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.
