FAMILY CENTER AT OREM - 176 EAST UNIVERSITY PARKWAY OREM, UTAH 84058 BEN BROWN - Mountain West Commercial ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FAMILY CENTER
AT OREM BEN BROWN SCOTT BRADY BRIEONA PAPPAS
176 EAST UNIVERSITY PARKWAY bbrown@mtnwest.com sbrady@mtnwest.com bpappas@mtnwest.com
direct 801.456.8802 direct 801.456.8804 direct 801.704.1666
OREM, UTAH 84058 View Profile View Profile View Profile
TABLE
OF CONTENTS
EXECUTIVE
4 SUMMARY &
HIGHLIGHTS
5 PHOTOS
6 SITE PLAN
7 FINANCIAL
ANALYSIS
PROPERTY
9 FEATURES
11 AERIALS
12 TENANT PROFILES
15 DEMOGRAPHICS
WHY UTAH/
16 ECONOMIC
OUTLOOK
21 AREA OVERVIEW
FAMILY CENTER AT OREM
2 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com
FAMILY
CENTER AT CONFIDENTIALITY AND DISCLOSURE
OREM
Mountain West Commercial Real Estate has been retained on an exclusive basis to market the property
176 EAST UNIVERSITY PARKWAY described as 176 East University Parkway, Orem, Utah 84058. Broker has been authorized by seller of
OREM, UTAH 84058
the property to prepare and distribute the enclosed information for the purpose of soliciting offers to
purchase from interested parties. More detailed financial, title and tenant lease information may be
made available upon request following the mutual execution of a letter of intent or contract to purchase
PREPARED BY between the Seller and the prospective purchaser. You are invited to review this opportunity and make an
offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations
BEN BROWN with you, you will be asked to provide financial references. The eventual purchaser will be chosen based
bbrown@mtnwest.com
upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller
direct 801.456.8802
View Profile deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors
SCOTT BRADY for the acquisition of the Property. The Material is not to be copied and /or used for any other purpose or
sbrady@mtnwest.com
direct 801.456.8804 made available to any other person without the express written consent of Broker or Seller. The Material
View Profile does not purport to be all-inclusive or to contain all of the information that a prospective buyer may
require. The information contained in the material has been obtained from the Seller and other sources
BRIEONA PAPPAS and has not been verified by the Seller or its affiliates, agents, representatives, employees, parents,
bpappas@mtnwest.com subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation
direct 801.704.1666 or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any
View Profile
existing or available financing, and must independently confirm the accuracy of the projections contained
in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the Market. Seller has no
obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property
unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms
acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to
have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect
thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional
information.
Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 3
EXECUTIVE SUMMARY & HIGHLIGHTS
OVERVIEW
Mountain West is proud to present the opportunity to acquire the Family Center at Orem. The Center is home to
PURCHASE PRICE multiple heavily trafficked retails including JoAnn Fabrics, Lumber Liquidators, Michaels, Dollar Tree, Painted Tree,
Tuesday Morning, and Guitar Center. With three brand new corporately guaranteed 10-year leases and another one
$29,816,538
in negotiations, this center is perfectly posed for long term stable income. The Family Center is directly off University
Parkway in Orem which sees roughly 60,000 vehicles per day. Located in the heart of Utah County, one of Utah’s fastest
NET OPERATING INCOME growing Counties. With multiple strong corporate guarantees, long term leases, and great accessibility the Family
$1,938,075* Center at Orem, this asset provides an investor the opportunity to enter the Utah market with a solid tenant base and
long-term income and upside.
CAP RATE
6.5% HIGHLIGHTS
MULTIPLE STRONG CREDIT TENANTS
CURRENT OCCUPANCY • Lumber Liquidators (LL:NYSE) guaranteed by Lumber Liquidators Inc. with an initial lease term through March 2030.
Lumber Liquidators is North Americas Largest specialty retailer of hardware floorings with over 400 locations around
95.29% the nation and has a market cap of $656 Million.
• JoAnn (NASDAQ:JOAN) guaranteed by JoAnn Stores, LLC, recently executed their third option with new lease
PROPERTY ADDRESS expiration of January 2027. JoAnns was founded in 1943 and las over 850 locations in 49 states with a market cap
176 EAST UNIVERSITY of $682 Million.
PARKWAY, OREM, UT • Michaels (NASDAQ: MIK) just executed a brand new ten year lease with three five year options. Michaels
operates over 1,250 stores and is one of North Americas largest providers of arts, crafts, custom framing, floral and
wall décor and merchandise for do-it-yourself home decorating.
TOTAL GLA (SF) • Dollar Tree (NASDAQ: DLTR) still in their initial lease term which is followed by three five-year options. They
181,964 operate over 15,000 stores throughout the US and Canada, with their focus on a variety of discounted goods that
sell for $1 or less.
YEAR BUILT TRAFFIC COUNTS
1990 Located directly off of University Parkway, which has over 59,000 VPD, and has strong traffic counts from State Street
which has over 49,000 VPD.
COLLEGE CAMPUS PROXIMITY
TOTAL LAND SIZE
Only a mile away from Utah Valley University (UVU), with an enrollment of over 41,000 students and a little over 2 miles
10.76 ACRES from BYU, with an enrolment of over 33,000 students.
LOCATION
PRICE/SF Located in the heart of Orem, which has recently been rated one of the fasted growing metro areas and one of the top
$164/SF job markets in the nation. The site is only 30 minutes out of Salt Lake and the newly remolded Salt Lake International
Airport.
*NOI is based on the following:
- Joann Feb 2022 Rent Increase
SURROUNDING RETAILERS
- Painted Tree estimated lease commencement January Located within the Family Center at Orem and in the heavily populated retail corridor of Orem. Surrounding Tenants
1, 2022 including: Chilis, Nordstrom Rack, Burlington, Ulta, Office Depot, Best Buy, Big 5 and many more.
- buybuyBABY executed lease and commencement
January 1, 2022. NO EXISTING DEBT
Seller to provide buyer with a rent credit for the above
based on the closing date. This property is being offered Debt Free, giving a potential Buyer the ability to place it’s own debt and Maximize their
Yield.
Un ,784
59
ive AD
rsi
ty T
Pa
rkw
ay
Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 5
SITE PLAN
16
74'
FAMILY CENTER @ OREM Retail
54,172 SF
FOR
216'
SUBLEASE
64 East 1300 South Orem, Utah
7
120'
E UNIVERSITY PKWY 50,710 ADT
UNIVERSITY PARKWAY – 59,784 CARS/DAY
260'
37.5'
33,681 SF
ST
NOT A PART
ST
138'
10
FUTURE PAD
65'
EAST
NOT A PART
MAIN
STREET – 5,328 CARS/DAY
200
317'
130'
120'
Wood Floor
27,873 SF
Warehouse
FUTURE PAD
8,843 SF
240'
202'
13
18'
86,205 SF
101'
129.8'
70'
41'
Community
118'
216'
Choice
220'
138' 129.8' 48'
125'
Financial
20,873 SF
45,059 SF
214'
233.3'
1400 SO ST
48'
33,681 SF
200'
10'
260'
237'
4,755 ADT
54,172 SF 27,873 SF
MAIN
125'
108'
233.3'
108'
65'
37.5'
74'
200 EAST ST
10'
1400 SO ST
118'
120'
ST
CITY OF OREM DETENTION POND
U TH
SO
50
14
TENANT INDEX
STEVE BOWLER HEATHER BOGDEN
4
1 RC WILLEY HOME FURNISHING
BABIES "R" US
8,843
20,873 THE FAMILY CENTER AT OREM COLDWELL BANKER COMMERCIAL ADVISORS
6550 S Millrock Dr, Suite 200 | Salt Lake City, UT
P 801.947.8396
7 DICK'S SPORTING GOODS 54,172 P 801.947.8357 130 E University Pkwy
10 AVAILABLE 33,681 (P) 801.947.8300 | (F) 801.947.8301
AVAILABLE
steve.bowler@cbcadvisros.com
13 JO-ANN 27,873 heather.bogden@cbdadvisors.com
OREM, UT 84058
FAMILY CENTER AT OREM
6 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com
FINANCIAL ANALYSIS
Family Center Orem Debt Quote
INCOME: Down Payment 30% $8,944,961.54
Gross Rental Income $2,025,125 Loan Amount 70% $20,871,577
NNN Income $385,886 Interest Rate 3.50%
Loan Term 10 - Years
GROSS INCOME $2,411,011 Amortization Term (Years) 30
Loan Funding Month January-21
Loan Maturity Date January-32
LESS OPERATING INCOME
CAM ($213,032) Remaining Loan Term 10 Years
Taxes ($189,733) Monthly Debt Service ($93,723)
Insurance ($70,171) Annual Debt Service ($1,124,672)
TOTAL EXPENSES ($472,936)
CASH ON CASH RETURNS - YEAR 1
NET OPERATING INCOME $1,938,075 NOI $1,938,075
Cap Rate 6.50%
PURCHASE PRICE $29,816,538 Cash Flow Before Debt Service $1,938,075
Price Per SF $164 Annual Debt Service ($1,124,672)
*NOI is based on the following: Cash Flow After Debt Service $813,403
- Joann Feb 2022 Rent Increase 9.09%
Cash on Cash Return Before Principle Reduction
Gutiar Center July 2022 Rent Increase
- Painted Tree estimated lease commencement January 1, 2022
buybuyBABY executed lease and commencement January 1, 2022.
Seller to provide buyer with a rent credit for the above based on the closing date.
7
RENT ROLL
LEASE NNN INCOME LEASE TERMS WITH OPTIONS & ESCALATIONS
TENANT NAME SQ. FT. % GLA
TYPE PSF ANNUAL TERM START EXPIRES PSF MONTHLY ANNUAL
JoAnn 27,873 15.32% NNN $2.59 $72,316 Contract 9/12/01 1/31/27 $13.00 $30,196 $362,349
Rent Bump 2/1/22 1/31/27 $14.00 $32,519
Option One 2/1/27 1/31/32 $15.00 $34,842
Option Two 2/1/32 1/31/37 $16.00 $37,164
Lumber Liquidators 12,162 6.68% Gross $0.00 $0 Contract 11/22/19 3/31/30 $12.17 $12,338 $148,060
Rent Bump 4/1/25 3/31/30 $12.58 $12,750
Option One 4/1/30 3/31/35 $14.15 $14,344
Option Two 4/1/35 3/31/40 $15.92 $16,137
Michaels 22,488 12.36% NNN $2.36 $53,072 Contract 6/15/21 7/31/31 $11.50 $21,551 $258,612
Rent Bump 8/1/26 7/31/31 $12.50 $23,425
Option One 8/1/31 7/31/36 $13.50 $25,299
Option Two 8/1/36 7/31/41 $14.50 $27,173
Option Three 8/1/41 7/31/46 $15.50 $29,047
Dollar Tree 10,978 6.03% NNN $2.36 $25,892 Contract 4/16/14 7/31/24 $11.50 $10,521 $126,247
Option One 8/1/24 7/31/29 $12.00 $10,978
Option Two 8/1/29 7/31/34 $12.50 $11,435
Option Three 8/1/34 7/31/39 $13.00 $11,893
Guitar Center 8,843 4.86% NNN $1.90 $16,801 Contract 6/30/16 6/30/26 $13.50 $9,948 $119,381
Rent Bump 7/1/22 6/30/26 $14.85 $10,943
Option One 7/1/26 6/30/31 $18.76 $13,825
Option Two 7/1/31 6/30/36 $20.63 $15,203
Painted Tree 45,233 24.86% NNN $2.11 $95,565 Contract 7/23/21 6/30/32 $11.50 $43,389 $520,665
*estimated delivery date of 1/1/2022 Rent Bump 1/1/27 6/30/32 $12.50 $47,107
Option One 7/1/32 6/30/36 $13.50 $50,876
Option Two 7/1/36 6/30/41 $14.50 $54,644
Tuesday Morning 17,249 9.48% Gross $0.00 $0 Contract 10/2/15 1/31/23 $7.25 $10,417 $125,000
Option One 2/1/23 1/31/28 $7.94 $11,417
Option Two 2/1/28 1/31/33 $8.64 $12,417
buybuyBABY 25,000 13.74% NNN $1.25 $51,920 Contract 1/31/22 12/31/31 $13.00 $0 $325,000
*still in negotiations Rent Bump 1/1/27 12/31/31 $14.30 $0
Option One 1/1/32 12/31/36 $15.73 $0
Option Two 1/1/37 12/31/41 $17.30 $0
Option Three 1/1/42 12/31/46 $19.03 $0
Vacant (rear space) 5,454 3.00% $0.00 $0 Contract $0 $0
Vacant (rear space) 3,124 1.72% $0.00 $0 Contract $0 $0
Michaels Storage 3,560 1.96% $0.00 $0 Contract $0 $0
NOT A PART OF THE PURCHASE
Agree Stores (Autozone) 0 0.00% $0.00 $17,870 Contract $0 $0
Sunnyslope Sister (El Pollo Loco) 0 0.00% $0.00 $3,765 Contract $0 $0
Brenston Properties (Swig) 0 0.00% $0.00 $546 Contract $0 $0
Reitmor Properties (Chilis) 0 0.00% $0.00 $6,939 Contract $0 $0
TOTALS 181,964 100.00% $1.89 $344,686 $10.91 $165,443 $1,985,313
Occupied 173,386 95.29%
Vacant 8,578 4.71%
*NOI is based on the following:
- Joann Feb 2022 Rent Increase
Gutiar Center July 2022 Rent Increase
- Painted Tree estimated lease commencement January 1, 2022
buybuyBABY executed lease and commencement January 1, 2022.
Seller to provide buyer with a rent credit for the above based on the closing date.
PROPERTY FEATURES & LAND OVERVIEW
PROPERTY FEATURES
Location: Parking: UNIVERSITY PKWY 59,784 ADT
176 East University Parkway Shared parking for the center,
Orem, Utah 84058 approximately 4.5 per 1,000
Land Area: Frontage & Access:
Consists of 10.76 Acres or 468,706 University Parkway
FAMILY CENTER DR
SF of land area Traffic Counts:
Building Area: University Parkway - 59,784 ADT
The subject property is part Year Built:
of a retail strip and consists of 1990
approximately 181,964 SF of gross
leasable area
LAND OVERVIEW
1 0. 76 AC
APN # ADDRESS ACRES SF
57:105:0011 176 E University Pkwy 2.27 98,881
200 E
57:105:0010 176 E University Pkwy 0.94 40,946
57:105:0009 176 E University Pkwy 0.86 37,461
57:105:0008 176 E University Pkwy 1.73 75,359 0S
145
57:105:0007 176 E University Pkwy 1.52 66,211
100 E
70 E
57:105:0005 176 E University Pkwy 1.21 52,708
57:105:0003 176 E University Pkwy 1.7 74,052 KEYRIDGE CIR
57:105:0002 176 E University Pkwy 0.51 22,216
Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 9
FACING SOUTH
University Parkway - 59,784 ADT
FAMILY CENTER AT OREM
10 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.comAREA RETAIL
WESTMORE SCHOOL
464 STUDENTS STARCREST DR
!
ORE
GRA
,
+
1150 S
1135 S
M BL
89
FF C
225 E
VD
IR
50 E
49,0
1163 S
38 A
8,918 ADT
100 E
4,150 ADT
DT
7,256 ADT 1200 S 8,076 ADT
281
STA
TE S
T
200 E
53,857 ADT UNIVERSITY PKWY 267 59,784 ADT
269
FAMILY CENTER DR
MAIN ST
SI TE
1400 S
5,328 ADT
1400 S
1435 S
400 E
1420 S
100 W
H ONEY LN
50
70 E
1450 S
E
KEYRIDGE CIR
1460 S
240 E
280 E
1450 S
320 E
E
10 0
60 W
R
110 E
O WD
H OLL
DEN
HID
11
175 E
1500 S
80 W
Mountain West Commercial | Office 801.456.8800 | www.mtnwest.comANCHOR TENANT PROFILE
About JO-ANN STORES, LLC: Jo-Ann Stores has the fabric store market all Lumber Liquidators was founded in 1994 when Tom Sullivan began selling
sewn up. It’s the #1 fabric retailer (ahead of Hancock Fabrics ) nationwide, surplus building materials at heavily discounted prices. Two years later, the
operating more than 850 stores in 49 states. The company sells a variety Company identified an opportunity to sell hardwood flooring at “liquidator”
of fabrics and sewing supplies, craft materials, frames, home decorations, prices after observing that traditional home improvement and flooring
artificial floral items, and seasonal goods. Most of its small-format stores retailers underserved customers in terms of price, selection, quality, availability
(averaging 15,000 sq. ft.) are located in strip mall shopping centers and and service. Lumber Liquidators began working directly with mills to provide
operate under the name Jo-Ann Fabrics and Craft. The company also customers with a broad assortment of high-quality products at a lower cost
operates largeformat Jo-Ann superstores (36,000 sq. ft. on average) and than its competitors.
an e-commerce site, Joann.com. The company is owned by acquisitive Lumber Liquidators is now the largest specialty retailer of hardwood flooring
private equity firm Leonard Green & Partners . in North America. The Company has achieved a reputation for offering
Operations: The company’s 850-plus retail stores are supported by great value, superior service and a broad selection of high-quality hardwood
distribution centers located in Alabama, California, and Ohio. Jo- Ann flooring products. Lumber Liquidators offers an extensive assortment of
Stores rings up all of its sales in the US. Its stores showcase more than exotic and domestic hardwood species, engineered hardwoods, laminates,
100,000 moderately priced items that are used in sewing, crafting, and bamboo and cork at low prices designed to appeal to a diverse customer
home-decorating projects. base. The Company also provides a wide selection of flooring enhancements
and accessories, including moldings, noise-reducing underlay, adhesives and
flooring tools. The Company’s product offering is substantially comprised of
proprietary brands, including its flagship Bellawood brand.
Since Lumber Liquidators’ first retail store opened in 1996, the Company has
developed a national store base and sells its flooring products through its
retail stores, call center, website and catalog. Lumber Liquidators believes
that sourcing directly from the mill provides the foundation for the strongest
value proposition in a highly fragmented hardwood flooring market. Lumber
Liquidators’ strengthens and supports that value proposition with a unique
store model, proprietary brands, extensive customer education and sales
support resources and a comprehensive marketing and advertising strategy.
FAMILY CENTER AT OREM
12 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.comANCHOR TENANT PROFILE
One of the original off-price retailers, Tuesday Morning is a leading Dollar Tree, Inc., a Fortune 200 company, is a leading operator of discount
destination for unique home and lifestyle goods. We specialize in name- variety stores that has served North America for more than thirty years. The
brand, better/best products for the home. We are known for irresistible Company is proudly headquartered in Chesapeake, Virginia and operates
finds at an incredible value and search the world for amazing deals to 15,000+ stores across the 48 contiguous states and five Canadian provinces,
bring to our customers. supported by a coast-to-coast logistics network and more than 182,000
We are a true closeout retailer, selling high-quality products at prices associates. Stores operate under the brands of Dollar Tree, Family Dollar, and
below those found in boutique, specialty and department stores. Our Dollar Tree Canada.
customers come to us for an exceptional assortment of brand names at Dollar Tree is committed to serving the best interests of our stakeholders. We
great prices. Our primary merchandise mix includes luxury home textiles, seek to enhance shareholder value not only through exceptional performance,
home furnishings, housewares and seasonal décor. but also through responsible business practices and effective communication.
Our customer is a savvy shopper with a discerning taste for quality at a value. To help put Dollar Tree’s financial performance into perspective, our Investor
With almost 700 stores across the country, we are in the neighborhood in Relations site provides the latest company information.
convenient, accessible locations. Our store layout is clean and simple, and
that low-frills environment means we can pass even deeper savings on to
our dedicated customer base.
Guitar Center is home to the world’s largest selection of popular guitars, basses, amplifiers, keyboards, workstations, drums, percussion,
microphones, PA systems, DJ equipment, stage lighting, recording software, studio gear and more. Backed by over 260+ stores across
the country.
Because of their incredible buying power and strong relationships with all the top musical instrument brands, you’re sure to find all the
best gear at the guaranteed lowest price. Headquartered in Westlake Village, California, Guitar Center is the #1 US retailer of guitars,
amps, keyboards, percussion, and pro-audio equipment operates over 260 stores in more than 40 states. Major brands include Fender,
Gibson, Martin, Ampeg, Crate, and Vox. Stores also offer used and vintage instruments, equipment, and musician services. Additionally,
Guitar Center offers online sales at www.guitcarcenter.com where they offer the fastest, easiest way to find all the gear you need in one
place. Adding its Musician’s Friend unit sells merchanindise online and by catalog. Guitar Center is owned by private equity form Ares
Management.
Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 13ANCHOR TENANT PROFILE
The first Michaels location was opened in 1973 in Dallas, Texas. By 1984, Painted tree Boutiques is a shopping experience like no other! Painted
they had 26 stores in operation. In 2008, they celebrated their 1,000th store Tree brings together a creative community of shoppes. The marketplace
opening, updated their logo, and became “Where Creativity Happens”. features hundreds of local shop owners, boutiques, decorators, artisans, and
By 2010, they reached $4 Billion in annual sales. In 2014, Michaels became craftsmen all operating under one roof. This allows clients to shop a variety
publicly traded on the Nasdaq with 50,000 team members. Michaels offers of gifts, décor, fashion, soaps, candles and much more from local artists and
crafters a wide variety of supplies and activities, and also holds regular venders. Painted tree has over 200 venders throughout their 23 locations
classes for adults and children to learn a variety of crafts. In 2019, they across the country. Their proven marketplace has primed them for quick
joined with Boys and Girls Club of America and Canada as their exclusive growth throughout multiple markets.
charity partners. They now operate over 1,250 Michaels stores in 49 states
and Canada.
buybuy BABY, Inc. is an American chain of stores that sell clothing, strollers and other items for use with infants and young
children. It operates 135 stores across the United States and Canada. The chain was founded in 1996 by brothers Richard
and Jeffrey Feinstein. The company has 3,500 employees and is ranked 1st among its top 10 competitors. The top 10
competitors average 400 employees. buybuy BABY is a subsidiary of Bed Bath and Beyond (NASDAQ : BBBY) who’s annual
revenues are ~$12 billion.
FAMILY CENTER AT OREM
14 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.comDEMOGRAPHICS
POPULATION BUFFERS
Am eri ca n
- 1, 3, 5 MILES
F ork P l ea sa n t G rove
1 MILE 3 MILES 5 MILES
17,762 148,588 232,351 Li n d on
2021 EST. 2021 EST. 2021 EST. 5 M il es
POPULATION POPULATION POPULATION
1 MILE 3 MILES 5 MILES
19,249 158,730 253,979 3 M il es
Vi n eya rd
2026 EST. 2026 EST. 2026 EST.
POPULATION POPULATION POPULATION ,
+189
Orem
,1
+89
M il e
HOUSEHOLDS & MEDIAN INCOME
&
'
%
15
1 MILE 3 MILES 5 MILES
6,075 45,245 71,544
2021 EST. 2021 EST. 2021 EST.
HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS
P rovo
FR
1 MILE 3 MILES 5 MILES TR
ON
U NNER SOU
TH
$64,330 $64,113 $67,533
2021 EST. 2021 EST. 2021 EST.
INCOME INCOME INCOME
Sp rin g vil l e
Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 15WHY UTAH?
• Utah Metros in Top 10 Milken List.
Provo-Orem #1, Salt Lake City #4, Ogden-Clearfield #9. (2/21)
• Utah in the 2020 Business Facilities State Rankings. (1/21)
• Utah and Its Citites Lead Nation in Young Population. (6/2021)
• Ogden Named a Top 20 City for Manufacturing. (9/2020)
• St. George a Top Work-from Home Destination (9/2020)
• 10 Categories Where Utah Claims #1 (best private-sector job growth, best state for entrepreneurs,
best performing large system, best state for upward mobility, best state for the middle class, number of dark sky
parks, children per capita, densest concentration of Jurassic-era dinosaur bones, tallest mountain peaks, Most
volunteers) (9/2019)
Source: EDCUtah
#1 BEST STATE FOR #3 BEST STATE
ENTREPRENEURS FOR BUSINESS
2019 2019
#1 BEST #2 BEST STATE TO
ECONOMY START A BUSINESS
10/2020 2019
Source: Utah Governor’s Office of Economic DevelopmentJOB GROWTH POPULATION GROWTH
3.3%
UTAH
16%
UTAH source: EDCUtah
1.5%
NATIONAL
6.3%
NATIONAL
DWS, NOV 2019 US CENSUS, 2010-2019
MEDIAN WAGE MEDIAN AGE
$36,790
UTAH
31
UTAH
$38,640
NATIONAL
38.2
NATIONAL
BLS, MAY 2018 US CENSUS, ACS 2018
COST OF LIVING INDEX % BUDGET SPENT ON EDUCATION
101.3
UTAH
40%
UTAH
100.0
NATIONAL
29%
NATIONAL
C2ER, Q3 2019 US CENSUS, 2015
CORPORATE TAX GDP GROWTH
4.95%
UTAH
3.2%
UTAH
6.87%
NATIONAL
1.9%
NATIONAL
TAX FOUNDATION, 2019 BEA, Q3 2019
Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 17
Source: EDCUtah2021: POISED FOR A STRONG RECOVERY
“Utah’s decade long expansion, the longest on record, ended in 2020 with the emergence of
COVID-19. The public health crisis presented the greatest challenge to the Utah economy since the
Great Recession. In the early spring, the forecast for 2020 was bleak as the unemployment rate in
April climbed to roughly 10%. But as the year unfolded, the resiliency of the Utah economy was on full
display. By November, Utah’s year-over employment was down -0.2%, one of the smallest employment
declines of any state, and the unemployment rate had dropped to 4.3%. Nationwide employment was
-6.0% and the unemployment rate was 6.7%. Although the job market in Utah has fared better than in
any other state, not all industries escaped the impact of COVID-19.
Tourism has been hard hit, with national park visits down 32%. Bryce Canyon suffered the worst decline
with a drop of 32% in visitations. Third-quarter data for accommodations services (hotels and motels)
show a drop of 22% in lodging. Restaurants and fast food establishments have also been hurt, but the
impact appears to be less than expected. Take-out and delivery have given some buffer to sit-down
restaurants. Retail sales activity overall has been surprisingly strong. The 2020 forecast for taxable
retail sales shows an increase of 13.3%, with building and garden establishments and grocery stores
particularly strong. Co
Man
Utah exports in 2020 are forecast to reach $17.6 billion, the third-highest year on record. Notably, Trade, Tran
the value of other export commodities (excludes gold) at $8.7 billion will be the highest ever, with In
electronics and agricultural products among Utah’s major export products. The forecast for residential Financ
construction shows a record of 30,745 dwelling units, surpassing the previous record high of 28,285 in Professional & Busines
2005. The value of residential construction will top $6.3 billion. The housing boom in apartments and Education & Healt
condominiums continues, and single-family construction will have the best year since 2006. Housing Leisure & H
demand has not slowed with COVID-19, as historically low mortgage rates attract buyers to the Othe
market. The strong demand has pushed up housing prices. The median sales price of a single-family Go
home in Utah will be up by 11% to $385,000 in 2020. The construction boom includes nonresidential
construction with $2.3 billion in value in 2020. The total value of permit authorized construction
(residential, nonresidential, and additions, alteration and repairs) will be $10.3 billion in 2020, a record 80,000 Net
year as well. Natu
Pop
60,000
While the public health crisis has been tragic, the impact of the pandemic on the Utah economy has 40,000
been much milder than initially expected. And a strong recovery is forecast for 2021, with employment
increasing by 58,000 jobs, which would be the largest single-year increase in employment in Utah’s 20,000
history.”
0
Source: 2021 Economic Report to the Governor by the Utah Economic Council
-20,000
1980
1982
1984
1986
FAMILY CENTER AT OREM
18 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 8.0% 2.6% lo0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
* 2020 national park visits are estimated. 2020 skier days will be released in June 2020. Skier days include the season that begins with the year shown
(e.g., 2019 = 2019–2020 ski season).
Source: U.S. National Park Service and Ski Utah
HACHMAN INDEX OF ECONOMIC DIVERSITY
Hachman index of Diversity
2019
According to the Hachman
Index, a measure of economic
diversity, Utah and Missouri Mining led - 700 (- 7.2%) $20 $19.0 $19.3 Gold All Other Commodities 90.9
OR
MN
the nation in economic diversity
Construction OR5,900 (5.4%) 93.8
$17.3 $17.6
93.1 $16.1
in 2018 with scoresManufacturing
of 97.1 and - 1,400 (- 1%) WI
$15 91.2 $14.4
96.8, respectively, based on $13.3
Trade, Trans., Utilities - 2,900 ( - 1%) $12.2 MI $12.1 $11.6
gross domestic product by
Information - 1,200 (- 3%)
91.3 PA
95.4
industry. A higher score, closer $10 IL
OH
Financial Activity 3,300 (3.6%) UT 93.2
to 100, indicates more economic 97.3 CO
95.6
Professional & Business Services 600 (0.3%) 93.8 KS MO
diversity. A timely example CA
90.7 96.7
Education & Health Services
2020: Historically challenging year 2021: Poised for a strong recovery
- 1,000
92.7 ( - 0.5%) $5
of the advantage of diversity TN
NC
Leisure & Hospitality -18,900 ( - 12.3%) AZ 93.8
is the impact of globalization 96.1
92.4 SC
Other Services - 1,400 ( - 3.4%) 90.1
and tariffs on state economies. $0 AL GA
Government - 4,400 ( - 1.7%) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e
Those states with employment 90.3 96.5
Utah exports in 2020 are forecast to reach $17.6 billion, the prices. The median sales price of a single-family home in Utah
concentrations in auto, textiles,
third-highest year on record. Notably, the value of other export will be up by 11% to $385,000 in 2020. The construction boom
or steel production experienced
commodities
severe (excludes
job losses. gold) at $8.7 billion will be the highest includes
$12,000 nonresidential construction with92.1 $2.3 billion in value in
FL
Mining - 700 (- 7.2%) $20 80,000
$19.0 $19.3 In contrast,
Net Migration
Gold All Other Commodities Residential Nonresidential
ever, with electronics
Utah’s economic diversity and
Natural agricultural
Increase products among Utah’s
$17.3 $17.6 2020. The total value of permit authorized construction (residential,
onstruction 5,900 (5.4%) Population Change $10,000 Additions/Alterations/Repairs Total Value
major export
60,000 $16.1 The forecast for residential construction
products. nonresidential, and additions, alteration and repairs) will be $10.3
nufacturing - 1,400 (- 1%) provided added protection from
$14.4the previous
ns., Utilities - 2,900 ( - 1%) theshows
$15 a record
negative of 30,745
impacts dwelling
of tariffs. $13.3 units, surpassing billion
$8,000in 2020, a record year as well.
Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Economic Analysis GDP data
record high of 28,285 in$12.2
40,000 $12.1 of
2005. The value residential construction
$11.6 While the public health crisis has been tragic, the impact of
nformation - 1,200 (- 3%) $6,000
will
$10 top $6.3 billion. The housing boom inxapartments
viii
and
2021 ECONOMIC
the pandemic on the Utah economy has been much milder than
REPORT TO THE GOVERNOR
cial Activity 3,300 (3.6%) 20,000
condominiums continues, and single-family construction will initially
$4,000 expected. And a strong recovery is forecast for 2021, with
ss Services 600 (0.3%)
have the0best year since 2006. Housing demand has not slowed employment increasing by 58,000 jobs, which would be the largest
th Services - 1,000 ( - 0.5%) $5 COVID-19, as historically low mortgage rates attract buyers $2,000
with single-year increase in employment in Utah’s history.
Hospitality -18,900 ( - 12.3%)
er Services - 1,400 ( - 3.4%)
to the
UTAH market.
VALUE
-20,000 The strong
OF demand
NEWhas pushed up housing
CONSTRUCTION, UTAH$0
NATIONAL PARK AND SKIER
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
$0
overnment - 4,400 ( - 1.7%) $ MILLIONS
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e VISITS, MILLIONS
Utah Value of New Construction, $ millions Utah National Park and Skier Visits, millions
8.0% 2.6% long-term average 12
$12,000 National Park Visits
Migration Residential Nonresidential
ural Increase 6.0% Skier Days
Additions/Alterations/Repairs Total Value 10
pulation Change $10,000
4.0%
8
$8,000
2.0%
6
$6,000
0.0%
4
-2.0%
$4,000
2
-4.0%
$2,000
0
-6.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
$0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
* 2020 national park visits are estimated. 2020 skier days will be released in June 2020.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
Skier days include the season that begins with the year shown
(e.g., 2019 = 2019–2020 ski season).
-1.0% Utah Source: U.S. National Park Service and Ski Utah
Source: 2021 Economic Report to the Governor by the Utah Economic Council
ong-term average 12
-1.1% Idaho
Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 19
National Park Visits -2.2% ArizonaUtah
Idaho
Arizona
Nebraska
Mississippi
Texas
South Dakota
-18,900 ( -12.3%)
Alabama
U.S.
FAMILY Report
Source: 2021 Economic CENTER ATGovernor
to the OREM by the Utah Economic Council
20 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.comMARKET & AREA INFORMATION
GROWTH
Orem, rated in the top 10 in the nation for growth and was recently ranked as the best regional
economy in the nation according to the Milken Institute. It sits within the borders of Utah County,
who is the leading county in total growth and is expected to capture 31% of the state’s household
growth over the next 50 years. Orem is located only 30 miles from the newly improved Salt Lake City
International Airport making it a prime location for continued growth.
SILICON SLOPES
The up-and-coming tech hub, centralized in Utah County, is the prime area for tech giants and
startups alike. It has quickly become home to Adobe, Vivint, Ancestry, Bamboo HR, Divvy, Entrata,
Grow, Jane,com, Jive Communications, Plural Site, and more.
UTAH VALLEY UNIVERSITY
Around the corner fromUtah Valley University, with an enrollment of 41,728 students and 5,062
employees. The university has over 60 academic departments ranging from healthcare, business,
performing arts and more. They offer over 160 undergraduate programs and roughly 30 graduate
programs as well as multiple online programs and certificates.
Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 21FAMILY
CENTER AT
OREM
176 EAST UNIVERSITY PARKWAY
OREM, UTAH 84058
PREPARED BY
BEN BROWN
bbrown@mtnwest.com
direct 801.456.8802
View Profile
SCOTT BRADY
sbrady@mtnwest.com
direct 801.456.8804
View Profile
BRIEONA PAPPAS
bpappas@mtnwest.com
direct 801.704.1666
View Profile
University Parkway - 59,784 ADT
312 East South Temple, Salt Lake City, UT 84111
Office 801.456.8800 | www.mtnwest.comYou can also read
