Salt Lake City: Official Development News Thread - Part 5

[I-15]

It's really going to be fun watching Astra and Worthington rise at the same time.

[Dallas Snob]

Originally Posted by I-15

It's really going to be fun watching Astra and Worthington rise at the same time.

Cooler Still? Add in Main Street and you have the Holy Trinity of 2022.

[EPdesign]

Originally Posted by Dallas Snob

Cooler Still? Add in Main Street and you have the Holy Trinity of 2022.

I could faint

[Makid]

It is likely that there will be a Quorum under construction come 2023 if we add in a few others:

Domain (4th South West Temple) tower
West Quarter Residential+Hotel tower
West Quarter Residential tower
West Quarter Commercial tower
Sundial (maybe shifting to residential)

This is just the 25+ story towers.

The next few years will be a skyline full of tower cranes.

[Potgut]

If we come into a economic recession within the next few months or years I just hope it doesn't doesn't lead to canceling or postponing any of these projects. All these new high rise constructions and proposals with a possible recession in the horizon reminds me of the Skyscraper Effect.

[Blah_Amazing]

Originally Posted by Potgut

If we come into a economic recession within the next few months or years I just hope it doesn't doesn't lead to canceling or postponing any of these projects. All these new high rise constructions and proposals with a possible recession reminds me of the Skyscraper Effect.

From what economists are saying, if the US goes into recession, it will likely be a relatively mild one (though honestly who knows). If that happens, its likely Utah won't go into recession at all, since we have been outperforming the rest of the US economy. For example, Utah is tied for having the second lowest unemployment by state in the US with a rate of just 2.0%.

Something else to think about is the impact rising interest rates are having. It has made buying houses (particularly single family houses) more expensive and out of reach for most people. This may actually result in more people in Utah moving into the multifamily market (apartments, condos, townhomes) as well as the rental market.

So the impact from rising interest rates could actually create more demand for large downtown residential projects - not less.

Rising housing costs combined with rising gas prices (if sustained for a long time) may also start resulting in lower demand for suburban and car dependent single family neighborhoods and more demand for transit corridors. If you think about it, as terrible as all these things are for working families, we may actually start getting better and more urbanized development projects going forwards because of it.

Overall though, I think Utah will be fine. Our state has outperformed all the others when it comes to economic recovery both after the great recession and the covid-19 economic crisis and I think we will be set to do the same now.

[bob rulz]

I agree with Blah that a recession probably wouldn't affect the downtown residential market too much, especially in Utah. Unless it was a very severe recession, but that seems unlikely.

[bob rulz]

Originally Posted by Makid

It is likely that there will be a Quorum under construction come 2023 if we add in a few others:

Domain (4th South West Temple) tower
West Quarter Residential+Hotel tower
West Quarter Residential tower
West Quarter Commercial tower
Sundial (maybe shifting to residential)

This is just the 25+ story towers.

The next few years will be a skyline full of tower cranes.

It's a great time to be a development nerd in Salt Lake!

[Marvland]

Housing market, even in Utah, is being hit hard. I closed a property today and ask my title gal what volumes are doing and she says they are way down and they're facing layoffs. Mortgage applications are down by 30% nationally as buying power has been reduced by almost 40% less than 6 months. Listing volume has gone way up in the valley. I'm seeing lots and lots of price drops on million dollar houses. Utah has 3 of the biggest price drop markets in the country right now with Provo SLC and Ogden all being in the top 10: https://www.abc4.com/news/local-news/nearly-50-of-provo-homes-dropped-in-price-last-month/

This is not a blip. And most of this most recent interest rate bump hasn't hit the market yet. Rate locks are usually 30 to 60 days out. Most people expect the FED to raise rates by another 50 basis points in july. It's not pretty out there. This will for sure have an effect on any projects that are not out of the ground right now especially if you take into account building costs. I do believe Utah will be less effective than other markets but we are not an island.

As demand retracts rates may come down again though. Alas, this is a cycle that will yield multiple big towers and our economy in Utah is still strong. I'm not too worried we've done this rodeo before.

[mattreedah]

These rates are where they probably should have been and are way more in line with historical norms. The quantitative easing in the last 10 years has been irresponsible and Utah’s housing market was recently divorced from reality. I got a 1.875% interest rate last year on a 15-year mortgage. That honestly should not have been possible. I’m 39 and I think my generation is more pessimistic than they should be because of how awful the Great Recession was (and yes it truly sucked for me too). But the sky is not falling right now.

[bob rulz]

Increasingly unaffordable living conditions, Roe v Wade being overturned, LGBT rights in serious danger, one of our major political parties basing their entire platform on undermining our electoral system.

I beg to differ, the sky is very much falling.

[zurich]

Originally Posted by bob rulz

Increasingly unaffordable living conditions, Roe v Wade being overturned, LGBT rights in serious danger, one of our major political parties basing their entire platform on undermining our electoral system.

I beg to differ, the sky is very much falling.

Not sure what that has to do with this "skyscraper forum," and Salt Lake Development, but whatever.

A more serious issue that I think we should be concerned about (as it relates to future development) is the lake level. You can sign a petition @ www.saveourgreatsaltlake.org - not sure if it will help. I know a pipeline bringing in sea water was brought up, but I am sure that's just a "pipe" dream. But something drastic needs to be done to save the lake as soon as possible.

[allh]

We got a tip that a developer might have plans for a development at 204 E. 300 S., which is currently a Burt Brothers tire and service shop on East Broadway.

A quick search shows the property is now owned by a company that’s registered to the Boston-based Kensington Investment Company. That’s the company behind Astra Tower, which is on its way to becoming the tallest building in Utah. The company acquired the building last year, but it hasn’t been reported yet.

We reached out to Kensington’s Park City office for any comments about plans for the site but have yet to hear back. Could the firm be planning another high-rise in the Downtown market? It’s difficult to say at this point. The company has the property listed in its real estate portfolio, but it hasn’t described any plans for the property.

Developers have clearly shown ongoing interest in developing high-rises in and around Downtown Salt Lake City. In recent years, Kensington has been acquiring a mix of office space around Park City, and it built a 20-unit condo project.

The Burt Brothers property has a 14,570-square-foot auto-centric business with a 20-stall surface parking lot. The car business often spills over to interrupt people traveling on the sidewalk.

While plans aren’t yet known, don’t expect Kensington to sit on a half-acre underutilized space in the heart of the Downtown zone. We’ll keep you posted.

https://www.buildingsaltlake.com/june-ro...ark-office-conversion-downtown-and-more/

[Utah_Dave]

Originally Posted by zurich

Not sure what that has to do with this "skyscraper forum," and Salt Lake Development, but whatever.

A more serious issue that I think we should be concerned about (as it relates to future development) is the lake level. You can sign a petition @ www.saveourgreatsaltlake.org - not sure if it will help. I know a pipeline bringing in sea water was brought up, but I am sure that's just a "pipe" dream. But something drastic needs to be done to save the lake as soon as possible.

With increased population we will need to reduce consumption of water but even with reduced consumption the trajectory of the lake level is still downward. I think they will have to divert water from somewhere like the Uintas since we under use the Colorado river rights Utah has. A pipeline from the ocean isn’t an option realistically. We could possibly bring water in from a nearby watershed but it will be both expensive and difficult with massive red tape. Hopefully we can maintain for a few more generations. Fingers crossed.

[taboubak]

Originally Posted by zurich

Not sure what that has to do with this "skyscraper forum," and Salt Lake Development, but whatever.

A more serious issue that I think we should be concerned about (as it relates to future development) is the lake level. You can sign a petition @ www.saveourgreatsaltlake.org - not sure if it will help. I know a pipeline bringing in sea water was brought up, but I am sure that's just a "pipe" dream. But something drastic needs to be done to save the lake as soon as possible.

I really hope the pipeline from the ocean isn't just a pipe dream. I truly think it is the most surefire way to save the lake, and the consequences for not saving the lake are extremely dire. We could try saving water, but that is going to be very difficult in conservative Utah. Also there are no signs of hope that we will ever reced from this drought, it may simply just be the new normal. If you have not yet I urge you to check out the Western States Water Replenishment Program it outlines a system of injecting water into the desert regions of the west to help negate the negative effects of climate change and support our populations. We must take drastic action regardless of party affiliation bringing water inland and introducing it to the water cycle makes too much sense, our city and economy may honestly depend on it.

"WSWRP - WESTERN STATES WATER REPLENISHMENT PROGRAM" https://wswrp.com#:~:text=The%20Western%20States%20Water%20Replenishment,Arizona%2C%20Nevada%20and%20New%20Mexico.

[TheGeographer]

Originally Posted by zurich

Not sure what that has to do with this "skyscraper forum," and Salt Lake Development, but whatever.

A more serious issue that I think we should be concerned about (as it relates to future development) is the lake level. You can sign a petition @ www.saveourgreatsaltlake.org - not sure if it will help. I know a pipeline bringing in sea water was brought up, but I am sure that's just a "pipe" dream. But something drastic needs to be done to save the lake as soon as possible.

I agree, we need to work towards restoring GSL lake levels to maintain livable conditions in the valley…unless you’re into breathing in toxic arsenic laden dust clouds

[Ironweed]

Originally Posted by taboubak

I really hope the pipeline from the ocean isn't just a pipe dream.
"WSWRP - WESTERN STATES WATER REPLENISHMENT PROGRAM" https://wswrp.com#:~:text=The%20Western%20States%20Water%20Replenishment,Arizona%2C%20Nevada%20and%20New%20Mexico.

Doesn't appear that the link works. Just tried.

[mstar]

In regards to our water issue moving forward, I think we need to make a tough decision regarding agriculture. We will have to eliminate something in the future. Making our yards more drought tolerant will only take us so far. Eliminating just one of our agriculture products like alfalfa will give us double the water that we have available now. I know that this hurts some people in that industry, but 99% of everyone else will benefit from this. I would rather keep our parks and yards than support one small piece of our overall economy.

[Reeder113]

Originally Posted by Utah_Dave

With increased population we will need to reduce consumption of water but even with reduced consumption the trajectory of the lake level is still downward. I think they will have to divert water from somewhere like the Uintas since we under use the Colorado river rights Utah has. A pipeline from the ocean isn’t an option realistically. We could possibly bring water in from a nearby watershed but it will be both expensive and difficult with massive red tape. Hopefully we can maintain for a few more generations. Fingers crossed.

We built a pipeline that transfers oil from Texas to the East Coast, so I'm sure we can pipe in water......both fresh water AND sea water, if needed.

[Schmoe]

Originally Posted by allh

https://www.buildingsaltlake.com/june-ro...ark-office-conversion-downtown-and-more/