Monthly archive for August 2017

Ogden’s “Untamed” Commercial Real Estate Market

Ogden’s “Untamed” Commercial Real Estate Market

Ask any Utahn living south of Weber County how they feel about Ogden and you will likely get a lot of negative descriptions — “scary,” “ghetto” and occasionally even “boring.” Next time, ask a follow-up question: when was the last time you were there?

Written By Sky Hazlehurst

Ogden, like many other small, forgotten historic towns in the nation, has been going through a renaissance. Vacant buildings are being rapidly re-tenanted as lease rates steadily surpass pre-recession numbers, all while preserving the historic charm that makes the city “Salt Lake’s devious little sister.”

Weber County has been thriving under the radar for a while now — with companies like Hershey, Salomon and Pinterest occupying warehouse and office space — but the secret is getting out. Ogden and its neighboring suburbs have seen double-digit population growth over the last few years, and growth is still trending upward. Combine this growth with a list of recent accolades, including spot number seven on CNBC’s Top 20 Metro Areas to Start a Business list last year, and you end up with unique opportunities in commercial real estate — particularly in the industrial and retail sectors. To top things off, entitlement work on new development seems to be less restrictive than Weber County’s bigger brothers to the south. This rings true particularly in Ogden and Riverdale, where my team has active retail development projects and witnesses the contrast.

The economic growth in Weber County has me putting in some serious drive time between the Salt Lake City, Provo and Ogden areas, but I’m not complaining. Lately, I’m helping to bring not only Salt Lake and Utah County concepts into Weber County territory for the first time, but also helping thriving Ogden startups open second locations in Salt Lake City and Lehi markets. The businesses that have planted their roots in Ogden are succeeding and growing quickly, and the low overhead means a shorter timeline on expanding and opening more locations. On the flip side, retail businesses in Salt Lake City and Utah County expand to the Ogden market quickly and with relatively low risk as lease terms are usually more agreeable in rate and term than in larger trade areas. Simultaneously, outdoor brands such as Osprey and Tentsile are moving to Ogden from out of state and even overseas, capitalizing on the availability of space, reasonable lease rates and mind-blowing proximity to trails and slopes. What I find most interesting is not just that the market is prime for retail tenants, but the unique culture downtown Ogden possesses. Ogden is not a “miniature Salt Lake City,” and Ogdenites seem to be damn proud of that. It makes sense that the city’s slogan is Still Untamed — Ogden has a reputation, and they’re embracing it. During the prohibition, Ogden was a railroad hub infamous for its bootlegging and brothels Legend has it that Al Capone stepped off the train in Ogden, took one look at 25th street and decided the town was “too rough” for him. This unique past gives Ogden the perfect character to usher in hip and urban retail concepts. From upscale pubs to authentic ramen bars, the Ogden central business district is home to at least six new hip restaurants just in the last 12 months, all from either California or downtown Salt Lake City.

Now for the numbers. As I perused over transaction data from Coldwell Banker Commercial Advisors, a specific trend stood out. There was a noticeable change in retail transactions, both sale and lease, from 2015 to 2016. The total square feet of retail real estate trading hands more than doubled from 2015 to 2016, and mid-year 2017 numbers show another significant increase this year. The average retail lease rate in the Ogden MSA jumped from $13 PSF NNN in 2015 to $21.20 PSF NNN in 2016, and the average retail lease rate as of July 2017 is $22.70. These are averages I took from a relatively small pool of about 100 closed retail leases in the Ogden area in the past three years.

For reference, the average retail lease rate in the Salt Lake City MSA last year was hovering at $20 PSF. Now, this comes from a much larger pool of data, and I suspect as we gather more data for Weber County that average lease rates will fall below $20, but it’s hard to doubt that there was a spike in lease rates that occurred from 2015 to 2016. And I don’t see that rate going down anytime soon. This should be a call to successful retailers who are not currently in the Ogden MSA that now might be the time to tour the market … just don’t take Al Capone’s word for it.

Sky Hazlehurst is a vice president at CBC Advisors

CBC Advisors Awarded Second Straight “Fast 50”

CBC Advisors Awarded Second Straight “Fast 50”

Brandon Fugal Accepts Fast 50

Salt Lake City (August 30, 2017) – Utah Business named Coldwell Banker Commercial Advisors (CBC Advisors) to its Fast 50 for the second consecutive year. The annual list orders the fastest growing companies in Utah through an algorithm that weighs both total revenue and revenue growth. CBC Advisors ranked #17 on the list in 2017, moving up 23 places from #40 in 2016.

“It is an honor to be recognized among such an elite group of companies,” said Brandon Fugal, chairman of CBC Advisors. “Our firm has experienced tremendous growth over the past four years. We look forward to growing operations as our organization continues to deliver a disruptive approach to the commercial real estate industry in key markets nationally.”

Since 2013, CBC Advisors has grown 362%. It has expanded from four offices located in the Intermountain West to 30 full-service commercial real estate offices in dynamic primary markets coast to coast. At the close of 2016, the firm completed $4.53 billion in commercial real estate transactions and managed a portfolio comprising over 24 million square feet of commercial properties nationally.

CBC Advisors has long been considered one of the most recognized and trusted brands in commercial real estate, holding the designation of the top performing Coldwell Banker Commercial company globally for the past 14 consecutive years. Coldwell Banker Commercial operates in 46 countries with professionals closing over 14,000 commercial real estate transactions worldwide.

 

CBC Advisors Brokers Nearly 50,000 SF of Class A Office Space Across the Wasatch Front

CBC Advisors Brokers Nearly 50,000 SF of Class A Office Space Across the Wasatch Front

Salt Lake City, UT (August 28, 2017) — Coldwell Banker Commercial Advisors (CBC Advisors) today announced the sale of a Class A office building at 121 S Orem Blvd. in Orem and a multi-tenant office building in Taylorsville. Colleen Carey, senior vice president at CBC Advisors in Glendale, Calif. along with fellow Salt Lake City CBC Advisors brokers Rawley Nielsen, president of investment sales, and Darren Nielsen, investment sales associate, represented a private buyer in both transactions.

“It was a pleasure to represent our client in these transactions,” said Carey. “By leveraging CBC Advisors’ national platform of offices, we established a real estate strategy to deliver enhanced value across state lines.”

The Orem office is a 9,700 square-foot, single tenant medical office property leased to Fresenius Kidney Care. The 849 Levoy office in Taylorsville is an approximate 40,000 square-foot, multi-tenant office property located in Taylorsville. Chris Kirk, managing director, and Travis Yates, vice president of CBC Advisors, listed the building.

Colleen Carey and Bill Ukropina, managing principal of the CBC Advisors Glendale, previously represented the same client in the sale of a 35,000 square-foot multi-tenant office property at 959 E Walnut in Pasadena, CA, in April of this year.

As a full-service commercial real estate brokerage, CBC Advisors represents world-class office, retail, investment, industrial and multifamily projects while providing institutional-grade asset services nationwide. More than 500 CBC Advisors professionals advise clients from 30 offices coast to coast with more than 20 million square feet under management.

 

Is It a Good Time to Buy or Sell Your Building?

Is It a Good Time to Buy or Sell Your Building?

Owning your own building can be a solid strategy for many businesses. Your payments don’t change, you build equity, you can write off the cost of the property and you maintain control.

But owning your own building comes with a lot of questions. When is the right time to buy? How much will you need for a down payment? What if your business changes and you need to sell?

Like most major decisions, the answer is often that it depends. Deciding between owning and renting is much like deciding whether to purchase a house — you need to compare the pros and cons.

Usually, when I show the chart above I get some surprised responses quickly followed by the following questions:

Q: 
How can I sell my building without having to move out? 

A: You can do what is called a sale/lease-back, which means that an investor buys your building and then you pay rent to them and stay in the building. Many companies have tapped into this resource.

Q: What if I don’t want to pay taxes on the equity when I sell my building? 

A: The current tax code allows you to transfer your building to a different real estate investment and defer those taxes to a future date.

Q: What happens when I retire? 

A: This could be the best situation of all. You can sell your business and have the new owner lease your building from you, providing a stream of income for your retirement.

Q: What if I need all my cash for my business? 

A: There are excellent properties for lease that allow you to put down a security deposit rather than a down payment.

Q: What if I am growing or shrinking and don’t know how much space I will need? 

A: It might be that leasing is a better option. If you decide to purchase, find a building that can be modified for more than one tenant so you can grow or shrink and lease out the remainder.

Q: I thought an SBA loan took a year — how can I buy in 60 to 90 days? 

A: SBA loans are complex, so you need to carefully choose your lender. Those who focus on SBA loans can let you know very quickly whether you are approved and what the timeline is, but 90 days is typically more than sufficient. A qualified commercial real estate agent can introduce you to several lenders who have proven track records.

Q: How can I borrow money for a lease? 

A: The SBA has a variety of business loan options available. Your qualified SBA lender can assist you with evaluating these options. Also, some landlords are willing to loan money on top of their standard allowance to help you pay for customizing a space for your business.

Q: I want to focus on my business. If I buy a building, won’t that make me a property manager? 

A: Since this is your business investment, you can write off the cost of a property manager in the same way you write off your utilities and property taxes. When there is a problem, you call your property manager just like you would call your landlord.

Q: How does my cost decrease if I own my building? 

A: Your cost is not your entire loan payment. It is the interest portion. And just like on your house or car loan, the interest decreases each month — putting more money toward the equity in your building.

Q: When is the best time to buy or sell? 

A: There are lots of factors that go into making either decision. You should discuss this with a qualified commercial real estate agent and your accountant.

Q: How can I tell if it is cheaper to lease than to purchase for my personal situation? 

A: A qualified commercial real estate agent can help you and your accountant to analyze your personal financial situation to make that decision.

Q: How do I know I am working with a qualified commercial real estate agent? 

A: There are a number of factors to consider. You can ask your agent what percentage of their personal business is commercial sales and commercial leasing as opposed to residential. You should also ask what percentage of their brokerage business is commercial to make sure they have the specific data and resources to get you the right service. Finally, there are added levels of education that can further qualify some agents. For example, a CCIM is a certified commercial investment member who has gone through extensive education in commercial real estate financial analysis. Someone who has worked for a number of years and completed a number of commercial transactions can also provide the same educational level as any certification.

Monica Rafferty is Vice President of Commercial Leasing and Sales at CBC Advisors

Chris Turner Joins CBC Advisors

Chris Turner Joins CBC Advisors

Salt Lake City (August 24, 2017) – Coldwell Banker Commercial Advisors (CBC Advisors) is pleased to announce that Chris Turner is joining the newly expanded downtown Salt Lake City office at 111 Main as an investment analyst. He will work in partnership with Mark Jensen, who recently joined the firm as executive vice president, as CBC Advisors continues to build its rapidly expanding investment services division.

“Chris is a rising star in the commercial real estate industry and brings incredible momentum to our dynamic new downtown Salt Lake City office,” said Brandon Fugal, chairman of CBC Advisors.

Turner joins CBC Advisors from Newmark Grubb ACRES, where he worked with the top producing multifamily brokerage team in Utah, ARA Newmark. In just the past 10 months he has underwritten nearly $125,000,000 of commercial property ranging from 4 plexes to 411-unit apartment communities, in addition to completing comprehensive rent surveys in numerous submarkets and analyzing the operating expense data of 30,000 units across the Wasatch Front.

CBC Advisors is the largest full-service brokerage in Utah and has long been considered one of the most recognized and trusted brands in commercial real estate, holding the designation of the top performing Coldwell Banker Commercial operation globally for 14 consecutive years. CBC Advisors represents world-class office, retail, investment, industrial and multifamily projects nationwide with multiple offices in Salt Lake County along with Utah County and Southern Utah.

Dan Simons Joins CBC Advisors as Senior Vice President

Dan Simons Joins CBC Advisors as Senior Vice President

Salt Lake City (August 23, 2017) –Coldwell Banker Commercial Advisors (CBC Advisors) today announced that Dan Simons has joined its Salt Lake City office as senior vice president. The move comes as CBC Advisors continues to expand operations and service throughout the Wasatch Front. Simons is widely considered one of the most successful and influential commercial real estate brokers in the Intermountain West with nearly 40 years of experience working in the Utah commercial real estate market.

“Dan brings a storied resume and unmatched skillset with over four decades of experience leading the commercial real estate industry,” said Brandon Fugal, chairman of CBC Advisors. “His contributions to the market have created many of the most prominent and recognized legacy developments in Utah.”

In the past, Simons previously served as branch broker at NAI West. He also held positions at Newmark Grubb ACRES and NAI Utah. Simons served as the director of real estate at Larry H. Miller Group, guiding the development of Jordan Commons. He was also the economic development director for Sandy City and past chair of the Sandy Area Chamber of Commerce. In these capacities, Simons has helped lead Sandy to become one of the foremost destinations for commercial growth in the Intermountain West with the introduction of marquee developments such as The Cairns. He served as commissioner of the Utah Division of Real Estate and past president of Thanksgiving Point Development.

“Dan’s professional accomplishments are noteworthy,” said Fugal. “His leadership will play a critical role as CBC Advisors continues to set the tone for commercial growth at the Point of the Mountain and across the Wasatch Front.”

CBC Advisors is the largest full-service brokerage in Utah and has long been considered one of the most recognized and trusted brands in commercial real estate, holding the designation of the top performing Coldwell Banker Commercial operation globally for 14 consecutive years. CBC Advisors represents world-class office, retail, investment, industrial and multifamily projects nationwide with multiple offices in Salt Lake County along with Utah County and Southern Utah.

Greg Ratliff Joins CBC Advisors as Senior Vice President

Greg Ratliff Joins CBC Advisors as Senior Vice President

Salt Lake City (August 18, 2017) – Coldwell Banker Commercial Advisors (CBC Advisors) is pleased to announce that Greg Ratliff is joining the newly expanded downtown Salt Lake City office at 111 Main as senior vice president of multifamily investments.

“We are thrilled to bring such an experienced and qualified professional to our rapidly growing investment services team,” said Brandon Fugal, chairman of CBC Advisors. “Greg’s leadership adds to a dynamic momentum in our new 111 Main office.”

Ratliff joins CBC Advisors from Newmark Grubb ACRES, where he was vice president of the Apartment Properties Group. Ratliff has played an instrumental role in investment strategy for major multifamily developments including Mission Meadowbrook Apartments, The Diamond J Multihousing Portfolio, 2550 South Main Apartments, Goldstone Place Apartments, Cottonwood Apartments, FoxPoint in Old Farm and Spring Meadows Apartments. His client base ranges from partnerships, pension fund advisors, lenders/loan servicers, TIC and private investors.

“Greg’s contributions will be critical as CBC Advisors continues to build the most dominant investment brokerage platform in the Intermountain West,” said Fugal.

CBC Advisors is the largest full-service brokerage in Utah and has long been considered one of the most recognized and trusted brands in commercial real estate, holding the designation of the top performing Coldwell Banker Commercial operation globally for 14 consecutive years. CBC Advisors represents world-class office, retail, investment, industrial and multifamily projects nationwide with multiple offices in Salt Lake County along with Utah County and Southern Utah.

Mark Jensen Joins CBC Advisors as Executive Vice President

Mark Jensen Joins CBC Advisors as Executive Vice President

Salt Lake City (August 17, 2017) – Coldwell Banker Commercial Advisors (CBC Advisors) today announced that Mark Jensen has joined the firm’s newly expanded Downtown Salt Lake City office at 111 Main. Jensen was named executive vice president of investments and will play a critical role as CBC Advisors continues to build its rapidly growing investment services division.

“Mark is recognized as one of the leading investment property experts in the West, and has become a standout in the industry as a direct result of his focus on the best interest of his clients,” said Brandon Fugal, chairman of CBC Advisors. “His vision and professionalism have differentiated him among top commercial real estate professionals nationally.”

Jensen was previously executive vice president at Newmark Grubb ACRES and headed the Apartment Realty Advisors “ARA” Utah Office.  Continually a top producer, Jensen has ranked in the Top 5 for production throughout his career and was the #2 performer for Newmark Grubb ACRES in 2016. While well versed in all investment product types, his team has consistently completed over 50% of the brokered apartment transactions in Utah over the last 4 years.  In the last 10 months alone, his team has completed 29 deals totaling over $120,000,000 in sales volume.

“Mark’s leadership punctuates our commitment to the Downtown Salt Lake City market and creates an opportunity to deliver the most dominant investment brokerage platform in the Intermountain West,” said Fugal.

CBC Advisors is the largest full-service brokerage firm in Utah and has long been considered one of the most recognized and trusted brands in commercial real estate, holding the designation of the top performing Coldwell Banker Commercial operation globally for 14 consecutive years. CBC Advisors represents world-class office, retail, investment, industrial and multifamily projects nationwide with multiple offices in Salt Lake County along with Utah County and Southern Utah.

CBC Advisors Announces New Utah County Headquarters

CBC Advisors Announces New Utah County Headquarters

PLEASANT GROVE, UT (August 01, 2017)—St. John Properties today hosts Governor Herbert, Company founder Edward St. John and 200+ VIPs to break ground on the master planned development known as Valley Grove. At the ground breaking the group celebrates the $250 Million investment of St. John Properties in Pleasant Grove City. Over the life of the project, Valley Grove is anticipated to generate over $800 Million in tax revenue to the state, county and Pleasant Grove, while hosting more than 7,000 employees. Several of the presenters at the ceremony were current or future businesses at Valley Grove, including CBC Advisors, R&R BBQ and Instructure.

“Utah continues to attract strong businesses to support what is now the fastest growing state in the nation,” said Governor Gary R. Herbert. “This project will contribute greatly to the already growing strong economic base in Utah Valley. I appreciate that St. John Properties has prioritized the hiring of local contractors, and wish them well as they break ground on Pleasant Grove’s Valley Grove project.”

The #1 commercial real estate firm in Utah County, Coldwell Banker Commercial Advisors (CBC Advisors), today announced its expansion and planned relocation to Valley Grove’s Grove Tower, taking nearly 16,000 square feet.

“We are excited to expand our commitment in Utah County and establish our new Class A office in Pleasant Grove, located at the prestigious 6 story Grove Tower,” said Brandon Fugal, Chairman of CBC Advisors. “As the only full service commercial real estate office in Utah County, our 50 professionals and growing offer the most cutting edge market intelligence, and will continue to lead the market from this new location.”

Valley Grove includes easy access to more than one million square feet of Class A Office, Restaurant, Retail and Hospitality destinations. Valley Grove, upon completion, will include more than 2,000 trees. The greenery will accompany a selection of LEED designed buildings for maximum energy and water savings and minimize negative environmental impact.

“We are thrilled with the pro-business climate and warm reception we’ve received in Utah,” states Edward St. John, chairman and founder of St. John Properties. “We strive every day to provide places for great companies to grow their businesses, employee Utahans, generate profits and pay taxes.”

The state added 42,100 jobs between November 2015 and November 2016, according to the Utah Department of Workforce Services. Utah Valley’s tech heavy Silicon Slopes are pulling the epicenter of population growth south of the state’s capital city as new jobs and new homes dot the Utah County landscape, according to the University of Utah’s Kem C. Gardner Policy Institute. This is driving increased demand for office space in Utah Valley.