Analyst: Utah commercial market very strong

Utah's commercial real estate market is faring well.

Out of about 250 capital real estate markets in the country, Utah should be the strongest in the near future, according to the executive managing director of CBRE. Raymond Torto said the state's job growth and economic standing make it a very strong market.

The state has a fast-growing technology market that makes it poised for future growth, he said. That growth has been particularly noticeable at the Wasatch Front at the border of Salt Lake and Utah counties, known to locals as Silicon Slopes. The industry has helped make Utah the fifth-best in the country in job growth.

"Things are quite good there," Torto said, according to Deseret News. "I expect it to continue to be good over the next three or four years."

Utah has been faring particularly well in the transition phase after the U.S. economic crash. The state's unemployment rate in August was just 4.7 percent, compared to the national average of 7.3 percent.

"Part of the growth is our diverse economy," Mark Bouchard, CBRE senior managing director, said to Deseret News. "When slowdowns do occur, when recessions do occur, those states that are the most diversified seem to weather it a little bit better than those who have one or two sectors to drive their entire economy."

The state's industrial, health sciences and real estate markets also have been pushing commercial real estate growth. That diversity is helping the state perform particularly well, especially because it has a well-educated work force, Bouchard told the newspaper.

This growth has been aided by the state's low interest rates, which have made new construction and commercial purchases a smart decision. In addition, lease rates have been hovering at reasonable rates, encouraging rentals.

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