I appreciate you taking the time to visit this blog.  The intent of the blog is to congregate all of the information that an investor in commercial real estate would need to know in order to make educated decisions on acquiring or disposing of commercial real estate in Utah.

Over the coming year the blog will address the following topics:

  1. I will address a wide array of opportunities and issues facing investment real estate across the nation with a specific focus on Utah.
  2. Monthly and quarterly updates of capital markets, financing, construction cost fluctuations, & commercial real estate markets
  3. Highlight available and notable closed investment properties in Utah
  4. Note particular investor needs in the market for those needing to exit existing properties

I hope that you will use the information, insight, and ideas as a valuable resource in your business.

Highest Regards,

Brandon L. Wood, CCIM
Executive Vice President / Principal
Investment Division
Newmark Grubb ACRES Commercial Real Estate Services
748 W Heritage Park Blvd. Ste. 204 | Layton, UT 84041
www.ngacres.com
P: 801.927.2000 | F: 801.416.1020
bwood@ngacres.com
Creating and Preserving Real Estate Values.™

29
Mar

NAI West becomes Newmark Grubb ACRES

Posted on by

 What does the change mean for our clients?

Newmark Grubb ACRESThis week our firm NAI West has become Newmark Grubb ACRES.  NAI West has been a good platform for us for almost 15 years. However, we have concluded that Newmark Grubb Knight Frank was the right platform for our operations in the future.  Some of the reasons for [...]

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11
Mar

Sustainability & Commercial Real Estate Investment

Posted in Utah Real Estate

Green and Sustainable Building. What Does it Mean for You?

sustainability in buildingThe trend in the world of commercial real estate is going green. The environmental impact of the “built” world is becoming more of an international issue every year.  It has been reported that over 50% off all pollution comes from buildings.  As a comparison, transportation [...]

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03
Mar

Sale/Leaseback of Commercial Real Estate

Posted in Commercial Real Estate, Utah Real Estate

 

sale/leaseback commercial real estateOver the course of my career I have been involved in many transactions in the sale/leaseback arena of the commercial real estate investment world and have completed numerous transactions ranging from small single-tenant deals to very large industrial properties.  There has been much written on the benefits of a sale/leaseback to the seller in [...]

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28
Feb

JUST SOLD – Single-Tenant – Jiffy Lube

Posted in Utah Real Estate

 

Single Tenant Investment UtahWe are pleased to announce the recent sale of the Jiffy Lube Single-Tenant Investment located in South Ogden, Utah.  The property was a single-tenant, NNN leased, property with a 15 year lease to Jiffy Lube.  It was purchased via a 1031 exchange by a local investor.  Please contact me if you are interested [...]

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28
Feb

JUST SOLD – Single-Tenant – Bonneville Title Building

Posted in Utah Real Estate

 

commercial real estate utahWe are pleased to announce the recent sale of the Bonneville Title Office Building located in Layton, Utah.  The sale consisted of a 7000 square foot office building located on I-15 in Layton leased to a single-tenant, Bonneville-Superior Title.  The property sold to a local investor completing a 1031 exchange.  [...]

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23
Jan

Just Sold – King’s Gate Office Building

Posted in Utah Real Estate

 

commercial real estate investmentWe are pleased to announce the recent sale of the King’s Gate Office building to a local Utah commercial real estate investor.  The building is a 21,190 square foot, two-story office property built in 2008. The building was taken back in a foreclosure and we were hired to dispose of the [...]

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14
Jan

Construction Cost Updates – Q4 2012

Posted in Commercial Real Estate, Construction Cost Updates, Utah Real Estate

 

Construction Costs On The Rise

construction costs in utahThe following link provides an update of average and expected construction costs for different property types provided by Bonneville Builders.  Please note that compared to the mid-year report there have been increases in multiple property types depending on the type of construction.  It appears that construction costs are moving upwards [...]

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26
Nov

Utah #1 in Pro-Business Rankings

Posted in Commercial Real Estate, Utah Real Estate

 

Pollina Corporate Real Estate, Inc. recently released its rankings for the top ten pro-business states in the country.  After 3 years in second place, Utah is the first state west of the Mississippi to earn this designation. This is a significant achievement affecting commercial real estate in Utah.

The rankings are based on a number of factors including taxes, [...]

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20
Nov

Just Sold – LWH Business Park

Posted in Utah Real Estate

 

commercial real estate, layton utWe recently represented the seller in the disposition of the commercial real estate investment known as the LWH Business Park in Layton, Utah.  The LWH Business Park is a 30,000 SF industrial flex park in a high traffic, high visible location on Hill Field Road on the west side of Layton. Many of [...]

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22
Oct

Utah Investment Snapshot – Q3 2012

Posted in Commercial Real Estate, Market Reports, Utah Real Estate

 

We have just completed our analysis for the 3rd quarter of 2012.  Please click the link below to see the Q3 Utah Investment Snapshot:

Utah Investment Snapshot – Q3 2012

A few of the highlights from the report are as follows:

  • Cap Rates have remained relatively steady over the trailing 12 months with the exception of office properties which has seen a decline.
  • The total number of [...]

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17
Oct

Capital Market Review – October 8, 2012

Posted in Commercial Real Estate, Market Reports, Utah Real Estate

 

Please see the following link for the Capital Market Review for the month of October 2012:

Capital Market Review – October 8, 2012

Interest rates remain low across the board with the lowest rates in the multi-family sector.  The 10-year treasury was up a bit due to the unexpected decline in unemployment.  Institutional buyer continue to lead the charge on commercial real [...]

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17
Sep

Raw Land Discussion

Posted in Commercial Real Estate, Utah Real Estate

 

Raw Land InvestmentDuring the economic downturn, I have had many clients come to me with an interest in taking some of their money out of the securities markets and investing it in raw land. Their theory being that if economic troubles continue, at least they’ll have something they can see, touch, & smell.  These are typically individuals [...]

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20
Aug

Capital Market Review – August 13, 2012

Posted in Commercial Real Estate, Market Reports, Utah Real Estate

 

Please see the following link for the Capital Market Review for the month of August 2012:

Capital Market Update 8-13-2012

It is interesting to look at how interest rates have moved over the last couple of months.  Across the board rates have continued to drop since May.  Additional lenders have continued to come back into the market.  Underwriting remains strict but there [...]

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27
Jul

Capital Gains Tax Scheduled to Rise Sharply in 2013

Posted in Utah Real Estate

Please click the link below to an article written by Suzy Knimm at the Washington Post.  It details the changes in the capital gains tax rate structure set to take place in 2013.  In addition to the capital gains tax rate there are some nuances in the health reform law and itemized deductions that would have an affect on the overall rate.

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23
Jul

Linneman Letter – July 2012

Posted in Utah Real Estate

 

Dr. David Linneman is the Chief Economist of NAI Global.  In the latest copy of his newsletter he describes the challenges that are currently facing the American Investor.  Despite moderately healthy GDP growth, several other factors are causing investors uncertainty with how to invest and what the future holds.  This is an interesting and insightful article for the studious commercial real estate investor trying the navigate the commercial [...]

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02
Jul

JUST SOLD – DGS STORE FIXTURES – PAYSON, UTAH

Posted in Utah Real Estate

 

commercial property, payson, utI am pleased to announce that last week the DGS Store Fixtures Property was sold to a private out-of state investor.  The 200,000 square foot facility was leased by DGS Store Fixtures on a 15 year lease.  The tenant is a manufacturer of retail store fixtures for a number of customers [...]

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25
Jun

NNN Leases versus Absolute Net Leases

Posted in Commercial Real Estate, Utah Real Estate

 

Structuring commercial real estate investment sales I have found that there is a wide range of disagreement regarding how sellers of property refer to the leases on the properties that they are selling.  I have also found that many investors expectations regarding how leases are identified are varied.  There are many types of leases including gross leases, full-service leases, modified-gross lease, net leases, NN leases NNN leases, absolute net [...]

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04
Jun

JUST SOLD – CROSSROADS LANDING OFFICE PARK

Posted in Utah Real Estate

 

real estate investment, utahI am pleased to announce the sale of the the Crossroads Landing Office Park.  The park consisted of a 24,201 square foot, 3  building office park in South Ogden, Utah.  The tenants consisted of the Ogden Clinic and Morgan Stanley both on long-term leases.  The property was purchased by an out-of-state investor.  It was this [...]

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29
May

Utah Among Top States in Commercial Real Estate Construction

Posted in Utah Real Estate

 

The Deseret News recently published an article relating to commercial real estate construction spending.  I found it interesting and insightful into the economic climate of the state and how it may relate to a commercial real estate investor.  Please click the following link to view the article.  My comments and summary of the article are following the link.

http://www.deseretnews.com/article/865555093/Major-growth-for-Utah-commercial-real-estate-construction.html

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21
May

Commercial Real Estate Investing – Top 5 Due Diligence Items

Posted in Commercial Real Estate, Utah Real Estate

Commercial real estate investing is full of opportunity but as with all opportunity comes risk.  One question I am often asked, especially by new investors is, “Other than the market risks, what are the other potential risks in buying commercial real estate?”  Most of these are first time investors  or 1031 exchange buyers coming out of family land or other family assets.  I thought [...]

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07
May

Investing in Commercial Real Estate Ground Leases

Posted in Utah Real Estate

 

As the commercial real estate market has experienced large swings in value in recent years, many clients have contemplated investing in long-term commercial real estate ground leases as an alternative strategy for their 1031 exchanges or for their portfolio currently sitting in cash.  As a response to some of the questions I’ve received, I have decided to discuss at length some of the talking points related to [...]

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18
Apr

Utah Commercial Real Estate – Seller Financing Discussion

Posted in Utah Real Estate

 

Over the past several years as financing has been more difficult we have seen many deals reach completion with the help of seller financing in the Utah commercial real estate market.  It has taken on many forms from the basic 1st position seller financed purchase, to a 2nd position to bridge the loan to value gap, to even more creative scenarios such as all inclusive trust deeds [...]

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02
Apr

JUST SOLD – CENTERVILLE POST OFFICE

Posted in Utah Real Estate

centerville real estate

  • Asking Price: $2,840,000
  • CAP Rate 7.50%
  • 11,860 SF
  • 100% Occupied

I am pleased to annouce the closing of the Centerville, Utah, United States Postal Service. The Post Office has been at this location since 1997 and is one of the highest producing Post Offices in the [...]

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27
Mar

Buying on Pro Forma Rent

Posted in Utah Real Estate

 

Back in the peak of the commercial real estate market many investors bought properties with values underwritten by “pro forma” rents.  By “pro forma” rents I mean that properties were underwrittten based on projected lease rates, occupancy rates, and future increases as opposed to actual operating history of a property.  The obvious risk with this approach is that inaccurate assumptions can lead to dramatic swings in actual property performance.  [...]

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13
Mar

JUST SOLD – SKULL DEVELOPMENT INDUSTRIAL PARK

Posted in Utah Real Estate

 

  • Multi-Tenant Industrial Park1031 Exchange, Utah
  • 37,100 square feet
  • 13 tenants in 5 buildings
  • 3.28 acres
  • Sold – February 2012

The Skull Development Industrial Park was recently sold to a 1031 exchange investor from Michigan.  The project, located just off of I-15 in Centerville, Utah has maintained high occupancy for the past several years despite the downturn in the [...]

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13
Mar

The Multi-Tenant Property Alternative

Posted in Utah Real Estate

 

Over the past several years, the single-tenant property market has gained a lot of momentum.  It has for good reason.  There are many advantages such as ease of accounting, management, underwriting, and predictability of cash flow.   Many investors perceive that the risk is much lower with the typical long-term leases associated with the single-tenant market.

However, many investors who follow the single-tenant trend might be missing an opportunity that actually fits their investment objectives [...]

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12
Mar

JUST SOLD – ROCK RUN MEDICAL

Posted in Utah Real Estate

real estate investment, utah

  • 12,192 SF – Medical Office Building
  • 100% Occupied
  • Closed in February of 2012

 

The Rock Run Medical Office Building was recently sold by our team to a family investment group out of Utah.  The property was a 100% leased medical office building in Roy, Utah. [...]

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27
Feb

Investors Seek Secondary & Tertiary Markets

Posted in Utah Real Estate

 

As the commerical real estate market begins to recover, we are seeing an increase in acquistion activity among investors both institutional and private.  While the majority of investment activity in recent years has been in primary markets, many investors of late have been seeking better returns in secondary & tertiary markets.

It is hard to believe that there is already significant cap rate compression in many markets.  However there [...]

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22
Feb

Notable Utah Transaction – Hobby Lobby – Logan

Posted in Utah Real Estate

 

Each month I provide some information on a notable transaction that occured in the State of Utah.  This month I am highlighting the Hobby Lobby in Logan Utah.  A few of the highlights of this deal were:

  • Single Tenant
  • 9 years remaining on lease
  • 8.21% Cap Rate
  • 55,137 square feet
  • 3.86 acres

 

Please let me know if you would like additional information regarding this sale.

30
Jan

Property Investment in Utah? See What the Rest of the Country is Saying.

Posted in Utah Real Estate

As I talk with investors from around the country, many are looking at Utah for the first time.  These investors are weighing the stability of their property investment with the potential for growth.  While Utah has historically not seen the extreme pricing shifts that other markets in the country have, it has continued to provide strong, stabilized growth for those willing to [...]

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16
Jan

Introduction to Utah Property Investors

Posted in Utah Real Estate

I appreciate you taking the time to visit this Utah Property Investors.  The intent of the blog is to congregate all of the information that a property investor in commercial real estate would need to know in order to make educated decisions on acquiring or disposing of commercial real estate in Utah.

Over the coming year the blog will address the following topics:

  1. I will address a wide array of opportunities [...]

    Read More >>

30
Dec

Construction Cost Update

Posted in Construction Cost Updates, Utah Real Estate

Quarterly, we receive construction cost estimates from Bonneville Builders.  While it is diffcult to make accurate estimates without an understanding of the specific project it is helpful to have some ballpark figures to run as estimates especially as you are looking at potential re-tenanting costs, etc when looking at a deal.  Click on the link below for the table.  I hope that you find this helpful.

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