Scorecard
SCORECARD
Commerce CRG Mid-Year Market Review Salt
Lake County Office
Office Vacancy – Salt Lake County – Direct
CBDType | Qtr2
2006 Total SF | Qtr2 2006 Avail
SF | Absorption | Vacancy |
Qtr2 2006 Rents |
Class
A | 2,671,086 | 50,639 | 6
6,253 | 1.90%
| $23.20 |
Class
B | 2,291,542 | 178,733 |
54,120 | 7.79%
| $18.10 | Class
C | 1,620,339 | 421,203 |
6,586 | 25.99%
| $14.86 |
Overall |
6,582,976 | 650,273 | 126,9
59 | 9.88%
| $19.37 |
Office Vacancy – Salt Lake County – Sublease
CBDType | Qtr2
2006 Avail SF | Vacancy |
Class A | 21,587 | 0.81%
|
Class B | 0 | 0%
|
Class C | 17,000 | 1.05%
|
Overall | 38,587 | 0.59%
|
Office Vacancy – Salt Lake County
PeripheryType | Qtr
2 2006 Total SF | Qtr2 2006 Avail
SF | Absorption | Vacancy |
Qtr2 2006 Rents |
---|
Class
A | 1,032,687 | 42,130 | -
6,767 | 4.08%
| $19.61 |
Class
B | 1,333,935 | 160,791 |
40,261 | 12.05%
| $17.26 | Class
C | 1,062,594 | 212,895 |
12,766 | 20.04%
| $13.64 |
Overall | 3,429,216 | 415,816
| 46,26
0 | 12.13%
| $16.75 |
Office Vacancy – Salt Lake County Periphery –
SubleaseType | Qtr2
2006 Avail SF | Vacancy |
Class A | 0 | 0%
|
Class B | 14,717 | 1.10%
|
Class C | 11,739 | 1.10%
|
Overall | 26,436 | 0.77%
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Office Vacancy – Salt Lake County
Suburban
Type | Qtr2 2006 Total
SF | Qtr2 2006
Avail
SF | Absorption | Vacancy |
Qtr2 2006 Rents |
Class
A | 5,447,397 | 491,905 |
122,609 | 9.03%
| $21.12 | Class
B | 7,275,821 | 685,517 |
-36,917 | 9.42%
| $17.78 | Class
C | 4,531,594 | 739,285 |
51,774 | 16.14%
| $13.79 |
Overall | 17,304,812 | 1,916,7
04 | 13
7,466 | 11.08%
| $17.78 |
Office Vacancy – Salt Lake County Suburban –
SubleaseType | Qtr2
2006 Avail SF | Vacancy |
Class A | 95,231 | 1.75%
|
Class
B | 130,881 | 1.08% |
Class C | 6,015 | 0.13%
|
Overall | 232,127 | 1.34
% |
TOTALS Salt Lake
CountyTotal |
Qtr2 2006 Total SF | Qtr2 2006 Avail
SF | Absorption | Vacancy |
Qtr2 2006
Rents |
---|
Totals | 27,316,
995 | 2,982,796 | 310,685 | 10.82%$18.05 |
Office Vacancy – Salt Lake County Totals –
SubleaseType | Qtr2
2006 Avail SF | Vacancy |
Totals | 297,170 | 1.09
% |
Vote how you shop?
What does where you shop say about how you
vote? In the case of Wal-Mart, John Zogby, the
highly regarded pollster, thinks it says a lot.
As he reviewed data from the Qtr2 2006 US
presidential election,
Mr Zogby noticed something unusual: a strong
correlation between how often people shop at Wal-
Mart and how conservative they are.
The figures are stark: 76 per cent of voters who
shopped at Wal-Mart every week voted for George
W. Bush, while 23 per cent voted for John Kerry. By
contrast, 80 per cent of those who never shopped
there supported Mr Kerry, while just 18 per cent
voted for Mr Bush.
"Wal-Mart is more than retail. I think it has
become a culture unto itself," says Mr Zogby, who is
writing a book about what he calls "the new
American consumer". That culture is seen in the
books and magazines the retailer puts on its shelves
and those it keeps off. "You walk into a Wal-Mart
and you're walking into the moral equivalent of a
spiritual revival tent for born-again Christians."
Just as "soccer moms" and "Nascar dads" drew
the scrutiny of pollsters in past elections, Mr Zogby
is now paying close attention to weekly Wal-Mart
shoppers.
African-Americans and Hispanics who shop there
frequently are significantly more conservative than
their cohorts who do not, he says. And he knew that
Mr Bush was in deep trouble with the public when the
president's standing slipped among weekly Wal-Mart
shoppers, who had been among his strongest
supporters.
Mr Zogby has placed other US retailers on the
political spectrum. Firmly on the left are Neiman
Marcus, Bloomingdale's and Macy's. Target, he says,
is near the centre, "a hair to the left", and in the
centre-right are Sears and JC Penney.
But none are as strong a predictor. "Wal-Mart's
pattern is just incredible."
Source: The Financial Times, Qtr2 2006
City pick-up-and-go fleets
wean drivers off ownership
Staff at Mountain Equipment Co-op, a store
selling outdoor goods in downtown Toronto, seldom
drive their own cars or call a taxi when they go out
to training courses or boat demonstrations on nearby
Lake Ontario. The store also owns no vehicles and
public transport to the lake is not an option.
Instead, Mountain Equipment typically books a
car for a few hours from AutoShare, one of a growing
number of short-term rental - also known as car-
sharing - services springing up in cities across north
America and Europe.
The recent surge in petrol prices has triggered a
wave of interest in car sharing among individuals and
businesses. "It's a fantastic concept for me," says
Nancy Harrison, an assistant manager at Mountain
Equipment. "You don't have costs like parking and
insurance. Most people don't need a car all the time."
Zipcar, the biggest north American operator, has
signed up 60,000 members and runs a fleet of almost
1,600 vehicles in 12 US states and the Canadian
province of Ontario. Across the Atlantic, StreetCar,
which operates in London, Brighton and
Southampton, has 6,000 members and is adding 750
each month, according to Andrew Valentine, co-
founder.
The sector is drawing interest from prominent
investors. Revolution Living, controlled by Steve
Case, co-founder of America Online, bought a 55 per
cent stake last year in the Seattle-based Flexcar,
which is Zipcar's chief US rival. Mr Case raised his
stake in June to 85 per cent. Honda, the Japanese
carmaker, is a minority shareholder. General Electric's
vehicle fleet financing arm recently advanced $23m
in lease funds to help Zipcar enter new markets.
In theory, car sharing is a simple, seductive
alternative to owning a vehicle. The idea - pioneered
in Switzerland and Germany, where car sharing
remains especially popular - is that members can pick
up a vehicle whenever they need one, not from a
central depot but parked at a location close to their
home or office.
The rental period can be as short as an hour and
the operator takes care of insurance, cleaning,
repairs and a permanent parking spot.
Rental rates in the US are typically $7-$9 an
hour, in addition to annual or monthly membership
fees. In the UK, StreetCar charges £4.75 an hour,
with no membership fee. Bulk-use discounts are
common.
In practice, car sharing is notfor everyone - and
the businessside can be complicated and risky.
According to AutoShare in Toronto, car sharing
typically works best for people who do not need a
car to get to work every day and who drive less than
12,000km a year. It also helps if members live or
work close to a car-share outlet. Mountain
Equipment Co-op rents three spaces in its parking
garage to AutoShare, making it easy for employees
to pick up a car.
As for running a car-share business, "when it first
starts, it's very difficult to [reach] break-even", says
Susan Shaheen, a transport researcher at the
University of California at Berkeley. "Viability very
much relies on a dense network of vehicles - and the
availability of those vehicles."
Scott Griffith, Zipcar's chief executive, says his
company typically assigns 100 cars to a city before
cranking up a marketing campaign.
There are other difficulties. Ms Shaheen
estimates that a car needs to be used at least six
hours a day to earn a reasonable profit. But demand
from individuals is typically heaviest over weekends,
creating a double-edged sword for the operator.
Members can end up frustrated at not being able to
book a car when they want one for Saturday
shopping, while the car-share service struggles to
hire out the car on weekdays.
Zipcar has tried to address this mismatch with its
Zipcar for Business service, known as Z2B, which
offers discount rates on weekdays. According to Mr
Griffith, corporate customers have grown to 20 per
cent of the total over the past two years.
Success also requires a heavy investment in
technology, from computer-coded electronic car keys
to reservation and billing systems.
Members' co-operation is crucial for an efficient
service. Toronto's AutoShare says about one in five
members leaves each year. The most common
reasons are relocation and the opportunity or need
to own a car. About 2 per cent of those who leave
are thrown out for inconsiderate behaviour, such as
smoking in a car or returning it late.
In one sign that car sharing is gaining traction,
competition has tended to expand overall demand in
cities such as Washington and San Francisco, rather
than eat into existing operators' market share.
Zipcar has signed up more than 500 members in
Toronto since it set up in May. Yet AutoShare, which
has been operating for eight years and has more
than 2,700 members, also reports growth of 8-9 per
cent a month. Kevin McLaughlin, AutoShare's
president, says of his new rival that "they're creating
a wave of interest and we're doing our best to ride
it".
Ms Shaheen estimates that the ratio of members
to vehicles in the US has fallen to about 40-to-1
from 64-to-1 last year. "Not only are [companies]
attracting new members," she says, "but it appears
that those users are using the vehicles more
intensively."
Mr Griffith thinks that about 50 cities around the
world, including Dublin, Sydney and Buenos Aires,
could support a car sharing service.
While soaring fuel prices have helped attract
members, those are not necessarily the driving force
in car sharing. "The general hassle and car cost
issues are the main thing driving growth here," says
Mr Valentine of StreetCar in the UK.
Car-share participants are typically people in
their 20s and 30s who are well educated but with
relatively low incomes. Environmental awareness
often plays a significant role in their decision to join.
A service in the Netherlands is called Greenwheels.
According to Ms Shaheen, one shared car
typically replaces between four and 10 privately
owned vehicles. Mr Griffith says much of his job
satisfaction comes from the 40-45 per cent of Zipcar
customers who say they have either sold their own
cars or decided not to buy one. "Twenty-five
thousand cars have gone away because of Zipcar,"
he proclaims.
Source: The Financial Times
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Greetings!
Salt Lake County Office Study
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Putting Consumers First |
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The most effective way for countries (States?,
Counties?, Cities? bs/br) to improve the economic
welfare of their citizens, a McKinsey study shows, is
to increase the productivity of their companies,
primarily by encouraging competition. Consumers
benefit because when more productive companies
gain market share, less productive ones must close
their doors or become more efficient. Either way,
consumers get better goods at lower prices.
India's government, for instance, abandoned
many limits on foreign investment in the country's
automotive industry during the early 1990s.
Prices fell, demand for cars exploded, and output
nearly quadrupled.
Yet in many poor nations (also read cities?),
government policies—such as zoning laws,
investment regulations, tariffs, and tax codes—
continue to limit competition. For more on how
policy makers can remove barriers to economic
progress, read "The power of productivity."
http://www.mckinseyquarterly.com/article_page.aspx
?ar=1423&L2=19&L3=67&srid=63&gp=0
Source: McKinsey& Co.
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Economic Notes: |
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- New Residential Construction (C20)
- Housing starts decreased 2.5% to 1.795
million units in July. Housing permits decreased 6.5%
during the month.
- Consumer Price Index
- The seasonally adjusted consumer price index
rose 0.4% in July, after a 0.2% increase in June.
Rising energy costs again pushed the top-line number
higher. The core index, excluding food and energy
prices, rose 0.2% in July; this followed four
consecutive 0.3% monthly increases in the core CPI.
Over the past year core CPI inflation has run at a
2.7% pace. The core number is good news, although
inflation still remains a concern.
- Global Business Confidence
- Business confidence is sliding once again,
under pressure from developments in the Middle East
and energy price concerns. The index is at its lowest
level since November Qtr2 2006 in the latest week,
although it remains consistent with a global economy
that is expanding at its potential. The recent decline
comes after sentiment in July recovered much of its
May and June losses. Sales have led the recent
decline, although weakness has been broad-based.
Asian and South American firms are the most
optimistic, but followed closely by North American
firms. European business confidence continues to lag,
while high-tech firms are the most positive. Non-auto
manufacturers also remain optimistic, and vehicle
manufacturers, retailers, entertainment, and
educational firms are negative.
- ABC News/Washington Post Consumer
Comfort Index
- The ABC News/Washington Post consumer
comfort index coughed up three points to -15 in the
week ending August 13. The headline index now
stands at a two month low. Weakness was broad
based on all three of the underlying components
falling over the week. An outsized four point decline
in personal finances lead the overall charge
lower.
- NAR Metro Prices
- House price appreciation is rapidly
decelerating in the second quarter of this year. Y/y
growth in the median house price is down in the
single digits for the nation and a growing number of
metro areas in the Midwest are posting declines,
however, previously hot markets are also showing
substantial weaknesses
- Senior Loan Officer Opinion Survey
- The July Senior Loan Officer Opinion Survey
reflected a further easing of lending standards on C&I
loans in the second quarter although demand for
these loans were unchanged over the previous three-
month period. Demand for commercial real estate
loans was also unchanged since the previous survey
and lenders indicated tighter standards. Reflecting
the slowdown in the housing market, about 60% of
respondents indicated weaker demand for residential
mortgages and 10% of respondents indicated looser
lending standards for mortgage loans.
- NAHB Housing Market Index
- Homebuilder optimism dropped 7 points to 32
in August.
- Chain Store Sales
- According to the ICSC, chain store sales were
essentially unchanged in the week ending August 12.
Year-over-year growth ticked up to 2.6%, the best
growth in five weeks. State sales tax holidays
continued to have a negligible impact on national
data.
- MBA Mortgage Applications Survey
- Mortgage demand increased last week, with
the market index rising 1.4% in the week ending
August 11. The increase was entirely concentrated in
refinance applications, which increased 4.6%.
Purchase applications decreased 0.8%.
- Treasury International Capital Flows
- U.S. net capital inflows in June were $75.1
billion compared to a revised $63.6 billion in May. The
June data beat market expectations for a net inflow
of $69 billion.
- PPI
- Producer prices for finished goods rose by a
modest 0.1% in July. Excluding food and energy, core
prices for finished goods fell by 0.3%. Inflation
remained much more rapid at earlier stages of
processing. Prices for core intermediate goods rose
by 0.7% in July, while prices for core crude goods
rose by 1.3%.
- Industrial production
- Industrial production increased 0.4% in July, a
touch below consensus expectations. The gain was
largely due to a 2% boost in utilities production, an
artifact of the nationwide heat wave in the second
half of the month. Manufacturing production posted a
tame 0.1% increase. Capacity utilization inched
slightly higher to 82.4% from a downward revised
82.3% in June.
- Oil and Gas Inventories
- Crude oil inventories fell 1.6 million barrels for
the week ending August 12. According to the Energy
Information Administration, it in line with
expectations. Gasoline inventories fell by 2.3 million
barrels for the week, above expectations of a 1.8
million barrel draw. Refinery utilization remained
unchanged for the most part, but these are the first
releases that reflect the Prudhoe Bay shutdown. This
report will have a mildly bullish impact in prices.
- Internet Sales (E-Commerce Sales)
- Internet sales increased by 4.6% q/q during
the second quarter of Qtr2 2006 . This is a modest
deceleration from the 7.0% increase seen during the
first quarter of Qtr2 2006 . This report suggests that
consumers remain resilient in their e-commerce
spending habits, despite elevated energy prices and
rising interest rates.
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This Weeks Leads |
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- Royal Doulton
- Royal Doulton trades as Royal Doulton Co. Stores
at 17 locations nationwide.
- The housewares stores, which sell their own line
of dinnerware, giftware, china, crystals and gifts,
occupy spaces of 3,000 sq.ft. in lifestyle, outlet and
power centers.
- Plans call for three openings throughout IL, NY
and PA during the coming 18 months.
- Typical leases run five years. A vanilla shell is
required.
- Preferred demographics include a population of
900,000 within 30 miles earning $60,000 as the
average household income.
- Lenox is cited as competition.
- For more information, contact:
-
Janet Drift
- Royal Doulton
- 200 Cottontail Lane
- Somerset, NJ 08873
- 732-357-2416
- Fax 732-764-4978;
- Email:
janet@royaldoultonusa.com.
- Fashion Day Spa
- Fashion Day Spa, a 120-unit chain operates
locations nationwide.
- The day spa and nail boutiques occupy spaces
of 2,000 sq.ft. in lifestyle centers and malls.
- Plans call for four openings throughout AZ, CA
and NV during the coming 18 months, with
representation by The Zall Company.
- Typical leases run 10 years.
- For details, contact:
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Gerardo Aguinis
- c/o The Zall Company
- 4725 South Monaco Street, Suite 330
- Denver, CO 80237
- 303-804-5656, Fax 303-804-9696
- Email: gaguinis@zallcompany.com
- Website: www.zallcompany.com
- New York Sports Club
- New York Sports Club, a 97-unit chain operates
locations throughout CT, NJ and NY.
- The health and fitness clubs occupy spaces of
15,000 sq.ft. to 35,000 sq.ft. in freestanding
locations.
- Growth opportunities are sought throughout
Brooklyn and Queens, NY during the coming 18
months, with representation by Retail Zone.
- For details, contact:
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Mitch Weiss or Ezra Saff
- c/o Retail Zone
- 25-50 Francis Lewis Boulevard
- Flushing, NY 11358
- 718-321-7700, Fax 718-321-1801
- Email: mweiss@nyc.rr.com
- Website: www.nysc.com
- AMC,
- AMC, a 400-unit chain operates locations
nationwide and internationally.
- The movie theatres occupy spaces of 55,000
sq.ft. to 80,000 sq.ft. in
malls, entertainment and power centers and
urban/downtown areas.
- Plans call for the opening of 150 screens
nationwide during the coming 18 months.
- For details, contact:
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Chuck Stilley
- American Multi-Cinema
- 920 Main Street
- Kansas City, MO 64105
- 816-221-4000 Ext. 586, Fax 816-480-4619
- Website: www.amctheatres.com
- Texas De Brazil
- Texas De Brazil operates eight locations
throughout CO, FL, IL, TN, TX and VA.
- The steakhouse restaurants occupy spaces of
10,000 sq.ft. in malls.
- Plans call for five to seven openings nationwide
during the coming 18 months,
with representation by Papadapoulos Properties, Inc.
- Typical leases run 10 years with two, five-year
options.
- Preferred cotenants include PF Chang’s and The
Cheesecake Factory.
- For more information, contact:
- Ralph Tapiero
- Papadapoulos Properties, Inc.
- 1420-B 21st Street Northwest
- Washington, DC 20036
- 301-442-7579
- Email: rtapieroI@verizon.net
- Website: www.texasbrazil.com.
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