Archive for the ‘News’ Category

Utah Business Magazine ranked NAI the largest commercial real estate firm by transaction volume in the state.

So while I was in a great mood today at work, opening up my yahoo account to see which of my pleasant friends had emailed me today, I read an article that made me smile. It was called “Happiest Places to Live in America.”

Wouldn’t you know it, Utah was 2nd on the list. The only place that has happier people in the U.S. is Hawaii. If you have ever been to Hawaii, you know exactly why they are so happy- It’s gorgeous!!!

So why is Utah so happy?

Over 350,000 Americans participated in the Gallup-Healthways Well Being Index. The survey includes six categories including: work environment (job satisfaction), life evaluation (self-evaluation about your current life situation and the outlook of the short term), physical health, healthy behavior, basic access ( is it a safe place to exercise and walk, and community satisfaction).

In the final rankings, Hawaii scored 70.2 and Utah scored 68.3.

St. George, Utah specifically has several things to boast about. Several years in a row it was ranked the fastest growing micropolitan city in America. Recently it was ranked the safest communities to live in areas with less than 150,000 population.

Moral of the story? If you are looking for a great place to do business, safe environment, and to be among the happiest people in the country… Welcome to St. George.

Recently the government has been taking steps to boost the economy, and breathe some life into businesses. Many things they choose to spend money are not necessarily quantifiable, however the Home Run Grant just may be-

According to James Wood, the Executive Director of the Bureau of Economic and Business Research at the University of Utah, in 2009 the Home Run Grant:

• 3,645 home buyers received financial assistance of between $4-6,000 people.
• 19,508 jobs were saved or created that were construction related
• The value of homes sold was $830.9 million
• Earnings created was $659.8 million.

Although the Home Run Grant time line has been extended once, it is not anticipated to be extended again. So if you are a first time home buyer, many economists suggest that a few years from now, anyone who had a chance to buy in 2010 and didn’t will definitely regret it.

It is said by many economists that the housing market is what got the economy into this mess, and the housing market will get us out of it.

Commercial real estate across the nation, and commercial real estate in St. George Utah, are typically 12-18 months behind the trends that residential markets set. So when the residential market begins its recovery, commercial investors will come out of the wood works and start to realize the deals that will be available for them.

If you have ever been to the St. George McDonald’s located on 798 E St. George Blvd, you can attest that it has one of the screwiest drive-thru window set up’s ever.

In order to solve that problem, as well as give the whole building a face-lift, it will soon be completely demolished and rebuilt in 2010. The new and improved McDonald’s will even have a two-lane-drive thru.

For more information on the happenings in St. George Commercial Real Estate, contact Brandon Vandermyde at 435-627-5735.

Successful Leasing Strategies in a Volatile Market

This International Council of Shopping Centers (ICSC) held a webinar his past week called “Successful Leasing Strategies in a Volatile Market” which consisted of a panel of industry experts who gave their professional opinion on the most effective leasing strategies in the current market situations.

Hessman Nadji opened up the session with an overview of the driving economic forces in today’s market, and addressed his predictions on the future recovery, Nadji stated “There is plenty of positive evidence that suggests the worst is over in what is now being called the “Great Recession,” but stated that there are still plenty of obstacles before us.

“We’ve seen the steepest job loss since the great depression, but now that loss has moderated, showing the end is near. We anticipate the job loss cycle will hit bottom by the end of 2009 and the economy should be poised for recovery in 2010”,Nadji said.

CoSatar reports that retail sales where better last month than expected, Nadji warned the retail industry to still be ready for the worst case scenario because a recovery will be “muted and difficult” and consumers will still face issues with debt and lack of jobs.

Traditionally in past recessions, consumers home-buying confidence will increase as the Feds decrease the interest rates, decreasing the duration of the recession. The affects on consumers during this recession have been much deeper than what we have experienced in the past, and the recovery is taking much longer than most economists predicted.

“The effect of store closures on retail vacancies has been incredibly sharp because retail was the only sector in which construction actually went up during 2001-2003 because there was so much consumer stimulation going,” Nadji said. CoStar expects that vacancy rates (which are extremely high) will continue to rise well in to 2010.

What Should Landlord’s Do?

Marty Mayer, president of Convington, an LA-based Stirling Properties, said “keeping existing tenants intact is key.” If a tenant moves out, there are several additional costs incurred by the landlord including leasing commissions, tenant improvements, cost of the vacancy itself.

Another option landlords should strongly consider is allowing the tenant to reduce the amount of s.f. they occupy. It may save the tenant from going dark, which will limit the amount vacancies landlords are currently battling.