Salt Lake:Official development news thread

[Viperlord]

Downtown condo market falters after strong 2007

http://www.sltrib.com/ci_11522200

"Sales "went from full throttle to a standing halt," said Babs De Lay, a downtown real estate agent."

[Viperlord]

Salt Lake County’s Office Real Estate Out-Performs the National Economy, According to Commerce CRG

http://utahbusiness.com/issues/articles/...c9508f1ad7192bf3948f06a2b7bfa048778fbbda

Salt Lake County’s Office Real Estate Out-Performs the National Economy, According to Commerce CRG

by Jared Preusz

22 January 2009—

Though commercial real estate nationwide has recently experienced a meteoric rise in the number of office vacancies, Utah’s commercial real estate is holding its own, according to Commerce CRG.


In its 2008 Year End Commerce CRG/Cushman & Wakefield report, the company finds that, “In 2008, the Salt Lake County economy out-performed the national economy in almost every commercial real estate category, including office.” The report finds that the reason for this out-performance is that Utah’s unemployment levels are now half the national rate.


Salt Lake County may be fairing well compared to the rest of the nation, but the state is still experiencing its share of economic problems. Rich Norland, office real estate specialist for Commerce CRG, said office vacancy rates rose 2 percent last year.


“The biggest reason why the vacancy rate has gone up is because of the numbers of jobs lost in the state,” Norland said.


The Commerce CRG report projects that in 2009, Utah will still outperform the rest of the nation in office real estate. More detailed facts from the report are listed below:


Salt Lake County Office Market Highlights

1. Overall Salt Lake County average "asking" lease rates rose. Due to landlord concessions, however, renters are actually paying less for space.

2. Office space absorption in Salt Lake County was positive, showing signs of continued growth, but it was significantly lower when compared to 2007.

3. A bright spot, downtown office space vacancy went down year-over-year from 11.02 to 10.30 percent.

4. New TRAX lines, commuter rail and the legacy Highway have been a big plus, encouraging eBay and Oracle to make new investments totaling more than a half billion dollars in the next few years.

5. Twelve new office buildings came on the market, causing county-wide vacancy to increase by just over two percent. Salt Lake County year-to-year comparison: 10.76 percent vacancy to 12.95 percent. Forty-five percent of those new buildings are currently occupied with one exception—Five Gateway is at 96 percent occupancy.

6. Corporate consolidations (example: from smaller satellite offices to one large office) created negative office space absorption in the northwest and central east segments of Salt Lake County.

7. The economic downtown has boosted the availability of county-wide sublease space by 47 percent over last year.


Salt Lake County 2009 Office Market Forecast

1. The Utah office market will continue to outperform the nation and remain in relatively good condition. A driving factor: Our unemployment levels are only half the national rate.

2. Expect continued interest from national companies for possible expansions in Utah.

3. The on-going City Creek project and construction at 222 South Main will pump $1.8 billion into the market for the next three years. This will help protect the county from nationwide downward trends by providing vitality in construction jobs and services.

4. In 2009, only half-a-million square feet in new office construction will come online. An expected decrease of any additional new office construction will keep county vacancy at a modest rate.

6. Expect very little speculative development in the near future. Developers will need a significant amount of businesses willing to "pre-lease" prior to construction before they take any chances on new projects.

[Wasatch_One]

Originally Posted by Viperlord

Downtown condo market falters after strong 2007

http://www.sltrib.com/ci_11522200

"Sales "went from full throttle to a standing halt," said Babs De Lay, a downtown real estate agent."

when posting sltrib articles, we may want to post the entire article because we lose access to it from the link after a few months... just an fyi. Its only trib articles though, that I have noticed

[skierforlife17]

Another thing to take note of with the University project that no one has really been talking about yet is that the stadium will be remodeled to go from 47,000 capacity to somewhere in the 62000 range. Thats a lot more car space needed... who cares though this development is going to be awesome! I am also expected to get a call back sometime next week about bars being allowed in this development or not

[stayinginformed]

Where did you hear that rice eccles will go from 47k to 62k? I hadn't heard that before. If that is the case, that is awesome.

[cololi]

Originally Posted by Stenar

According to the Campus Master Plan, the stadium lot has 941 parking stalls now, but will have only 500 stalls in parking structures when the project is completed. Even if it were going to be 1200 parking stalls, 260 more parking places are going to make more of a nightmare than the current 941 cars using that parking lot now?

500 is the minimum requirement dedicated to the University. There are two separate garages. The design team said 1200 on W night. With the different uses, the travel patterns change. The traffic study has not been completed yet, but it will change the way the site works for vehicles. Each garage also has one way in and one way out.

No where in the RFP process or design process to this point has expanding the stadium been discussed in meetings I have attended.

[shakman]

Originally Posted by stevena07

oooooo project universe looks cool! I hope it still goes forward.

Delts, there are a ton of those kinds of apartments downtown, or at least similar.

They are all copyrighted so I cant post the pictures, just the links

http://flickr.com/photos/25876268@N05/2925905394/

http://flickr.com/photos/arts_enthusiast/248456870/

http://flickr.com/photos/arts_enthusiast/248456741/


http://flickr.com/photos/arts_enthusiast/243715012/

http://flickr.com/photos/arts_enthusiast/248456947/

http://flickr.com/photos/arts_enthusiast/395943500/in/set-72157594291678991/


some one was asking for a pic of the library under construction...
http://flickr.com/photos/coyote2012/2158061339/

Thanks for sharing. Those structures are quite nice.

[delts145]

Thanks for the links Steve. Some very good looking structures.

[Wasatch_One]

Originally Posted by stayinginformed

Where did you hear that rice eccles will go from 47k to 62k? I hadn't heard that before. If that is the case, that is awesome.

So they want 15k more empty seats every game, 3 out of 4 years? ha

[wrendog]

I doubt that RES is scheduled for expansion so soon after the most recent expansion.

[SLC Projects]

Originally Posted by skierforlife17

Another thing to take note of with the University project that no one has really been talking about yet is that the stadium will be remodeled to go from 47,000 capacity to somewhere in the 62000 range. Thats a lot more car space needed... who cares though this development is going to be awesome! I am also expected to get a call back sometime next week about bars being allowed in this development or not

I didn't know that RES will expand with this project. That would be awesome. I always thought that RES is small and that it should be bigger.

[Viperlord]

Sandy's Broadway theater stalls in sluggish economy

http://www.sltrib.com/ci_11539665

Suburbanites will have to wait a little longer to see Broadway shows in Sandy.

Mayor Tom Dolan said The Proscenium commercial project - and its 2,700 seat playhouse - is "on hold."

Orem-based developer Scott McQuarrie had planned to debut the first phase of his $600 million-plus mixed-use development, including the $55 million mega-theater, in fall 2011. Construction was scheduled to start this spring.

"I don't know if they can reach those target dates," Dolan said. "For now, there's no financing in the marketplace for anyone building anything."

McQuarrie, principal of BTS Investments and Proscenium Development Inc., did not return several calls seeking comment.

Nick Duerksen, Sandy's assistant community development director, confirmed the project, which features three 30- to 40-story towers, has stalled because of financing difficulties. But, he said, the scope of the 2.3 million-square-foot undertaking remains unchanged.

"They have not talked to us about any kind of scaling back," Duerksen said. "Our understanding is they still intend to move ahead with the design as presented."

That design includes two hotels, offices, upscale condos, restaurants and additional arts amenities, including a black-box theater and a performing-arts school. Dolan said McQuarrie could start with a six-story building that is part of a later phase instead of a 40-story skyscraper.

Salt Lake City also plans to build a mega-theater,

an $81.5 million, 2,400-seat-plus performance hall expected to debut on Main Street in 2012. It's doubtful the Salt Lake area market could support two theaters of that size, which would be forced to compete for touring Broadway acts.

[Makid]

I hope that SLC is able to get some funding for the Theater downtown during this, well timed delay for Sandy.

[Future Mayor]

One of the benefits I see in SLC favor for funding the theater is that Bill Becker has industry connections and maybe those connections have funding options that the McQuarrie doesn't have.

[Viperlord]

Whoa guys a lot of off topic discussion going on in here. Please stay on topic.

[SLC Projects]

Originally Posted by Viperlord

Sandy's Broadway theater stalls in sluggish economy

Mayor Tom Dolan said The Proscenium commercial project - and its 2,700 seat playhouse - is "on hold."

That sucks, but I saw it coming.

Originally Posted by Viperlord

McQuarrie could start with a six-story building that is part of a later phase instead of a 40-story skyscraper.

Weak. Bring on the skyscraper. No more lame 6 story buildings. Sandy has enough of those already.

[delts145]

There aren't going to be any new 40 story towers anywhere until this economy starts to right itself.

[Urban_logic]

I have two points to make.

1) I think this project is an excellent undertaking and I fully support it (Proscenium Sandy). I think that down town and SLC proper has enough going on as is. Sandy is turning into Utah's 2nd city and I think it should reflect that with a vibrant down town complete with a strong commercial market and cultural ammenities. Not that it will ever eclipse down town, I mean SLC will always remain the cultural and economic center, but the south valley has a strong enough population base now to support its own mini down town - with much, much more growth to come. I have always disliked how the SL Valley has had a mid-western set-up - one huge city center, then seemingly endless, sprawling suburbs. I think this project will really be a great investment in a south valley down town-like center.

I know its hard for a lot of SLCers to welcome a project that may detract from SLC, but it think it is necessary. I know I am going to get comments about down town dying again, but I disagree. With CCC, Gateway, and Temple Square as great attractions along with an excellent mass-transit system connecting to down town, I think people will still come to town. I'm seeing a future where northern residents (Ogden, Layton, Clearfield, Bountiful, North SL, etc.) and western residents (West Valley, Magna, Kearns, Taylorsville) along with SLC Proper residents (SLC, Murray, Cottonwood area, Holiday, Sugar House, South SL, etc.) will continue to provide a strong population base to support down town. Then, south valley residents and Utah Valley residents (who are prodominantly Mormon) will continue to frequent down town because of Temple Square.

Another thing to remember is that people won't just pick a favorite down town and stick with it - they will find things that they like in one, then other things they like in the other. People may frequent one more than the other, but they will continue to go to both. With much more mass-transit inter-connectivity, people will be able to do this much easier.

2) I am liking the Universe project, but I do hope they will limit parking space. We really need to build our new projects so that they are mass-transit oriented. I do also hope that it will be original and not a xerox of CCC or Gateway. A few stores is alright - provide a nice little plaza for people to visit during games at RES. The residential is a great opportunity to invest in dense residential for the area

Just an observation. Huge project complete with 30-40 story towers, two hotels, a mega theater.....stalled due to recession....have the words "Triad Center" crept into anyone else's mind?

[urbanboy]

2nd city? What about Ogden and Provo?

[SLC Projects]

Originally Posted by delts145

There aren't going to be any new 40 story towers anywhere until this economy starts to right itself.

I agree. So therefor they should just hold off time the economy gets better. But I'm afraid that since this is a race these developers will do the CHEAP thing and just built 6-story buildings just so they can get their project finish first.

Originally Posted by Urban_logic

I have two points to make.

1) I think this project is an excellent undertaking and I fully support it (Proscenium Sandy). I think that down town and SLC proper has enough going on as is. Sandy is turning into Utah's 2nd city and I think it should reflect that with a vibrant down town complete with a strong commercial market and cultural ammenities. Not that it will ever eclipse down town, I mean SLC will always remain the cultural and economic center, but the south valley has a strong enough population base now to support its own mini down town - with much, much more growth to come.

I know its hard for a lot of SLCers to welcome a project that may detract from SLC, but it think it is necessary. I know I am going to get comments about down town dying again, but I disagree. With CCC, Gateway, and Temple Square as great attractions along with an excellent mass-transit system connecting to down town, I think people will still come to town.

Agreed. That's what I have been saying this whole time.