What’s currently affecting Utah’s commercial real estate market

We’ve seen reports of tech jobs slowing. What effect will this have on commercial real estate?

Chris Liddell | SVP | CBRE

There’s so much tech in the north end of Utah County. Tech flourishes with cheap capital, and it’s gotten more expensive. There were 31 new buildings built in Utah County in the last 18 months. The majority of those are sitting empty. As interest rates decrease and expectations reset, that might help fill some of the buildings. In Utah County, large increments of space have become a real soft spot in our marketplace.

Jeff Rossi | Executive Managing Director | Newmark

Technology in Utah is one of the great drivers. As technology continues to change, we’ll continue to evolve and grow. We look to the headquarters conversations, the life sciences conversations, and the health care conversations and how they impact technology in a collaborative, supportive way. I am bullish on the state of Utah and technology in the state of Utah.

Michael Holman | VP, Development & Finance | Overland Group, Inc.

The majority of my neighborhood is in some form of tech sales. During COVID-19, you just needed a warm body, and you would beat your sales expectations. That has slowed down, and now almost everyone in tech sales has returned to the office in some form. I’ve seen several layoffs, but more people have returned to the office, which is an interesting counterbalance in real estate.

Daniel Stephens | Managing Partner | The BlackPine Group

We tend to think of our tech market as being in Utah County or South Salt Lake County, but the amount of tech happening on Hill Air Force Base is incredible. With more federal funding, Northrop Grumman is expanding, and there are technological advances in the health care industry. If we broadened this to be a Wasatch Front conversation, we would feel less like it’s a down market. I think it’s growing.

Scott Bishop | President & CFO | Woodbury Corporation

Right now, everything has to be mission-driven. Building without a tenant, mission or subsidy — it’s just not going to happen. Hill Air Force Base is booming because the government is incentivizing it. Without that, you’re not developing today. You need that mission to drive the development.

What’s one word that would describe the landscape of commercial real estate in 2024?

Eric Carlson | CFO | Larry H. Miller Real Estate

Anxious. Fortunately, we’ve gotten into real estate more recently and feel well-poised for the future. At the same time, this is an ecosystem; all of our projects — these big mixed-use projects — aren’t great unless they have all the key components. You can’t build a mixed-use community with all apartments.

Brian Cheney | Shareholder | Dentons Durham Jones Pinegar

Resilient. We’ve discussed what’s wrong with the market but continue to be extremely resilient — not letting this stop growth, pursuing awesome opportunities with sporting teams and continuing to think big.

Brian Dilley | Managing Director | Dakota Pacific Real Estate

Adaptive. How we adapt to new normals, interest rates, construction costs … We’re all trying to figure out not just how we survive but how we thrive. How do we capture the continued growth and participate in the real estate market here?

Jonathan Buss | Senior Division Underwriting Counsel | First American Title 

Sanguine, meaning cautious optimism. I’m optimistic while recognizing the difficulties.

Brock Bench | Investment Real Estate Manager | Altabank

Discipline. It will be some time before we see a new shift, but there’s probably not a better market that I would rather be in than right here in Utah to weather the storm.

Scott Bishop | President & CFO | Woodbury Corporation

Measured. We have lots of opportunities. It’s resetting expectations from cap rates when they were three and a half percent, and now we are going, “Okay, what is a return we’re willing to take?” We are measuring that and looking for opportunities.

Jake Despain | President, Board of Directors | NAIOP Utah

Grateful. I’m grateful to be here. I think everybody would say the same. We have much to be grateful for in this great state and city. It’s not bad to have some cleansing; liquidity will be important.

John Smith | VP, Commercial Sales Executive | Fidelity National Title National Commercial Services Utah

Four words for me: bullish, adaptive, resilient and flexible. image

Sign up to receive the best Underground art & real estate news in your inbox everyday.

We don’t spam! Read our privacy policy for more info.

This post was originally published on this site be sure to check out more of their content.