Park City Commercial Real Estate


Commerce CRG does a year-end summary of everything happening in the commercial real estate world throughout the state. Below is the Park City/Summit County summary and the link to the rest of the reports.

2007 SUMMARY

Despite the doom and gloom mood in residential construction, current national uncertainty did not hit Utah as hard as surrounding states. Strong job growth, in-migration and internal population growth point to a solid economy.

The State's economic immune system was vigorous in 2007 but we are beginning to experience a significant adjustment in the unsustainable price escalation of homes.

Residential real estate is only one area of the economy, and in other segments, Utah remains a bright star in the national economic picture.

Utah Overall - 2007
Despite the doom and gloom mood in residential construction, current national uncertainty did not hit Utah as hard as surrounding states. The State's economic immune system was vigorous in 2007, but we are beginning to experience a significant adjustment in the unsustainable price escalation of homes.

Residential real estate is only one area of the economy, and in other segments, Utah remains a bright star in the national economic picture.

2007 MARKET HIGHLIGHTS - Summit County

1. A Main Street Renaissance: 2007 was a very good year for building renovation. Combined with new development, sales prices for Main Street buildings rocketed skyward by as much as 40 percent over 2006. Also, a new law requires all street level space to be retail.

2. County employment grew by 8 percent, a 1 percent increase over 2006, beating statewide growth of just over 4 percent.

3. A voracious demand for office space, creating a near 5 percent drop in vacancy (from 12.68 percent to 7.89 percent). Other commercial vacancy rates remained generally unchanged in 2007.

4. Tourism continues to drive construction of new hotels throughout the area. Of note, two upscale luxury hotels in Deer Valley: The St. Regis and the Montage Hotel.

5. Kamas, Oakley, Woodland and Francis are new economic jewels. The physical constraints of the Park City area are sending commercial and residential growth their way.

6. A surge in commercial development along U.S. Highway 40, between I-80 and Quinn’s Junction. A 300,000 square foot Intermountain Healthcare hospital is under construction and nearby, the U.S. Ski Team broke ground for an 85,000 square foot Center for Excellence. Stock Lumber opened near Brown’s Canyon.

7. Much needed office and retail space continues to expand in Kimball Junction. The 45,000 square foot Silver Mountain Spa and Fitness building is nearly full. The Swaner Nature Center, a state-of-the-art building and LEED platinum certified, is under construction. Redstone is finished and completely occupied – with lease rates averaging $26 per square foot.

DEVELOPMENTS TO WATCH - Summit County

1. Indications are that although residential housing has slowed, the economy of Park City and Summit County will remain relatively strong.

2. The old Claim Jumper Hotel is being converted to residential condominiums and retail space.

3. At Kimball Junction, the Canyon Corner development is underway and the Newpark Hotel is nearing completion.

4. Along U.S. Highway 40, dirt work has begun for the 90 acre Park City Business Center which will provide light industrial and office space. East of U.S. Highway 40, on Highway 248, additional commercial development will be added next to Stock Lumber.

5. In Kamas, a new business park (retail and office) is under construction and Jan’s Sports has plans to open 17,000 square feet of warehouse, office and retail space.

*Full reports & graphs/charts at: http://commercecrg.typepad.com