Gross Taxable Retail Sales – September
- The “Top Ten” represent 45% of the State-
- The “Top Twenty-Five” represent
2/3rds of all retail sales.
- State-wide March
increases were 9.7%
- The “Top 20%” gainers
- South Jordan +52.9%
- American Fork +27.1%
- Lehi +27.1%
- Vernal +26.7%
- The “Bottom 10%” include:
- Midvale -2.2%
- Taylorsville -1.8%
- St George 0.0%
September 06 Retail Sales – Top 25 Cities
(Large Monthly Filers Only)
||City||September 2006 (000)
||% Change 06/05||Mkt Share
August 06 (% of State Total)|
- The “Top 5” Major Sectors represent 50% of
- State-wide September increases were
9.7% - The “Top 5” gainers
- Occasional Retail Sales +171%
- Services - Health +51%
- Mining +140%
- Construction +27%
- Manufacturing +17%
- Categories with declining sales were led
- Transportation -38%
- Private Vehicle
- Services – Hotel & Lodging -2%
- Services - Personal -1%
Source: Utah State Tax Commission
Ranking by # Units Sold - 2006
- 84043 - Lehi - 1350
- 84015 - Clearfield -
- 84118 - Taylorsville/Kearns -
- 84404 - Farr West/Harrisville
- 84065 - Riverton
- 84084 - West Jordan
- 84074 - Tooele - 1039
- 84088 - West Jordan
- 84067 - Roy - 880
- 84020 - Draper - 808
- 84041 - Layton - 804
- 84120 - West Valley City
- 84095 - South Jordan
- 84401 - Marriott/Slaterville -
- 84403 - South Ogden
- 84119 - West Valley City -
- 84075 - Syracuse -
- 84660 - Spanish Fork
- 84044 - Magna - 549
- 84106 - Salt Lake City
- 84121 - Cottonwood
- 84128 - West Valley -
- 84003 - American Fork -
- 84092 - Sandy - 497
- 84116 - Salt Lake City -
High-tech Park May be Model for the Future
A former soybean field in northern Illinois
offers a glimpse at what could be the future of high-
tech office, research and industrial park
Amenities in place or set for the 800-acre
DuPage National Technology Park in West Chicago,
Ill. include a 10-gigabit Ethernet boasting at least
8,000 times more bandwidth than a T1 line, 10 to 12
fiber-optic network carriers, at least three data
centers, two communications hubs and 99.999%
data network “uptime.” That level of uptime
translates into just 16 minutes of computer network
downtime over a one-year span. Officials say the 10-
gig network can be expanded to the next standard –
100 gigabits per second. DuPage officials refer to the
park as technologically “bulletproof.”
In the past seven years or so, competition for
tenants has intensified among the estimated 300
U.S. research parks such as DuPage, says Scott
Levitan, senior vice president and development
director of Forest City-New East Baltimore
Development Partnership LLC and a board member of
the Association of University Research Parks.
However, unlike DuPage, many of those research
parks cater solely to the life sciences sector. Levitan
says DuPage is “less focused on a narrow industry
band, so the diversity of the intended tenant mix
should help mitigate the risk of being in one sector.”
At DuPage, among the touted benefits is the so-
called “plug and play” aspect of the technology
infrastructure. Tenants that buy or lease space
simply can hook up to the park’s pre-installed
infrastructure without having to design, engineer or
build infrastructure on their own, Kasselman says.
The DuPage park was designed “to satisfy the
data-capacity and information-security demands of
21st century businesses,” Reynolds says.
Those demands are growing. The data-storage
and disaster-recovery requirements of the Sarbanes-
Oxley Act of 2002 and the Health Insurance Privacy
and Accountability Act (HIPAA), whose security
provisions took effect in 2003 and 2006, are
prompting companies and organizations to undertake
the types of technology upgrades not seen since the
Y2K scare, Kasselman says. Furthermore, Reynolds
says, bandwidth-hungry software, graphics and video
are becoming the norm.
CenterPoint is also developing a 66,000 sq. ft.
speculative “smart” building that will showcase the
park’s attributes. It also will house the park’s second
communications hub, a backup to the first one.
CenterPoint and the Airport Authority will maintain
offices in the LEED-certified building.
Kasselman says obstacles to creating “smart”
campuses such as DuPage include an aging U.S.
infrastructure, antiquated zoning laws, and
investment and lending risks.Jack Tenison, executive
director of the DuPage park, says: “We had the
advantage of being able to develop the infrastructure
from the ground up to service our potential clients.”
Source: NREI 2007
This Weeks Leads
- J. Alexander’s
- J. Alexander’s Corp. trades as J. Alexander’s at 28
locations throughout AL, CO, FL, GA, IL, KS, KY, LA,
MI, OH, TN and TX.
- The restaurants, offering
grilled steak, fresh seafood and chicken, pasta,
salads and desserts, occupy spaces of 7,500 sq.ft. in
- Plans call for two openings
nationwide during the coming 18 months.
leases run 15 years.
- Preferred demographics
include a population of 200,000 within five miles
earning $90,000 as the average household income.
- For more information, contact
- J. Alexander’s Corp.,
- PO Box
- Nashville, TN 37202;
- Web site:
- Loard's Ice Cream & Candy
- Loard's Ice Cream & Candy operates 45 locations
throughout northern and central CA.
- The dessert
shops occupy spaces of 1,000 sq.ft. in malls,
entertainment, power, specialty and strip centers
and urban/downtown areas.
- Plans call for 12 to 18
openings throughout northern CA during the coming
- Typical leases run five years with five-
- A vanilla shell and specific
improvements are required.
- For more information,
- Steven Cohan,
- Loard's Ice Cream
- 2000 Wayne Avenue,
- San Leandro,
- Web site: www.loards.com.
- Brothers Bar and Grill
- Fortney Cos. trades as Brothers Bar and Grill at
16 locations throughout IA, IL, IN, KS, MN, NE, OH
- The bar/restaurants occupy spaces of
6,000 sq.ft. to 8,000 sq.ft. in freestanding locations,
entertainment centers, and urban/downtown
- Plans call for six openings throughout CO,
IA, IL, IN, KS, KY, MI, MN, PA, TN and WI during the
coming 18 months, with representation by
- Typical leases run 10 years with two,
- Preferred cotenants include
bars and restaurants in entertainment areas of
central business districts and college towns.
company will also consider acquiring existing bars and
grills and/or real estate.
- For more information,
- Gary Perel,
South Meridian Street, Suite 201,
- Indianapolis, IN
- Fax 317-423-
- Email: email@example.com;
- Peet’s Coffee & Tea
- Peet’s Coffee & Tea operates more than 100
locations throughout CA, CO, IL, MA, OR and
- The coffee shops occupy spaces of 1,500
sq.ft. to 2,000 sq.ft. in street front
- Growth opportunities are sought
throughout northern CA during the coming 18
months, with representation by Retail West.
more information regarding Peet’s Coffee & Tea,
- Matt Holmes,
|Construction Prices Headed Up in 2007
Commercial construction costs will increase on
average by 6% to 8% in 2007 — two to four times
faster than inflation — despite a slowing economy,
according to Kenneth Simonson, chief economist for
the Associated General Contractors of America
(AGC). Driving those increases are international
demand for materials, limited domestic supplies and
high energy prices. Labor costs will grow more slowly,
5% to 6% over the course of 2007, but still well
ahead of last year’s 2.5% core inflation rate, which
excludes food and energy.
But wait a minute. The plunging housing market
should lower demand both for materials and labor,
right? Shouldn’t a less constrained supply be
reflected in prices for commercial construction?
Well, yes. But that’s already included in
Simonson’s forecast. Had single- family construction
this year barreled along as before, commercial
construction costs might be increasing 10% annually,
as they did in 2004. In other words, deflation of the
housing market is taking the edge off the severe
price growth of the past three years, but prices keep
Slowed housing activity is bringing price relief for
some products used in commercial construction,
including copper, plastics, plywood and gypsum, used
in wallboard. Gypsum prices climbed 20% annually
from 2003 into 2006, fell slightly in December, and at
year’s end were only up 5.4% over year-ago prices.
Milled copper and brass, which spiked up 30%
annually in 2004 and 2005, climbed another 44% last
year, but a 1.6% price drop from November to
December suggests slower increases ahead. “We will
still have to expect price increases in 2007, but
hopefully they won’t be as dramatic as in recent
years,” Simonson says.
Most of the materials (and the labor sets that go
with those products) that are expected to
experience slower price growth going forward are
used in residential and non-residential construction,
including sheetrock, fiberboard, plumbing and wiring.
A lack of substantial overlap between residential
and commercial construction, however, means prices
will climb unabated for many building materials. The
same is true of labor; few homebuilding skills are
transferable to the construction site of an office
building, hospital or mall. “You can’t take a framing
carpenter and put him in a tower crane,” Simonson
In 2004, demand by developing economies, like
China, contributed to a 49% spike in the price of
steel. Today, China has stepped up manufacturing
and now exports about as much steel as it imports.
As a result, steel prices dropped 4.3% in the fourth
quarter and were only 11.6% higher than year-ago
prices at the end of the year.
Concrete, on the other hand, is expensive to
transport and is usually purchased near a job site.
Concrete demand for buildings, roads and sewers has
grown in recent years, while U.S. cement production
is little changed from a decade ago.
At the same time energy prices, which climbed
4.5% in December, have increased the price of
concrete and other materials, and raised the cost to
mine and transport the aggregates that are mixed
with cement to form concrete. Concrete prices
climbed 10.1% in 2005 and 7.9% in 2006.
What does the AGC’s forecast mean for
developers and investors? For one, expect further
price spikes and shortages on materials this year, as
well as bottlenecks and high transportation costs in
getting those supplies to the job site.
Given a choice, contractors will prefer to deal
with developers that include materials price-
adjustment clauses in their contracts and will be
reluctant to work with government agencies and
developers that insist on fixed budgets.
Frequent commodity shortages are a sign that
the U.S. economy is operating at capacity, says
Craig Thomas, research director at CBRE Torto-
Wheaton Research. Once builders begin to calculate
anticipated price spikes into their contracts, inflation
kicks in, potentially ushering in the end of the
Hopefully some of the smart money will help to
alleviate this serious situation in 2007 with
development — not of office buildings or retail
centers, but with cement plants, copper mills, and
the infrastructure this nation needs to thrive and
Source: NREI Newsline
Extend the Arts' Reach!
- Challenge America: Reaching Every Community
Fast-Track Review Grants
- POSTED: 1/9/2007
- FUNDING SOURCE: NEA
- ELIGIBILITY: Nonprofit and public agencies $
- GRANTS AVAILABLE: N.A.
- MAX GRANT SIZE: $10,000
- DEADLINE: 6/1/07
- CONTACT INFORMATION: 202-682-5700
- DESCRIPTION: Funding to support small and mid-
sized organizations for projects that extend the
reach of the arts to underserved populations --
those whose opportunities to experience the arts are
limited by geography, ethnicity, economics, or
- China's National Statistics Bureau released a
revised estimate of the country's 2005 gross
domestic product, reporting growth of 10.4 percent,
state news service Xinhua reported. The new figure
is 0.5 percent higher than the original estimate,
boosted by surging growth in the industrial and
- Oil and Gas Inventories
- Crude oil inventories rose 0.7 million barrels for
the week ending January 19th, according to the
Energy Information Administration. The rise in
inventories was below the expected uptick of 1.1
million barrels. Distillate inventories rose by 700,000
barrels, a stark contrast to the market's expectations
of an 800,000 barrel drawdown. Motor gasoline
inventories soared by 4.0 million barrels last week, far
exceeding expectations of a 1.3 million barrel uptick.
Refinery activity declined for the second consecutive
week to 87.4%. In sum, the report will be viewed as
bearish for oil traders.
- New Home Sales (C25)
- New home sales were surprisingly strong in
December. The pace of sales increased by nearly 5%
m/m to 1.120 million annualized units. November sales
were revised upward as well. Months of inventory
ticked down from November to 5.9. The average
price is flat from one year ago, but the median is
down by about 1%.
- MBA Mortgage Applications Survey
- Mortgage demand decreased 8.4% in the week
ending January 19. Purchase applications decreased
8.4% and refinance applications decreased
- Chain Store Sales
- Chain store sales were little changed in the week
ending January 20, according to the ICSC. The index
ticked up 0.1%, while year-over-year growth inched
down to 4.8% from 4.9% the prior week. Cold
weather was reportedly a mixed blessing, stimulating
demand for seasonal merchandise, but negatively
impacting store traffic.
- Weekly Natural Gas Storage Report
- Underground storage of natural gas decreased by
179 billion cubic feet during the week ending January
19. This was slightly above expectations calling for a
170 Bcf draw. Inventories are now 20.7% above the
five-year average. This report is likely to have a
neutral effect on prices.
- Existing Home Sales
- In line with expectations, existing home sales
dropped in December, according to the Realtors’
data. Sales of existing homes declined 0.8%, with
the pace of sales down to 6.22 million units in
December. House prices were flat from a year ago,
and the months of inventory stands at 6.8
Source: Economy.com, Financial Times
|BONNEVILLE RESEARCH - People, Passion & Pride
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research to public and private sector clients
throughout the intermountain west.
Our services include:
- Financial Analysis
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Analysis and Budgets
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