Office vacancy rates peaked in 2002 but are now "in equilibrium" at about 11 percent. Office absorption remains strong, too. The industrial market features low vacancy rates, still-strong lease absorption and a relatively low construction rate. Utah also is "very, very strong on the retail side," Richmond said, although retail is a source of concern at the national level.

"It's a slower growth that we're going to see here," Richmond predicted of the overall real estate market in Salt Lake.

"With respect on the housing side, we have seen some defaults occur through the financial services and the real estate-related companies. A few of our particular submarkets, especially on the office side — in kind of the Union Park area, which has a high concentration of mortgage, title and real estate-related companies — there's going to be a little bit of risk there with companies downsizing and shutting down those offices, but that area is valued and in very high demand and I think that space will be filled quickly," he said.

Downtown Salt Lake is aided by continued growth at law firms and banks, he added.

Schwanke said that despite pessimistic comments from survey respondents, about 80 percent were optimistic about the outlook for their business in 2008.

And turmoil actually could be good for the industry because it could lessen the chances of overbuilding, he said.

"The theme for this year is 'A Dose of Fear,"' Schwanke said. "And I think that's a good thing, because we were a little fat and happy, I think, for the last five years, and it just couldn't last forever."

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E-mail: bwallace@desnews.com