OCR Text |
Show THE PARK RECORD A-15 Business www.parkrecord.com SAT/SUN/MON/TUES, JULY 23-26,2005 BUSINESS EDITOR: Anna Bloom 649-9014 ext 110 business@parkrecord.com : : *iriefe S : Park City commercial zones mature f Pegasus opens office in Mid-year report: built up, perhaps, but not built out Total Inventory 2000 2001 2002 2003 2004 Q220O5 Retail 1,566,082 S.F. 1,581,125 S.E 1,652,100 S.E 1,863,100 S.E 1,899,357 S.F. 1,899,357 S.E Office 488,702 S.F. 526,255 S.F. 655,752 S.F 713,752 S.F. 776,750 S.F. 825,376 S.F. Industrial 335,000 S.E 356,000 S.F. 435,400 S.F. 456,650 S.E 472,431 S.F. 472,431 S.E Vacancy Rate 2000 2001 2002 2003 2004 Q22005 Retail 5.3% 3.9% 2.3% 7.1% 6.4% 2.5% Office 23.5% 20.3% 16.1% 17.1% 10.9% 7.1% Industrial 1.7% 5.1% 4.8% 4.8% 4.9% 4.4% Lease Rate Per S.F. 2000 2001 2002 2003 2004 Q22005 Retail $17445 $17-$45 $17-$48 $17-$45 $17-$45 $17-$45 Office $14 - $24 $14-$25 $14 - $24 $15-$24 $15-$24 $15-$27 Industrial $12- $18 $7-$18 $7-$18 $8-$18 $8-$18 $8-$18 By ANNA BLOOM fi Pegasus International Ltd., has J opened a new location in Park City at • k*136 Heber Avenue.' . / L• ; ft. Pegasus International is a full-ser£{yice engineering and construction ^management consulting company, formed to service the oil and gas industry, with specialized expertise in r;both onshore and offshore develop&ments. £,• For more information/ call 655i ,3605 or visit www.pegasus-intema:• t l o n a l . c o m . . : ; v ^'*•:*•. ••••.'> r . ^ -. Sunrise Rotary names I member of the month £:" Rotary recognized Michael J. Luers <;' with its Member of the Month Award for ^•organizing the club-sponsored July 4 K. lunch in City Park. '• About 40 Rotary members, friends • >' and family prepared and served the all.' American lunch for2,300 people. The proceeds from the event will '.'. help support a variety of causes in Park i. City and internationally. J< Sunrise Rotary meets 7:15 to 8:30 '""a.m. Thursdays in The Cabin •Restaurant in The Grand Summit _ ' Hotel. Visiting Rotarians and those ^Interested in membership^are weli" c o m e . ??• ...•.-• - .-••' Public invited to Forum on the Future •$••• Wednesday, July 7, a forum on the future of Medicaid, food stamps, housing and other key supports will be held at the Community Action Services/United Way in Provo. Participants will learn where each program stands in the federal budgets, what can be done to protect eaqh, and the role they play in helping families move along the path to self- Of the Record staff The most dramatic increase in real estate value these days appears to be office space, according to Mike Sloan, statistician of Commerce CRG and the Park City Board of Realtors. His 2005 mid-year market study indicates rates for office spaces leases per square foot have jumped $3 on average. Sloan attributes the jump to more people moving their businesses to Park City from Salt Lake. Park City is maturing, he says, and that's a good thing. When he came to town in 1976, he recalls, he needed to drive to Salt Lake just to buy a pair of socks - not so anymore. Park City Board of Realtors President Nancy Erni says her expertise is on the residential side and would defer to Sloan for the commercial side of Che market. "He is by far the expert on commercial properties...[but] yes, I would say that any time you have an increase in residential numbers and an increase in overall growth, it just stands to reason that commercial is going to follow," she said. In his market overview, Sloan indicates vacancy rates continue to be on the decline; Main Street sales prices are at an all time high; Lower Park Avenue and Prospector offer room for growth; and Kimball Junction and Snyderville Basin are a strong draw for retail activity. This report reflects the strength of the leasing market, says Sloan. "As we add more office buildings at Kimball Junction -- and if we build a hospital here - we build a synergy within the community," he explained. "[As that happens] there becomes less of a reason for people to leave the area, and. consequently, it helps all of the businesses that are here," he explained. (• COURTESY COMMERCE CRG Mike Sloan, statistician for the Park Crty Board of Realtors compiled the statistics for Commerce CRG. Sloan says, "the numbers speak for themselves," and the numbers, he says, Indicate vacancies across all commercial spaces are disappearing. Besides restaurants, Sloan finds that T-Shirt shops and art galleries weather the increase in rent best. "Shops that make it in volume like Tshirt shops, and stores that sell high-ticket items like art galleries or the Chloe Lanes of this world have done pretty well," he says. Office space vacancy in general has dropped considerably from 10.9 percent in 2004, to 7.1 percent in 2005. The fact that more businesses like law firms, accountants and real estate companies are moving into town is evidence that a more diverse Park City is developing according to Sloan. "I think what it means is that we're getting a little more sophisticated in terms of our base," observed Sloan. As we add more office buildings...there "Main Street sales prices are at an , , , . "Kimball Junction and SnyederviDe all time high" leSS Ot a reason tor people tO Basin are a strong draw for retail Sloan may go to cafes on Main leave the area and, consequently, it helps Sloan says that he believes there Street, but he leaves the sock shopare only four spaces left at Redstone ping to the tourists, he says. all of the businesses a that are here." for businesses to lease. The high sales price of buildings The new retail activity frontier is have pushed lease rates on Main to - Mike Sloan has become Quarry Village off the an all-time high, and in response, PCBOR Statistician Jeremy Ranch exit, he says. they have marked-up their goods, • "It's a neighborhood retail outhe says. ^ ^ sufficiency. , ;•'.';,,,.. ;'u;, -r '••':, let with an Albertsons and a "When lease rates were $20 and The event will last from 5 to 7 p.m. they went to $30 we ail thought we were "Lower Park Avenue and Prospector Blockbusters, and there are a lot of rooftops around," he explained. going to put everyone out of business offer room for growth" and will include a free lasagna dinner, The mid-year report indicates that The new office building planned for and now they're up to $40 to $45 and Space is limited - RSVP by July 26 at when it comes to Lower Park Avenue Newpark is also a development to keep while I know that creates a real hardship (801)373-8200. . on businesses, I also know that they are and Prospector , "smaller seems to be an eye on, says Sloan, since many Park going to raise their price accordingly better" - i.e. demand for spaces less than City residents own businesses in Salt because people coming to town expect 1,500 square feet in size is particularly Lake and may want to get rid of their high. daily commute. to pay more in Park City," he said. Recreation business opportunity announced :' The Uinta National Forest is seeking highly qualified recreation concessionaire businesses interested in the operation of forest-managed campgrounds and day-use recreation facilities. Bid proposals will be accepted until Oct. 1. One concessionaire will be selected and will be issued a special- -use authorization to operate sites beginning Jan. 1,2006. The special- -use authorization term will be for approximately five years with an option to extend for an additional five years at the sole discretion of the Authorized Officer. The decision to extend the term will depend on the performance of the permit holder. All pertinent information Is now available at www.fs.fed.us/r4/uinta. Requests for a prospectus are available by e-mailIng uirrta_information©fs.fed.us or1 by calling (801)377-5780. .,/if "[The developers'] philosophy is that there are a lot of people with companies down in Salt Lake right now but live in Park City and there are executives here saying 'wait a sec if I can get some space in Park City, then I'm not making that drive back and forth every day,'" he said. "Vacancy rates continue to fall** Despite the fact that several visible developments are currently under construction, vacancy is on the decline in all areas of the market, according to the mid-year report. Market analysis by Sloan indicates Retail has experienced the largest drop in vacancies, with a change from 6.4 percent in January to 2.5 percent through June. With more spaces occupied by businesses and not just homes, Sloan says he sees an almost self-sustaining Park City in the near future. "I go to Cosco in Salt Lake once every six weeks, but other than that, I don't do any other shopping there. I think that is going to continue to be the case - we are going to be supplying all the needs everyone wants," he concluded. the green roof in the Park City community • T - 1 - . .1 Y * * _ 1_ 1. _ . .1 . _ 1 _ _ . T^i " _ . . Recycle Utah board member Diane Murphy says she is currently in the process of finishing a home that generates half its energy from its roof, Lynn Peek, has installed a recycled paper countertop. Fellow classmate Bill Cunningham, on the other hand, has just discovered the compact-florescent light bulb - a bulb that uses 66 percent less energy than a standard bulb and lasts 10 years. "I got so excited about the class, I went to Cosco and changed all of my light bulbs to compact fluorescents," he said. The advances in technology, he adds, have made the once buzzing fluorescents quiet, and compatible with dimmer switches. Cunningham cites a couple of other facts that he's learned in class: 95 percent Leadership spreads word on saving natural resources, health and money By ANNA BLOOM Of the Record staff It is likely the Park City Leadership Class XI couldn't have chosen a more timely topic when they picked green building as their community project. Recently, Park City's water usage exceeds the city's 7.5 million gallon goal by nearly a million gallons daily. But Park City has responded well in the past, say class members - they'll come around. This year's class entered with varying green building backgrounds. While . f T T» _ ! _ ) _ _ . _ . ^ ^ e . _ .. . . 1 t _ M _ of Utah's energy comes from coal, while only one tenth of one percent comes from alternative sources like wind; and, since 1970, America has doubled its use of electricity per capita. "Our national officials don't admit [over-consumption of natural resources] is a problem, so it's up to local governments to do something," he explained. Through educating the community through methods like including green building inserts in building permit documents, Cunningham says the class plans to motivate the community to adopt environmentally friendly practices. Cunningham says was pleasantly surprised to learn that green building doesn't cost an arm and a leg. "Everything I've read says there is only zero to two percent added to the cost of construction if you decide to 1 • I .1 _ . _ J - * * . . _ * . C£ *. l_ . • . _ . . _ _ build green and it just pays off the house or building in dividends so you have a great return on your investment," he said. Sometimes the dividends take a bit longer than expected, but building green can be worth its weight in gold in bragging rights, according to Murphy. "Think about it. If you install a photovoltaic roof onto your home, you can tell your neighbors you generate all your own electricity," Murphy says. The photo-voltaic panels Murphy is installing on her new home will initially generate half to three-quarters of her energy, she says, but she will eventually expand the system to generate 100 percent of her energy. Murphy's energy-saving plan is twoPlease see Leadership, A-17 A UNIQUE O N E LEVEL HOME IN BLACKHAWK Life. Organized, M Complete home-storage solutions with a lifetime guarantee STATION W I T H THREE BEDROOMS closets home offices media centers wall beds utility rooms A beautiful south facing home that shows like new. Enjoy living in a friendly neighborhood of full time residents, just steps away from hiking, biking and fly fishing. This Blackhawk Station residence is the closest single family home to downtown Park City, priced under $350,000. Jeff Coe TESS REID REAL ESTATE • - Slin/tl+r Offered 3t $335 '°°° Cell 435.602.2955 Office 435.649.3000 jeffcoe@jessreidrealestate.com Above information was obtained from a reliable source and to subject to change without notice. Call for a FREE in-home design & estimate 800.755.8882 CLASSYCLOSETS' www.clossyclosets.com | UT Lic# 5579200-5501 |