In the summer of 2008 the number of jobs in Utah peaked at 1.26 million; an all-time high. What followed has been well documented: a loss of 70,000 jobs in two years and an unemployment rate spiking to 8.0%; the highest level since the 1930s Depression. Six percent of the jobs in the Utah labor market vanished over 24 months. It took a little over four years for the Utah labor market to get back to its pre-recession employment level. By the fourth quarter of 2012 the number of jobs in Utah exceeded the pre-recession peak. A side note, if the Great Recession could have been avoided and Utah had average rates of job growth during 2008-2011 period the number of jobs in 2014 would likely be about 13% higher – 175,000 jobs.
KEY TAKE AWAY
An improving job market is one of the driving forces behind a rebound in American consumer confidence, but perhaps the biggest current factor in the consumer confidence boost is the declining price of gas. The pace of job growth accelerated notably in 2014 and the country capped its strongest year for job creation since 1999, while across the country retail prices for regular grade gasoline reached the lowest levels in four years. U.S. GDP growth is expected to accelerate to at least 3.3% in 2015, and possibly higher, as rising consumer and business confidence leads to faster employment and income growth and stronger increases in spending.
Boise—January 12, 2015—Cushman & Wakefield | Commerce today announced that Tim Reid has been promoted to the position of Market Leader for the Idaho region. Reid will, in this new position, be responsible for growing Cushman & Wakefield | Commerce’s market share across all services for investors, owners and occupiers.
LAS VEGAS—Jan 7, 2015—The Las Vegas office of Cushman & Wakefield | Commerce today announced that Global Industrial Distribution of New York has signed a lease for a 464,203 square foot speculative industrial building in the Prologis Las Vegas Corporate Center at 3700 Bay Lake Trail, North Las Vegas. The Las Vegas industrial team at Cushman & Wakefield | Commerce, Danielle Steffen, Art Farmanali, SIOR and Amy Ogden represented the Tenant.
As the year comes to a close, it provides a chance to look back on what we learned last year and look ahead to what the events of 2014 might tell us about 2015. So this week we will do a modified top 10 list consisting of the top five surprises of 2014 and the top five expectations for 2015.
Anyone in the forecasting business knows that almost as soon as a projection has been made, something will happen to change the environment. Such was the case in 2014 when there were several unexpected events, and some expected events that did not take place.
From 1970 to 2010 the number of households in Utah increased at an annual growth rate of 2.6 percent. This rat of growth nearly matches the average annual increase in the inventory of occupied housing units in Utah of 2.7 percent. Long-term, the increase in households equals or nearly equals the increase in occupied housing units. Of course, in the short-term, annual increases may vary significantly from the long-term trend. For example, in 1977 new residential construction increased the housing inventory by almost six percent in a single year. And the years on either side of 1977 also had very high rates of new construction. This overbuilding in the lat 1970s contributed, in part, to several years of below average home building the 1980s and very weak housing prices. Over the 1980s housing prices in Utah increase by only 15 percent compared to 60 percent nationally.
How can companies win the war for millennial talent?
Millennials already make up almost 40% of the workforce and are on pace to hit 75% by 2025, leading business leaders across all industries to ask: “How do we win the war for millennial talent?”
Addressing these concerns, C&W Global Business consulting recently released a research report tackling what it takes to attract, engage, and retain millennials, including insights on how they approach the employee experience and view real estate and facilities. The best organizations will be proactive in addressing these changes, crafting workplace and location strategies designed for consumers of space, not users of space.
BOISE, ID—Dec. 10, 2014—The Boise office of Cushman & Wakefield | Commerce today announced several successful 2014 sale and lease transactions negotiated on behalf of clients in the Boise market. The volume of transactions is indicative of the growing and improved market conditions in Idaho.
“This year, the Boise commercial real estate market has kept pace with the overall robust U.S. economy,” said Tim Reid, Managing Director at Cushman & Wakefield | Commerce. “We can expect to see new entrants in the market as more national firms realize the strength of the Boise economy, with the resulting inflow of investment continuing to fuel growth in the market.”
With the U.S. Thanksgiving holiday this week, it’s a great time to look back over the past year from an economic and real estate perspective to focus on five reasons to be thankful.
-The U.S. is the largest, strongest, most dynamic economy in the world
-The U.S. real estate market is in the sweet spot
-The Millennials’ dynamic impulse
-Energy and technology are driving employment, the economy and real estate markets
American consumers have not increased spending in the current expansion as rapidly as in previous economic upturns. But that appears likely to change in the coming year. A combination of tighter labor markets, which should lead to higher wages, rising employment, and increasing optimism are expected to lead to growth in consumer spending at the fastest pace of the recovery so far. The year 2015 should be the year of the consumer.
Cushman & Wakefield Research has released its 2015-2016 Global Office Forecast. The report tracks current and anticipated Class A office market trends in The Americas, Asia Pacific and Europe.
From a global perspective, 2014 was a stronger year for the office real estate sector, with many markets heading into 2015 on solid footing. Of course, some markets in or near areas of political instability and those with stalled economic growth continue to struggle; but overall, things are in better shape than they were 12 months ago.
Traditional “bricks & mortar” retailers continue to respond to competition from online retailers through a wide array of strategies, including, of course, their own online ordering and fulfillment offerings, but increasingly finding ways to leverage their physical retail stores for online order fulfillment. The ship-from-store (SFS) distribution strategy allows ‘traditional’ retailers to fulfill e-commerce orders from local retail stores instead of their warehouses and distribution centers.
SALT LAKE CITY—Nov. 6, 2014—Cushman & Wakefield | Commerce has published its third quarter 2014 Marketbeat Snapshot reports outlining the state of the commercial real estate market in Salt Lake County. Several remarkable trends have emerged that highlight the extraordinary strength of the Utah commercial real estate market. The following are the top five take-away trends from the Q3 2014 Marketbeat Snapshot reports:
The U.S. economy has shifted to a higher growth trajectory over the past year. Recently released economic reports suggest that this stronger growth will be sustained in 2015, which we expect to be the best year for the U.S. economy since 2004. Commercial real estate markets across the country are beginning to reflect this improving environment and we expect the coming year to see healthy performances across all property types. We are now in the sweet spot in the commercial real estate cycle.
The Association of American Railroads (AAR) has reported a 4.5 percent increase in total combined traffic for the first 40 weeks of 2014 when compared to the same period in 2013, with a total volume of 21,976,509 carloads and intermodal units, driven by coal (39.5%) and chemicals and allied products (10.0%). Additionally, a total of 59.6 million square feet (msf) have been leased year-to-date in rail-served properties across the country, on pace to meet the five-year average for leasing activity in rail-served parks of 70.3 msf. We expect these numbers to rise in coming years due to increased demand for rail-served facilities.
There can be no doubt that sustainable real estate practices have become commonplace for any occupier that leases, owns, or operates corporate facilities. While the emphasis placed on sustainability varies by organization, and is often tied to larger enterprise goals and objectives, a discussion about corporate social responsibility (CSR) takes place with almost every occupancy decision made today. Businesses large and small realize the benefits of being “Green.” They know that reducing energy use can translate into real cost savings and projecting an environmentally responsible image enhances their brand. But, how are today’s corporations approaching sustainability from an organizational perspective? And, how is being “green” impacting their business and real estate policies?
In retrospect, the rapid run-up in retail sales in Utah prior to the Great Recession was evidence of the growing debt load of Utah households. At the time, increases in retail sales were far outstripping gains in wages or incomes. The nearly $6 billion increase in retail sales in four years (2003-2007) was financed in large part by generous lenders extending credit to Utah households. Household debt exploded between 2000 and 2007. Nationally household debt jumped from $7 trillion to $14 trillion during this seven year period. It is safe to assume that Utah households participated in like manner and doubled their debt prior to the recession. Using all manner of credit – revolving credit, installment loans, lines of credit, and home equity loans – households financed higher standards of living and pushed retail sales to an all-time high in Utah of $27 billion in 2007.
This report takes a look back at seven predictions about industrial real estate, the impact of e-commerce, shifting consumer behavior, the reshoring of manufacturing, and the shifts in facility location and design.
We assess how closely the industry has tracked according to predictions and continuing forecasts, and we highlight the trends that are worthy of continued consideration as companies address their supply chain strategies.
The discovery of oil in Utah dates back to 1850 when Captain Howard Stansbury found evidence of oil while surveying the north shore of the Great Salt Lake. Over the next 100 years there were many other discoveries of minor oil seeps, along with wildcat drilling, from Green River (1891), to Mexican Hat (1909), Moab (1925), and north end of Redwood Road (1926), but no major discoveries were made until 1948. Equity Oil Company of Utah struck oil in 1948 in the Uintah Basin (Duchesne and Uintah Counties) in the are now known as the Greater Altamont/Bluebell field.
In the early age of e-commerce, the concept of sales tax nexus posed interesting considerations and questions for online sales distribution center site selection. This has also fueled much debate in the retail sector, as traditional bricks and mortar retailers raised concerns that e-commerce companies held an unfair advantage in their ability to sell goods to some customers without charging state sales tax, depending on where the seller had located their DC.
Las Vegas—Oct. 14, 2014—Cushman & Wakefield | Commerce today announced it has been awarded the leasing assignment for Pawn Plaza in Las Vegas, Nevada. The new retail project will be located along Las Vegas Boulevard next to the World‐Famous Gold & Silver Pawn Shop, home of History’s No. 1 show, “Pawn Stars.”
In conjunction with ICSC’s Western Division Conference in San Diego, below is a snapshot of retail real estate performance in major Western markets.
The University of Michigan Consumer Sentiment Index rose to 84.1 in early September, the highest in a year. Spending on food services and hotels is up. Retail sales in August showed a healthy increase. And perhaps no U.S. region is benefiting more from the continued improvement of the economy and consumer spending than the Western U.S.
Traditionally, build-to-suit (BTS) construction has made up a smaller share of total industrial deliveries – in the five years prior to 2007, the percent of BTS was about 34% on average. But from 2010 to 2012, because very few developers risked speculative projects, BTS projects comprised the majority of deliveries, reaching a peak in 2011 at 85% of all new construction. Although spec construction has returned, changing dynamics of the economy and unique demands users have for specialized facilities have sustained BTS construction.
Seattle, WA—Sept. 29, 2014—Cushman & Wakefield | Commerce today announced that Governors Point, a one-of-a-kind waterfront estate property with more than 125 acres, is officially on the market for the first time in more than 50 years. Gary Danklefsen, Steve Brunette and Evan Olson from Cushman & Wakefield Commerce have listed the property, with advisory services provided by The Land Group.
Las Vegas—Sept. 29, 2014—Cushman & Wakefield | Commerce today announced that Michael Dunn has been promoted to the position of Market Leader for the Las Vegas office. In this new position, Dunn will be responsible for growing market share for Cushman & Wakefield | Commerce across all services for both investors and occupiers.
The last time the Federal Reserve made any change to its interest rate policy was in late 2008 when the central bank dropped the federal funds rate to a record low. Now, six years later, the Fed has set the stage for higher interest rates. It is likely that the Fed will begin to raise interest rates during the first half of 2015. The timing and extent of the interest rate increases will depend on how the economy performs over the next several months.
Anxiety about consumer spending is misplaced. Revised retail sales data indicate that consumer spending in the U.S. is rising steadily. Although there are some concerns about the ability of consumers to increase spending because of slow wage growth, several indicators suggest wage growth is about to accelerate. As a result, we remain confident that consumers will continue to increase spending at a healthy clip, which will boost the need for both retail and industrial space in the coming year.
In the last four years, the natural gas shale drilling boom has produced a glut of inexpensive fuel, leading producers to argue that the commercial transportation industry should shift from its dependence on imported oil to domestically produced natural gas. While the near-term costs and infrastructure challenges are impediments to natural gas adoption, the long-term benefits to the transportation industry may make it a reality.
BREAKING THE MOLD
If you walked into a typical office building 10 years ago you would most likely have seen perimeter offices surrounding a sea of cubicles. Today there are a number of successful companies who have broken this mold. Companies are changing in response to the needs and wants of their employees who no longer see achieving the corner office as the epitome of success.
Salt Lake City, Utah—Sept. 10, 2014—Cushman & Wakefield | Commerce today announced it has brokered a new lease for Landmark Home Warranty at Riverpark 2, 10701 S. Riverfront pkwy in South Jordan, Utah.
KEY TAKEAWAY: U.S. Unemployment and Labor Challenges for the Industrial Sector
The U.S. economy is slowly improving. The jobless rate in many metropolitan areas has fallen below the 5.2% to 5.6% level that the Federal Reserve regards as full employment nationally. Industrial sectors are leading the way in many of these markets, generating a large share of new jobs the past several quarters. While the job creation is good news, several workforce and demographic trends may threaten the health of the industrial labor pool long term.
Boise, Idaho—Aug. 27, 2014—The Boise office of Cushman & Wakefield | Commerce released its Marketbeat Snapshot reports for Q2 of 2014. The reports detail the commercial real estate activity for the office and retail markets in the Boise area.
“Boise is beginning to see tremendous interest from larger tenants due to its educated work force, high quality of life, and new, aggressive tax incentives,” said Tim Reid, Managing Director of the Boise office of Cushman & Wakefield Commerce and Office / Investment Specialist. “Looking forward, we expect continued job growth in the Boise market, which will fuel the office market and increased revenues will also drive the retail market, which should continue to see a drop in vacancy rates through the end of the year.”
Broad-Based Economic Growth – All major employment sectors of the Utah economy have grown in the past 12 months, with the exception of federal government employment which is unchanged. In May employment growth in Utah was 2.9 percent, an increase of 37,400 jobs. Year-over May employment in Utah’s construction sector increased by 7.3 percent, adding 5,400 jobs. Construction was the top ranked sector in terms of percent change and also ranked first among all major sectors in numeric change. The 3.2 percent increase in manufacturing (3,800 jobs) is encouraging. The growth in health services has slowed to only 2.5 percent.
By: Tim Reid, Managing Director – Office/Investment Specialist, Cushman & Wakefield | Commerce
The impact of new Tax Reimbursement Incentive on commercial real estate could be greater than many realize.
First, let’s look at the TRI itself. As of July 1, companies that bring to Idaho new value-added jobs may be eligible for a tax reimbursement of up to 30 percent of their payroll, sales and income taxes for a negotiated period of up to 15 years. Depending on the size of the company and the number of employees, the TRI could be extremely significant in terms of dollar savings and could mean the difference between hiring the right people to grow the company or not! To qualify, companies must create at least 50 jobs in an urban setting or 20 in rural areas with wage levels above the county average.
Las Vegas—Aug. 25, 2014—The Las Vegas office of Cushman & Wakefield | Commerce released its Marketbeat Snapshot reports for Q2 of 2014. The reports detail office, retail and industrial market commercial real estate activity in the Las Vegas area.
The vacancy rate for apartments in Salt Lake County is currently 3.0 percent. One year ago the rate was 3.9 percent. The rental inventory of Salt Lake County is nearly
“fully occupied.” The 3.0 percent vacancy rate in 2014 is the lowest rate in 13 years of rental market surveys.
Rental rates have increased by nearly 2.0 percent over the past year. The combined average rental rate for all types of units is $865. The average rental rate for a two
bedroom two bath unit is $983.
The U. S. economy appears to have finally transitioned to a period of stronger growth that will likely be sustained over the next 12 to 18 months. Job creation was much stronger than expected and the economy added 288,000 jobs in June. U.S. factory output rose for the sixth consecutive month in July and over the past 12 months, manufacturing has risen 4.9%. Similar to the recent positive trends in the broader economy, the U.S. industrial sector also accelerated in the second quarter. Net demand remained strong and is on track to surpass last year’s total, with 95.7 msf of occupancy gains at mid-year. The Midwest region led the way with 22.7 msf of occupancy gains, followed by the West region with 20.9 msf.
SEATTLE—Aug. 19, 2014—The Seattle office of Cushman & Wakefield | Commerce released its Marketbeat Snapshot reports for Q2 of 2014 today. The reports detail the commercial real estate activity for the Seattle and Bellevue markets.
“We’re seeing a lot of cranes along the skyline and activity is heating up, particularly on the Eastside,” said Dave Magee, Market Leader for the Cushman & Wakefield | Commerce Washington Region. “Development companies are prepping land for construction and the race is on to build office space in the Bellevue area. Competition for space in Seattle is also on the rise and the market is expected to respond with increased lease rates looking forward.”
Investment activity in the commercial real estate market is back in vogue after the difficult years following the market crash. Cushman & Wakefield | Commerce reported that global investment activity totaled $1.18 trillion in 2013, its highest amount since 2007 and a 22.6 percent increase from 2012. We spoke with Las Vegas-based Geoffrey West, senior director of investment properties at Cushman & Wakefield | Commerce and veteran of more than 17 years experience in commercial real estate lending and brokerage, about the trends and the factors converging to drive this resurgence in commercial real estate investments.
Seattle—August 11, 2014—Cushman & Wakefield | Commerce today announced that Dave Magee has been promoted to the position of market leader for the Washington region which includes the offices in Seattle and Bellevue, Wash. In this new position, Magee will be responsible for growing Cushman & Wakefield | Commerce’s market share across all services for both investors and occupiers.
The Central Business District (CBD) is bound by North Temple and 400 South to the north and south and 250 East and 250 West to the east and west and is primarily made up of larger buildings in the urban core. Historically the CBD has been a hot bed for attorneys, insurance agencies and financial institutions, but over the past couple of years has begun to see a transition into additional trades, local amenities and transportation, making the CBD more accessible.
Several major indicators were released this week and they all indicate that the U.S. economy has shifted into high gear. That’s great news for the commercial real estate sector as more employment and stronger consumer demand will lead to greater demand for all forms of commercial real estate. Strong momentum going into the second half of the year is expected.
Retail sales in Utah are slowly recovering. Sales peaked at almost $30 billion in 2007, then plummeted over the next 24 months by $8 billion – a 25 percent decline. The contraction was led by the collapse of auto and truck sales, which dropped from an all-time high of 115,000 vehicles in 2007 to 66,000 in 2009. fittingly, it is auto and truck sales that are leading the recovery. This year auto and truck sales are expected to hit 113,000 vehicles with a value of $5.6 billion. Vehicle sales typically account for about 20 percent of all retail sales in Utah. General merchandise captured nearly 25 percent of all sales in 2013.
How does the cost of living in Utah compare to other states? This is an often asked question with no official answer. But now “for the first time…businesses considering relocating or establishing new plants have a comprehensive and consistent measure of differences in the cost of living and the purchasing power of consumers nationwide.” This quote is from a press release of the Bureau of Economic Analysis (BEA), U.S. Department of Commerce April 24, 2014. The BEA has developed regional price parities (RPPs) which measure geographic differences in the price levels of consumption of goods and services relative to the national average. That is, RPPs measure the differences in the price levels of goods and services across states and metropolitan areas.
Seattle—July 30, 2014—Cushman & Wakefield |Commerce (www.comre.com), today announced it has been selected to broker the sale of the PEMCO Block, which has served as the company’s headquarters for over 30 years. PEMCO, which has been both an iconic and active fixture in the South Lake Union area for decades, will sell the property and lease it back until the company completes its relocation to a new local headquarter location. The company continues its commitment to the Seattle and greater South Lake Union areas as it finalizes its search for a location that better meets its current and future needs.
The shift to a stronger growth trajectory for the U.S. economy will be driven by rising business confidence. As U.S. businesses shift from defense to offense they are taking more risks and increasing hiring. This is expected to boost economic growth sharply in the second half of 2014 and in 2015.
Park City, Utah—July 29, 2014—Cushman & Wakefield | Commerce today announced the sale of the historic 4,700 square foot, 591 Main Street building in Park City, Utah.
The seller was Meyer Crest, Ltd. of Berkley, Calif. The transaction was negotiated on behalf of the seller by Steve Hooker, Director at Cushman Wakefield | Commerce. The buyer was PCMAIN LLC of Park City, Utah.
After five years of tepid growth, the U.S. economy is finally busting out. The next year and a half or so should be the strongest of the expansion so far. The key is business confidence, which is setting post-recession highs. The result will be the best environment for commercial real estate leasing markets since 2006/2007.
New report available from CIS. Do the business opportunities in emerging markets outweigh the increasing risks?
As John Santora, President & CEO of CIS, points out that today’s emerging markets present enormous opportunities for both Occupiers and Investors, yet they also come with significant business, political, and security risks.
Ray Kelly, President of Risk Management Services, highlights the need for companies to have adequate security plans that address their physical assets and employees.
Foreign direct investment in Mexico reached a record high in 2013 with $35.2 billion being invested in the country. The amount is 178% higher than the $12.7 billion recorded in 2012. Mexico is having its largest economic change in the last 20 years. The successful reforms agenda will open up Mexican industry to a level never seen before and boost the Mexican economy. This is attracting many big industrial investments that will increasingly take advantage of lower logistics costs driven by the energy and telecomm reforms, further increasing the high quality and very cost effective labor market they currently enjoy.
-Covers office developments recently completed, under construction and proposed in Seattle proper
-3D shading to expected development height
-Aggregate SF for each classification
The U.S. economy added 288,000 jobs in June, making it the fifth consecutive month that employment growth has exceeded 200,000. This marks the first time since 1999-2000 that the U.S. economy has generated such sustained strong job growth. The economy has entered a new stronger growth phase that will likely last through 2014 and into 2015. For the first time in this recovery, the U.S. economy is running on all cylinders. This is great news for the commercial real estate sector.
Seattle—July 8, 2014—Cushman & Wakefield | Commerce today announced that 20-year veteran, Edward Turpin, has rejoined the Seattle office as a director where he will focus his efforts on the leasing and sales of industrial properties in Kent Valley.
The expansion of The Panama Canal is due for completion in early 2016, allowing the passage of much larger “Post-Panamax” ships and essentially doubling the volume of cargo that can be moved through the Canal. These larger ships will allow cost savings for shipping, but will place greater demands on ports on the U.S. Atlantic and Gulf Coasts. Terminal facilities and channel depths, as well as other infrastructure improvements, have been on the agenda for many of these ports, with ports from New Jersey to Brownsville, TX preparing to compete for increased volume and changing trade patterns brought by the Canal’s expansion.
.SALT LAKE CITY—July 7, 2014—Cushman & Wakefield | Commerce today announced that it has closed on the first acre of land in Heber, Utah that was previously home to the Wasatch High School.
WAITING ON SPENDING
One of the biggest disappointments thus far in the economic recovery has been the reluctance of consumers to open up their wallets. Consumer spending accounts for roughly two-thirds of the demand in the U.S. and it has increased at the slowest pace of any recovery. After nearly 5 years of expansion, consumer spending has increased only 2.2% per year, slightly more than half of the 3.9% average gain in the four previous economic recoveries. Three economic reports this week highlighted the impact of consumers, as well as the vulnerability of the current economic expansion and, at the same time, its potential.
The declining value of the Canadian dollar could mean better days ahead for Canada’s manufacturing sector. Canadian manufacturers have historically benefited from a weaker Canadian dollar, allowing them to be more competitive internationally. With roughly 75% of Canada’s total exports going to the United States, increased demand from a strengthening U.S. economy could not come at a better time. The globalization of manufacturing has created fierce competition and many manufacturing operations have closed shop in Canada, only to relocate to the U.S. or Mexico where unions are weaker and wages relatively low.
Does the war for talent top your agenda?
There is a constant buzz around the war for talent. Today’s leading corporations compete fiercely for professionals who can produce new and innovative ideas and create a competitive edge. Now more than ever, real estate has a role in assisting the corporate enterprise with recruiting, retaining, and engaging talented labor. Whether through workplace designs that help foster collaboration, amenities that enhance work/life balance, or locations that draw the right professional demographics, real estate’s role in the talent war is increasingly important.
ST. GEORGE—June 16, 2014—Cushman & Wakefield | Commerce congratulates Travis Parry, Senior Director of Industrial and Investment, for achieving the SIOR industrial designation, which is awarded by the Society of Industrial and Office REALTORS®. SIOR is a Washington, DC-based international professional organization of more than 3,000 commercial real estate professionals, 2,800 of whom have earned the coveted SIOR designation.
The North American industrial sector can be characterized as showing steady growth. In the U.S., many markets reported historic performance in market fundamentals such as vacancy rates, new construction and pricing.
BOISE, ID—June 10, 2014—The Boise office of Cushman & Wakefield | Commerce welcomes retail specialist, Mallisa Jackson.
BOISE, ID—June 3, 2014— Jennifer McEntee, CCIM, an esteemed commercial real estate professional, has joined the Boise office of Cushman & Wakefield | Commerce as a Director where she will provide her clients with all aspects of commercial property transactions from quality contractual documentation to financial analysis and marketing.
There are a number of extremely successful companies who have broken the mold. These companies lead by knowing how their workforce is changing and what office environments will be best suited to their company’s culture and their employees. This revolution is now being picked up by more mainstream companies. What is this revolution and what impact will it have on the design and construction of new office space?
Professionals in the Cushman & Wakefield | Commerce Boise, Idaho office give market updates on all sectors of the commercial real estate industry.
Improved market fundamentals and tight vacancies continue to increase the amount of new construction across the U.S. with over 119.5 msf under construction at the end of the first quarter, up 83.0% compared to the same period a year ago.
LAS VEGAS—May 28, 2014—Cushman & Wakefield | Commerce (www.comre.com) released its Q1, 2014 Marketbeat Snapshot reports outlining the state of commercial real estate in the Las Vegas region.
Cushman & Wakefield | Commerce today announced that Todd Taft has joined the company as a Regional Operations Manager for Asset Services.
BOISE, ID—May 27, 2014—The Boise office of Cushman & Wakefield | Commerce welcomed Jake Miller as an associate on its Industrial team in the Boise area.
The effect the credit crisis and global recession has had on shopping center development has been apparent across the world. There can be absolutely no doubts now that the retail development landscape has changed to varying degrees depending on geography over the last few years. This is not likely to alter significantly in the near future as shopping center owners and developers grapple with the challenges of integrating an increasingly competitive virtual world, where technology is driving a structural change in the retail market and how shoppers want to shop.
BOISE, ID—May 20, 2014—The Boise office of Cushman & Wakefield | Commerce today announced that Shelley Wallace has joined its ranks as an office specialist. Wallace will specialize in the leasing and selling of office properties, representing landlords and tenants as well as buyers and sellers.
SEATTLE—May 14, 2014—The Seattle office of Cushman & Wakefield | Commerce released its Marketbeat Snapshot reports today detailing the Seattle and Bellevue areas’ commercial real estate market status.
SALT LAKE CITY—May 14, 2014—Cushman & Wakefield | Commerce (www.comre.com) released its Q1, 2014 Marketbeat Snapshot reports outlining the state of commercial real estate in Utah including reports for the office, industrial, investment and retail markets.
After the steep decline in output during the Great Recession, the U.S. manufacturing sector has been slowly recovering. The U.S. employment and real estate fundamentals in the manufacturing sector improved over the past three y ears as companies moved to re-shore and on-shore activities from emerging markets. The shift has led to a boost in manufacturing employment and a return to positive gains in absorption levels.
SEATTLE—Apr. 23, 2014— The Seattle branch of Cushman & Wakefield | Commerce has added Will Carroll to its roster as an associate. He will primarily conduct tenant representation in Seattle.
From 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.
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.
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.
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.
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 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.
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.
BOISE, 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.
While major retailers across the country continue to close multiple locations, new data from Cushman & 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.
The Seattle branch of Cushman & Wakefield | Commerce has promoted Steve Brunette to Senior Director.
The expansion of the Salt Lake International Airport will be one of the largest construction projects in Utah’s history. The 10 year project has an estimated cost of $1.8 billion. Big-D Construction/Holder Construction was awarded the construction contract in October 2013.
The average footprint of warehouse & distribution buildings has been steadily increasing. National retail tenants continue to re-evaluate their warehousing needs in response to the rapid growth of E-Commerce. The national average square footage of warehouse & distribution buildings constructed since 2000 is more than double the size of the inventory built prior to 2000. Since 2007, that average footprint increased even more by 27%.
SALT LAKE CITY—Mar. 12, 2014—Cushman & Wakefield | Commerce today announced that a team of its brokers has completed the sale of 222 Main; a Class A, trophy office tower which is widely considered the finest office property in Salt Lake City.
With 426,657 square feet, the sale of this landmark building is the largest single-asset sale in the history of the state. 222 Main was sold by Chicago-based Hamilton Partners, who developed the property, to KBS of Newport, Calif., which is one of the nation’s preeminent buyers of commercial real estate and structured debt investments. KBS has completed approximately $30.0 billion in transactional volume since its inception in 1992.
March 11, 2014—Cushman & Wakefield | Commerce today announced the sale of the class “A” office building, home to Rossignol USA in Park City, Utah.
The seller was Cottonwood Newpark Two represented by Janet West of Sage Realty and Kip Paul of Cushman Wakefield | Commerce. The buyer was Newpark Two Property Owners led by local real estate investment group, Cassis Capital Partners. Tim Anker, Managing broker for the Park City Office of Cushman Wakefield | Commerce and Brieona Pappas negotiated the transaction on behalf of the buyer.
This edition of “3 Things to Know” touches on manufacturing location trends as moving production to countries with cheaper labor is no longer a given and “right shoring” involves the consideration of several variables.