With many people at home due to COVID 19, online education has been a vital part of continuing education. “Amidst the urgency of COVID-19 and its impact on the economy, we believe more deeply than ever that new models and out-of-the-box thinking will define the future of our education system. ”

Lambda School runs virtual nine and 18 month computer science courses, covering data science and web development.

Lambda raised $74M in equity in a series C round in August. “The money will specifically be used to continue expanding the range of what Lambda School offers, both in terms of content but potentially also in terms of developing its business model.”

Congrats, Lambda! We are glad we are able to work with you!

As many states start decreasing regulations, it is hard to know how things will change in the coming days. The COVID-19 pandemic is one of the most unexpected challenges that has hit our country in a long time. Fortunately, the country is resilient and ready to come back better than ever.

At the height of the outbreak, both the Federal Reserve and the federal government took immediate action using unprecedented monetary and fiscal stimulus responses. The entire nation banded together and did their part to respond in the best way they could. Businesses closed their doors, and employees adapted to the stay-at-home working style.

American economists are already noting that while severe, the economic downturn of 2020 will be the shortest in history. Lindsey Piegza, Chief Economist at Stifel Fixed Income, told reporters, “Because there were so many forecasts talking about a total collapse of the economy, the numbers we’re seeing, while extremely bad, aren’t the worst-case scenario. It’s not as bad as it could have been. It’s an odd silver lining.”

On a global scale, central banks have already decreased interest rates and injected billions of dollars of liquidity into the financial markets. All of these efforts will do wonders as businesses start getting back to their feet.

But what about the commercial real estate market? Let’s look at what you can expect in the upcoming days.

What Things Looked Like in Commercial Real Estate Pre-Outbreak

At the end of 2019, things in commercial real estate were looking up. In a study conducted by Deloitte Insights, 76% of respondents had an optimistic outlook on commercial real estate performance over the next 18 months. The study also found that the United States was on solid footing and would attract capital throughout the year.

The NAIOP Commercial Real Estate (CRE) Sentiment Index even indicated an uptick in attitudes and general conditions concerning the industry in October of last year. Other highlights of the survey include:

• Respondents predicted increases during the next year in occupancy rates, face, and effective rents, along with steadily available equity and debt financing for their own projects.
• Over half of respondents indicated that face and effective rents increasing during the next 12 months. With readings for both face rents and effective rents remaining in solidly positive territory, it appears that respondents anticipate property rental income should grow modestly over the next year.
• Also, for the first time, a higher percentage of respondents expected first-year cap rates are to be lower (associated with a higher value) 12 months from now. This change in the response direction may align with recently lower interest rates.

As you can see from the reports, the overall attitude in the commercial real estate industry included a positive outlook on the upcoming months. Then, COVID-19 struck, and things rapidly changed.

How COVID-19 Impacted Commercial Real Estate in the Early Days

When the pandemic first started impacting the United States, no one knew what to do. Those in the commercial real estate industry did their best to try to react. Unfortunately, some businesses were forced to lay off and furlough their employees, while others found ways of continuing work with employees working remotely.

While businesses tried to adapt to the government mandates to socially distance and work from home, not everyone could pay their bills. According to the National Multifamily Housing Council, merely 69% of U.S. households had paid their rent by April 5. That is a significant decrease when you compare that number to 81% of households paid by March 5 and the 82% paid by the same time last year.

Some economists feared the worse and told Americans to gear up for a market crash similar to that in 2008. Others didn’t know what to expect. For example, Legg Mason wrote in their market outlook report in late-March:

“U.S. commercial real estate (CRE) is not immune to the fallout from the COVID-19 outbreak. Some sectors, such as hotels and retail properties, will take a hard hit immediately, while others have long-term lease protection that should support long-term stability. If the outbreak peaks over the next few months, the impact on CRE could be less severe. Conversely, if the outbreak lasts much longer or spreads more widely, large job losses and substantial cutbacks on spending would substantially affect demand for commercial space.”

Luckily, the commercial real estate market didn’t take a deep dive for long during the outbreak. Some secondary markets, like those in Utah, continued holding steady. These slight differences hint at where things will grow once things pick back up again.

What to Expect in Commercial Real Estate Looking Forward

While the situation continues to unfold, there are some positives we can expect over the next few months as the economy opens back up, and workers return to business. Consumers are itching to do their part bringing the economy back up to its former standards.

Fortunately for those people, Utah is starting to open back up with the proper restrictions in place, and other states have followed suit. You will notice that there might be a lag for a few months as the industrial industry moves forward, but there will eventually be a major boom as a result of these efforts.

If you are looking to get into the market, now is the time. Investors are buying commercial real estate property at a great value. But not just in Utah, all over the country, as well.

A Dallas-based real estate investor and developer Champion Partners that bought and sold buildings coming out of the Great Recession for substantial profits is now gearing up to do the same.

Champion Partners’ Steve Modory told The Philadelphia Inquirer, “We do anticipate being very aggressive this year as this disruption is likely to provide some excellent investment opportunities for those that have access to capital and can move quickly,”

The right opportunities could present themselves to you within the next few weeks. If so, our real estate experts recommend acting fast. These prices won’t last as the economy starts turning around just as quickly as it fell.

Get the advice you need to make the right choices by contacting the real estate brokers at Woodley Real Estate. Woodley Real Estate is a full-service commercial and residential real estate firm in Utah with a dedicated team of professionals who work collaboratively across disciplines to bring together market-validated perspectives, experience, and expertise. Contact us today to learn more.

The coronavirus outbreak is transforming the business world. On top of affecting the economy, businesses are searching for ways to adapt to a new way of life. In an attempt to keep business going, owners learned new ways of conducting their work online. But as many state governments begin looking for the best ways of transitioning out of quarantine, what will that mean for office work?

For many blue-collar workers, there is no way of getting around their routine. For example, employees working in restaurants, retail, distribution, and manufacturing, you need a physical space to perform your work. New procedures are being put in place like physical distancing from other people, mask and glove protocols, and more. Those who participated in traditional office work or white-collar employees will most likely face a “new normal.”

Let’s look at a few questions that many people are asking as we look to adjust working life in this new age.

How will traditional office work change post-corona?

For the past few months, businesses adapted their working platforms to conform to government mandates, which limited the industries allowed to continue and those who couldn’t. What the outbreak of COVID-19 and its resulting events proved was that commercial businesses could adapt and improve.

During the worst months of the pandemic, many business owners found ways of implementing new practices that would allow them to continue using digital formats. Now, as restrictions scale back, many employees are looking for ways to take what they learned from the experience and improve the former working structure.

For example, many businesses noticed a boost in productivity and creativity among their employees when allowed flexible working schedules and improved free-flow station work. While you will need to limit work station interactions for a while, you can ask your team for any takeaways they learned during the past few months.

In-office work should be a team effort. You can learn what pre-Corona practices unintentionally hurt your ROI and which you can change. Having open communication will allow for creative solutions to come from the unfortunate events of the last few months.

While it isn’t clear where most businesses will fall once governments lift restrictions, the coronavirus crisis proved that companies should stay connected, integrated, and collaborative. Your employees will appreciate your efforts to restructure and update any systems for their benefit.

How will commercial spaces physically adapt?

No matter how many businesses choose to WFH or work remotely, there will always be a need for commercial office space. Whether it is retail, manufacturing, warehouse, or office space, commercial buildings will need to adjust. You can expect that many workplaces will roll out new sanitation procedures.

Some sanitation protocols that could occur, include:

• Employees and visitors wear masks and gloves
• Routine sanitation of desks and other spaces
• Using antimicrobial materials and UV cleaning systems
• Installing automated sensors on doors, faucets, light switches, etc.
• Monitoring temperatures
• Directing foot traffic
• Installing new air filtration systems

One factor that will play a significant role in office work post-quarantine is spatial requirements. You can expect that the layout of your office will need to change. Companies will need to increase the amount of space between desks. However, open office spaces might have a difficult time maintaining social distancing as most employees flow from one desk to another. Businesses will need to find a solution that works well for their team, which could mean looking for a new office with increased square footage.

Along with changing the physical space, businesses will most likely take a closer look at employee health and wellness, which might include offering health service benefits. For example, a possible change that could make its way into traditional office buildings is including dedicated spaces for on-site health services or telemedicine.

What does this mean for commercial real estate?

Before the COVID-19 outbreak, commercial real estate in Utah was in high demand. The demand for Commercial real estate was bursting at the seams with many start-ups and conglomerates looking to set up shop. While it’s hard to know what will change when the dust of the epidemic settles, you can expect that commercial real estate will remain steady.

Some businesses will look for new office space that meets their needs. Other companies will expand their building offerings to better engage with employees. No matter what, many businesses will still need a dedicated office space. For example, increased demand for multi-purpose spaces could make headway.

Newer office models will provide employees the flexibility they want, but also give employees the physical space they need when they come into the office. Multi-purpose office space will allow for greater flexibility and let employers continually adapt to the new working environment. If workers elect to work from home more often, they can also use the multi-purpose space for meetings and other gatherings.

No matter what happens, Woodley Real Estate is here to help you meet your business’s demands. Our team members help companies across Utah, large and small, with their commercial lease and purchase negotiations.

Our comprehensive Utah commercial real estate services will provide you with the help you need to adjust your business to meet the demands of your clientele. Trust us to take care of the details of your commercial real estate needs.

Contact Woodley Real Estate today to learn more.

 

 

 

 

As the Coronavirus continues to reshape individuals and businesses’ way of life, more precautions are needed to make sure that everyone’s safety and wellbeing are at the forefront of everything that we do. 

While businesses are beginning to return to the office, employers need to implement plans to ensure that workers can safely return. Short-term, this could mean adding plastic barriers, better air filters, sanitizing stations, HVAC systems and performing more thorough deep cleanings. Long term, architects will rethink workplace design and functionality, which could essentially make the open-floor plan, with huddle rooms and crammed desks, a thing of the past. 

Office Spaces in a Post-Coronavirus World

1. Office Workstations

Pre-Coronavirus, there was a push for higher density in the office. Since 2010 we have seen a decrease in the average square feet between employees, moving from around 212 square feet a person in 2010 to 193 square feet in 2019. To allow for at least six feet of separation between each employee, we will start to see these numbers move in the opposite direction. 

In the short-term, there have been considerations on having flexible work arrangements. While many offices don’t currently have the space to allow for six feet of separation, staggering times employees are in the office could help employees feel more comfortable being back.

Partitions, fixed screening, reconfiguring desks so there is no face-to-face orientation and storage elements could also be introduced to eliminate direct contact between employees. Circular rugs or circles embedded in the carpet below a desk could be considered in office spaces as well to ensure people keep a safe distance from one another.

2. More Emphasis on Sanitation

While maintaining a distance of six feet apart is a good starting point, it’s not nearly enough. Improved air filtration is one of the most important changes that will need to be made. Normal HVAC systems recirculate the air that is already inside of a building instead of bringing in fresh air from outside. High end air filtration systems are going to need to replace what is existing. New designs will focus on circulating higher quality clean air, while short term solutions, like temporary air filtration systems can be implemented now.

More emphasis on general sanitation will also need to play a key role when coming back to the office. Some considerations include having employees clean their desks more often, while storing non essential items away in cabinets rather on the desk for display, using disposable supplies in the office to avoid spreading more germs and performing regular deep cleanings in the office. The CDC has created helpful guidelines for businesses and individuals to help stop the spread of germs and talk about precautions to take to keep one another safe and protected in the workplace.

Touch Points

In an office, door handles are one of the top spots for germs. In a study conducted about handle design, when looking at the amount of contamination on different door entries, the results found that when comparing push plate designs to pull handles, the pull handles reveal an average a five fold higher level of contamination; lever handles, however, displayed the highest levels of bacterial contamination when adjusted for frequency of use.

While the location of those touch points, design and mode all play a factor when looking at the contamination levels, touchless options could be introduced in many offices to help decrease the spread of germs. Touch points will be reduced by implementing more sensors such as on light and power switches and door handles to automatically open doors and turn on lights using motion activated buttons or an app.  

Other top spots for germs in the workplace include keyboards, microwaves and refrigerators, copier machines, water coolers and coffee machines. Paying attention to different touch points that are frequently used and making sure to properly sanitize different work and break stations will be of utmost importance moving forward.

In office restrooms, many are looking to airports as inspiration. Many airport bathrooms don’t have doors to allow people to refrain from touching as many surfaces as possible. Opting for a long hallway with a turn will provide privacy without unneeded contact. 

Rethinking Materials

While we most commonly think about door handles, furniture and faucets, different materials, down to the flooring and hard surfaces will be rethought. In this study, researchers found that SARS-CoV-2 (the virus responsible for the COVID-19) survives longer on certain materials than others. Materials like plastic and stainless steel can stay contaminated for two to three days and cardboard can be contaminated for 24 hours, while copper is considered antimicrobial and SARS only lasts around four hours on this surface.

Different surfaces will need a protective material that helps limit the spread of bacteria. For example, antimicrobial coatings are commonly used to eliminate viruses on surfaces like doorknobs, countertops and wall surfaces. 

3. Meetings

Huddle rooms have become pretty popular leading up to Coronavirus. It allowed for individuals to meet together in a small space to collaborate and bring different ideas to the table. Unfortunately, spaces like this don’t always allow for proper social distancing. Likewise, large conference rooms and meeting rooms where 50 or so people could meet at a time may have to be rethought. 

Better technology to connect more effectively via video conferencing could take its place, while other designers are looking to other solutions. Rooms geared towards specific tasks and larger spaces for events, or negative pressure rooms could also be considered. Generally used in medical facilities or airport smoking rooms, these negative pressure rooms could be used in conference rooms to help contain germs that will then be cleaned with a UV light.

4. Elevators

While opting for the stairs or sequencing people into elevators can be a solution, touchless elevators and workspaces with many more open staircases, like the one seen below, might be introduced in more office place design. Touchless elevators have begun to be introduced in other countries like China and France. These elevators can include voice controls, contactless panels or a foot button system to help avoid cross-infection during these uncertain times.

5. Other Office Design Changes

Subtle office design features to remind people to keep social distancing standards, like signs instructing employees to walk in one direction, or walking clockwise in a meeting room, may be introduced. While some may go as far as creating lanes to keep traffic flowing in an orderly way, and installing transmitters to track movement in the office. 

While there are many ideas for returning to the office, there is not a one-size fits all approach. Depending on the size of your team, your current office space and design, and your immediate and long-term needs, this could look different for everyone. Our suggestion: start with the essentials. Introduce sanitization stations, invest in an electrostatic sprayer to disinfect surface areas, bring in short-term air filtration systems, increase your frequency of deep cleanings, and space out employees. For additional help or questions regarding safety in the workplace or better office spaces to accommodate these changes, contact us. 

Ask any Utahan how things have changed in the last decade, and they would be the first to say how many businesses have taken up shop throughout the state. Not only is it one of the fastest-growing communities, but the state’s commercial real estate market continues to see rapid growth despite a crippled U.S. economy.

Utah is known for its economic strength. The state’s growing economy is only increasing thanks to a booming commercial real estate market. But if the last couple of year’s trends are going to follow suit, it’s crucial that commercial real estate powers through the hardships of 2020.

Before the COVID-19 pandemic, Utah was in high demand. Commercial real estate was bursting at the seams with many start-ups and conglomerates looking to set up roots in the area.

While it’s hard to know what will change when the dust of Coronavirus settles, many business leaders are asking, “What’s next?” and “How can I adjust my business to better compete in this day and age?”

If you are asking yourself one of these two questions, or something similar, it might be time you consider becoming a part of Utah’s growing commercial real estate industry.

Commercial Real Estate in Utah

Spencer Levy, CBRE chairman of Americas Research and senior economic adviser told Deseret News reporters, “Despite the tremendous economic challenges in front of us, pent-up demand from consumers and office users will provide a spark for spending and office use shortly after movement restrictions are loosened.”

Listening to Levy’s advice will help you see the opportunities this global pandemic is presenting business leaders. Look for where the market is surviving or thriving, and place your bets there.

For example, when all major markets fell during the outbreak, secondary markets like Utah continued its steady growth. Since then, everything has declined, but this slight difference could be a hint of where things will grow once things pick up again.

As the state transitions out of the Governor’s stay-at-home initiative, you can expect the economy to slowly follow suit.

Levy furthered explained, “Much of America is planning its return to the workplace. While that is a welcome turn of events, we also need to acknowledge and embrace that companies will return — slowly — to a changed workplace with new procedures.”

While many national analysts expect a 40-plus percent drop in the general economy, one segment that could prosper in the long run is the industrial sector.

He continued, “You’ll find in industrial leasing we’ll have a 12 or so month lag, but it’ll kick back and even be a sector that benefits in some aspects because you’ll see a stronger growth in e-commerce,

If that isn’t enough reason to invest in commercial real estate in Utah, including industrial real estate, here are few other reasons.

Why Business Leaders Should Invest in Utah’s Commercial Real Estate

Homegrown Talent

One of the key drivers to businesses investing in Utah’s commercial real estate is the pool of homegrown talent. If you want to find a location that is ripe for growth, then you should look at where talent is choosing to live. With some of the best universities in the Wasatch Front all within a 45-minute drive of each other, it’s not hard to understand why the state is full of talent. Plus, many of these young people are staying in the state post-graduation, according to many reports.

Not only are there plenty of future employees in Utah, but the state is also attracting out-of-state talent, as well. In that same analysis, studies showed that Utah had more inbound migration than most states, with the population getting a 0.8 percent boost from net migration, compared to 0.3 percent nationally. Some of the reasons for the cross-country talent pull is Utah’s dynamic economy and its other attractive qualities.

Infrastructure Opportunities

Utah also does a great job at state planning. Investors should always look for states that have the proper infrastructure in place for growth. Right now, Utah is developing new projects to accommodate a significant influx of new residents and visitors. Take, for example, the $4-billion expansion of the Salt Lake City International Airport.

This expansion, as well as other developments like the upgraded Vivint Smart Home Arena, prove that Utah has the infrastructure needed for a growing economy. It also shows outside business leaders that Utah is a force to be reckoned with, changing past perceptions working against the state.

Statewide Public Efforts

Another benefit of investing in commercial real estate in Utah is the state’s public efforts. Nearly 13 years ago, the nonprofit Envision Utah launched a public initiative aimed at keeping Utah beautiful, prosperous, healthy, and neighborly. The results must be paying off because Utah has continued increasing ever since.

Today, the entire region is seeing changes that are quickly solving challenges that currently face the growing population. From the transit system and housing affordability to air pollution and education system issues, Utah is coming up with unique solutions that are already helping the needle move in the right direction.

These public efforts only make Utah a more attractive choice for business owners throughout the country and the world.

Utah’s Economy Trends

Although the COVID-19 outbreak has made its mark everywhere, you can look at past unemployment and economic trends to better predict what will happen in the future. Up until recent changes, Utah’s unemployment was at a near-record low in Salt Lake City.

There are a lot of factors at play that contribute to Utah’s bustling economy, including education, talent, community demographics, and more. Luckily, Utah has all the makings for success. All in all, Utah’s economy had been expanding for some time, and you can expect that things will continue, despite the recent COVID-19 outbreak.

Utah Commercial Real Estate Services at Woodley Real Estate

If you are looking for a safe bet, investing in Utah’s commercial real estate could be the perfect choice for you. No matter if you are in the retail, industrial, office space, or other commercial real estate sectors, Utah has a place for you.

We can help you find the perfect opportunity for you. Across Utah, we help companies, both large and small, with their commercial lease and purchase negotiations. Our comprehensive Utah commercial real estate services allow our clients to focus on the critical work of growing their business while we take care of the details of their real estate needs.

Contact Woodley Real Estate today to learn more.

It has been really exciting watching as Kiln expands its offices to new locations. Their newest office location, set to open here shortly in Lehi, UT, will provide much more space for individuals and companies to thrive. This industry-leading 30,000 RSF addition will be optimal for teams up to 50 and can house more than 1,000 professionals within this coworking office space.

Started in Lehi, UT, May 2018, and shortly after opening up a space at The Gateway in downtown Salt Lake City, they are proud to call Utah their first home. Kiln is a coworking office space that fosters growth, creativity and collaboration. This worry-free office space is the perfect option for entrepreneurs, startups, and other professionals looking to benefit from a community.

With many office perks and a beautiful aesthetic, so many choose to call Kiln their [office] home and we are privileged to be able to work beside them as they continue to expand their commercial office spaces. Learn more about Kiln, and see how to become a part of their incredible community here.

Incredible First Floor Sublease: Thanksgiving Station

Prime Location, Unmatched Access Between Two Freeway Interchanges, Glass-Front Offices
Modern Office Space

Details

Great opportunity to sublease office space in the heart of Silicon Slopes. 9,593 RSF of first floor space that includes break area, glass-front offices, and access to on-site gym and showers. With quick access to I-15, first class surrounding amenities including theaters, restaurants, entertainment and golf, and competitive parking ratios, this modern office building is the perfect place to be.

Features

• Rate: $27.74 / RSF / Full Service
• 9,593 RSF
• Glass-Front Offices
• Competitive Parking Ratios
• Energy Efficient Design
• On-site Gym and Showers

We are proud to call Utah home, and even more proud of all of the companies and clients we have been able to represent. We know that COVID-19 has impacted individuals and businesses around the globe, and it is really inspiring to see the changes and impacts our clients have made to continue to support their customers and others during this time, while also acknowledging and showing our support to those who have been impacted the most and the hardest. We are thinking about you.

One of our clients, Lucid Software, announced that they have passed $100M in ARR and raised a $50M+ in their Series D round of funding. This funding comes at the perfect time to help customers and others, while working remotely, work more efficiently and innovate more quickly.

Lucid is a software company whose products, Lucidchart and Lucidpress, “help millions connect the dots and bring big ideas to life.” Lucidchart is a visual workspace that combines diagramming, data visualization and collaboration to accomplish more. Lucidpress is a design and brand management platform to help companies make a lasting impression.

While more people are working from home during this time of uncertainty, this new funding has been able to help as Lucid is seeing more demand for its products. Lucid currently claims 20 million users in 180 countries and are in a position to grow. Congrats Lucid! We are fortunate to be able to call you clients and friends.

We love being able to see what some of our clients are working on. During times of uncertainty, like the Coronavirus (Covid19) pandemic, witnessing companies of all sizes work to give back and adjust to the changing times is inspiring.

On April 7, 2020, Podium was able to close on this $125 million Series C of funding, led by Y Combinator Continuity, as stated on techcrunch.com. This funding brings the company’s known capital to under $218 million. And it couldn’t have come at a better time.

They are using this round of funding to help provide stability to their customers when they need it the most. This funding will help all local businesses in the US to be able to use Podium’s software to stay connected to clients, customers, and patients, for free. 

As many companies are facing challenging times, having this invitation to a basic, cost-free version of their platform, called Podium Starter, can get businesses the basic tools to start messaging and weather the storm. 

If you or someone you know could benefit from this, visit podium.com/starter to request an invite.

As your organization grows, you will find that your office space may no longer fit the size or needs of your team. Lucid was quickly outgrowing their previous office space, and needed something bigger and better to accommodate their growth. We were able to get them into a space that perfectly fit the needs and desires of their team.

Lucid Software’s headquarters in South Jordan, Utah includes 360,000 RSF of class A office space. It sits right off of I-15 and has close access to the UTA TRAX. Features of this space include an on-site cafe, bouldering wall, stunning views of the Wasatch mountains, an exercise facility with lockers and showers as well as structured and covered parking. 

We had a chance to sit down with Dave Grow, President Chief Operating Operator of Lucid Software, to talk about Lucid’s growth, and how we were able to help them get into their new space.

Full testimonial below. 

Focus On Your Business. We’ll Handle The Details.

“My name is Dave Grow. I am the President Chief Operating Operator of Lucid Software. A few years ago we were about 40 or 50 people. We were growing quickly, we were running out of space, we were tied like sardines in our last space, we knew we needed something bigger and better to accommodate our growth. At that point we were introduced to Eric and in that first meeting with him it was clear Eric just got it. 

Eric and his team have done a phenomenal job delivering value at literally every stage of the process. From helping us find a great space, negotiation, helping us think through all the great things about TIs and what that should include, and making sure things go exactly as we would expect.

Even today we stay in regular contact. As our business continues to change and grow he’s there to be a partner focused on this so we can stay heads down on the business. 

I don’t give recommendations easily, but I have recommended Eric time and time again to other people here in the community because i am confident he delivers value every single time.”

No matter how your business is currently operating and changing, we are here to be your partner as you navigate through this time. Let us know how we can help.