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
President | Principal Broker
The Northwood Group
www.northwoodgrp.com
P: 801.593.5500
brandon@northwoodgrp.com

22
Sep

Utah Business Magazine Regional Report – Northern Utah

Posted in Utah Real Estate

Utah Business 2014I recently had the opportunity to participate in a roundtable discussion surrounding business in the Northern Utah area put together by Utah Business Magazine.  The roundtable was set up to discuss issues such as real estate, education, tourism, economic development, and healthcare.

I thought that the discussion was fascinating and it was interesting to [...]

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30
Jun

Building Partner Investors

Posted in Utah Real Estate

Commercial Real Estate Brokerage

Along with the formation The Northwood Group we have formed Building Partner Investors (www.buildingpartnerinvestors.com).

The vision of BPI is to give small businesses the expertise and financial ability to increase cash flow and control for their businesses now and build long-term wealth for the future.

It does this by partnering with companies to [...]

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30
Jun

The Northwood Group (www.northwoodgrp.com)

Posted in Utah Real Estate

commercial real estate company

I am pleased to officially announce the creation of The Northwood Group (www.northwoodgrp.com) – a commercial real estate company that helps investors and business owners identify commercial real estate opportunities then structure purchases that help our clients reach their financial goals.

Who We Serve

The Northwood Group provides unique commercial real estate services for following [...]

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19
May

The Time of the Secondary Markets is Back Again!

Posted in Utah Real Estate

 

 

Brandon Wood2013 was one of the best commercial real estate investment markets in Utah since the downturn following 2007.  In fact, investment dollar volume nearly reached 2006 and 2007 levels.  The Utah commercial real estate investment market has always been viewed as a “secondary” market.  Like other secondary markets, investment [...]

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03
Feb

Sale/Leaseback of Commercial Real Estate

Posted in Commercial Real Estate, Utah Real Estate

 

sale/leaseback commercial real estate

Over 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 I 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 [...]

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07
Oct

Do We Need to “Dismount”?

Posted in Utah Real Estate

 

608FE-dismountI attended an event on Tuesday hosted by the Bank of Utah. Gus Whalen of Featherbone Communiversity was invited to speak, and he shared some insights into his family business that I think are very applicable to many of us in the commercial real estate investment industry.

Gus is the Chairman of The Warren Featherbone [...]

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09
Sep

Revenge of the Secondary Markets

Posted in Utah Real Estate

 

Friday Market Insight

Newmark Grubb Knight Frank, as part of its Friday Market Insight series, recently published an analysis of an employment report produced by Real Capital Analytics. The chart below shows the top markets in the country in terms of job growth. Salt Lake City ranks 5th in the nation—which is [...]

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09
Sep

JUST SOLD – Crossroads Landing – Single Tenant Investment

Posted in Utah Real Estate

 

South Ogden Crossroads Landing InvestmentWe recently closed on the Crossroads Landing – Single Tenant Investment.  The building was occupied on a long-term lease by the administrative offices of the Ogden Clinic.  The building is approximately 17,000 square feet.  Please contact me to request additional information.

 

06
Aug

2013 Newmark Grubb Acres Mid-Year Market Report and Statistics

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

 

We are pleased to present the 2013 Newmark Grubb Acres Mid-Year Real Estate Market Report. From the beginning, 2013 was off to a strong start, especially in the commercial real estate investment sector. For example:

  • Transaction volume increased 35% over the last half of 2012
  • The amount of square footage sold was at its highest level in at least 5-1/2 years
  • Overall price per square [...]

    Read More >>

28
Jun

Income Appeal of Commercial Real Estate Investment

Posted in Utah Real Estate

 

 

income from real estate investmentI recently read an article in the June 22nd issue of The Economist.  The story articulates the benefits of commercial real estate investment as compared to other income investment vehicles and the reasons why.  The article is included below:

Buttonwood

Building the next boom

Commercial property may benefit from its income [...]

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24
Jun

Utah’s Diverse Economy

Posted in Commercial Real Estate, Utah Real Estate

utah real estate investment

 

 

 

 

I thought you might find this following article published in the Salt Lake Tribune interesting.  It describes the diversity of the Utah economy and the resilience that it creates in the Utah market.

 

As Utah’s star rises after 2 recessions, lessons linger

Diverse economy has made Utah resilient, downturns have left it forever chastened.

By [...]

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10
Jun

Net Lease Market Continues to Expand

Posted in Utah Real Estate

I recently read this article written by Mike Janseen of National Real Estate Investor magazine.  I think that it is very relevant to the single-tenant net lease market here in Utah. We are continuing to see increased demand and compression in cap rates in this product type. I’ve included it below for you to read. I hope you find this useful.

 

Lack of Construction Boosts Net Lease Values

20
May

Crossroads Landing Single-Tenant Investment

Posted in Utah Real Estate

 

I am pleased to present the Crossroads Landing as an example of single tenant investment. This property has 17,512 square feet and has a 12 year absolute NNN lease in place, with 9 years remaining. This property is a corporate office for a well established and well known local medical group.

29
Mar

NAI West becomes Newmark Grubb ACRES

Posted in Utah Real Estate

 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 is the right platform for our commercial real estate and property [...]

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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 building

The 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 [...]

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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 [...]

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23
Jan

Just Sold – King’s Gate Office Building

Posted in Utah Real Estate

 

commercial real estate investment

We 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 commercial building was taken back in a foreclosure and we were hired to dispose [...]

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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 utah

The following link provides an update of average and expected construction costs for different real estate 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 [...]

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26
Nov

Utah #1 in Pro-Business Rankings

Posted in Commercial Real Estate, Utah Real Estate

 

utah best for business

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

The rankings are based on [...]

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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. [...]

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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 [...]

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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 [...]

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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 [...]

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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 [...]

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31
Jul

NAI West Mid-Year Market Report

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

 

NAI West recently completed its Mid-Year Market report detailing the state of the economy in Utah, and more specifically the state of Utah property investment.  A few of the highlights are below:

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

  • Utah has the 3rd lowest unemployment rate in the US at 6%.
  • Just under $1 MM square feet of industrial spec space has been [...]

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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 [...]

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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, [...]

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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 [...]

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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.

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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.  [...]

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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 [...]

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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 [...]

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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 State of [...]

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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 [...]

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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 economy.  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 [...]

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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. The property included [...]

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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.  [...]

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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.

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 [...]

    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 difficult 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 considering a commercial real estate investment deal. Click on the link below for the table.  I hope that you find this [...]

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