The Northwood Group

Building Partner Investors

Utah Real Estate


Just Sold – Woodland Park

September 12, 2016

We are pleased to announce the sale of one of the Woodland Park office buildings located at 1572 North Woodland Park Drive in Layton, Utah. The building is approximately 7,635 square feet and is part of a 6 building office complex.  More information regarding this sale is available upon request.

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Just Sold – Rachel Plaza

August 25, 2016

We are pleased to announce the sale of the Rachel Plaza located at 466 North Main Street in Clearfield, Utah.  The building was acquired by a local medical professional who will occupy a portion of the building.  The building is approximately 12,000 square feet on two levels.  More information regarding this sale is available upon request.

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Just Sold – Executive Office Building

August 25, 2016

We are pleased to announce the sale of the Executive Office Building located at 4155 South Harrison Boulevard in Ogden, Utah.  The building was acquired by a regional security company in its continued expansion efforts.  The building is just over 40,000 square feet on three levels and is part of a four building office park.  More information on this sale is available upon request.

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Top Ten Commercial Real Estate Issues

August 18, 2016

Utah Commercial Real Estate

I was recently reading an article published by The CRE (The Counselors of Real Estate) organization titled The CRE 2016-17 Top Ten Issues Affecting Real Estate.  I have great respect for the CRE organization and find their reports very well researched and have delineated how this affects Utah commercial real estate.

The CRE® 2016-17 Top Ten Issues Affecting Real Estate

After reading the article I wanted to add a few bullets related directly to the Utah Commercial Real Estate Investment Market.  First I will share their list.  Explanations of their top 10 are included in the link to their article above.

  1. The Changing Global Economy
  2. Debt Capital Market Retrenchment
  3. Demographic Shifts
  4. Densification/Urbanization
  5. The Political Environment
  6. Housing Affordability and Credit Constraints
  7. The Disappearing Middle Class
  8. Energy
  9. The Sharing/Virtual Economy
  10. The Rise of Experiential Retail

With those in mind, let me add a few thoughts specifically related to the Utah Commercial Real Estate Investment Market:

  1. Water:  With the population along the Wasatch Front expected to double over the next 30 to 40 years water is going to become a big issue.  Not only does the water supply need to increase but much of the existing infrastructure is aging and in need of replacement.  Residents also need to become more “water conscious”.  Fortunately, solutions exist and the water districts are working with elected officials to address the costs of these projects well ahead of the need.
  2. Utah’s Unique Geography:  The Wasatch Front is unique in that it is bounded by mountains on the east and the Great Salt Lake on the West limiting the amount of developable ground.   In Salt Lake County and surrounding areas there is very little land for growth.  This is good news for existing property owners as demand has led to increased values and repurposing of existing buildings.  It has also been good news for Davis  and Utah Counties which have seen strong job growth as companies have located closer to talent.
  3. Suburban Cities and Their Views on Land Use:  With the changing demographic shifts described in the CRE article, suburban cities have had to re-look at how they view land use.  In place of large lot single family development cities have increasingly looked at higher density residential and mixed use projects especially around their downtown areas.  This has really helped the commercial development in these areas.
  4. Lease Rates Relative to Construction Costs:  As I have looked at historical lease rate trends I have been really interested by what I’ve found relative to Class B office lease rates.  Lease rates have been almost flat for the past 15 years.  There have been points where they have increased just prior to a recession but lease rates today are very similar to what they were 15 years ago.  Meanwhile construction costs have continued to steadily increase.  With the current low vacancy rates I believe that there is pent up lease rate growth in these properties.  New Class A projects have been successful at significantly higher lease rates.  Demand appears to be outpacing new office development which should bode well for existing office owners.

These are just a few of the issues facing commercial real estate investment in Utah and the market in general.  I would love your input on the issues that you feel are relevant.  As always, feel free to reach out to discuss.

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Construction Cost Updates – Q1 2016

March 7, 2016

Commercial Real Estate Broker Utah

We are grateful for Bonneville Builders regularly supplying us with updates on construction costs in the commercial real estate Utah market.  As the commercial real estate investment market continues to heat-up prices tend to inflate as they relate to the underlying construction costs.  These estimates provide a good basis for comparison.  The link to the report is below.

Ball Park Estimates Q1 – 2016

A few items on the report that I found interesting and noteworthy:

  • The increasing cost of tenant improvements in the office world.  Oftentimes I see too low of assumptions on re-tenanting office buildings.
  • Small industrial buildings range from $65 to $67 per square foot.  Lease rates have not kept up with construction costs and it is very difficult to develop this type of product.  Good news for those already owning this product type.

Hopefully this information is helpful.  Please feel free to reach out to Bonneville Builders direction for questions on the data provided.  They can be reached at 801-263-1406 or JohnT@bonnevillebuilders.com (www.bonnevillebuilders.com)

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2015 Investment Market Re-Cap

March 1, 2016

Commercial Real Estate

At the end of every year as a commercial real estate investment broker you take some time to review the previous year and make certain observations.  You also look at previous years to see if there are any notable trends compared to other times.  All of us want a crystal ball and everybody has an opinion regarding what is happening in the market.  I will provide my own thoughts in the coming weeks but I recently received a video from Bryce Blanchard, one of my friends and colleagues in the commercial real estate world.  I found his presentation very insightful and entertaining.  I thought you might enjoy it.  The link to his video is below.

2015 YEAR END INVESTMENT REPORT – Bryce Blanchard – Newmark Grubb Acres

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Just Sold – North Street Apartments

February 22, 2016

Single Tenant Properties Utah

We are pleased to announce the sale of the North Street Apartments in Kaysville, Utah.  The North Street Apartments are a 14 unit project in Kaysville City’s downtown area.  It is one of very few multi-family projects in the city.

Additional information on the sale available upon request.

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Just Sold – SLC Multi-Family Land

December 15, 2015

Commercial Real Estate Salt Lake City

We are pleased to announce the sale of 2.83 acres of multi-family development land in Salt Lake City, Utah.  The property is currently used as an industrial park and falls within Salt Lake City’s Transit Station zone allowing high density multi-family re-development.  The site’s proximity to the North Temple Front Runner Station and the TRAX North Temple Bridge make it an attractive re-development site for commercial real estate salt lake city.

Additional details of the sale available upon request.

 

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Creating Balance

October 6, 2015

Commercial Real Estate Broker

Creating balance as a commercial real estate broker has always been an important driver in my career and in my personal life.  I would rate myself anywhere from moderately successful to completely disastrous in this endeavor depending on when you asked me (or my wife).  It seems that the world  of commercial real estate investment turns in such a way that there is  always too much or too little to do.  Rarely is there consistency in workflow.  Balance is always a very elusive aspiration.   Mix in family, hobbies, and community obligations and it can be difficult to do everything well.

From my early days in the industry as a commercial real estate broker, it always fascinated me to see how different clients and peers tackled this issue.  Some have been very strict in maintaining not only a work-life balance but also a balance within their work as a commercial real estate broker.  I have watched others who have embraced  the “all in” mentality, burning the candle at both ends to take advantage of opportunities while they existed.

A few months ago, I read an article written by Alex Lawrence, a local entrepreneur, professor, and friend that was published in Utah Business magazine.   I thought that he did a great job addressing these issues as they relate to entrepreneurship but also found them very applicable to me as a commercial real estate broker.

I have included the article below along with a link to the full article at the bottom of the page.  Thanks Alex.

Have it All

The Entrepreneur’s Elusive Search for Balance

By Alex Lawrence

March 5, 2015

Life-work balance is always something people seem to talk about. Any busy person worth their salt has had the balance discussion a time or 10. How do you balance all that you have going on? As an entrepreneur, work, family, hobbies, service, fun, sleep and more are all pulling at you in what feels like a never-ending tug of war between a variety of people and items that need time and attention.

There isn’t enough time in the day to do it all! So one must seek balance, the proper way to keep the scales in harmony. Place an equal amount of one thing on the left, and an equal amount of the other on the right, and poof! Your life is balanced and you get to do and have it all. Queue the peaceful music as you find this Zen-like life of balance.

Nope.

Balance is difficult to achieve because the concept itself has inherent flaws. How does one find two things that are different, yet weigh the exact same amount? Even a tiny bit more or less weight on one side will make the scales fall out of alignment.

What weighs more? Consider placing some of these things on opposite sides of the scale:

  • Time with your kids or getting a product shipped
  • Hitting the gym or getting to the office sooner
  • Working at night from home or getting some sleep
  • Date night with your significant other or late night at the office
  • Service opportunity or time with your team

In my mind, none of these things weighs equally the same as its counterpart. While it can be close, it is never exactly identical in weight, and, by definition, the scale must be out of balance. This is why entrepreneurs should consider the concept of a basket instead of scale.

Instead of thinking about your personal life and work life like a scale that needs to be balanced, think of them as a basket that needs to be woven. Each piece of the basket is a strand of life. One piece that is intertwined is your business. Another is your family. Yet another is your health. Hopefully you get the picture. Notice that each weave on the basket is touching another. Notice that they wind in and out and overlap. Like water, the demands of life always seem to find the holes and weak spots of our figurative basket. In order for the basket to truly hold its contents, the fit must be tight!

While I still struggle mightily with this, the tightly woven basket seems a good representation of a well-rounded life.

Need to work? Work hard.

Want to play? Play with reckless abandon.

Spending time with your family? Do it.

Going to stay at the office late? Make it worth it.

Kids need a little league coach? Volunteer.

Out of shape? Exercise.

Sleep deprived? Stop it. Get to bed.

With the basket concept, most of this can happen simultaneously. Do your best not to use work as an excuse to avoid family, friends and exercise.

Prior to coming to Weber State I was an entrepreneur for a long time. I found it very difficult to make choices that were good for my health. Over the years, I gradually became an overweight, under-slept and over-stressed person who ate poorly, never exercised and rarely pursued hobbies outside of work. My justification was that sleep was for the weak or the dead. Ultimately, this lifestyle led to back surgery that brought my life to a screeching halt. This was my wake up call.

Since that time, I’ve made a concerted effort to exercise, sleep more and recreate enough to help lower my weight and eliminate blood pressure medications. This has led to a strong overall improvement of my physical and mental health, both of which positively impact my overall energy levels. The ROI of this effort, measured as an ability to “basket weave” my family and work lives, has been extremely high.

Finally, it is important to note that it’s a good idea to sometimes put the technology away and focus on family. You have to do it. The basket concept is not a license to pay less attention to your spouse, or work when you should be with your kids. You have to use your brain and your gut to make sure you aren’t allowing your business to always be No. 1. The basket can’t leak! Weave it all together in a healthy, shared way.

With practice, time and discipline you can weave it all together in a healthy, shared way. As an entrepreneur, it’s a never-ending effort. But keep at it and perhaps you’ll find that elusive balance you sought in the first place.

Alex Lawrence is vice provost and visiting professor in entrepreneurship at Weber State University. He can be reached via twitter.com/_AlexLawrence or at alexanderlawrence@weber.edu

– See more at: http://www.utahbusiness.com/articles/view/have_it_all#sthash.uOZlQWME.dpuf

Sincerely,

Your local commercial real estate broker.

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Just Sold – Layton Call Center

August 10, 2015

Commercial Real Estate in Utah

We are pleased the announce the sale of the Layton Call Center located at 2195 North University Park Boulevard in Layton, Utah.   The property consists of an 81,525 square foot building sitting on 9.69 acres adjacent to the successful Legend Hills Development northeast of the I-15 Antelope Drive exit.

Please contact us for more detailed information or for info on commercial real estate in Utah.

Thanks, Brandon (brandon@northwoodgrp.com)

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