04/23/2014

Utah's Economy: Salt Lake County by the Numbers 2000-2013

Utahecon2From 2000 to 2013, the Salt Lake County economy faced not only the worst three years (2008-2011) since the Great Depression, but also three of the strongest years of economic growth in recent history (2004-2007). The tables below give a statistical history of this volatile period beginning with a snapshot of the Salt Lake County and Utah economy in 2013. 

Read the entire report

In pursuit of the CCIM designation

Bryan Oliver is an Associate – Investment/Industrial Specialist with Cushman & Wakefield | Commerce [email protected]

Originally published in the Boise CCIM 2014 Directory

I started my career in commercial real estate about two years ago, right as the market began to turn around. Hey, what can I say, I have a knack for timing. Even before accepting a position with Cushman & Wakefield | Commerce, I was already doing research on the Certified Commercial Investment Member designation and preparing to become a candidate. I knew from the start I wanted to be a CCIM and wanted to get on the path towards my designation as soon as possible.

There are many reasons why I chose to pursue my CCIM designation and why I feel it’s the right path for my career. Based on my perspective of being nearly two years into my career in commercial real estate and about the same in pursuing my designation (I hope to finish by the middle of this year), here is why I think the CCIM is right for me, and maybe for you, too.

1)      Background. Coming from a background in financial planning, advising, and analysis, I wanted to bring to commercial real estate my love of finance, numbers, and making deals. I knew before I started I wanted to focus on the investment side of the business and felt the CCIM designation would be the best and most useful area of study in order to make sure I was current and fluent in the language of real estate investment.

2)      Credentials. Not to put too fine a point on it, or come across as superficial, but I want those four letters after my name. “CCIM.” I want to raise the bar on my own career. Having the CCIM designation puts you in elite company and shows not only that you have put the time and effort into learning and studying the material, but also that your commitment to your craft is real. It’s neither cheap nor easy to get this designation, and nobody is forcing me to stay up late doing online coursework. Getting the CCIM means you are serious about the business and committed to being the best you can. That means something, not only to me, but I like to think it means something to current and future clients and prospects as well.

3)      Networking. There is a lot of networking in our business, all of it useful in some way. But networking with other CCIMs is different. Just being around CCIM designees like LeAnn Hume and Dave Winder every day in the office has made me a better broker, but being part of the CCIM Idaho Chapter has let me to several deals I wouldn’t have been a part of otherwise. It’s a unique and uniquely qualified group of people, and it’s an honor to be involved. In my short time as a part of the CCIM Idaho Chapter, I’ve been fortunate to take part in a leadership training session in Chicago hosted by the National CCIM Institute. There I saw firsthand several large deals getting started, one right here in our market, and this was just during one evening’s networking event and dinner. I can only imagine how many large deals and fruitful business relationships were formed during the other 36 hours of the conference.

The CCIM designation is the right choice for me, and my career. Hopefully I’ve given you a few good reasons as to why it might be right for you, too. 

04/22/2014

Retail: Love it or loose it

By: LeAnn Hume, CCIM, CLS, is Managing Director - Retail/Investment Specialist with Cushman & Wakefield | Commerce [email protected]

Originally published in the Boise CCIM 2014 Directory

Retail is at the center of our economy. Whether we like it or not, consumerism fuels our growth and depending on its strength can affect all other aspects of commercial real estate. I am quite certain my husband wishes I liked retail less than I do, but after 16 years of helping retailers select locations, I can’t help but support their efforts to add to our economy.

The Treasure Valley is in a very interesting position. Having the 600,000+ mark for population in our trade area, we are now on the radar for many exciting entries into the marketplace. New entries to the market mean job growth that leads to a vibrant Treasure Valley. However, once they arrive, they will need to be supported. If we continue to save a few dollars by shopping online, there is no telling what the ultimate price will be to our local economy. Online sales threaten to affect brick and mortar retail and ultimately our valley’s prosperity, unless the retailers themselves can craft a solution to get consumers back into their stores. Efforts are underway by brick and mortar retailers to utilize targeted mobile couponing and discounts with handheld devices to attract shoppers. Retailers are also scrambling to provide an experience for the consumer that keeps them away from their computers and coming into their stores.

Solid site selection, strong co-tenancy, proper merchandising and expertly negotiated leases will help those new entries to the market survive and win in the Treasure Valley. Nation-wide, the prognosis is good. Consumer confidence seems to be high with no indications of waning. The retailers thriving appear to be those on two opposite ends of the spectrum. Luxury retailers providing high quality products such as Michael Kors and Lululemon are expanding both the number of their locations and their bottom line. Also thriving are the value retailers such as Costco and Ross. Left in the cold are the middle-ground retailers such as JCPenny. The company recently announced closing 33 stores.

As residents of the Treasure Valley, we have an incredible opportunity to come together as a community to enjoy the experiences that have been provided to us for retail, food and entertainment. The Village at Meridian is bringing dozens of new retailers to the market and provides a quality family experience, while downtown Boise is thriving with this addition of several new concepts such as Ruth’s Chris Steak House, 10 Barrel Brewing Co., Bodovino, The Mode Lounge, and Swank Boutique.

We live in an incredible and special place. The ideal scenario for our future is for our market to grow and our economy to thrive, but not at the expense of our quality of life. Retailers’ growth plans are generated by consumer demand and space is subsequently created. The changing consumer will have an effect on retail space in the next decade. The opportunity for us is to continue to support those retailers and restaurants who have made an investment in our local market and who provide our residents with excellent products and service.

“Buy Local” takes on a whole new meaning when you consider the potential fallout. If we do not support our local restaurants and retailers, their presence in our market has a very good chance of either reducing or going away altogether. Whether they are local companies, regional or national – they all contribute to our economy and their success either fuels our growth or impedes new entries into the market. Although there is a part of me that resists fueling consumerism, I will continue to do my part to support the local economy while also providing sound advice to retailers on the best approach for their success when it comes to site selection and lease negotiations. 

04/17/2014

C&W Industrial Research MarketNote: E-commerce Demand Shows No Signs of Slowing

1indmarketKEY TAKEAWAY

As online retail sales in the U.S. have been on the rise for the past 15 years, online retailers have opened more and in many cases, larger distribution and fulfillment centers around the country. In terms of square feet occupied, E-commerce related tenants have seen their footprints grow at a brisk rate in recent years. In the top U.S. industrial markets, we've seen E-commerce firms account for approximately 24% of activity (leases 200,000 sf+) during the last three years.

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Cushman & Wakefield | Commerce Closes Land Sale for Joint Operations Center for County Parks Department and County Public Works

SALT LAKE CITY—April 17, 2014—Cushman & Wakefield | Commerce today announced the completion of two transactions involving the purchase of land and an industrial property to be the future home of a centralized operations center for Salt Lake County’s Parks Department and County Public Works.

Salt Lake County was represented in the two transactions by Charlie Davis, Executive Director - Industrial Sales & Leasing of Cushman & Wakefield | Commerce.

The land purchase included 15 acres located at 6350 S. Airport Road, West Jordan, Utah. The industrial transaction also included 54,000 square feet located at 6404 S. Airport Road, West Jordan, Utah.

“This transaction posed some particular challenges for the county regarding their specific needs for space, location and usage,” Davis said. “This new centralized site will allow the County to consolidate several of its operations which are now at less convenient locations. The savings in employee time and fuel resources will be significant.”

The site will include administrative offices, as well as storage for maintenance equipment, county vehicles, salt for snow removal, fuel tanks for county vehicles, and several other amenities.

Social Links to Connect with Cushman & Wakefield | Commerce: 

Twitter: http://twitter.com/comre_

Facebook: https://www.facebook.com/COMRE1

Blog: http://blog.comre.com/

LinkedIn: http://www.linkedin.com/company/commerce-real-estate-solutions?trk=tabs_biz_home

About Cushman & Wakefield | Commerce

Cushman & Wakefield | Commerce, an independently owned and operated member of the Cushman & Wakefield Alliance, has been the leading provider of real estate brokerage services for more than 30 years. Headquartered in Salt Lake City, the firm has offices throughout Utah, Nevada, Idaho and Washington. It offers consulting, brokerage, tenant and landlord representation, property and facilities management, and valuation services to corporations, institutions and investors throughout the Intermountain West and Pacific Northwest.  For more information, and for property listings, broker information, market category reports and more visit www.comre.com.  

About Cushman & Wakefield

Cushman & Wakefield is the world’s largest privately‐held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917 it has 243 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $4 billion in assets under management through its wholly‐owned subsidiary Cushman & Wakefield Investors. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.

04/02/2014

Cushman & Wakefield | Commerce Closes Sale of the Family Center at Riverdale

SALT LAKE CITY—Apr. 2, 2014—Cushman & Wakefield | Commerce today announced it has completed the sale of The Family Center at Riverdale. The offering included 427,805 square feet of leasable area located in Riverdale, Utah.

Cushman & Wakefield | Commerce represented the seller, DDR Corp. The buyer was American Realty Capital Properties, Inc.

The Family Center at Riverdale is one of the premier retail centers in Utah and is one of only a few sites in the Western United States with a SuperTarget, Walmart, Sam’s Club and Home Depot on the same site. Furthermore, of the 427,805 square feet that were included in the transaction, 96 percent of the space is leased to a remarkable line-up of retailers such as Best Buy, PetSmart, Jo-Ann Fabrics, Pier 1 Imports, Sportsman’s Warehouse and others.

“This is yet another high-profile transaction coming out of Utah that serves as a reflection of the confidence that institutional entities and other investors have in the Wasatch Front,” said Kip Paul, Executive Director of Investment Sales for Cushman & Wakefield | Commerce. “They have a desire to invest in what they see as a very stable and profitable market.”

The Family Center at Riverdale center is located at the intersection of I-84 and I-15, providing access, visibility and traffic to the property.

Social Links Connect with Cushman & Wakefield | Commerce: 

Twitter: http://twitter.com/comre_

Facebook: https://www.facebook.com/COMRE1

Blog: http://blog.comre.com/

LinkedIn: http://www.linkedin.com/company/commerce-real-estate-solutions?trk=tabs_biz_home

About Cushman & Wakefield | Commerce

Cushman & Wakefield | Commerce, an independently owned and operated member of the Cushman & Wakefield Alliance, has been the leading provider of real estate brokerage services for more than 30 years. Headquartered in Salt Lake City, the firm has offices throughout Utah, Nevada, Idaho and Washington. It offers consulting, brokerage, tenant and landlord representation, property and facilities management, and valuation services to corporations, institutions and investors throughout the Intermountain West and Pacific Northwest.  For more information, and for property listings, broker information, market category reports and more visit www.comre.com.  

About Cushman & Wakefield

Cushman & Wakefield is the world’s largest privately‐held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917 it has 243 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $4 billion in assets under management through its wholly‐owned subsidiary Cushman & Wakefield Investors. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.

04/01/2014

Industrial Research MarketNote: Strong Retail Sales Fuels Growth in U.S. Industrial Leasing Activity

IndfactKey Takeaway:

There is a strong correlation between U.S. retail sales and U.S. industrial leasing activity. Retail sales continued to rise for the fourth straight year and the wider economy continues to improve. The consumer confidence index ended 2013 at 78.1 - the strongest year-end reading since 2007. As the retail sector, including ecommerce, expands, demand for distribution space and large fulfillment centers rises. 

Click here to read the entire report

03/31/2014

Q4 Snapshot Report indicates 2013 ended as one of the strongest years ever

Cushman & Wakefield | Commerce Reports that Retail Commercial Real Estate is Booming in Boise

Id2BOISE, IDAHO—Mar. 31, 2014—Commercial real estate in the Boise metro area had a strong Q4 in 2013 according to a new report from the Boise office of Cushman & Wakefield | Commerce. The Boise area continued to outperform the U.S. economy during the latter part of 2013 and with incomes rising and a stable job market, the market is in a good position for growth.

Cushman & Wakefield | Commerce released its most recent Marketbeat Snapshot reports detailing the state of commercial real estate for the Boise office and retail markets for Q4, 2013.

“The retail market in Boise saw a lot of activity in Q4—in fact, it was one of the best years since the downturn in the market,” said LeAnn Hume, Managing Director/Retail Specialist with the Boise office of Cushman & Wakefield | Commerce. “Retail vacancy ended down for the quarter even as several new entrants joined or expanded in the market. In the office sector some high-profile construction completions including The Eight & Main Tower pushed the vacancy rate up slightly. This rise in vacancy was anticipated and will linger in the short term but continued job growth is expected to drive leasing activity.”

Boise Office Snapshot

Vacancy rates for the Boise office market ended the year at 16.6 percent. Although the overall vacancy rate increased slightly over the previous quarter, the average asking price increased by 2.7 percent. Additionally, concessions such as free rent and tenant improvements are decreasing. Meridian saw the highest level of office construction completions in the latter half of 2013, particularly the office portion of the Village at Meridian, but several other projects are also underway across the Treasure

Valley. For more details the full Office report may be accessed here: http://www.comre.com/reports/2013Reports/Idaho/Boise_Office_4Q13.pdf

Boise Retail Snapshot

Overall vacancy rates trended downward and ended Q4 at 8.1 percent. Several big-box grocery and soft goods stores entered the market and even more will follow throughout 2014. Additionally, many new brewery/restaurants opened their doors. The lifestyle portion of the Village at Meridian was completed in October2013 comprising approximately 430,000 sf of retail space.  An additional 170,000 sf of retail space is expected to be built over the next couple of years at the center. For more details the full Retail report may be accessed here:

http://www.comre.com/reports/2013Reports/Idaho/Boise_Retail_4Q13.pdf

Historical reports are available for download at:  http://www.comre.com/research.cfm.

Social Links Connect with Cushman & Wakefield | Commerce: 

Twitter: http://twitter.com/comre_

Facebook: https://www.facebook.com/COMRE1

Blog: http://blog.comre.com/

LinkedIn: http://www.linkedin.com/company/commerce-real-estate-solutions?trk=tabs_biz_home

About Cushman & Wakefield | Commerce

Cushman & Wakefield | Commerce, an independently owned and operated member of the Cushman & Wakefield Alliance, has been the leading provider of real estate brokerage services for more than 30 years. Headquartered in Salt Lake City, the firm has offices throughout Utah, Nevada, Idaho and Washington. It offers consulting, brokerage, tenant and landlord representation, property and facilities management, and valuation services to corporations, institutions and investors throughout the Intermountain West and Pacific Northwest.  For more information, and for property listings, broker information, market category reports and more visit www.comre.com.  

 

About Cushman & Wakefield

Cushman & Wakefield is the world’s largest privately‐held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917 it has 243 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $4 billion in assets under management through its wholly‐owned subsidiary Cushman & Wakefield Investors. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.

03/28/2014

Data point to strong, continued retail growth

Rick Newton, Director - Retail/Land/Investment, Cushman & Wakefield | Commerce

Originally published in The Enterprise, March 24-30, 2014

While major retailers across the country continue to close multiple locations, new data from Cushman and Wakefield Commerce point to overall growth in the retail sector. Locally a 752,321 square feet absorption of existing space points to a healthy retail environment.

With limited new construction in Utah in 2013, vacancy rates declined approximately 2 percent, leaving an overall vacancy rate of 6 percent. The low vacancy rate also pushed lease rates up 3 percent in 2013. 

Announced projects point to increased construction in 2014 that will bring retail growth back in line with long-term averages. Several grocers and dining businesses are planning new construction in this market. Although this new construction will slow vacancy rates' decline, vacancy rates will continue to remain at or near their current levels. This will continue to put upward pressure on average asking rates.

Utah is seeing growth in quick serve/fast food outlets in strategic areas. This growth includes established brands as well as brands that are new or relatively new to this market, like Dunkin’ Donuts and Popeye’s. Zaxby’s, a chain that specializes in chicken, has announced that it will open 18 Utah locations. There is also a growth trend in the fast casual category, with tenants looking for drive-through capabilities as an avenue of growth. These retailers include Little Caesar’s, Panda Express and Jimmy John’s. 

Smith’s Marketplace will add a new store in West Jordan and Walmart will continue its expansion of the Neighborhood Market concept with a new store in Magna, as well as other locations in Utah. Sprouts will open a location in Cottonwood Square in Holladay and will start construction on a new property at 11400 South and State in South Jordan.

Nationally, retail sales have been improving, with 4.2 percent growth in 2013 from the previous year. Over the same period, the Consumer Price Index increased only 1 percent, which indicates that the majority of growth in retail sales is coming from increased purchasing and consumer confidence and not from increased pricing. 

While some retailers are struggling, specialty retail is strong and expanding. Forever 21, H&M and Uniglo, which cater to the young and hip, are benefitting from product versatility, good price points, strong market appeal and operating efficiencies. Dollar General, Dollar Tree and Family Dollar, which together operate some 22,000 stores, are expected to open approximately 1,300 stores in 2014, divided among the three chains. GameStop is predicting 80 new stores, GNC has announced 180 new locations and Starbucks will open 600 new locations.

2014 will also bring an increased flexibility in the size and shape of retail footprint. Co-locating and branded “mini-stores” will increase. Samsung and Microsoft are both planning to open “mini-stores” inside of Best Buy locations this year.

Grocery is also a growing market. Walmart is targeting 180 new stores of its grocery concept. Supervalu and WinCo are planning to open stores in strategic locations. Specialty grocery store chains Whole Foods and Trader Joe’s continue to thrive and open new locations.

Retailers, whose brick and mortar locations have felt the pinch of online retail, are looking at ways to reduce footprints while maximizing efficiency and increasing online retail presence. Businesses are constantly working to remain agile in today’s marketplace.

Another category that is doing well is casual dining. This type of businesses continues to be robust. These businesses, which offer a specialized, “quality” experience, are not affected by online retail growth in the same way that other retail businesses are.

Even with the growth in retail sales, many U.S. retailers will find themselves with far too many stores than needed on a per capita basis. Retailers in the United States carry significantly larger footprints of square feet per person than counterparts in other parts of the world. The International Council of Shopping Centers reports that shopping mall space per capita in the U.S. has reached 23.8 square feet per person. This compares with five square feet per person in the U.K., 3.9 square feet per person in Japan and 2.7 in Germany. The larger footprints in the U.S. will continue to keep competition among mall retailers very keen.


 




03/26/2014

Cushman & Wakefield | Commerce Seattle Office Promotes Steve Brunette

SEATTLE—Mar. 24, 2014—The Seattle branch of Cushman & Wakefield | Commerce has promoted Steve Brunette to Senior Director.

As part of the Investment Advisory Group, Brunette specializes in assisting clients with real estate acquisition, disposition and financing needs. With more than 15 years in the industry, he also has experience in leading a variety of investment strategies as a consultant, asset manager and acquisitions officer.

Brunette holds a Bachelor degree from the University of Washington and an MBA from the University of Notre Dame. He is licensed as a real estate broker in the state of Washington and was designated as a certified commercial investment member (CCIM) in 2001.

Social Links Connect with Cushman & Wakefield | Commerce: 

Twitter: http://twitter.com/comre_

Facebook: https://www.facebook.com/COMRE1

Blog: http://blog.comre.com/

LinkedIn: http://www.linkedin.com/company/commerce-real-estate-solutions?trk=tabs_biz_home

About Cushman & Wakefield |Commerce

Cushman & Wakefield |Commerce, an independently owned and operated member of the Cushman & Wakefield Alliance, has been the leading provider of real estate brokerage services for more than 30 years. Headquartered in Salt Lake City, the firm has offices throughout Utah, Nevada, Idaho and Washington. It offers consulting, brokerage, tenant and landlord representation, property and facilities management, and valuation services to corporations, institutions and investors throughout the Intermountain West and Pacific Northwest.  For more information, and for property listings, broker information, market category reports and more visit www.comre.com.  

About Cushman & Wakefield

Cushman & Wakefield is the world’s largest privately‐held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917 it has 243 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $4 billion in assets under management through its wholly‐owned subsidiary Cushman & Wakefield Investors. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.

Timely, relevant updates and reports on the economy and commercial real estate world, with focus on the Utah, Nevada, Washington and Idaho markets.

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