flexibility of turnkey, multi-use spaces allows tenants to come and go as they please because the spaces can function well for anyone. Akšamija highlights the benefits of dividing buildings into smaller areas that can be leased to different companies and organizations or packaged as one large lease. She also cites circulation through the building, access to nature and daylight and design strategies “that improve employee productivity and well-being” as key value adds.
Additionally, timing is a key factor. For typical build-outs, the process can take five to six months and is usually at a greater expense. “Turnkey suites are often ideal for users looking to relocate a few months out versus the larger users looking for space one to two years in advance,” Nixon continues.
Looking to Utah County
University Place in Orem might just be the gold standard for successful mixed-use developments, featuring a move-in ready floor for office space, residential units and — on the retail side — Dillard’s, the first The Cheesecake Factory in the region and Bobby’s Burgers, celebrity chef Bobby Flay’s first restaurant in Utah.
Of course, UP felt the reverberations of COVID-19. Prior to the outbreak, the mall’s office space was thriving, explains Ryan Clark, assistant city manager and development services director at the City of Orem. With many people working from home in the aftermath of COVID, “office has struggled throughout the nation and at UP.”
Clark believes the mix of residential, retail, restaurants, hotel and office has been successful at UP “because the different uses complement each other.” The office and residential users have a wide spectrum of amenities, including dining, daycare, shopping and entertainment. With the automatic base of customers, the restaurants “have done great, and the mall continues to see more success,” he says.
The level of tenants demonstrates that UP is “a happening place.” What’s more, the addition of a hotel attracts even more visitors from outside the county. “There is amazing synergy at play,” Clark says.
Flourishing flexibility
There is also a particular draw to these properties among Utah’s submarkets.
“The submarkets with a better chance of leasing these kinds of suites are those that attract tenants that are nimbler in terms of how quickly they can move into spaces,” Nixon says. For example, tech-forward submarkets — such as Silicon Slopes — are better suited for turnkey office suites.
Alternatively, downtown Salt Lake City, which centers more around professional services, “would be less ideal for these types of properties, since many professional services users are looking for space further in advance and require a more time-consuming, specialized buildout,” he says.
The future of mixed use developments is, in one word, promising. The success of UP illustrates the transformative potential of modern mixed-use developments. By seamlessly integrating turnkey, multi-use spaces, UP has drawn prominent tenants and established itself as a vibrant hub of activity. These move-in-ready spaces offer the perfect blend of functionality and flexibility, meeting the diverse needs of tenants while minimizing setup time and costs. The strategic combination of retail, office, residential and hospitality elements creates a symbiotic ecosystem that caters to a wide range of businesses and customers.
As UP continues to thrive, it sets a benchmark for future mixed-use projects, demonstrating how such developments can adapt to and flourish in a rapidly changing world.