Archive for the ‘EDITORIAL’ Category:

Industrial becomes particularly attractive north of the strip



By Amy Ogden – Director, Cushman & Wakefield | Commerce and Danielle Steffen – Director, Cushman & Wakefield | Commerce

The Southern Nevada industrial market has continuously seen improvement through the second quarter of 2015 with a positive absorption of 878,151 square feet. The overall vacancy rate followed suit and decreased to 8 percent – down 2.1 points from the 12 previous months, which ended at 10.1 percent. The asking lease rates also increased to an average of $6.38 – up almost 10 percent in the fourth quarter of 2014 when it stood at $6.16.

It’s about more than who you know – Boise commercial real estate


By: DJ Thompson, Associate – Office Specialist, Cushman & Wakefield | Commerce

We’ve all heard of the term “six degrees of separation.” Well, in Boise this phenomenon is more like one degree. Because of this fact, everyone knows a real estate agent or is one degree from knowing one.

Seattle’s CBD Gains in Popularity with Office Users


By Matt Christian, Executive Director, Cushman & Wakefield | Commerce

The Seattle office market has been a shining example of strength and solidity. Compared to the U.S. job rate, which expanded by 2.4 percent over the past year to drop the unemployment rate to just 5.5 percent, the Seattle-Tacoma-Bellevue Metropolitan Statistical Area is looking good. Seattle added jobs at a rate of 3.1 percent in the first quarter of 2015. It also saw employment gains in every category. The unemployment rate remained in line with the U.S. rate at 5.5 percent. Construction led all job sectors with 12.6 percent growth, followed by professional and business services at 4.2 percent.

Keeping Up with Investment Demand in the Treasure Valley


By: LeAnn Hume, CCIM, CLS, is Senior Director – Retail/Investment Specialist with Cushman & Wakefield | Commerce

If i had to pick the term most used in commercial real estate in the past 18 months, it would be “cap rate.” What is cap rate and what is its impact in terms of today’s commercial real estate market? It takes years of experience to truly be versed in cap rate as it relates to commercial real estate. Simply put, cap rate is the relationship between Net Operating Income on a property and the value of that asset. NOI/Value = Cap Rate.

Record Visitors Boost Retail in Las Vegas


By: Dan Hubbard, Director – Retail, and Todd Manning, Senior Associate – Retail, Cushman & Wakefield Commerce

It is great to be in Las Vegas and witness the city’s strong recovery from the economic lows of a few years ago. Exciting projects like the $500-million LINQ entertainment and retail promenade, the 1.6-million-square-foot Downtown Summerlin lifestyle center and the market’s first IKEA, now under development, are filling the region with promise.

Grocery Tenants Drive Salt Lake City’s Retail Market


By Nick Clark, Director – Retail Associate, Cushman & Wakefield | Commerce

The retail market in Utah continues to build steam and has expanded over the past 12 months. With these gains, tenants are in abundance and new construction is on the rise. Vacancy continued to improve through 2014, as the overall vacancy rate declined by 0.7 percentage points on a year-over-year basis to end at 6.2 percent. This represents the lowest vacancy rate of the past decade. With supply constrained and demand improving, average asking lease rates jumped by 9 percent on a year-over-year basis, to $18.98 per square foot. New construction continued across the valley, with 548,577 square feet of space added to the market.

Economic Growth Means Demand for Workspace


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.

Scotsman Guide Q&A with Geoffrey West: Investments are on the Rise


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.

Real Estate Focus – There is an office space revolution in progress

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?

In pursuit of the CCIM designation

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: Love it or loose it

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.

Data point to strong, continued retail 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.

Reshoring: The Return of Opportunities

Reshoring – that is, U.S. companies moving their offshore productions back to the U.S. – is a growing trend across the nation. It offers a great deal of potential business opportunities for commercial mortgage originators. The greater Seattle/Puget Sound industrial real estate market is a prime example of a region ready to take advantage of it.

State of the Market: Retailers cash in on strong local market

By: Susie Detmer, Executive Director, Cushman & Wakefield | Commerce

Originally published in the Daily Journal of Commerce, December 12, 2013:

Puget Sound regional malls have consistently reported sales increases above the national average and for many tenants, some of their best performing locations are in the Pacific Northwest.

Collaborate to Make Space Great

DJ Thompson is an office specialist with Cushman & Wakefield | Commerce. To reach DJ, visit or

If we as a business community are going to fully emerge from the shadow of the worst economic downturn since the Great Depression, we need to think differently about how we conduct business on a fundamental level. Specifically, with regard to commercial real estate, I believe property owners need to be realistic about their property, consult the advice of specialists on how to position their product and offer a higher level of service to potential tenants.

As published in Idaho Business Review, October 4, 2013. Read the entire article

Going once, going twice, sold! Commercial real estate auctions are gaining ground

Gary Danklefsen, senior director, Cushman & Wakefield | Commerce 

As published in Scotsman Guide’s Commercial Edition, September 2013.

The commercial real estate market has gone through many changes in the past few years, and commercial mortgage brokers who have kept up with these trends are the ones who now stand out from the crowd.

One of the many trends in today’s market is the growing attraction and interest in real estate auctions. For their part, commercial mortgage brokers have much to gain from assisting their clients with auctions, but for the uninitiated, that can feel easier said than done. What do you need to know before all of the quality real estate auctions are going, going, gone?

Read the entire article:


Property management as a litmus test for the economy

Whenever I see a frog, I can’t help but smile. Frogs are considered to be “nature’s litmus,” a test of a healthy, well-balanced ecosystem. Sitting right in the middle of the food chain, frogs are quite sensitive to the environment and can see immediately when things are out of whack.

Property management professionals are in a somewhat similar although less soggy position when it comes to the economic environment. And from my commercial property management perspective, the Idaho business ecosystem is starting to get back into high gear.

Author: Tammy Cox, CPM, Senior Property Manager, Cushman & Wakefield | Commerce

Read More, originally published: Idaho Business Review, July 15, 2013

Are lenders really making loans again?

One critical element for a healthy and prosperous commercial
real estate market is readily available and affordable financing. In the
economic boom of the last decade, debt financing was easy to find, lending
standards were easy, borrowers could do no wrong, and everyone made money. That
trend, like all business cycles, was bound to end sometime. Unfortunately, the
commercial real estate market turned much harder and much faster than almost
anyone could have anticipated and debt financing nearly dried up.

So what happened? Prior to the bust, lenders relied on the
income generated by the property being pledged as collateral as the primary and
sometimes only source of loan repayment. If a borrower was unable to pay back
the loan the lender could foreclose, sell the property, and get its money back.
Two interrelated events occurred that revealed the flaws in this process.
First, rental rates fell. As the Great Recession hit, many businesses
experienced decreasing revenues and could no longer afford inflated rent or
loan payments. Second, property values began to decline because the income they
generated was decreasing. Many borrowers couldn’t make their payments and
lenders were not able to cover their losses by foreclosing and selling the
properties. Many lenders experienced huge losses and reacted by tightening
lending standards to the point where qualifying for new financing became nearly

The good news is that many of these problems have worked
their way through the system. The economy is expanding, albeit slowly, and most
lenders are back on solid financial footing. Debt isn’t as easy to obtain as it
was before the bust, but lenders are making more loans.

Employment gains in the Puget Sound region are boosting office demand

Employment gains in the Puget Sound region are boosting office demand, with momentum continuing at a steady clip over the first six months of 2012. Region-wide, the overall vacancy rate declined 190 basis points over this period to 16.5 percent, and is down from 19.4 percent year-over-year. With high-tech employment growing at a rate of 5.5 percent, office demand has been predominantly driven by this industry, particularly in Downtown Seattle.

Read the entire article:

Article via: Western Real Estate Business, Seattle Market Highlights August 2012

National retailers are coming to Utah in a big way

National retailers are coming to Utah in a big way. With the opening of City Creek this spring, many national retailers new to Utah have chosen to locate in Downtown Salt Lake City. New names to our state include Tiffany’s, Pandora, BCBG, Love Culture, H&M and Michael Kors. The long-awaited City Creek Center opened to much fanfare and is proving to be a welcomed addition to Downtown Salt Lake City.

Read the entire article:

Article via: Western Real Estate Business, Salt Lake City Market Highlights July 2012

Apartments are Sexy: Simple, Smart, Conservative

Utah Facilities

by Mark Jensen

November 09, 2011

Apartments are sexy. Sexy is simple, smart, conservative and looking for a long term relationship. Some who read this article will immediately want to argue that statement. However, in Utah right now it would be hard to argue otherwise.

So let me explain. I originally started brokering apartments because I am conservative by nature, and apartments in the greater Salt Lake City area are arguably the most conservative commercial real estate investment play out there. Utah is a safe bet. Owning apartments in Utah has proven to be like buying an insurance premium for your money.
Click here to read the entire article

New Hope or New Risk for Commercial Real Estate?

Utah Business Magazine

by John Taylor, Director of Corporate Services, Commerce Real Estate Solutions

21 March 2011—

Hope has been the inspiration for many great things in history. Columbus discovered the Americas hoping to find a quicker and more direct route to the Far East. Now there is hope for the commercial real estate industry and its “Queen Isabella,” the lending and mortgage industry.  A new strategy is emerging called a “Hope Note.” To understand what it is, you must first understand what led to its creation.

Read the entire article: here

Salt Lake County Office Market Shows Signs of Life

Salt Lake County Office Market Shows Signs of LifeIt is no secret that the success of the office real estate market is an indicator of the state of the economy. Without the success of businesses, the economy will not begin to thrive. With this in mind,Salt Lake County has been aching for a sign of hope that the office real estate market has positive results to report. Recent publications by the Deseret News and the Salt Lake Tribune have begun to highlight the positive changes that downtown Salt Lake City is seeing. The boost of patronage to the downtown central business district, in addition to the highly anticipated completion of City Creek are significant reasons that these publications have used in their explanations. While these concepts seem to be reasonable factors that would forecast a strong economic push on the state, our 2010 first quarter numbers don’t seem to match this optimistic view.

New Market Rules for Commercial Real Estate

With computers it is a yes or a no; it is all ones and zeros. That is unless your computer acts human and freezes up. You see, with humans we have yes, no, maybe, and what if. The current commercial real estate market is reacting to the human element, and for the past two years now, we are operating on maybe and what if, with little or no yes and no.

Current and Future Health of the Industrial Market

What is the current state of health of the industrial real estate market, and what does 2010 look like? The first question may be…what is healthy? By normal standards, a vacancy factor around 8 percent is considered healthy for the market. This allows tenants to have multiple good choices to locate their businesses, and enough competition to obtain fair lease rates for both tenant and landlord. A smaller vacancy factor gives the landlord the advantage and a larger vacancy factor gives the tenant leverage in their negotiating power. This is under “normal” circumstances. It is fair to say that the current circumstances are not normal!

Read the entire editorial: Download March 2010 article

Mike Farmer is an Industrial Specialist with Commerce Real Estate Solutions. He can be reached at 801.303.5422 or

Reproduced with permission of The Enterprise, Utah’s business journal,

Washington County: Economic Outlook to Some Lease Language Nuggets

A recently released “Economic Snapshot” for Washington County from the Department of Workforce Services show that the Washington County job market bottomed out in the first quarter of this year. Nationally, the job market appears to have bottomed out the third quarter of this year. It is important to note that “bottoming out” does not necessarily mean things are getting better; it simply means things are not getting worse. Additionally, new unemployment claims in Washington County are down from 2008 levels.
october report

Something Different, Something New…Foreign-Trade Zone

A new development, with an exciting element has been announced in the State of Utah. On May 14, Salt Lake City announced the new Foreign-Trade Zone (FTZ), which will be developed by The Rockefeller Group. Sitting on approximately 55 acres adjacent to the Intermodal Hub in the Northwest Quadrant of Salt Lake City, The Rockefeller Group has planned an industrial/business park.

Where is the Bright Spot?…RETAIL

Retail has definitely been hit by these challenging times. However, like everything else there are bright spots in the current retail market… So, where are these supposed bright spots?

Industrial Real Estate Market Decoded

What does the current industrial real estate market look like compared to past markets? State-wide, there are both hot and cold spots, but the majority of the market is simply lukewarm.