Utah: an Evolution Story
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COMMERCIAL REAL ESTATE 2019 THE ADVISOR UTAH: AN EVOLUTION STORY STATE OF THE MARKET | THE LAST MILE THE ADVISOR A Year of Growth With many significant milestone accomplishments on the horizon, such as COMMERCIAL REAL ESTATE 2019 an expanded international airport, a world-class inland port and continued Chairman | Utah real estate development across key business sectors throughout the state, Brandon D. Fugal Utah currently faces critical decisions that will shape its ability to compete [email protected] nationally and internationally for generations to come. Managing Director | Utah Progress assuredly presents many challenges — adequate infrastructure, Blake Rigby population increase, transportation planning and affordable housing [email protected] to name a few. However, Utah can firmly plant roots within the global CEO | Utah marketplace as a leading U.S. market if we continue to embrace proven Lew Cramer business fundamentals and effectively navigate impending obstacles in the [email protected] way of growth. The state has proven time and time again that it has what Public & Media Relations | Utah CONTENTS it takes to compete at the highest level when the private and public sectors Bryan Welch foster an atmosphere of collaboration. (801) 947-8300 [email protected] 02 A YEAR OF GROWTH A Year of Change A message from the leadership team at Collier’s International. POST MILLENNIAL 36 The next wave of retail shoppers are what the Retail Industry Utah was built on a legacy of industry. A dedication to excellence, strong Leaders Association calls the (R)Tech shopper: consumers who economic fundamentals and innovative business practices within the public 04 UTAH: AN EVOLUTION STORY want to shop anytime, anywhere, in any way. That means brick- and private sectors have created a dynamic marketplace for companies Salt Lake City hasn’t always been a hub for major global and-mortar stores need to find a way to integrate digital space with businesses, but over the past decade, Utah real estate has physical space. looking to expand operations within the state. The Utah community of transformed itself from a relatively unkown tertiary market into a today will certainly not be the same 30 years from now. thriving secondary market. Tremendous progress brings significant change. We at Colliers AN ANNUAL PUBLICATION BY 40 THE LAST MILE COLLIERS INTERNATIONAL The last mile is the stage of shipping that gets the product to believe that in order to achieve extraordinary results you must put forth 10 EXPOSED the consumer’s home and it’s the most expensive segment of extraordinary effort. Consistent growth does not happen by mere chance. Along the Wasatch Front, trends in collaborative open format office a product’s journey. Disruptive technologies such as mobile It requires collaboration and foresight. It necessitates advanced tools and spaces have been driven by the state’s robust tech sector. Here’s computing, machine learning, cloud computing, cloud services, how many large businesses are experimenting with open/closed artificial intelligence, and the internet of things can help. resources. office hybrids. A Year of Opportunity 46 ON LOCATION MIX AND MATCH Commercial real estate plays an important part in cinema. Local By providing the most powerful proprietary intelligence, tools and Contributors 14 John Adams Many traditional retail spaces are being redeveloped into mixed-use properties have had notable roles in over 1,000 movies, television resources to the Utah market, Colliers remains committed to facilitating Jacob Andra buildings that combine living spaces with officing options, shopping, productions, and advertisements, and have even brought additional growth, optimizing change and providing opportunity to commercial and Heather Beers entertainment, and a plethora of dining experiences. revenue streams and notoriety to Utah. community partners. Ana Bentz Lindsay Bicknell With a global footprint of over 15,400 professionals and more than 500 Elainna Ciaramella 18 THE RIGHT ROUTE 50 CLINICALLY SMART offices in 69 countries, Colliers International is the fastest growing publicly Tyler Cocker Port congestion is a huge problem facing both the Ports of Los New technologies and legislation have created an environment Angeles and Long Beach. There’s a growing urgency to move cargo where medical clinics and independent practices can’t afford to be traded commercial real estate firm in the world — delivering results for Brandon Dalton Kelsie Foreman away from seaports and into distribution, and inland ports like the on their own unless they are in the hyper-specialized realm of care. clients on a local, regional, national and international basis. Not only does Sarah Ryther Francom one planned for Utah can help facilitate this. Colliers integrate the resources of real estate specialists worldwide, but we Elle Griffin DEATH. TAXES. REAL ESTATE. remain committed to serving clients with a hyperlocal and entrepreneurial Lana Howell 54 Brian Hugo 24 NOWHERE TO GO Multiple provisions of the 2018 tax reforms stand to benefit mindset. Rachel Madsen Utah currently has more households than available housing units. commercial real estate directly, and though the final details have Our over 200 professionals, located across Utah’s various submarkets, Amanda Nogales And those available housing units are ever increasing in value, yet to be worked out, those looking to buy, sell, or rent commercial making them unaffordable to a percentage of the population. This space will likely benefit from broader tax cuts and deductions. think differently and implement creative strategies to accelerate client Emma Penrod Eric Peterson has led many to speculate that the next generation will face a success with a true, full-service real estate approach. It is an exciting time to Dana Sohm bonafide housing crisis. live and do business in Utah. Kathy Sturzenegger 58 AIMING HIGH Bryan Welch The scope of Salt Lake City’s airport expansion goes far beyond Donnie Welch 28 THE BURBS essential upgrades, such as security, capacity and safety: travelers We look forward to serving you! Kassi Cox Whale Outside of Salt Lake City and Lehi, Utah has several suburbs that will see improvements in convenience, functionality and efficiency— are home to big, vibrant businesses. Companies like Overstock, improvements that will have a major impact on the state for years CHG Healthcare, Pluralsight, and doTERRA are just a few examples to come. Published In Partnership with: of big businesses that have planted roots in the 'burbs. Your partners, 62 COLLIERS INTERNATIONAL 34 A NEW CURRICULUM Colliers International provides investment sales, landlord and These are no Animal House-style dormitories. Colleges and tenant representation, property management, valuation and Brandon Fugal, Chairman universities around the country are renovating student housing consulting, and advisory services for world-class industrial, Blake Rigby, Managing Director facilities with their target market in mind. investment, multifamily, office, and retail properties worldwide. Lew Cramer, CEO Copyright 2019 by Colliers International. All rights reserved. Every effort has been made to ensure the accuracy of the information herein. However, Colliers International is not responsible for any STATE OF THE MARKET omissions or errors that might occur. Reproduction in whole or 68 part of any text, illustration or photography without express written Taking the pulse of major markets throughout the state of Utah. permission of the publisher is prohibited. 2 | THE ADVISOR THE ADVISOR | 3 UTAH: AN EVOLUTION STORY BY ANA BENTZ There was a time when you wouldn’t think of Salt STRONG FUNDAMENTALS Lake City as a hub for major business. But over Great culture and picturesque surroundings were a the past decade, Utah has transformed itself into few of the reasons why global software giant, Adobe, a thriving commercial market similar to the likes invested in Silicon Slopes. "[Utah has] proven to be a of Silicon Valley. Elite-level businesses from solid business decision," says Jonathan Francom, vice around the globe increasingly consider the state president of employee and workplace solutions at an attractive alternative to gateway markets on Adobe. "Adobe chose to establish a long-term presence the east and west coasts. Leading companies and in Utah due to the region's vibrant communities, investors want to work, live, and play in Utah. But business-friendly environment and its highly-educated what exactly makes the environment so appealing? and skilled talent base." With a business-friendly climate and an atmosphere QUALITY OF LIFE of great cultural and recreational opportunities, it's "Utah has been, and continues to be, a great home no wonder why Utah is competing with other major for us," says Anita Grantham, chief people officer at markets throughout the United States. Grantham Pluralsight, Inc. According to her, Pluralsight chose to noted that with so many successful companies making make a presence in the state back in 2004 due to the their homes in Utah, it's no longer just a fly-over state. overall experience Utah brought the company and "We have investors, customers, team members, and their people. "Both our team members who are from technologists from all over the world coming to Utah to Utah and who have relocated here love the lifestyle meet with the exciting businesses here." Utah offers them. They get to enjoy Utah's low cost-of- Utah Governor, Gary Herbert, does not see an end living and