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

13
Apr

Just Sold – 1500 South Industrial

Posted in Commercial Real Estate, Utah Real Estate

1500 PicWe are pleased to announce the sale of the 1500 South Industrial Building in Salt Lake City, Utah to Falgers, Inc.  The Northwood Group represented the buyer in the acquisition of this 120,000 square foot, 4 tenant, industrial investment.  The project is an older property with amazing functionality in terms of clear height, column spacing, loading, etc for a property of its age.  With rents cast during the down turn the market […]

Read More >>

03
Mar

Utah Residential Market Update

Posted in Utah Real Estate

logo-medium

Although driven by many different factors, residential and commercial real estate markets are inter-related in many ways.  Savvy commercial real estate investors should pay careful attention to statistics such as natural population growth, net in-migration, unemployment rates, and of course interest rates.

All of these items greatly affect investors perceived vitality of a given market.  Population growth leads to a greater need for housing and retail properties and also creates demand for employment.  With […]

Read More >>

23
Feb

JUST SOLD – Farmington Office Building

Posted in Commercial Real Estate, Utah Real Estate

 

Main Small

 

 

 

 

 

 

We are pleased to announce the sale/leaseback of a 13,000 square foot office building located in Farmington, Utah.  Details of the sale include:

  • 1.79 acres
  • Built in 2006
  • Tilt-Up Concrete Construction
  • Additional Reagan Billboard Lease
  • I-15 frontage

More information regarding the sale available upon request.

06
Feb

Utah Commercial Real Estate Investment – How long can the bull run last?

Posted in Utah Real Estate

logo-medium

I often get asked in everyday conversation, “How is the commercial real estate market in Utah?” That is an interesting question to answer because there as so many sub-components to that question.

  • Are we talking about the leasing market?
  • Are we talking about vacancy and increasing lease rates?
  • Are we talking about new construction?
  • Are we talking about commercial real estate investment demand?

It has been a very interesting commercial real estate market in Utah during the […]

Read More >>

27
Jan

2014 Utah Commercial Real Estate Update

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

logo-mediumThe Utah Chapter of NAIOP recently held its 2014 Year End Commercial Real Estate Symposium titled “Destination Utah”.  The event provided a fantastic overview of the Utah Commercial Real Estate Market.  Overall, the commercial real estate market in Utah is very strong boasting low vacancy rates, increasing lease rates and a robust commercial real estate investment market that is still providing opportunities for private and institutional investors alike.

There were several take-away’s for […]

Read More >>

11
Dec

JUST SOLD – J&M Mobile Home Park

Posted in Commercial Real Estate, Utah Real Estate

Cover AerialThe Northwood Group is pleased to announce the sale of the J&M Mobile Home Park located in Layton, Utah.

The J&M Mobile Home Park is a uniquely situated commercial real estate investment located just off Hill Field Road across the street to the east from the Layton Hills Mall. It is a rare mix of quiet living and amazing access to services and amenities. All of the mobile homes are owned […]

Read More >>

08
Dec

Interest Rates and Commercial Real Estate Investment Activity

Posted in Commercial Real Estate, Utah Real Estate

logo-medium

Increasingly, conversations with investors lead to the hot topic of the historically low interest rates, their affect on current values, and the impact that rising interest rates will have both on value and commercial real estate investment activity.  It seems that there are as many diverging opinions on this as there are investors and we won’t know who is right until we are looking in the rear view mirror.

I am right along side […]

Read More >>

01
Dec

JUST SOLD – Mountainland Office Building

Posted in Commercial Real Estate, Utah Real Estate

PicMOUNTAINLAND OFFICE BUILDING

The Northwood Group is pleased to announce the sale of the Mountainland Office Building in Layton, Utah.

The building, featuring unique “creative” office space, was acquired by a local advertising agency.

The building is approximately 7,000 square feet including office space and a lease to a local pizza restaurant.  More information on the sale is available upon request — 801-593-5500 or brandon@northwoodgrp.com.

06
Oct

JUST SOLD – Decker Lake Office Building

Posted in Utah Real Estate

Newmark Grub Acres sold Office Building in West Valley

The Northwood Group is pleased to announce that in conjunction with Newmark Grubb Acres it represented the seller in the sale of the Decker Lake Office building located at 2650 South Decker Lake Lane in West Valley City, Utah.

The building is a 73,954 square foot office / call center building.  More information on the sale available […]

Read More >>

29
Sep

State of the Single-Tenant NNN Lease

Posted in Utah Real Estate

Hobby Lobby

The concept of the single-tenant NNN lease has opened the door for many investors to get into the commercial real estate investment market in a more significant way.  Prior to this product type many investors steered clear of commercial real estate investment as a regular part of their investment portfolio because an overall lack of management expertise, capital requirements, and real estate specific knowledge.  Most real estate for […]

Read More >>

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 acquire the buildings in which they operate their […]

Read More >>

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 groups:

Real Estate Investors

We work with investors looking for commercial […]

Read More >>

01
Jun

The “Why” of Commercial Real Estate Investment

Posted in Commercial Real Estate, Utah Real Estate

Question-mark1

 

 

Why do you invest in commercial real estate?  It is an interesting question with a multitude of answers none of which are right or wrong in and of themselves.  However it is an important question for us to understand individually if we are the prosper in our ventures.

The traditional interaction between the commercial real estate investor and the broker typically involves dialogue surrounding topics such as:

19
May

The Time of the Secondary Market 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 volumes slow significantly during recessions as money (especially institutional money) tends to flow to the major markets.  However, […]

Read More >>

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 to the seller in a commercial real estate transaction. In this post I would like […]

Read More >>

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 Company of Gainesville, Georgia and directs the efforts of the Warren Featherbone Foundation. […]

Read More >>

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 good news for those investing in commercial real estate in this region. Please see […]

Read More >>

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 foot was at its highest level in 4-1/2 years

As always, I welcome your thoughts. Please click the […]

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 appeal

      Jun 22nd 2013                 
Prolonged periods of low real interest […]

Read More >>

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 Paul Beebe

|  The Salt Lake Tribune

First Published May 17 2013 11:56 am • […]

Read More >>

10
Jun

Construction Cost Updates – Q2 2013

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

 

utah construction costs
Several times each year we share estimates of commercial real estate construction cost changes on different property types. We think a review of the replacement cost of buildings is a good metric to consider when evaluating commercial real estate investments. Note that these numbers do not include land costs. The most notable construction cost increases were in metal buildings and masonry block industrial buildings, which saw 20% […]

Read More >>

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

 

<p><a href=”//ad.doubleclick.net/N3834/jump/nrei.home/finance_investment/net_lease;pos=180_1;ptype=article;page=/net-lease/lack-construction-boosts-net-lease-values;sz=180×150;tile=1;ord=123456789?” target=”_blank”/><br /> <img src=”//ad.doubleclick.net/N3834/ad/nrei.home/finance_investment/net_lease;pos=180_1;ptype=article;page=/net-lease/lack-construction-boosts-net-lease-values;sz=180×150;tile=1;ord=123456789?” border=”0″ alt=”” /></p>Investors are increasingly moving […]

Read More >>

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.

South Ogden Crossroads Landing

Single Tenant Investment in South Ogden

 

         Price: $3,268,838

         Annual […]

Read More >>

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 investment operations in the future. Some of the reasons for this change include:

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 comparison, transportation makes up less than 25%. So even if we all stopped driving our cars […]

Read More >>

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 in single-tenant investment, NNN leased deals as they come available or if you would like […]

Read More >>

28
Feb

JUST SOLD – Single-Tenant – Bonneville Title Building

Posted in Utah Real Estate

 

commercial real estate utah

We are pleased to announce the recent sale of the Bonneville Title Office Building located in Layton, Utah. The sale consisted of a 7,000-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. Please contact me if you are interested in single-tenant investment sales as they come available or […]

Read More >>

19
Feb

Salt Lake City the 5th Fastest Growing City in the Nation

Posted in Utah Real Estate

 

commercial real estate utah

Morgan Brennan at Forbes Magazine wrote an article a few weeks ago on the fastest growing cities in the United States. Salt Lake City ranked as the 5th Fastest Growing City. Statistics such as a 3% job growth rate and 4.8% unemployment in 2012 helped to spur that designation. Additionally, Utah was ranked by the same publication as the “Best State for Business & […]

Read More >>

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 of the asset. Please feel free to contact us for more information in regards to this real estate […]

Read More >>

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 costs are moving upwards once again.

Bonneville Builders […]

Read More >>

20
Dec

2013 Outlook Positive for Commercial Real Estate

Posted in Commercial Real Estate, Utah Real Estate

 

utah business magazineUtah Business Magazine published an article today dealing with the outlook for commercial real estate in 2013.  The article also addresses the highs and lows of 2012.

The link for the article is below and the full text is in the body of this post following the link:

http://dev.utahbusiness.com/articles/view/2013_outlook_positive_for_commercial_real_estate 
2013 Outlook Positive for Commercial Real Estate

Press […]

Read More >>

11
Dec

Commercial Real Estate – Salt Lake City vs Intermountain West

Posted in Commercial Real Estate, Utah Real Estate

 

commercial real estate in salt lake city

I am often asked how the Salt Lake City commercial real estate market compares to the surrounding commercial real estate markets. The following link contains an outline of how Salt Lake’s industrial, office and retail markets compare to Phoenix, Denver, Las Vegas, Reno and Boise. In all areas, our local commercial real estate market has one of the lowest vacancy rates and some of […]

Read More >>

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 a number of factors including taxes, human resources, energy costs, financial incentives and evaluations of […]

Read More >>

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 the Tenants occupy here because of the visibility. The park has had historically high […]

Read More >>

20
Nov

Effects of Election – Utah Commercial Real Estate Market

Posted in Commercial Real Estate, Utah Real Estate

The Election and Commercial Real Estate

flag imageAs the country went to the polls last week there were many issues influencing how the American people chose to vote. The country’s opinion regarding who would be the best leader of the free world for the next four years was split even among similar demographics with a few exceptions. In the end the voice of the people elected President Obama to be our […]

Read More >>

06
Nov

JUST SOLD – Logan Mobile Home Park

Posted in Utah Real Estate

 

mobile home park investment, mobile home park investingWe have recently closed on the sale of the Logan Mobile Home Park in Logan, Utah.  The park consisted of a 53 unit mobile home park on 5 acres.  It was a unique mobile home park whereas it is situated in a very good area near the local city golf course and baseball fields.  The buyer was a local investor […]

Read More >>

23
Oct

JUST SOLD – Tradewinds Mobile Home Park

Posted in Commercial Real Estate, Utah Real Estate

 

mobile home park investment, tradewinds mobile home park, commercial real estate invesmentWe have recently closed on the sale of a mobile home park investment. The Tradewinds Mobile Home Park in Bountiful, Utah was sold to a local investor. The park was an older park consisting of individual, single-wide mobile homes. The purchase included the park only. No homes were included in the sale.

Why Mobile Home Park Investment?

Several […]

Read More >>

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 investment property transactions and total transaction volume in Utah has increased […]

    Read More >>

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 estate investment purchasing high-quality assets both in major and more continually […]

Read More >>

01
Oct

Fixed Rate versus Inflation Indexed Rental Increases

Posted in Commercial Real Estate, Utah Real Estate

 

tips for rental increase commercial real estateAnnual rent increases are a commercial real estate investors best friend.  Commercial real estate has long been lauded not only for its strong investment performance but for its hedge against inflation.  What other asset can you leverage with fixed rate financing and then have the income increase with time?

 

 

 

 

 

 

 

When looking at the leases that comprise that income landlords and investors […]

Read More >>

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 who do not own real estate besides their personal residence and often […]

Read More >>

14
Sep

The LIBOR Scandal and Commercial Real Estate Investments

Posted in Commercial Real Estate, Utah Real Estate

I recently read an article that details the potential effects of the LIBOR scandal on Commercial Real Estate Investments. The article was written by David Bodomer of National Real Estate Investor and was a good editorial on the subject.  The summary that I took away from it was that the effects on commercial real estate are likely to be minimal unless LIBOR goes away […]

Read More >>

20
Aug

The Square Footage Dilemna – BOMA Standards and more.

Posted in Commercial Real Estate, Utah Real Estate

 

One of the great challenges when buying commercial real estate today is understandingBOMA standards information the size of the building that you’re buying.  There are so many different ways to measure a building that it makes it difficult to compare buildings accurately.

There are many property owners throughout the country that will measure their properties according to BOMA (Building Owners and Managers Association) standards.  This organization has attempted to […]

Read More >>

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 are more sources of financing re-entering the market weekly.

One note in […]

Read More >>

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 completed and most of it has been absorbed.
  • Overall office vacancy is down to 13.98% with […]

    Read More >>

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.

Capital Gains Tax Increase NAI WEST

This has implications on all of us […]

Read More >>

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 real estate investment world.  Click the link below for the full article:

Read More >>

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 across the United States.  For more information regarding the sale, please feel free to contact me.

Read More >>

27
Jun

Utah Business Magazine Article – Northern Utah Regional Report

Posted in Commercial Real Estate, Utah Real Estate

 

Economic Climate of UtahIn March I participated in a round-table discussion related to the business and economic climate of Northern Utah.  Particpating along with me were government, education, & business leaders throughout the area.  The state of the commercial real estate market played a big part of the conversastion.  Please click the link below to see the article in it’s entirety.

Utah Business […]

Read More >>

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 leases, etc and many of these leases mean different things to different people.  […]

Read More >>

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 investor’s first acquisition in Utah.

commercial real estate investment, [...]
<p class=Read More >>

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

A recent study found that Utah ranks 6th in the country […]

Read More >>

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 that it might be helpful to create a list of the top 5 due diligence items need […]

Read More >>

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 this type of investment.

First, let me define what I mean when I discuss investment […]

Read More >>

02
May

Capital Market Review – May 1, 2012

Posted in Market Reports, Utah Real Estate

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

Capital Market Update 5-1-12

The Utah commercial real estate market continues to improve.  There has not been a significant amount of change from the previous update at the beginning of March.  Rates continue to be aggressive and more lenders are entering the market.  We are seeing many lenders considering longer amortization periods for quality projects.  We are […]

Read More >>

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 whereby existing financing is wrapped into the seller financed note.  We have seen some of […]

Read More >>

16
Apr

Utah Investment Snapshot – Q1 2012

Posted in Market Reports, Utah Real Estate

 

We have just completed our analysis for the 1st quarter of 2012.  Please click the link below to see the Q1 Investment Snapshot for the Utah market:

Q1 Investment Snapshot

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

  • Compared to Q1 2011, the total number of transactions is down but transaction volume is up.
  • Cap rates have remained relatively flat compared to 2011.

Please feel free to contact me […]

Read More >>

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 Utah. The annual was $213,000 and the initial 20 year lease comes up for renewal in […]

Read More >>

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.  To complicate matters, many lenders also underwrote deals based on these assumptions.  […]

Read More >>

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 park was 100% leased at the time of sale and sold near the asking price.

Additional comparable information […]

Read More >>

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 a little better.  Multi-tenant properties often times can provide higher returns and in […]

Read More >>

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 strong Tenants, such as Wee Care Pediatrics, IASIS, Rock Run Physical Therapy and Price Orthodontics.  […]

Read More >>

05
Mar

Capital Market Review – March 1, 2012

Posted in Market Reports, Utah Real Estate

 

With the volatility in the capital markets, I will be posting a monthly update on the current state of those markets.  The reports are provided by Metro Commercial Finance.  The link below contains a link to the Capital Market Report for the month of March.

Capital Market Update

A few of the highlights are as follows:

  • Lenders are slowly considering higher loans to value
  • Rates for quality projects remain in the low 5% range
  • We are starting to see availability of […]

    Read More >>

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 remain opportunities for smart money willing to consider markets that maybe haven’t been […]

Read More >>

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 place their money there.

Commercial real estate in Utah continues to outperform the national economy.  Utah boasts significantly lower unemployment and […]

Read More >>

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 and issues facing property investment real estate across the nation with a specific […]

    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 helpful.

Ball Park Estimates Combined […]

Read More >>