WHEN IN DOUBT POWER OUT!
You may have heard that saying if you have ever done any power sports like snowmobiling, or dirt biking, but how does this phrase have anything to do with Commercial Real Estate in Utah?
Well, the truth is, it might not depending on your perspective. In its recently published Economic Snapshot, the Utah Workforce Services reports a modest 2.8% growth rate in non-farm jobs over a year ago. That does not seem robust until you compare it to the anemic 1.4% National average. Additionally the report states that permitted construction values were up 50% in the same period, and unemployment claims in Utah are down about 5% from a year ago.
The U.S. Chamber just ranked Utah second among ‘boom states’, claiming Utah is ready to explode in the new report.
For us at IPG Commercial Real Estate it is all about industrial properties, and the Utah industrial real estate marketplace which led the nation in speculative development a year ago is healthy. We are continuing to note moderate levels of both new construction and absorption activity. While it seems that deals happen at a slower pace than they used to, they are still getting done, and by year end it may indeed look like all the ‘doubt’ has turned to ‘power out’.