I attended the State of the City address given by Mayor Jon Pike of St. George City and the St. George Area Chamber of Commerce in January.
Mayor Pike did a fantastic job addressing what the city has accomplished where they are headed.
All in all, very positive.
The city is investing in infrastructure to account for the coming growth. They have added new parks and amenities to attract residents, competitions, and companies to our area.
Kudos to St. George Mayor, Council, Staff and others who have contributed to the planning and growth. I’m excited for the new developments coming to the St. George area in 2019 and beyond.
My Take On The Market?
We are in the 7th inning of the game.
While we are deep into the recovery, we are not seeing signs of over-building (although I’m signaling caution on the hotel and VRBO side…), unsustainable rents, or stupid valuations.
We are being impacted by higher construction costs and compressed cap rates, but still we have room left to run in the market. Residential is usually the lead indicator for commercial and while it seemed to slow down some in the fall, it has picked back up again at a measured pace.
This market is going to hold pretty strong for the next year or so at least, barring an unforeseen global or geopolitical event. It’s going to be a great 2019.
If you or anyone you know is looking to buy, sell, or lease commercial or investment real estate. Give me a call.
Would love to help you reach your goals. Oh, one more thing…
I have a few 1031 buyers looking for buys right now. We have seen everything listed out there and are looking for an off-market property.
If you are interested in selling a cash flow or investment property or doing a sale leaseback, give me a call. We recently closed on a $2.5M deal as a result of my last email!
Both buyer and seller are very happy.
State of the City Cliff Notes:
- City will be renovating their city office campus to add additional office space and a customer service counter
- Airport has grown from 137,000 to 278,000 passengers since the airport opened
- Airport to close at the end of May for 4 months to redo the runway due to the clay. FAA is paying for 91% of the replacement (passenger ticket revenue paying the cost, same with city portion). 17’ deep excavation, will include a water barrier. Building fine as it was excavated 17’ down.
- Sand Hollow regional water pipeline expansion, benefit southeast portion of town including Desert Colors, Desert Canyons
- 8,600 multifamily units and 6,500 single family units entitled last year (that’s a huge number, most of which coming from the Desert Color development)
- Desert Bluffs, part of Desert Color development now have more affordable housing options, 7’ apart between single family homes, can go to 3’ apart. In the $225-$250k range.
- Paparazzi huge expansion at Exit 2. Many new buildings coming
- New Advenire hotel (60 hotel rooms) mixed use retail/office main level, 110 apartments above
- Joule plaza 170 apartments. Mixed use retail/office main level
- Desert Color 3,500 acres, 10,000 residences. Scaling back the size of their lagoons. Using brackish water, well water that they own. Not suitable for drinking, but suitable for swimming/paddle-boarding
- Big Shots Golf. Closed on property. Hopefully starting construction soon
- Stanford is partner with genomics lab. IHC expansion done
- Hospital now has an interoperative MRI. Only two in Utah, we have one. Allows you to get and MRI while head is still open as part of brain surgery to make sure they got all the tumor
- Dixie State University going D1 entering WAC. University will grow substantially as a result
- Innovation plaza Maker Space will open up next month in the old East elementary
- Olympic sized swimming pool in Health and Performance Center currently under construction. 4 pickle ball courts on the roof. Track around the top of the roof. Class and athletic space. Open late fall
- Tech Ridge. First 15 acres officially sold from the city. Printer Logic first building, then Busy Busy. Next another building, multi family, and a paved walking path around the entire bluff.
- 400 South pedestrian underpass at I-15. Open this fall
- 1450 S to Riverside expansion/widening of roadway going to take place this year
- 1-mile connection of bike path by skim board park, connect Sun River all the way to almost Hurricane
- Phase I $25M wastewater expansion. Part of $73M overall expansion. Three phases total
- New wayfinding signs downtown coming soon
- Cairn Symposium coming in April 2019. Convergence of technology, science, engineering and entrepreneurship in the greater St. George Area. Hoping to attract businesses to Tech Ridge.
- Utah Outdoor Recreation Summit. St. George gets to host it this year at the convention cent