September 5th 2006

In This Issue

New Bonneville Research VP

Economic Notes:

This Weeks Leads



Commerce CRG Mid-Year - Qtr2 2006 Market Review Utah, Davis, Washington and Summit County Office Markets

Office Market – Weber County
TypeTotal SFAvailableVacancy Rents (high)Ave CAM
Class A1,014,77749,943 4.92% $14.36$4.80
Class B1,250,026248,911 19.91% $12.94$2.24
Class C385,63673,47619. 05%$11.23$1.43
Totals2,650,439372 ,33014.05% $12.84$2.61
Business Depot Ogden7,504,136 2,062,21427.48%$- $-
Office Market – Davis County
TypeTotal SFAvailableVacancy Rents (high)Ave CAM
Class A813,97933,0104.0 6%$18.87$5.10
Class B1,363,830166,376 12.13% $13.89$2.57
Class C515,03082,02815. 93%$13.06$3.16
Totals2,692,839280 ,41410.41% $14.04$2.39
Freeport Center7,185,893223,000 3.10%$-$-
Freeport West960,000240,000 25.00%$-$-
Office Market – Washington County
TypeTotal SFAvailable Under Const.Rents
Total1,685,000160, 0009.00%$12.00- 20.00
Office Market – Park City
TypeTotal SFAvailable VacancyRents
Total929,47989,230 9.60%$15.00- 26.00

The problem with Masters of the Universe

If it is tough at the top, then it is hardly surprising that the top jobs are invariably filled by determined, dominating people - the alpha males who are the subject of this new book. Its authors, Kate Ludeman and Eddie Erlandson, are a husband-and- wife executive coaching team, who have worked with more than1,500 chief executives and senior executives, including Michael Dell and Kevin Rollins at Dell, and Ebay's Meg Whitman.

As good coaches, the authors avoid being unfairly judgmental about their subject. They recognise the alpha male's strengths as well as his weaknesses, and argue that the world needs its alpha leaders right now.

But when those strengths turn into liabilities "alpha male syndrome" has struck: "The stronger the positive qualities, the more likely they are to erupt as negatives." Alpha males display extreme confidence. They "want excellence, they want it now, and they're sure they know how to get it", the authors explain. But, they add, this self- assurance can go too far.

"A great deal of wreckage is caused by boys behaving badly. The healthy ones - well-balanced human beings in full command of their alpha strengths - are natural leaders who are trusted by colleagues, respected by competitors, revered by employees and loved by Wall Street. But other alpha males are risks to their organisations - and sometimes to themselves."

The authors should know what they are talking about; they are self-declared alphas. Ludeman is a coach with a doctorate in psychology, Erlandson a surgeon turned health guru. One high-tech entrepreneur told them, after he had lost his investors $20m: "Looking back on it, I wasn't always right, but I was never in doubt." That is an alpha male talking. But what about alpha females? Do they not get to the top as well?

"Alpha women want to lead, but they don't necessarily need to rule," the authors say. They are not as belligerent or as aggressive as their male equivalents. For this reason the authors have chosen to focus on the real problem cases: the men.

How can you tell when alpha male syndrome is afflicting your business? Consider how meetings are run, they suggest. Are they like a particularly unpleasant episode of the competitive television programme The Apprentice? If so, they can become "theatres for the Alpha Male Show". Often there will be a gap between how an alpha male leader thinks the meeting has gone and the reality.

To complicate the matter further, we need to understand that there are four types of alpha male leader, say the authors: the commander, the visionary, the strategist and the executor.

  1. Commanders are dominant high achievers, deŽmanding the best from themselves and others. But they may also create fear, suppress disagreements and stifle open communication.
  2. Visionaries are passionate enthusiasts, resilient and indefatigable. However, they can lose sight of the needs of today, dazzled by their own vision of tomorrow.
  3. Strategists are strong decision-makers. They are innovators, finding opportunities buried in piles of data. But they can seem remote and dispassionate, and unable to engage with arguments that are not based on hard facts.
  4. Executors are brilliant deliverers of results. They are strong on detail and superb problem-solvers. But they may prove to be excessively demanding micro-managers, often disappointed with others' efforts.

Alpha males may end up playing several roles or "personas" (from the Latin for mask). But with help, harmful personas can be abandoned in favor of the authentic self. "If you and you alone change, other people will also change," the authors say.

Alpha males are bad for everyone's health. The old tycoon's joke: "I don't get ulcers - I give them", is just wrong. In fact, alpha males are often adrenalin addicts.

"Those adrenalized bodies in business suits are all dressed up with nowhere to go," Ludeman and Erlandson say. "Alpha adrenalin junkies not only make themselves sick, they create a toxic environment for everyone else. That's why organizations dominated by dysfunctional alpha males are likely to have a higher incidence of illness, absenteeism, burnout, turnover and early retirement than businesses run by healthy alphas and non-alphas." Ludeman and Erlandson know their subject well. Alpha males "think they're delivering a wake-up call when in fact they are hurling verbal grenades". You might admire them but do you want to work with them? And if you are one, how might you moderate your behavior? Unsurprisingly, for a couple with a coaching business, they feel that coaching is the answer.

You can even complete an online self- assessment questionnaire (soon to be available at www.AlphaMaleSyndrome.com). Of course, this may lead to further verbal jousting along predictable lines: "My alpha male syndrome is bigger than yours."

Source: The Financial Times, Qtr2 2006

More Mixed-Use Conversions?

Federal Realty Investment Trust’s $150 million purchase of three Boston properties from Eastern Development announced on Monday bolsters the Rockville, Md.-based REIT presence in the region. And, as with its 2005 purchase of Assembly Square, Federal is looking to convert at least one of the properties into a mixed-use center.

At the heart of the deal is Linden Square. Federal plans to invest $50 million to redevelop the property to create a project with more than 200,000 square feet of retail, 17,000 square feet of office space, a spa and a health club. The first two phases of the redevelopment campaign will be completed in 2008.

“The bulk of the investment in this deal is in Linden Square, which is a fabulous opportunity,” according to Jeff Berkes, chief investment officer and executive vice president for Federal. “ It’s off the charts in income and spending potential and there is limited competition in terms of retail space. We expect significant net operating income and rental growth from the Linden property. The other two properties are good properties in their product category, but Linden Square is truly special.”

Linden is situated in one of the most affluent communities in the area. Average household income within a three-mile radius of the property is $191,000, according to Berkes.

Source: Retail Traffic Online, 2006

Take your staff's pulse

As a business services firm, BDO Stoy Hayward depends entirely on the quality of its 2,900 people. As part of its efforts to keep them engaged, it takes their pulse each year in a survey covering a wide range of issues, from the firm's strategy and leadership to how they feel about their careers.

The findings are split by business unit, service stream (audit, tax, corporate finance), gender, grade and seniority. "If a particular group of people has got an issue in a particular area, we can quickly see what it is and tackle it at that level," says Tony Perkins, head of the firm's London operation, which employs 1,100 staff.

In one case, the survey revealed that recently qualified, twenty-something employees were unhappy with their appraisal forms, finding them cumbersome to complete and inadequate at conveying their objectives. The procedure was duly improved.

Staff in each office meet to discuss the survey results - administered by ISR, the employee research and consulting firm - and to work out what action needs to be taken. "Each group monitors these actions over time, so every member of staff can see that the comments they have made are followed up," says Mr Perkins. Source: The Financial Times Limited 2006


Office Studies - Weber, Davis, Washington and Summit Counties

Mixed Use Conversions?

Check your staffs pulse

New Bonneville Research VP

  • New Bonneville Research VP
  • Bonneville Research is exited to announce the appointment of Jon Springmeyer as a new Vice President.

    For the past 5 years Jon has managed Excel Construction and Commercial/Retail properties for Amsouce Development.

    Before Amsource, Jon spent five years with Salt Lake County Parks and Recreation as a director of recreation centers, fitness centers, and outdoor aquatics centers.

    Jon is a licensed Real Estate Agent and will take the lead on Urban Renewal Projects for Bonneville clients as well as funding/feasibility studies for recreation/community facilities.

    We welcome Jon to the firm.

  • Economic Notes:
    • Chain Store Sales

    • Chain store sales posted their largest gain in four weeks in the week ending August 26, gaining 0.6%, according to the ICSC. Year-over-year growth accelerated to 3.6%, the best growth in nine weeks. Better weather and lower gasoline prices contributed to the strong end to the fiscal month.
    • MBA Mortgage Applications Survey

    • Mortgage demand decreased 0.9% in the week ending August 25. Purchase applications decreased 1.6%, while refinance applications were unchanged.
    • GDP

    • As expected, real GDP growth was revised up in the first quarter, to 2.9% from the advance 2.5% estimate last month. However, the upward revision was slightly smaller than expected. The upward revision came from higher exports, investment in nonresidential structures and state and local government spending, and greater additions to inventories; these were partly offset by a downward revision to residential fixed investment. Profits from current production increased $49.5 billion at an annualized pace in the second quarter from the first, hitting another record. Growth remains near potential, but is definitely slowing, in large part from a weaker housing market.
    • Oil and Gas Inventories

    • Crude oil inventories rose sharply by 2.4 million barrels for the week ending August 25, according to the Energy Information Administration, well above expectations of a 1.5 million barrel drop. Gasoline inventories also surprisingly increased by 0.4 million barrels for the week, against expectations of a 0.7 million barrel draw. Imports surged, driving the surprise crude build. Refinery activity improved marginally. This is an unequivocally bearish report.
    • The UBS Index of Investor Optimism

    • The UBS Index of Investor Optimism continues to tumble. The headline index coughed up two points to fall to 53 in August. Since January, the headline index has lost 40 points. Uncertainty surrounding the U.S. housing market and future Fed action is keeping investors on edge.
    • Global Business Confidence

    • Global business confidence slid last week. Sentiment has tumbled since early June and is now as low as it has been since late 2003. These survey results suggest that the global economy is expanding below its potential. Confidence has fallen most in North America and among real estate firms and retailers. Expectations regarding the business outlook 6 months hence have turned notably dour. Confidence is highest and firm in South America. High- tech and natural resource firms are less confident than they were earlier in the year, but they remain generally upbeat. The most positive message in the survey is that pricing pressures, while still high, are abating.
    • Bankruptcy Filings

    • Personal bankruptcy filings recovered only a small portion of their first quarter decline in the second quarter. Filings remain far below (67%) last year in the aftermath of the surge in filings before reform legislation took effect last October. Business bankruptcies posted a similar modest bounce back but remain down nearly 45% from last year.

  • This Weeks Leads
    • Kenneth Cole, Kenneth Cole Outlet and Kenneth Cole New York
    • Kenneth Cole Productions, Inc. trades as Kenneth Cole, Kenneth Cole Outlet and Kenneth Cole New York.
    • Kenneth Cole operates 80 locations nationwide. The stores, selling accessories, clothes, handbags and shoes, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in freestanding locations, malls, lifestyle, outlet, power and value centers and urban/downtown areas.
    • Plans call for 10 to 15 openings nationwide during the coming 18 months.
    • Typical leases run 10 years with options.
    • Kenneth Cole Outlet and Kenneth Cole New York operate 96 locations nationwide.
    • The stores, selling accessories, clothes and handbags, occupy spaces of 1,800 sq.ft. to 5,500 sq.ft. in malls and outlet centers. Growth opportunities are sought nationwide. Typical leases run 10 years.
    • For details, contact:
      • Brad Wolfer
      • Kenneth Cole Productions, Inc.
      • 603 West 50th
      • New York, NY 10019 212-713-6690, Fax 212-315-8233
      • Website: www.kennethcole.com
    • Morelli’s Gelato
    • Morelli’s Gelato operates three locations internationally.
    • The dessert shops occupy spaces of 1,700 sq.ft. to 2,200 sq.ft. in malls, entertainment and lifestyle centers.
    • Growth opportunities are sought nationwide during the coming 18 months, with representation by Koniver Stern Group. Preferred cotenants include upscale grocery stores.
    • For more information, contact:
      • Michael Finkle
      • Koniver Stern Group
      • 1665 Washington Avenue, PH 4
      • Miami Beach, FL 33139
      • 305-532-6100
      • Fax 305-532-6101
    • Ron Jon Surf Shop
    • Ron Jon Surf Shop of Florida trades as Ron Jon Surf Shop at six locations throughout CA, FL and NJ.
    • The stores, which specialize in surfboards, logo apparel and water sport equipment, occupy spaces of 10,000 sq.ft. to 15,000 sq.ft. in specialty centers.
    • Plans call for two openings throughout FL and SC during the coming 18 months.
    • Typical leases run 10 years with options. A vanilla shell is required.
    • Preferred demographics include a population of 100,000 within 15 miles earning $70,000 as the average household income. Abercrombie & Fitch and Hollister are cited as competition.
    • For more information, contact:
      • William Bieberbach
      • Ron Jon Surf Shop of Florida
      • 3850 South Banana River Boulevard
      • Cocoa Beach, FL 32931
      • 321-799-8888
      • Fax 321-799-8874
      • Email: billb@rjss.com
      • Web site: www.ronjons.com.
    • San Sai Japanese Grill
    • San Sai Japanese Grill operates 24 locations throughout CA and MO.
    • The quick-casual Japanese restaurants occupy spaces of 1,800 sq.ft. to 2,800 sq.ft. in entertainment and lifestyle centers.
    • Plans call for 14 openings throughout southern CA and St. Louis, MO during the coming 18 months, with representation by Lee & Associates.
    • Preferred cotenants include Baja Fresh, Chipotle, Panera Bread, Ralph’s, Trader Joe’s and Whole Foods Market.
    • Preferred demographics include a population of 40,000 earning $65,000 as the average household income.
    • For more information, contact:
      • Bo Havlik
      • Lee & Associates
      • 5873 Owens Avenue, Suite 200
      • Carlsbad, CA 92008
      • 760-448-2454
      • Fax 760-929-9977
      • Email: bhavlik@lee-associates.com.

  • Bonneville Research is a regional management- consulting firm, which serves clients in business and government. We measure our success by the benefits, which accrue, to our clients through a commitment to:

    • Together - Making changes is never easy. We work together with you and your key stakeholders to define measurable objectives, set realistic schedules and build collaborative/motivated teams.
    • Objectivity - Scrupulous intellectual honesty and the courage to "tell it like it is".
    • Creativity - Openness to diverse ideas and opinions.
    • Quality Results - Reflecting the contributions of the best people working together in teams drawn from multiple disciplines.
    • Technology - Using the latest expert assisted software, and custom- fit component econometric models, reflecting the best professional techniques available.
    • Toughest Problems - Working by your side to solve your thoughest problems and achieve your mission.
    • Results - Providing workable results that endure.

    Bonneville Research lives by the quality and relevance of our work for you!

    If we can help, call 801-364-5300 or email us at BobSpring@BonnevilleResearch.com or JonSpring@BonnevilleResearch.com

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