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Thoughts on industrial real estate, bbq recipes and other meaningful things. 

Is the Party Really Over?

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Is the party really over???

If 2021-2022 were the years of the big feast, then 2023 was the year of the leftovers, and 2024 will be the year of taking inventory, re-stocking and getting ready for the next big party!

I love this chart that our data wizard Jay Flynn put together for us.

It shows the number of deals by year and by size increment, with an overlay of vacancy by year. Check this out and let me know what you think it forecasts? Regardless, I am dusting off my old ABBA vinyl for a disco shindig in 2025!

Trend to Follow

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Utah's population has surged to 3,456,482 in 2023, marking a 1.65% year-over-year growth from 2022. Notably, the dynamics of population increase have shifted since 2021, with net migration emerging as the primary driver of Utah's growth.

In the years 2022 and 2023, 39% of the new population was concentrated in Utah County, while Salt Lake County accounted for 24.7%. The noteworthy rise in net migration serves as a crucial barometer of the state's economic strength and quality of life. Utah's allure lies in its favorable economic conditions and stunning mountainous landscapes, prompting a transition from natural births as the primary growth factor to net migration taking the lead.

The Kem C. Gardner Policy Institute plays a pivotal role in providing insightful research on our state, contributing significantly to our understanding of population trends and statistics. Positioned strategically, Utah is attracting considerable interest, and the prospect of the state's prosperity is both promising and exciting.

Advanced Manufacturing Continues to Make an Impact

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In 2020, the COVID-19 pandemic prompted unanticipated global supply chain challenges. Solutions emerged, including onshoring and nearshoring of manufacturing in North America. This promoted groups such as the National Science Foundation and the Department of Labor to come together to invest in advanced manufacturing and create workforce development programs to support the companies in this sector. Over $100 billion has been invested in advanced manufacturing with over $400 billion committed to future investments. These commitments have allowed companies in various industries to expand and improve our economy. 250,000 jobs and millions of square feet in industrial development and leasing have also been created due to the movement to expand advanced manufacturing in the U.S.

The question that would arise locally then would be; How does this affect Utah, and who are the advanced manufacturers here? For starters, Utah is home to an impressive list of advanced manufacturers who are proud to run their operations here. The newest, monumental move is the Texas Instruments $11 billion facility, located in Lehi. This facility will focus on 300-millimeter semiconductor wafer fabrication, the wafers are used for logic/memory chips that are placed in analog devices. This new plant will bring over 800 jobs to the state, and the company plans to invest $9 million in student opportunities and outcomes here in Utah. Copper Crossing Industrial Park in Salt Lake City is also home to two manufacturing giants, Northrop Grumman and Holcim, who occupy a combined 965,000 square feet in the park. Advanced materials, Aerospace, and Life Sciences are three other major industries that Utah houses for advanced manufacturing. Boeing, Black Diamond, and Edwards Lifesciences are among some of the incredible companies that occupy industrial space here in Utah. These companies and industries alone provide well over 100,000 jobs for Utahns and stimulate our robust economy in many different ways.

Manufacturing will continue to support local economies, provide new quality jobs to Americans, and change the future of technology. The movement to bring advanced manufacturers back to the United States will strengthen our nation in ways that we have never seen before; it is certainly an industry to keep an eye on in the near future.

The World on Fire

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"It was exactly two years ago now that several hundred homes were evacuated in the Summit Park and Pinebrook neighborhoods, and my wife and I were one of them. I can tell you first hand how scary that was to be told we couldn’t go into our house except to collect pets or priceless possessions. What I can’t imagine is losing everything you own in a single night, or losing your entire family to a tragic disaster. But that is exactly what has happened to hundreds upon hundreds of people in the last two weeks on Maui.

We have been fortunate so far this summer in Northern Utah to be spared serious fire threats, but it can happen at anytime and it can happen fast.
People from the State of Utah are known to be stalwart providers of relief and service when anyone rings the crisis alarm. Well, I hear the bell ringing and feel moved to help. If any of you have ideas beyond donations to our amazing first responders like American Red Cross or the LDS church, I would love to hear from you. Here is a link to a local Maui organization that I may attempt to get more involved with.

https://lnkd.in/eNJAVrqm

I am so grateful for the people we get to work with every day and the generosity and spirit of care they embody.  Our thoughts and prayers go out to all people suffering loss from both natural and human caused disasters. We will count and share our blessings as best we can."

Michael Jeppesen, SIOR, LEED AP