Utah Facilities November 2011

Resort ManagementNesting at the ’Bird

Industrial FacilitiesThe Big Box Theory

Healthcare FacilitiesAn Example of Smart Growth

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2 I UTAH FACILITIES NOV./DEC. 2011

4 I UTAH BUILDINGS FALL 2010

UTAH FACILITIES NOV./DEC. 2011 I 5

18Influential PeopleIn Commercial Real Estate

Resort ManagementNesting at the ’Bird

Industrial FacilitiesThe Big Box Theory

InteriorsStep Out of the Cubicle

On the cover:Influential People in Commercial Real Estate – from Left toRight: Don Francis, Deanna Sabey, Randy Owen and LorrieOstlind. Photographed by Dana Sohm in the Kearns Building.

NOV./DEC. 2011

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Automated ControlsPromise of an open buildingcontrol system

Real Estate LawSecuring your leased property

Disaster PreparednessThe Great Utah Shakeout

JanitorialCertified cleaning companies

Pest ControlPrepping for winter pests

Financial PlanningSmall business loans

Parking Lot MaintenanceRevisit snow removal contracts

RoofingSave money and the environment

MultifamilyApartments are sexy

Advertiser Index

Lone Peak Medical Office Buildingan Example of Smart Growth

DEPARTMENTS

FEATURES

36Waterwise Landscapes


CONTACTPublisherTravis [email protected]

Executive EditorKelly [email protected]

AdvertisingBrian [email protected]

David [email protected]

Associate EditorKristen [email protected]

Art DirectorDoug Conboy

ContributingPhotographerDana Sohm

Contributing Writers

PublisherUtah Facilities

Copyright 2011 Utah Facilities Magazine. Utah Facilities is a Trademark owned by Jengo Media.

Utah Facilities is a proud partner of: The publisher is not responsible for theaccuracy of the articles in Utah Facilities.The information contained within has beenobtained from sources believed to bereliable. Neither the publisher nor anyother party assumes liability for loss ordamage as a result of reliance on thismaterial. Appropriate professional adviceshould be sought before making decisions.

Utah FacilitiesPO Box 970281Orem, Utah 84097Office: 801.796.5503Fax: 801.407.1602UtahFacilities.com

PUBLISHER’S LETTER

Ty CherryMark JensenStephanie

MarthakisRon MooreSean Murphy

Brett ParryEric PaulyArtemis

VamianakisDavid Wright

So many wonderful people, so little space. That was our dilemma as we

narrowed down our list of influential people in commercial real estate.

If you ask 20 people the same question, you’re likely to get 20 different

responses. Choosing several people who have been the most influential

in the industry in the past year is a difficult proposition. Our goal

wasn’t to identify those who have been most profitable, although in this

economy that’s an important attribute. We wanted to highlight people

within the industry who are moving it in positive directions.

The people we selected influence real estate over a wide spectrum of

issues, from facilities management to real estate development. It’s our

opinion that the professionals we have profiled are real estate

standouts among a large number of men and women who are

impacting the industry today. They also represent a fair cross section of

titles and job descriptions.

To come up with this group, we looked for people who not only had a

tangible track record of real estate success but also great local influence,

the ability to promote change and a deep level of engagement in their

company, industry and community. That last criteria is especially

important, because we enjoy highlighting professionals who are on the

leading edge of local real estate – those who are shaping not only the

industry, but also the industry’s optimism.



The commercial real estate industry has been on shaky ground since the

United States went into an economic recession. Despite the risks poised toinvestors, owners, developers and others in the industry, real estate

professionals throughout Utah are pushing forward, making strides to improve theindustry and get it back on its proverbial feet. Their commitment has beeninstrumental in Utah’s ability to outperform other states in the nation and remainone of the most fundamental economies in the country.Those who are included inUtah Facilities Magazine’s list of Influential People in Commercial Real Estate2011 have impacted the industry in various ways in recent years. Their influence

reaches all corners of the industry, including property management,commercial development, entrepreneurship and leadership. UF

Built in 1911 and listed on the National Register ofHistoric Places, The Kearns Building was carefully

renovated and restored by Hines in the early 1990s.The building’s exterior, lobby and common areas

were completely refurbished. The fire and lifesafety system was updated, as was the HVACsystem. The building wasn’t recognized for itsrenovations until Hines Property ManagerLorrie Ostlind took over management of the

building in 2003. Ostlind worked with hermanagement team to bring the building up to

the standards of The Outstanding Building of theYear Awards sponsored by the Building Owners and

Managers Association of Utah. The TOBY Awardshonor the best of the best in commercial buildings –

buildings that are clean, well-managed, operate efficiently,have strong tenant retention and follow environmentally-friendly practices. By following the benchmark for valuecreation, service and quality already set by Hines, Ostlind,with her team, started prepping the building for theprestigious recognition.

Ostlind’s efforts paid off. The Kearns Building won thelocal TOBY Awards and advanced to the regional(including Arizona, California, Hawaii, Nevada and Utah)competition three years in a row in the Historic Category. Infact, the Kearns Building was the first historic building inUtah to win the local TOBY Award and the first to win aregional TOBY Award.

“This competition was a team effort and was a bondingexperience for our staff,” Ostlind said. “We worked as a teamto submit a plethora of required information. We are proudof what we accomplished and pleased for the opportunity toshowcase our beautiful jewel box of a building.”

Ostlind’s involvement in the competition prompted her andher team to become more involved in the community. Lastyear, they held a food drive, blood drive, Earth Day lobby fair,bake sale for a youth theater group and a book fair for charity.

Property Management

Lorrie OstlindHines

Photos by Dana Sohm

As the director of Engineering and Construction Management, AssetServices at Coldwell Banker Commercial, Don Francis supervises andtrains the property engineering teams on best practices. He leads ColdwellBanker Commercial in qualifying buildings for the Government EnergyStar Rating and LEED Certification. Francis is responsible forcoordinating and supervising all construction projects in the Utah region.He has worked on a wide variety of capital and special projects, includingthe supervision and build out for the FBI building in downtown Salt LakeCity. He also managed the 50,000 square-foot build out for the Salt LakeOlympic Organizing Committee and most recently a 30,000 square-footbuild out for the Art Institute of Salt Lake City.

Francis oversees the commissioning process on new facilities and the re-commissioning of building systems on existing facilities. He looks forinnovative ways to maximize the operating efficiency of the building systemsand lower operating costs. For example, Francis, who oversees the operationsof the 75,000 square-foot Occupational Safety and Health Technical ServicesCenter in Sandy, was able to save the OSHA Office thousands of dollars inrepair costs for their HVAC systems, construction management bidspecifications and construction management oversight. On another property,Francis helped an owner who despite paying a contractor in full, had liens filedagainst the property by unpaid sub-contractors.

Staying informed and up to date on the latest trends and technologies isFrancis’ key to success.

“Do the research. Push to implement fiscally sound changes andupgrades. Build strong relationships within the industry,” Francis says. “Do not accept the status quo. There are always newchallenges to overcome, issues to be resolved and new technologies to be implemented.”

NAI West President Mike Falk and his team represented the owner of 5995 W. Amelia Earhart Drive at the BonnevilleDistribution Center in leasing 395,000 square feet to ITT Corp. The transaction was the largest in Utah during 2011.

The lease is representative of NAI West’s strength and Falk’s ability to leadthe company during turbulent economic times. The transaction not onlyshowed customers that they could be confident in NAI’s ability to lease andmanage their properties, but it also represented the strength of Utah’sindustrial real estate market as a whole, Falk said.

Since 1998, Mike has been helping to grow NAI West. Re-branding thecompany from NAI Utah to NAI West to better reflect the geographic areaand customers was one growth strategy implemented by Falk. Operationswere consolidated to a central, 20,000 square-foot Salt Lake City location.Falk’s vision led to the development of several horizontal and vertical servicecompanies, including NAI West Property Management, NAI West FacilityServices, NAI Global Corporate Solutions and NAI CRES Mergers andAcquisitions. During the recession, NAI West leaned on its vertical servicesthat perform well during tough times. In so doing, the company was able tosustain itself.

“Some lines of business do better during tough times and support thosethat are not,” Falk said. “We also streamlined our operations and eliminatedwaste and redundancies. This is something that has continued to be a strategicfocus for us as we are always seeking to improve.”

In addition, Falk has built a culture that fosters and rewards success,allowing the NAI West team to grow and to share the growth.

“Our goal is not to be the biggest, but to be the best,” Falk said. “We willcontinue to operate with our customers’ best interests in mind and provide ahigher level of service. We will also continue to upgrade and improve ourteam of employees and agents.”

Don FrancisColdwell Banker Commercial

Facilities Management

Brokering

MikeFalk

NAI West



Ron Moore has a history of growing small businesses. In 1987, he was partof a small team that started a packaging equipment manufacturing company.That same company was one of the fastest growing, privately-held companiesin America, with about 70 employees. Moore left that company to start hisown small distribution company and later merged with RBM Services. Alongwith Jon Moss, current majority owner, Moore grew the business organicallythough networking and hard work. Together, Moss and Moore have tripled thesize of the company. With 500 employees, RBM Services has been recognizedthe last three years as one of the fastest growing businesses in Utah Valley andis the largest locally-owned janitorial company in Utah.

Moore, who began working with RBM five years ago, separated theoperations and sales department, which enabled sales people to focus on salesso that the operations department could focus on developing relationships withcustomers. Relationships are key to the janitorial business, Moore said.

“Our business, like most businesses, is a relationship business,” Moore said.“We have worked very hard to develop and maintain very strong relationshipswith people in our industry. That has been the key and the best thing aboutour business. Working so closely with our customers (usually facilitiesmanagers and building owners) you get to know them on a personal level andthey become friends.”

Moore says RBM Services will continue to grow through an aggressive saleseffort and acquisition of other companies. Currently, Moore is helping to builda specialty flooring and carpet cleaning division for both commercial andresidential buildings. The company is also looking to expand into other states.

Randy Owen’s involvement with real estate blossomed in 1986 after managing an office park in North Carolina. Owen,now the chief operating officer of Coldwell Banker Commercial, realized then that he wanted to make commercial real estateand commercial property management his career. He found IREM(Institute of Real Estate Management) to be the perfect program tofurther a focused education in the industry and received his CPM(certified property manager) designation in 1991. He has been astalwart member of IREM ever since and a strong promoter of theireducational programs.

Five years ago, IREM discovered that college graduates in FPMprograms needed extra help jumping into real estate, particularly in themanagement area. Owen eagerly volunteered to share his experiencesand knowledge with apprehensive students and inform them ofplausible career options they can pursue after graduation. Owen workedwith IREM to offer students scholarships, internships and multipleopportunities to associate with successful people in their field ofinterest. Owen said the program is a chance for students to interact withother CPM members and work on their networking and businessrelationships. He has given presentations to different schools aroundUtah – the University of Utah, LDS Business College and BrighamYoung University, to name a few – and has seen his efforts rewarded asmany students procure local jobs with IREM firms.

Why the push in college programs to become involved withorganizations like IREM and obtain a CPM designation?

“In my estimation about 80 to 90 percent of all the commercial realestate in the Salt Lake and Wasatch Front areas are either manageddirectly or supervised by a CPM of IREM. That’s significant,” Owensaid. “The network power of having that much property controlledthrough our organization in our member firms out there is an interest tome because that’s who I like to associate with from a networkingstandpoint.”

Education

Ron MooreRBM Services Inc.

Vendor

Randy OwenColdwell Banker Commercial


As the general manager of the only retail center of itskind to open in the United States in 2012, LindaWardell has spent the last year prepping for the grandopening of the City Creek Center – the retail portionof the mixed-used City Creek Development – onMarch 22, 2012.

Wardell oversees all operations of the CityCreek Center, including facilities management,security, housekeeping and marketing. Since takingon the position, Wardell, who works for TaubmanProperties, the management company of the CityCreek Development, has been focusing ondeveloping the strategic plan which defines theoperations of all of the different disciplines within theretail portion of the development. The plan helps herand her team focus on what needs to beaccomplished in order to facilitate the 800,000 squarefeet of retail, which includes Nordstrom, Macy's andapproximately 80 retail stores.

Wardell discovered her love for shopping centerswhile watching the construction of a super regionalshopping center in her hometown during her high schoolyears. Since then, Wardell has worked her way up thecorporate ladder, overseeing large groups of properties. Inher 25 years in the industry, she has opened two other largeshopping centers, including the Polaris Fashion Place inColumbus, Ohio, and the New Jersey Center. However,Wardell said the City Creek Center, although smallerthan the other two shopping centers, has been themost unique shopping center she has managed.Its most distinct feature is its retractable glassroof, providing a hybrid indoor/outdoorenvironment.

Wardell loves managing retail centersand has been especially pleased withher role with the City Creek Center.

“I think I have the best job inthe world. I love this job, and Iwouldn't want to do anythingelse,” she said. “I wake upevery day, and I can't wait tocome to work. I have neverhad two days that areexactly alike. ... We areseeking to make peoplehappy with what wedo here at CityCreek. We want toprovide people withan incredibleexperience. Wecan't wait until wecan share it withthe whole world.”

Welcome to Utah

Linda WardellCity Creek Center


On July 15, 2008, Eric Fairbanks was in the rightplace at the right time – at least that is how he explainshis rise to director of marketing for Utah DisasterKleenup. After the departure of UDK’s marketingdirector of 15 years, Fairbanks assumed the marketingreins and led the sales and marketing teams to a newbranding level. Fairbanks, who is also vice chair ofBOMA Utah’s Emergency Preparedness Committee,began working statewide to help prepare those in thecommercial real estate industry for a disaster.

“Utah Disaster Kleenup was founded with the ideathat people and commercial entities experience loss on aregular basis. We always seem to plan for the big one, thesignificant loss – hurricanes, tornadoes, whatever it is –but we forget those day-to-day occurrences that couldaffect us and interrupt business,” Fairbanks said.

To prepare commercial building owners for anearthquake or other disaster, Fairbanks is asking businessand homeowners around Utah to participate in the GreatUtah ShakeOut – a full-scale earthquake drill in whichFairbanks has been largely involved. Building owners whoparticipate can determine their strengths in a disaster andwhat they need to become better prepared should adisaster hit.

Deanna Sabey, who has been practicing law since 1993, recently lefther post as director of the Division of Real Estate for the State of Utah– serving for two years at the height of the mortgage crisis and duringthe federal rewrite of most banking and mortgage lending laws. Asdirector, Sabey successfully managed the transition of the Utah licensedmortgage originators to the new, federally mandated NationwideMortgage Licensing System.

In 2008, Sabey helped smooth the effects of the SAFE Act ( thefederal Secure and Fair Enforcement for Mortgage Licensing Act) inwhich Utah’s residential mortgage lenders and originators were asked totransition from the state licensing database to the nationwide database.The SAFE Act was introduced to increase consumer protection andreduce fraud by setting certain standards. Because Utah was one of a fewstates already operating under a system, the laws, administrative rulesand processes to conform with federal law all had to be redesigned tomatch the SAFE Act’s terms. The requirements were rigorous andoccasionally unclear, until Sabey straightened out the confusion.

“The Division updated many processes and procedures to makebetter use of technology. I drove the reorganization of all statutes andrules under the Division’s jurisdiction to make them easier to understandand apply,” said Sabey. Sabey also revised and reorganized the codesection under the real estate statute to make it more user-friendly.

“The process involved months of drafting, review and revision withinthe Division. When the language was satisfactory, I presented it to thesponsoring legislator who then gave it to the Office of LegislativeCounsel to prepare a bill in conformance with statutory drafting rules,”Sabey said.

Sabey now runs her own law firm, Sabey Law, in Draper.

Public Service

Eric FairbanksUtah Disaster Kleenup

Deanna SabeySabey Law

Attorney


For seven years, Alan Matheson has proven his commitment to environmentalpractices as Envision Utah’s executive director. He recently left his post to serve asthe Governor’s Senior Environmental Adviser – a continuation of his pledge topreserve Utah’s environment.As executive director with Envision Utah, Matheson helped to research effectivedevelopmental designs and solutions for Utah – all with Utah’s environmentalfuture in mind. Utah’s population continues to grow, and certain measures must betaken to manage the environmental impact of growth in the healthiest waypossible. That’s where Envision Utah – and Matheson – come into play. With theRegional Visioning program, Envision Utah holds workshop exercises in growingcommunities to evaluate strategies that will most benefit the community and itsenvironment long term. The public’s input is a major driving force behind EnvisionUtah’s decisions.“Our region is growing very fast,” Matheson said. “One of the ways we can absorbthat growth is to respond to market forces. If we can respond to the demand oftransportation choices, we can minimize impacts of growth and give people thechoices they are seeking.”Matheson is committed to finding out what Utahns care about and helping themunderstand the long-range implication of the decisions they make. He hopes that byspreading the word, Utahns can collectively make better decisions about the future.Envision Utah’s current project is Wasatch Choice for 2040 – a partnership withtransportation agencies, universities, cities and counties to discuss and implementlong-range transportation systems, transit-oriented development and civic and

town centers throughout the region. The project will enhance the economy, protect Utah’s beautiful natural resources, providemore choices to how Utahns live and travel, save money and energy and improve air quality and health.

Association RepresentationMore than 20 years ago, an employer of Renee

Schmid suggested she join a real estateorganization, telling her it would be beneficial toher career. Schmid heeded that wise counsel. Forthe past 18 years, Schmid, who is an asset andproperty manager for Roderick Enterprises, hasbeen actively involved with the Institute of RealEstate Management and the Building Owners andManagement Association, both in Utah. Herpositions in BOMA Utah have included the chairof the Education Committee and most recently thechair of The Office Building of the YearCommittee. With IREM, Schmid has served aschair of the Experience Exchange Reports and willsoon be stepping down from 10 years of service aschair of the Industry Partners Committee.

“BOMA and IREM are important to the realestate industry as they give us property managersand the vendors we work with a chance to gettogether and discuss the issues we deem important and unique to our industry,” said Schmid. She has enjoyed her assignmentsand involvement with IREM and BOMA, both of which have proven to be quite rewarding. “I am pleased to be a member ofboth BOMA and IREM, as they are top-notch, industry-leading real estate organizations and are made up of knowledgeable,experienced members who know their stuff and like to have fun.”

Her involvement with these organizations has improved Schmid’s ability to respond to tenant needs and concerns, negotiatecontracts and assist in financial statements and owner reports in real estate. By participating in IREM and BOMA, Schmid hasdeveloped close relationships with others in her industry – skills that she has implemented in her relationships with tenants.

Environmental Impact

ReneeSchmid

Roderick Enterprises

AlanMathesonGovernor’s Office


Snowbird Ski and Summer

Resort had 202 days of skiing

during the 2010/11 season –

the longest ski season in the resort’s

40 years of operations.The 800 inches

of snow that kept the slopes open

until July 4 this year were welcomed

by skiers and management alike. Vice

President of Resort Operations Dave

Fields calls the nearly 70 feet of snow

that fell last winter a blessing –

especially when it comes to great skiing.

However, the Greatest Snow on

Earth (so called because of Utah’s

Lake Effect phenomenon) that tops

the mountains of Little Cottonwood

Canyon (a yearly average of 500

inches) brings with it more than

great skiing and breathtaking views.

The large accumulations of snow can

be destructive to the buildings and

utilities located at the resort,

requiring a significant amount of

maintenance – especially prior to the

snow fall and after the snow melt,

Fields says.

“Eight hundred inches of snow is

really hard on a facility,” Fields says.

“The snow creep and the settlement

of the snow destroys things. It’s hard

on parking lots, pavement and

sidewalks. Our crew does an

amazing job of putting things back

together for summer operations so

it’s beautiful up here.”

Managing and caring for the

2,500-acre resort is a delicate

balancing act – a matter of pleasing

visitors and working with various

government entities all while dealing

with Mother Nature, says Fields.

Snowbird employes approximately

1,800 employees during the ski

season to help with that balance.

Their duties range from operating

the 85 runs, Aerial Tram and 10

chairlifts, managing the four

hotels/condos and the Snowbird

Center, cleaning the approximately

900 guest rooms, waiting tables and

running the 15 restaurants and five

bars. Fields compares the operations

at Snowbird to those of a small city.

The resort gets its water from a

water treatment plant in an

abandoned mine, and an unified fire

station is located on the property.

With nearly one million visitors

annually, operations at the resort are

ongoing, day and night. Teams are

Nesting at the ‘BirdManaging the operations at Snowbird is similar to operatinga small city; the job can be challenging and exciting, but thatis what makes it all worthwhile.By Kelly Lux, Executive Editor


working all over the mountain at any

given time, Fields says. Nearly a

dozen Snowcats groom the slopes

nightly, working in eight-hour shifts

from 4 p.m. to 8 a.m. Snow plows are

constantly plowing roads, clearing

parking lots and moving snow piles.

“You have to do something with

the snow in the parking lots and on

the buildings,” Fields says. “And with

a year like last year, you run out of

places to put it. You have to get

creative about where to stack it and

where it can melt.”

Maintaining the ResortMost maintenance procedures

can be handled by on-site staff, with

Snowbird employing its own master

electricians, plumbers and

mechanics. Day-to-day operations

generally run smoothly at Snowbird,

but occasionally something

unexpected will occur and require

immediate attention, Fields says.

Having a reliable, seasoned staff

makes emergency maintenance

issues easily manageable.

“We have a core group of people

who have been at the resort for 30 to

40 years,some have been here since day

one,” says Fields. “They know where

everything is buried. They know what

is problematic. In a crisis, we rally

together and get very resourceful and

very creative. When you work in this

kind of environment, you have to be

creative and resourceful, and we have a

lot of people in this company who are

very good at that.”

Major maintenance projects arereserved for the beginning and endsof the ski season – usually in Mayand June and mid-October – whenthere is a lull in guests. Making timefor regular maintenance is essential,says Fields. If you don’t make time,you fall behind in repairs andexperience more problems allaround, he says.

Preparation for the ski seasonbegins in mid-October after the eight-weekend Oktoberfest (Utah’s secondlargest festival, according to Fields)and involves grooming the mountain,setting up the chair lifts, maintainingthe tram and creating snow.

“Ironically, you spend all thatenergy making snow in the

continued on page 16

Photos courtesy Snowbird Ski and Summer Resort

beginning of the season, but in thespring, you spend a bunch of energygetting rid of it – pushing it out of theway so you can open the alpine slide,”Fields says. “It’s very labor intensive andresource intensive to make a ski slopeand then get rid of it.”

Once the snow begins to melt,Snowbird starts prepping for itssummer season of mountain biking,hiking and horseback riding. Crewsstart clearing the snow, replacing winterinfrastructure with summer infra-structure. The process can be tricky,especially during years where the skiseason is long and summer and winteroperations overlap, Fields says.

Maintenance crews also takeadvantage of the warmer weather to dolarger, not-so-sexy maintenanceprojects, says Fields. This summer, thecrew replaced sewer pipes that had beentemporarily repaired during the skiseason. Construction crews were alsoworking on renovation projects thatwere planned for the 40th anniversaryof the resort. The Cliff Lodge, theresort’s largest hotel, including its guestrooms, meeting areas and spa, wasremodeled and the Aerie Restaurant iscurrently undergoing renovations.

As part of ongoing maintenance,

Snowbird crews are also responsible forthe unusual grass roofs topping theCliff Lodge, the Lodge at Snowbird,Iron Blosam and Creekside Day Lodge.The grass helps to drain the snowmeltfrom the flat roofs, which obviouslyaccumulate a lot of snow during thewinter months. Due to the grass on theroofs, the buildings also blend in to thescenery during the summer months.

Maintaining operations so the resortruns smoothly is essential in thehospitality industry, Fields says. Guests,who come to Snowbird from all over theworld, want to feel comfortable andexpect a clean, highly-functioning resort.

“We do everything we can to makesure people, wherever they are from, feelcomfortable here,” says Fields. “In thiseconomy, if you don’t deliver, they willwalk down the street because there issomeone out there who understands thehospitality industry. It’s about makingpeople feel welcome.”

Avalanches at the ResortSituated in the most avalanche

prone canyon in North America,Snowbird Resort is often put onlockdown while crews ensure the safetyof Highway 210.The Utah Departmentof Transportation joins forces with theForest Service and Snowbird Ski Patrolto close the road for avalanche safety.

While the roads are clear of travelers,Snowbird Resort fires weapons fromartillery stations located throughout thecanyon to induce avalanches.

“UDOT is very competent when itcomes to avalanche forecasting,” Fieldssays. “They let us know when thehazard is unreasonable, unacceptable ortoo dangerous. They close the road atthe top and the bottom until they areconfident the road is safe.”

While the road is closed, Snowbirdhas the responsibility of caring for itsemployees and visitors. The resort plansto have enough staff (some live at theresort) on hand to cater to its guests.Staff who live in Salt Lake Valley arehoused in empty rooms – except onnights when the hotels are at capacity.On those nights, Fields rolls his sleepingbag out on his office floor where he restsuntil the early morning hours. He getsan early start at work the next day,clearing the snow from the highway andmaking sure guests can travel safely.

“Those are the kind of things that alot of ski resorts don’t have to deal with.They don’t usually have the road issues.They probably rarely sleep on theiroffice floor,” says Fields. “For me, that’swhat makes this place exciting. You areworking with Mother Nature, andMother Nature is pretty wild here inthe winter.”


continued from page 15

Summer Activities at the ResortSnowbird is actively working to

promote its plethora of summeractivities, which means maintaining theresort through the summer months isjust as important as winter upkeep.Employees are actively working tooperate and maintain the alpine slide,tram rides, zipline, ropes courses,bungee trampoline, hiking, biking andhorseback trails and climbing wall. Thesummer activities at Snowbird areplenty and little known, Fields says.

“We spend a ton of money every

summer trying to educate people thatwe are more than a ski resort. It is reallyhard to change that perception,” Fieldssays. “ Our summer operations havegrown a lot, and it has been successful.We are continuing to educate peopleabout what we do during the summer.”

Fields believes the resort has thecapability of attracting just as manysummer guests as winter guests – a dreamof Snowbird Co-Founder Dick Bass.

“My underlying dream for Snowbirdis the creation of a year-round resort,which respects and complements the

beauty and inspiration of this natural

setting – a place dedicated to increasing

human understanding through the

enhancement of body, mind and spirit,”

said Bass.

40 Years and Still GoingAccording to Snowbird.com,

“Snowbird Ski and Summer Resort

includes the finest facilities the skiing

world has to offer.”

After 40 years of operations, the resort

continues to make plans to expand and

grow with the same ideals. Currently,

plans are to expand the resort’s night

skiing and renovate the Creekside

Lodge, restaurant and maintenance

building. In the near future, Snowbird

hopes to offer more skiing in a new

drainage, perhaps Mary Ellen Gulch.

“The first 40 years of Snowbird’s

existence have been exciting and

challenging,” said Snowbird President

Bob Bonar, one of the resort’s original

employees. “We’re looking forward to

the next 40.” UF


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The Boyer Company, which

develops and manages com-mercial real estate properties, is

renowned for the extensive Gatewayproject in downtown Salt Lake – butthis retail/mixed-use project is just oneof the many areas of real estate dabbledin by Boyer.The company also developshealthcare properties, most recently theSt. Mark’s Lone Peak Medical OfficeBuilding in Draper, Utah.

The 53,000 square-foot medicaloffice building, worth $11.3 million,opened its doors to the public on May25, 2010. Rumors suggest that thebuilding is only in its first phase ofdevelopment with future plans ofbecoming a full-service hospital,depending on the needs of thecommunity. As of now, Lone Peakcontains specialty medical campus andalso houses a new development inUtah’s medical field – the first satelliteemergency department in the state.

Operated by MountainStarHealthcare, the Lone Peak ED is anextension of St. Mark’s hospital andMountainStar Healthcare. It receivesapproximately 10,000 emergencydepartment visits annually. Located onthe first floor of the building, the EDis complete with an experienced andspecialized staff from St. Mark’sHospital, along with a full imagingsuite containing MRI, ultrasound, CTscanner and X-ray equipment.

Satellite EDs, though a newconcept in Utah, have beenimplemented in different areasnationwide for the past 20 years. Astechnology improves, morecommunities are beginning to have arenewed interest.

“Satellite EDs are receiving moreattention now as healthcare providerswork to identify better methods fordelivering patient care in a more cost-effective manner,” said Mark Meadows,

vice president of outpatient developmentat MountainStar Healthcare.

The project manager of Lone PeakMOB, Stephen Richards, agrees andclaims that many other states havefound the implementation of satelliteEDs to be both successful and efficient.

“This may be a beginning trend inhealthcare, where emergency roomsare separate buildings that feed intohospitals,” Richards said.

Lone Peak is labeled as a medicaloffice building, but because it housesan ED, it is required to follow hospitaland state codes. Requirements includestringent seismic and fire codes as wellas a helipad on the property. This iscrucial as helicopters and ambulancesare instructed to carry victims to thenearest ER. When calamities occur inthe mountains, “We are the closestemergency facility to receive them,”Richards said.

MountainStar brainstormed locations

Lone Peak Medical OfficeBuilding Follows Trends withSatellite Emergency DepartmentBy Kristen Hutchings, Associate Editor


for the Lone Peak Medical Campus thatwould best service a growing communityand decided on Draper, Meadows said.

“MountainStar Healthcare built thecampus to meet the community’s needfor emergency medicine care.Until then,people who live and work in Draper andsurrounding areas had to drive quite adistance to the nearest ED,” saidMeadows. “Physicians also deliverprimary and specialty care in the MOB,and we provide on-site out-patientdiagnostic services in the ED as well.”

One of the goals of satellite EDsand clinics separate from hospitals isto save patients money. Whilehospitals are expensive, utilizing thesebuildings diminishes the higher costsoften seen in hospital bills, Richardssaid. With the advances that areoccurring in technology today, theimprovements are allowing clinics andEDs to step away from hospitals anddeliver care in a more efficient and

financially-friendly way. Patients arequickly evaluated and effectivelytreated at satellite facilities; those whorequire further attention and overnightassessments are transported to thenearest hospital for further care viaambulance or helicopter.

Meadows also explained thatsatellite EDs are an example of smartgrowth.

“We didn’t overbuild for thecommunity; we adopted the smartgrowth model in the first phase to servethe community’s current needs,”he said.So although the Lone Peak MedicalCampus is large enough to sustain acomplete hospital, MountainStarHealthcare saved financially byimplementing a facility that met theexact demands of the people.

The community also needed adepartment dedicated to women’shealth. Lone Peak services met thisneed with specialized, on-site

diagnostic imaging services. Women

from the community can conveniently

undergo screening tests such as digital

mammography and bone density

scanning, Meadows said.

Apart from servicing the com-

munity and saving lives, Lone Peak

Medical Office Building has also

focused on saving water with their

waterwise landscape. Trees and shrubs

that thrive in Utah’s desert climate

have been added to the landscape and

different conservation mechanisms

have been installed for water efficiency.

Lone Peak’s services and its satellite

ED have awakened ideas for another

possible satellite station in the state.

The University of Utah Healthcare

plans to build a satellite ED in

Daybreak. As for further

developments of out-of-hospital EDs,

only time – and the needs of the

community – will tell. UF

Photos by Alan Blakely


Many people assume that

automated electronic buildingcontrol systems are similar to

other electronics. For example, ifsomeone purchases a new Sony DVDplayer, a Samsung TV and a Bose soundsystem, they expect these items tooperate simultaneously withoutproblems, also known as “plug and play.”Additionally, individuals are accustomedto competitive price shopping whenpurchasing such items.

Unfortunately, the same type ofcohesive operations and competitivepricing has not always existed withelectronic building control systems,such as fire alarms, security systems andHVAC/DDC control systems.

The majority of large commercialbuildings throughout Utah haveautomated electronic HVAC controlsystems or direct digital controls(DDC). Since their inception, DDCwere unique to the manufacturers whocreated them, including all requiredhardware and software. This effectivelycreated a captive market for DDCmanufacturers once facilities hadinvested in their proprietary brand.

As building owners learned,proprietary control systems locked themin to one manufacturer, and often timesone contractor, in a geographic region forsupport. Many owners became frustratedbecause the manufacturer or contractorfailed to give them the support theyneeded. Upgrades and service work wereoften priced at a high premium due tothe lack of competition for a given brand.

In the past 10 years, development inthe DDC industry have started toaddress concerns of building owners.Many developments have targeted openarchitecture and cohesive operations.One particular development supportedthe “plug and play”compatibility concept– making the systems speak the samelanguage.

Common protocol languages weredeveloped that different manufacturers

could support, which allowed multiplebrands of devices to communicate.BACnet and LON are two protocollanguages that were developed to allowopen, common communication betweencontrollers and equipment. Almost allDDC manufacturers in today’s industrynow offer either BACnet or LONprotocol controllers.

Many equipment manufacturersprovide their equipment (air handlers,chillers, boilers, lighting controls, VFD’s,make-up air units, etc.) with BACnet,LON or other communication inter-faces. By having a communicationinterface to equipment, manufacturersensure their systems are compatible withmany, if not all, DDC control systems.

Having a universal DDC language,such as BACnet or LON, is only part ofwhat makes a DDC system open.Another major factor in an open systemis its ability to operate with other DDCsystems. Even after having a system thatsupports BACnet or LON installed intheir building, many building ownerslearned they were still tied to onemanufacturer or contractor for support.To resolve this, the industry is nowcreating methods for different manufac-turers to operate mutually.

Truly open DDC manufacturerssupport multiple dealers and/ordistributors in a geographic area, thusensuring competitive pricing andcompetition for business.

The building controls industry ismoving in the right direction to having amore “plug and play” system, similar toother electronic products.As these controlsystems are becoming more open,building owners and facility managers arebenefiting by having competitively-pricedsystems, while receiving quality service.

Brett Parry is an account executive forWasatch Controls, a controls, alarms, videosecurity and access controls contractor.Brett can be reached at 801.956.0465 [email protected]. UF

The Promise of an Open BuildingControl SystemBy Brett Parry

automated controls

UTAH FACILITIES JULY 2011 I 21

Photo courtesy Freeport West


A fter a rocky couple of years,

big box development is on

the rise, and the industrial

market is improving. According to CB

Richard Ellis MarketView, “Specu-

lative construction projects are making

a comeback, while availability and

vacancy continue to decrease.”

Freeport West Industrial Properties

is one company that is entering into

speculation projects. Freeport West,

together with Big-D Construction,

recently built the 507,000 square-foot

Landmark 8 building in Salt Lake City

– one of the largest big box projects to

be constructed in the state in 2011.

Approximately 277,000 square feet of

Landmark 8 has been leased to a

company called International Paper,

and another 170,000 square feet have

been allotted to Coremark, a

distributor of dry goods. The

remaining 60,000 square feet will be

leased to tenants that Freeport West

believes to be the best fit for the

building and its other occupants.

“We built (Landmark 8) on spec,”

said Mark DeWald, Freeport West’s

director of business development. “We

knew that Utah was booming, so we

saw an opportunity to come out of the

ground without a tenant in hand.To be

honest with you, it is quite insane

because you take the risk of it sitting

vacant, and then you’re paying on it.

However, with the strength of our

While tenant improvements

(TIs) on industrial proper-

ties remain focused on the

functional attributes of a building,

industrial occupants have broadened

the definition of functional to include

energy efficiency and optimal usage of

space.

The Big Box TheoryBig Box Market Improves as CompaniesMove Office Space to Warehouses By Kristen Hutchings, Associate Editor

Industrial TenantImprovementsTrending TowardEnergyEfficiency By Stephanie Marthakis

Big box buildings are exactly what they

sound like: a big box. These facilities are big

and simple, basically consisting of four

walls and a roof. Big box includes retail,

office and warehouse spaces. In general,

when discussing warehousing in industrial

markets, a building is labeled big box if it is

larger than 50,000 square feet.


company, we were able to roll the diceon that.”

Freeport’s foresight turned out to bedead on. More and more companies arebeginning to eye Utah as a possiblebusiness venture because of the educatedwork force, lower taxes, cheap housingand the numerous amenities that thestate offers, DeWald said. Apparently,this sudden boom may be the beginningflurry of future companies nestling intothe Beehive State.

Why the Boom?While warehouses continue to gain

attention, office space development isseeing a gradual decrease in availability.

“A lot of companies, likeOverstock.com, used to have a highpower office facility with a warehousein a separate location. But now, we findthese companies are wanting toconsolidate an office in the warehousebecause it’s cheaper,” DeWald said.“Warehouse rent is cheaper than officerent, which is why you’re going to see alot of office vacancy and a lot of officespace available. These companies aremerging into big box and puttingeverything under one roof.”

Building an office space can bepricey because of all the physical detail.So if companies have both an officeand a warehouse, it is an efficient move

to unite everyone under the same roof.Companies that have combined officeand warehouse space have seen thatmerging under a big box building iseconomical, and it changes thedynamics of their employees for thebetter – putting white collar and bluecollar workers together under one roof.

Secrets of SuccessThough availability for industrial

warehouses has been decreasing,development is still a risky move. Manycompanies do not have the economicstability or speculative luck thatFreeport West has seen. Speculation isalways a major concern, especiallyconsidering the economic instability ofthe past couple of years. If you build it,tenants may not come. And for the pastcouple of years, businesses have seenjust that. Many companies have had toturn their projects over to the bankbecause they lack financial resourcesand stability, DeWald said. Even ifcompanies do jump back afterbankruptcy, tenants may not beinclined to rent from them again

because of the business’s past unstablefinancial footing.

“Tenants today are looking at thecapabilities of the landlord,” saidDeWald. “The landlord used to look atthe tenant and say, ‘I may lease to you,and I may not.’ Whereas today, thetenant is also looking at the landlord tomake sure they’re qualified to deliver andservice that size or type of a building.”

In the business marriage betweentenants and building owners, bothparties want to be sure the other iswilling and capable of holding theirend of the deal. But how does anindustrial company retain thisrespectability and become as successfulas Freeport West? Mark DeWaldsupplied some answers.

“First, our management team is verysharp when it comes to picking andchoosing when and where to develop,and that just comes with experience,”he said. “No. 2, we’re financially sound.Three, by being in the position thatwe’re in, we can pretty much beat ourcompetition anywhere and deliver agreat product.” UF

Capital vs. TenantImprovements

When discussing tenant improve-

ments, it is important to make the

distinction between capital improve-

ments and tenant improvements.

Capital improvements are invest-

ments a landlord makes upfront in

order to more effectively market a

property.These may include parking,

lighting and dock upgrades. Tenant

improvements, on the other hand,

can vary and are subjective to the

tenant and structure of the lease

terms. These usually include office

build out, upgrades to power and

improved/additional loading access.



Utilitarian ProductIndustrial properties are meant to

be more durable than other property

types, with function outweighing form

by a wide margin. Although today’s

industrial user is not focused on new

industry standards such as LEED

Certification, they are interested in

space and energy efficiencies. Office

build outs are planned more efficiently,

and tenants are demanding better use

of energy. This has resulted in new

types of TIs that include energy-

efficient lighting and roof irrigation

systems.

Types of Industrial TIsWith the exception of a few

common TIs, many industrial

properties are often leased as-is in

today’s economy. The most common

form of improvements on industrial

properties is the build out of office

space. Typically, 5 to 10 percent of

industrial square footage is for office

space, and 2 to 5 percent of the

landlord’s asking rate is allocated to

this expense. Depending on tenant

needs, other common improvements

include increased power capacity and

additional loading access.

Determining FactorsAs mentioned previously, tenant

improvements can vary based on the

needs of users and terms of the lease.

In the new economy, landlords are

hesitant to spend large sums of money

on specialized TIs. Although a

percentage of the asking rate is

allocated to TI’s, a longer lease term

could result in greater improvements.

For example, a 10-year lease with a

good tenant could motivate a landlord

to agree to allocate more money to

TI’s. The type of industrial use is a

factor, and TI’s can range significantly

from warehouse distribution facilities

to manufacturing or cold storage.

Market InfluenceAccording to a recent CBRE

National Industrial View Point

publication, U.S. trends indicate that

landlords continue to offer aggressive

lease rates but are beginning to tighten

on free rent and extra tenant

improvements. Additionally, cash

conscious landlords are reluctant to

fund larger tenant improvement

allowances.

Locally, landlords of existing

industrial properties have begun to

invest in retrofitting existing buildings.

This can be attributed to some

significant changes in the supply of

new industrial properties. Over the last

12 months, 1.6 million square feet of

new speculative construction was

introduced to the industrial base.

Current projects are already attracting

tenants as evidenced by the 507,000

square-foot Landmark 8 building that

is already 88 percent pre-leased. The

addition of these brand new industrial

properties has also created upward

pressure on lease rates, particularly in

transactions over 100,000 square feet.

Currently, Salt Lake County has

one of the lowest industrial availability

rates in the country. Looking ahead,

availability is anticipated to decrease

further which will push lease rates up.

This scenario could bode well for

landlords as decreased supply

increases their ability to negotiate

lease terms, including the degree of

tenant improvements they are willing

to make.

Stephanie Marthakis is research and

marketing manager at CBRE. Tom

Dischmann, senior vice president of

Industrial Properties CBRE, Jeff

Richards, f irst vice president of

Industrial Properties, CBRE, and Keith

Geisel, associate director of Asset Services,

CBRE, contributed to this article. Learn

more at www.cbre.com/slc. UF

continued from page 23




Safety and security are central

concerns for every landlord.

Landlords of commercial and

residential property have legal

responsibilities to ensure the safety of

their tenants. A breach of those duties

could result in abatement of rent, fines,

civil liability or even criminal charges.

In the face of these legal issues,

understand your responsibilities and

take the appropriate steps to secure

your property.

In general, a landlord has a duty to

provide reasonably safe premises and

common areas for tenants and guests.

The Utah courts recognize an implied

warranty of habitability in both

residential and commercial leases

which requires landlords to keep

premises usable for the purposes the

premises were leased. In the residential

context, for example, the warranty of

habitability requires that the property is

safe and fit for human occupation and

that the bare living requirements are

maintained, such as heat and hot water.

If a landlord fails to provide these

essential features, or fails to repair

them, the landlord is in danger of

breaching the warranty of habitability,

as well as the contract, and the tenant

may take steps to withhold rent or

recover other damages. A tenant may

also recover special damages when, as a

foreseeable result of the landlord’s

breach of the warranty of habitability,

the tenant suffers personal injury

property damage or other injury.

The Utah Fit Premises Act requires

residential owners to maintain the

premises in a condition “fit for human

habitation” and in accordance with

local rules and ordinances. The Act

imposes a duty on land owners to

protect the physical health and safety of

the ordinary renter, mandating that an

owner “may not rent the premises

unless they are safe, sanitary and fit for

human occupancy” and that the owner

shall maintain common areas of the

residential unit in a “sanitary and safe

condition.”

Local ordinances, such as the Salt

Lake City Fit Premises Ordinance also

preclude a landlord from renting unless

the premises are safe. The Fit Premises

Ordinance outlines specific health and

safety requirements. For example, a

property owner shall provide adequate

hall and stairway lighting, furnish

tenants with adequate locks and keys to

exterior doors and protect each tenant’s

peaceful enjoyment of the premises.

What a property owner must do to

maintain safe premises and to protect

the safety of the ordinary renter, such as

protection from the criminal act of a

third party, will depend on the location

of the property and individual

circumstances. At a minimum, a

landlord must maintain basic security

features such as working exterior doors

and locks. If the doors and locks

become inoperable, the landlord should

take immediate steps to repair them.

However, if, for example, the property

is located in a known high-crime area,

where break-ins or vandalism is

prevalent, or if the landlord is warned

of criminal activity, landlords may need

to take additional action to increase

security measures. Such measures may

include the installation of an alarm

system or hiring private security guards

to protect against those foreseeable

risks. However, if landlords choose to

institute advanced security measures,

however, they will have a duty to

maintain those advanced measures in

good working condition. While

advanced security may be expensive,

failure to protect against known or

foreseeable risk may result in costly

litigation.

Ultimately, all landlords are

responsible to provide reasonable

security measures to protect their

tenants and property and to defend

against exposure to fines or civil

liability.

What can you do? Start by ensuring

that your property meets the safety and

security standards outlined by statute

and by your local city ordinances. Pay

attention to the time periods within

which repairs must be made and

monitor and maintain common areas

such as hallways and lobbies. If you

receive a notice from a tenant about a

repair, take immediate action to fix it.

Consider your lease as a tool to

apportion risk. Certain duties, such as

the responsibilities outlined in the

Utah Fit Premises Act, may be

allocated to a different party by an

explicit, signed, written agreement. Pay

attention to the crime in the area and

consider advanced security measures

such as security systems or security

guards to protect your tenants and your

property where appropriate. Finally,

take steps to regularly inspect your

property. This will allow you to stay

ahead of potential problems and can

help protect against criminal activity on

your property grounds.

Artemis Vamianakis is

an associate attorney

at Fabian Law. She

concentrates her law

practice in real

property and complex

litigation. She can be

reached at 801.531.8900 or

[email protected]. UF

real estate law

Securing Your Leased PropertyBy Artemis Vamianakis


‘

On the morning of Tuesday,

April 17, 2012, at 10:15, a

7.0 magnitude earthquake

will shake Utah. The quake will

collapse 10,000 buildings, damage an

additional 285,000, kill 2,300 people

and injure 30,000 more.

Approximately 350,000 people will be

displaced from their homes. Damage is

calculated to amount to $35 billion.

This particular disaster is only a

full-scale exercise, but the scenario is

real.

“They asked me to

come out here and

scare you,” said Tony

Wilde, public and

private sector planner

for Be Ready Utah

with the Utah

Department of

Emergency Management. “Get off of

your collective rear end and do

something. We cannot be

lackadaisical.”

Wilde, who spoke at the 2011

Disaster Symposium sponsored by

Utah Disaster Kleenup, is helping to

prepare the state for the Great Utah

ShakeOut and also for a real

earthquake – should one happen.

In reality, disasters rarely strike

Utah, said Bill Brass, programs

manager for Utah Task Force 1, a

FEMA Urban Search and Rescue

Team. Keith Bevan, program specialist

for Utah Task Force 1, agrees that few

large disasters occur in Utah with the

exception of fires, which he says are a

small part of the disaster system. As far

as disasters go, Utah is ranked 50 out

of 50 states, Bevan said, with the least

amount of large disasters occurring in

the Beehive State.

“Disasters never do happen in the

state of Utah,” Brass said. “But when

they do, you are going to want those

practiced people from the

DHS/FEMA National US&R

Response System.”

Though relatively safe when

compared to the other states, Utah is

due for an earthquake, according to

Wilde. Seismologists and geologists

say the Wasatch Fault sees a major

earthquake every 350 to 400 years –

like clockwork, Wilde said. But unlike

a tornado or a hurricane, residents

cannot be forewarned about seismic

activity, making it necessary for Utahns

to prepare now, Wilde said.

“If we have a 7.0 earthquake or

greater in the state of Utah, FEMA

has determined that help will not

arrive to the Salt Lake Area for at least

72 hours,” Brass said. “There is going

to be massive destruction along the

Wasatch Front.”

To help prepare Utah for this

disaster, Be Ready Utah has invited all

Utahns to participate in the Great

Utah ShakeOut – a large-scale

earthquake drill involving building

owners, business owners, the

government, schools and families. The

main purpose of the ShakeOut is to

instruct Utah residents on various

safety measures they can implement

before, during and after an earthquake.

“People who plan and prepare are

the ones who will survive,” said Wilde.

When an earthquake does hit, “you are

going to have to take care of yourselves

for a while.” Be Ready Utah is asking

Utahns to act as if a major earthquake

were occurring during the drill in order

to accurately assess their actual

preparedness for such an event.

“There will not be any freeway

closures, power outages or other

simulated effects of the hypothetical

earthquake, unless your local

government or utility company

specifically notifies you about

something of this nature,” according to

ShakeOut.org. “The ShakeOut is not

something you need to leave work to

participate in – in fact,

participating at work is

encouraged.”

The ShakeOut will give

building owners the

opportunity to practice their

emergency plans, said Wilde.

Building and business owners

should asses what they will need to

keep their business running after a

disaster, plan where they can relocate,

if necessary, and prepare an evaluation

plan post disaster.

In preparation for all disasters,

building owners should make sure

their buildings are protected under an

insurance policy, said Brad Tibbits,

director of Property and Casualty

Insurance Division for the State of

Utah.

“Insurance companies can help you

design a program that will cover your

assets and property,” Tibbits said.

“Insurance will not solve all of the

issues, but it will be a tool. It will help

you get back in business.”

Building owners are encouraged to

prepare and to participate in the Great

Utah ShakeOut, Wilde said. Those

who are interested can sign up at

www.ShakeOut.org. UF

The Great Utah ShakeOutExercise Drill will Help Building Owners Prepare for DisasterBy Kelly Lux, Executive Editor


People who plan and prepareare the ones who will survive.

Tony Wilde, Be Ready Utah

disaster preparedness

Standards. Every industry has

them. Standards set the bar at

an appropriate height, helping

to create a certain barrier to entry

while weeding out those who aren’t

serious about operating a “real”

business.

The cleaning industry is particularly

susceptible to newcomers. Anyone with

a mop bucket, an old pickup truck and

his wife’s vacuum can open a janitorial

company. Building service contractors

can do certain things to set themselves

apart from the crowd. It’s called

certification. Certification is something

facilities managers should look for

when trying to choose providers who

know what they are doing.

Several good standards are

available. One of those is offered by

ISSA, the Worldwide Cleaning

Industry Association. ISSA guides and

administers a process called the

Cleaning Industry management

Standard to help cleaning

organizations set up management

systems to ensure quality, efficiency

and overall customer satisfaction.

Managing a successful cleaning

company, be it a building service

contractor or an in-house custodial/

cleaning department, requires hard

work, dedication and a thorough

understanding of the customer’s

service requirements. Whatever

standard is used, it should be thought

of as a blueprint to develop customer-

centered, quality organizations.

Does it really matter? And why

should I bother? Yes, and because in

the long run you’ll be so glad you did.

With the many cleaning companies

out there, this is that advanced degree

on the resume that sets the candidate

apart. Hiring a certified organization

means you have partnered with a

cleaning company that takes their

work seriously and has paid the price

of painful change and continuous

improvement.

Most standards and certifications

demand dedication to quality in

meeting customer requirements. They

are based on management principles

that are found in all successful

organizations. They are not just for

large companies with large budgets,

but for companies of any size. Some

standards require adherence to a

particular process or product; others do

not. Organizations should be allowed

flexibility in choosing the most

effective ways to meet their customer’s

needs. Hire companies that have their

management ducks in a row and who

have refined their procedures and

processes to create a system.

Cleaning is a business. Most in the

industry take great pride in what they

do. Cleaning companies play a major

role in maintaining the value of large

and important assets. Building owners

and managers may pay a little more for

the services of a certified company, but

in the long run, it is worth it because it

is the best value. No one would go to a

doctor who wasn’t certified, just

because he had a stethoscope and was

cheaper than a real doctor.

Certification of some kind provides

third party verification that helps

companies prove their claim that they

are indeed better than anyone else.

Certification also helps facility

managers find the best partner.

Ron Moore is president of

RBM Building Services,

Inc. He can be reached at

801.373.2424. UF

janitorial


Set Your Standards HighCertified Cleaning Companies are Worth the Extra CostBy Ron Moore

• Systems, including a writtenjanitorial plan, thatconsistently deliver quality.

• Fulfillment and follow up toensure the customer’ssatisfaction. No news is NOTgood news. A system forinspecting what is expectedmust be developed.

• Health and safety of workerand customer. Yes, you mustpay attention to OSHA, EPA,MSDS Sheets, etc.

• Human resources, includingrecruiting, hiring and trainingof cleaning personnel. Alljanitorial companies drawfrom the same labor pool.Those that stand out have thebest hiring and trainingpractices. Even a mediocreemployee can excel in anorderly, focused,systematized culture.

Any cleaning industry standard should focuson some or all of the following elements:

All of the above depends on one thing – leadership. If the managementis not committed, nothing will happen. Choose the company with thestrongest leaders who clearly define their standards. If the operatingstandards aren’t clear, people will search and test for a performancestandard they think is acceptable.



pest control

Prepping for Winter PestsBy David Wright

Spring isn’t the only time for

rigorous cleaning and sanitation– an important key to reducing

pest populations.If food is served on-site, food debris

can get trapped in tile grout, underequipment and in hard-to-reach cornersand crevices, creating a ready food supplyfor flies, roaches and other pests. Worstyet, this is also where many pests breed,multiplying your problems.

To prevent these siutations, tryenlisting the help of bioremediationproducts that digest grease, fat and oilsfrom kitchen or food prep areas.Bioremediation turns grease into water,making it a safe way to improve sanitationwithout harming the environment.

Exterior Insect ControlWith colder weather, many insects

begin migrating indoors, seekingwarmer places for the winter. Spiders

are particularly active in the fall, and soa good exterior perimeter treatment canminimize their impact on your facility.Making sure you have good seals on alldoors and windows is critical in keepingthese pests outside of your building.

RodentsMake sure all possible entry points

are sealed. Mice can fit under a doorwith just a quarter-inch gap.

Depending on your location, youmay want to install rodent bait stationson the exterior of your building. Theseserve two purposes: a monitoring toolfor rodent activity on the outside of yourbuilding, and a way to reduce the rodentpopulation outside which diminishesthe pressure of them invading yourfacility. Finally, strategically placedmulti-catch rodent traps on the inside ofyour facility may be necessary to captureany rodents that enter your building.

VolesIf your lawn has voles, fall is the best

time to treat for them. They are morelikely to respond to baiting programs inthe fall because they put on extraweight to get through the winter. Oncethe snow starts to build up, voles willbuild tunnels through the buried grassas they search out additional foodresources, making it difficult to treatthe problem. Their destruction is mostevident in the spring once the snowmelts, so the time to prevent is now.

David Wright is a sales representativewith Sprague Pest Solutions. Sprague PestSolutions focuses on serving single andmulti-location commercial clients in thePacific Northwest and Intermountainregions. Wright can be reached at801.412.0606. UF


Has the economy kept you up

at night, worrying you about

your business and its future?

Have you almost overdosed on the

purple pill to stop that ache in the pit

of your stomach created by declining

business revenues?

Small business has been screaming

for help in this economic crisis. Now,

there is a program to help small- and

middle-sized businesses consolidate

their debts, make smaller payments

and free up capital for business use.

The United State’s Small Business

Administration (SBA) through its

Certified Development Company

(CDC) partners has a new financing

tool to help refinance existing high-

interest balloon debt used to purchase

a place of business and change that

into a low interest, mostly fixed-rate


The business owners of Telos Treatment

Center, a Provo facility for the treatment

of depression and anxiety for young

adults, were puzzled.They had a

thriving, money-making business.The ir

treatment was successful and created

waiting lists of perspective clients.The

owners had strong credentials and their

finances were in good order. However,

no financial institution would refinance

the loan for the facilities.The company

had several high-interest, readjusting

and floating loans that were expensive.

“We went to a number of banks and

credit unions with a healthy pro forma,

having seven years of experience,good

asset value and great credit of the

principals,and we could not get anyone

to look at our loan until we found out

about the SBA 504 Debt Refinance Loan

offered by Mountain West Small Business

Finance,”said Craig Lamont,CEO of Telos.

“We have subsequently lowered our

monthly mortgage payments and the

savings have been significant.”

“Telos”in Greek means “ultimate

potential.”With a credible staff, successful

treatment practices and a solid financial

footing through the SBA Loan,Telos is

achieving that potential, said Lamont.

Can the New SBA Debt Refinance ProgramHelp You Through This Tough Economy?Refinance High Interest, Balloon Payment Building Loansto Low Interest, Long-Term and Fixed Rate Loans

Telos Treatment Center Gets Financial Help Through SBA DebtRefinance Program


loan. It allows borrowers to use

building equity for eligible business

expenses like inventory working

capital, equipment, payroll, building

repairs and other eligible business

expenses.

The SBA 504 Debt Refinance

Loan is easy to navigate. Existing

building debt on an owner-occupied

building (51 percent building

occupancy by your company meets

eligibility) can be replaced with a 20-

year term SBA 504 Debt Refinance

Loan that would be authorized and

funded by the SBA through MWSBF.

That loan would constitute 40 percent

of the amount borrowed, while 50

percent of the loan amount would

come through another financial

institution that would assume first

position with the collateral. The SBA

and MWSBF would go to a second

mortgage position. The rate of the

loan would be negotiated with a term

of 10 to 20 years. The remaining 10

percent would remain as equity from

your building.

“This SBA Debt Refinance Loan

has major implications for small

businesses that are carrying

unfavorable, float rate debt with

constant rate changes and balloon debt

features,” said Stan Nakano, Salt Lake

District director of the SBA. “We can

turn much of the debt into a long-

term, low-interest fixed rate loan with

the added feature of pulling out

building equity that can be used for the

business. It’s game changing.”

A building with a mortgage of $1

million and a float interest rate of 8

percent with a 10-year call that

appraises for $1.5 million would allow

a company to borrow borrow up to

$1.35 million (90 percent of appraised

value). The SBA portion would be 40

percent of the loan at approximately

5.25 percent fixed rate for 20 years

which would be $540,000. The

companion financial institution

portion would be 50 percent of the

loan, or $650,000 at 6.5 percent

(approximate bank rate), and 10

percent of the remaining building

equity remains in the deal. The

existing $1 million mortgage will leave

$350,000 for eligible business expenses

that may include inventory, building

repairs, equipment replacement,

vehicles, utilities, payroll and other

business expenses.

Utah’s local CDCs have financed

manufacturing facilities, office

buildings, restaurants, grocery stores,

retail facilities, hotels, motels and any

other owner-occupied building

structures imaginable.

“We have been waiting for decades

to do this type of refinancing. Just

recently, Congress and the

Administration have realized that

allowing small businesses to take

advantage of the low interest rate

environment and unlock building

equity will help generate commerce

and jobs as well as give a substantial

boost to the economy,” said Scott

Davis, president of Salt Lake-based

Mountain West Small Business

Finance (MWSBF).

Now, despite the scary economy,

you can feel better about your business,

get some sleep and stop the heartburn.

MWSBF is a 30-year-old licensee of the

SBA, that has f inanced nearly 4,000 SBA

loans in Utah and surrounding states. It

has f inanced manufacturing facilities,

off ice buildings, restaurants, grocery

stores, retail facilities, hotels, motels and

other owner-occupied building structures.

Contact them at 801.474.3232 or

www.mwsbf.com. Utah Certif ied

Development Company has f inanced

nearly 1,000 Utah small businesses. They

can be reached at 801.627.1333 or

www.utahcdc.com. UF

financial planning


Water conservation is

essential in sustaining theprojected population

growth in Utah. To help Utahnspreserve water, the ConservationGarden Park in West Jordan isstretching its existing water supplieswhile educating the public on waterwiselandscaping.

“People may think that they have togive something up to save water in theirlandscapes,” said Clifton B. Smith,garden manager at the ConservationGarden Park.“The fact is that waterwiselandscapes are healthier, more beautifuland better for the environment. Doneproperly, they also save time and moneyin maintenance.”

The Conservation Garden Park,

managed by Jordan Valley Water

Conservancy District,contains inter-

active education exhibits on nearly 6.5

acres of waterwise landscapes – created

to teach conservation methods to the

public. While touring the grounds,

homeowners and building owners can

see waterwise plants that can be used on

their own properties.

Waterwise Plants

The Conservation Garden Park is

made up of native and non-native

perennials along with a few potted

annuals. The yards at the park, which

can be seen by a leisurely stroll around

the gardens, demonstrate how various

plants can be used to conserve water.

Shaun Moser, a gardener at the

Conservation Garden Park, suggests

replacing unused turf with waterwise

plants. Examples of waterwise plants –

especially native plants – can be found

throughout the park. Rocky Mountain

Maple trees can be seen in the

Woodland Yard, and the Green

Mormon Tea is located along the park’s

walkways.

“Using plants native to Utah really

helps to conserve water since they are

used to using water they naturally get

from the weather,” Moser said,

referencing the High Desert Garden

WWaatteerrwwiissee LLaannddssccaappeess HHeeaalltthhiieerr,, MMoorreeBBeeaauuttiiffuull aanndd BBeetttteerr ffoorr tthhee EEnnvviirroonnmmeennttBy Kelly Lux, Executive Editor

Photo courtesy Jordan Valley Water Conservancy District


Yard at the park. The Desert Yard was

watered by hand during its first year and

has grown with only natural irrigation

since.This yard includes a Mimosa Tree,

Desert Four O’Clocks and a Desert

Willow – all viable plants for a

waterwise landscape.

The Harvest Yard is an example of

landscaping that is made up of edible

plants and plant products.The Concord

Grape Vine growing on a trellis in the

yard does well in Utah’s climate and uses

little water while also producing edible

grapes, Moser said.

Fruit trees can also be a good

option for waterwise plants. A

common misconception for growing

fruit trees is that they need lots of

water, Moser said. However, this is not

the case, especially for personally-

harvested trees. The more a fruit tree

is watered, the more fruit it will

produce, he said.

Thyme is a good water-conserving

alternative to grass, Moser said. Likegrass, Thyme is durable enough to betread upon. However, unlike grass,Thyme does not need to be mowed,doeswell in the shade and uses little water.

Native grasses are also a wisealternative to turf, Moser continued.The ornamental grasses use little water,are easy to maintain and make similarsounds to Quaking Aspen when thewind rustles them.These plants can alsoadd interest to a landscape during thewinter months.

Water-Efficient Irrigation SystemsMoser suggests that the best way to

water your landscape is by combining apop-up sprinkler system with a dripsystem. The drip system is effective inplanters because it waters the roots ofplants directly. Pop-up systems are idealfor turf because they can cover a largearea equally.

“If I were installing a system, I

would do the pop-up heads in the grass

and the drip system in the planting

beds,” Moser said. “I think that is the

overall best way to do it.”

Watering less will make the roots of

plants grow deeper into the ground and

make the plants healthier, Moser said.

Using sprinkler systems during the night

or in the early morning will allow for

more effective watering since the sun

isn’t out and the wind isn’t blowing.

Moser also suggested checking the

pressure of sprinkler systems; too high of

water pressure will emit small droplets

that are easily blown away by the wind.

The Conservation Garden Park

showcases many more water-conserving

ideas for commercial settings and

parkstrips. For more information about

implementing water conservation

techniques, visit

ConservationGardenPark.org. UF

landscape


Revisit Snow Removal ContractsBy Ty Cherry

parking lot maintenance

A s each new snow season arrives,

building owners and property

managers should take an

aggressive approach as to how they

coordinate snow removal for their

properties. Some of the most important

aspects to consider with snow removal

are price, liability, tolerance level and

contractor qualification.

Price seems to be the biggest issue for

most property managers and owners.

The old saying “you get what you pay

for” definitely applies to snow removal.

Although the lowest price is easier on a

budget, it often leads to angry tenants

and headaches for management due to

poor response time, unreliable

equipment and broken promises.

Experienced property managers and

owners will most often hire a

competitively priced company with good

references and experience.

The concern of liability due to slips

and falls is constantly looming over all

property managers’ and owners’ heads.

Many contracts contradict themselves

when it comes to liability, so clarify with

your snow removal company on how

the indemnity clause reads in the

contract. If your indemnity clause states

that the contractor will carry all liability

and fully indemnify anyone involved on

site, then the contractor should decide

when to commence snow removal

services and ice control.

Every property is going to have a

different tolerance level when it comes to

snow accumulations. Be clear with your

snow removal company on how much

snow can accumulate before they start

snow removal services and ice control.

Many contracts call for a 2 inch minimum

prior to commencement, but the contract

also calls for the snow removal company

to fully indemnify the owners.

One of the smartest things property

managers and owners can do is pre-

qualify a snow removal company before

hiring. Asking for references from

comparably-sized properties will help

you know if a company can handle the

scope of work they are bidding on and

deliver on what they are promising.

Ty Cherry is the business developer for

Aeroscape Property Maintenance and

Landscaping. He has 18 years experience

in irrigation and landscaping. He can be

reached at 801.503.6700 or

[email protected]. UF



Gen Y Wants Open Space and Open CommunicationBy Sean Murphy

A new breed of young, talented

and opinionated workers areplanting their flags in

businesses across the world. GenerationY (age 20-30) has shaped manycompanies that you have heard of, suchas Goldman Sachs, Google and Nike.Young talent is also infiltrating lesser-known enterprises in your ownbackyard. Attracting and retaining thenewest members of your workforce hasa lot to do with the environment theywork in, and your tenants may be at adisadvantage at the hiring fair if theirworkspace doesn’t reflect the corevalues of Gen Y.

Death of the Cubicle (Sort Of)It is hard to let go, but the high-

walled cubicle is now only appropriatefor a small percentage of workers.Younger and older generations arethriving in a more open, collaborativeenvironment. A few years ago, this wascalled a movement, but it is almost arule now. A low-walled workstation has

always been more economical, and it isnow more appreciated.

Newer workstations have asomewhat similar footprint to those ofthe last few decades, but the walls arecoming down a bit.Tall panel walls andcubed workstations are making way forspaces where workers can actually makeeye contact with people around them.But it is not just about eye contact;Generation Y values a contemporaryspace where communication andteamwork are encouraged. A physicalspace that balances privacy withopenness is crucial to nurturing thiscollaboration. Also important arecommon spaces where people can stepaway from their desks to shareinformation with fellow employees.

The Social WorkplaceAlthough the social business

environment is somewhat influenced bythe younger members of our workforce,workers of all ages crave collaborationand communication. Productivity today

depends on it, and the environments inwhich people work must facilitate it.Open workstations are only a small partof the equation. Individual workspacesshould be complemented by multiple,small meeting areas. These areas can beas simple as a tall table with stools, asmall traditional meeting table or acluster of lounge chairs. Smaller meetingspaces don’t even need walls. They canand should be out in the open wherethey are easily accessed by nearbythinkers.

Gen Y is a very mobile people.Theyneed to get away from their desks a fewtimes a day and thought-share withpeople around them. This is beneficialto their overall health (which theyappreciate), and it’s also beneficial tothe way a business functions. What’smore, a block of small breakout areascan serve as delineation betweendifferent types of work being done.

Inherent EfficiencyThe beauty of a space with fewer walls

Photo courtesy ROSI

is that it is actually better for your bottomline. Less material equals lower cost andhigher ROI. The separation betweenworkstations used to consist of a tallfabric panel, but now separation can beaccomplished with a shared low storagecabinet or light-scale divider. Lowerpanel walls also allow natural light topenetrate farther into workspaces,reducing the need for excessive artificiallight. Airflow is also improved.These arehuge steps for environmentalsustainability. It should be noted thatimprovements in sustainability areappreciated by elder generations just asmuch as the younger ones.

Perception of EnvironmentGen Y-ers are generally not job-

hoppers. They are looking to earn long-term meaningful experience withbusinesses that are willing to help themlearn. Attracting and keeping thisvaluable talent has a lot to do withcreating an environment that speaks tothe way they function. They carry astrong emotional connection to the placethey work. It’s only natural since theyspend nine-plus hours per day there.Other generations are following suit.

Realize that business is aboutconnecting with people, and thatcollaboration is the new rule. A well-designed workplace with ample

opportunity for communication iselemental in the way a businessfunctions. The physical space in whichpeople work is changing. So step out ofyour cubicle and embrace the transition.

Sean Murphy is in sales/design at ROSIOffice Furniture. He can be reached at801.486.7711. UF

interiors


A renewed focus on integrating

green technology such as

rooftop photovoltaic (solar)

panels, wind turbines and vegetative

roofs onto new and existing buildings

has been driven and largely funded by

the federal government to reduce the

nation’s carbon footprint and increase

focus on clean renewable energy.

However, with ROIs that can push out

20 years or more, it is simply not

financially feasible for building owners

to incorporate these types of green

technologies.

Fortunately, several affordable and

environmentally-friendly methods,

materials and technologies can be

utilized. Many of these are simple

specification or material adjustments

that can save money on the installation

cost as well as future utility,

maintenance and replacement costs.

Recycle

Almost all materials used in

commercial roofing can be recycled.

While the technology exists to recycle

these materials, the location of the

recycling centers are far and

inconvenient, which can make the

separation and transportation of waste

materials costly.

However, some materials separate

and transport easily and can save in the

cost of paying for disposal containers

and landfill fees. Most single ply

membranes are recyclable and easy to

remove and transport. Lightweight

membranes can be folded or rolled and

strapped down to a flat bed truck,

making it easy to transport large

quantities and minimizing the cost of

transportation. Other lightweight,

recyclable materials like foam plastic

insulation can also be easily and

efficiently transported.

This economy of scale is only

applicable with large re-roofing

projects that will produce enough

recyclable material to fill a flat-bed

truck. Partial loads can be arranged as

well, but the cost of transportation is

excessive when compared to the cost of

disposal.

Reuse

Reuse the materials on a roof that

are still in good condition and won’t

affect the performance of a new roof

system. IBC (International Building

Code) allows for up to two roof

systems to be installed on a commercial

building. Thus a new roof can be

installed over an existing roof and

retain the existing R-Values, vapor

barriers and roof slope.

Obviously, if areas of insulation have

become wet or damaged in some way,

they will need to be removed before

installing the new roof. Technology,

such as infrared cameras, can locate

specific areas of wet insulation, which

can then be marked and replaced prior

to re-roofing. A new cover board can be

installed, along with a new roof

membrane with the same performance

and warranty as a roof that was

removed and then replaced with new

components.

The cost savings in this scenario can

be substantial. Consider replacing a

roof on a 100,000 square-foot

warehouse with an R-Value of 21 in

rigid foam polyisocyanurate insulation

(approximately 3.5 inches). To remove

this entire roof system to the roof deck

and install new insulation and

membrane would cost at least $200,000

more than if this system were to be

overlaid with a new cover board and

roof membrane. Obviously, local costs

for tax, disposal, transportation and

labor would contribute to the price.

Cool Roofs

Cool roofs in commercial, low slope

applications are those with a solar

reflectance value of 0.65 or higher

when new. That means 65 percent of

Save Money and the Environment withInexpensive Roofing OptionsBy Eric Pauly


the sun’s total radiant heat energy is

reflected back into the atmosphere,

rather than being absorbed by the

building. Cool roofs primarily

accomplish two things: substantially

reduce the amount of energy needed

for cooling and reduce peak electrical

demand by an overall 10 to 15 percent.

Cool roofs reduce the urban heat island

effect caused by heat-absorbing

infrastructure that raises urban

ambient temperatures and creates an

inversion, which traps air pollution and

creates smog.

Most manufacturers have created or

enhanced viable roofing membranes

that are Energy Star rated and

economical. Some roof membrane

systems also include 25- to 30-year

warranties.

Some conditioned buildings can

experience a 20 to 30 percent savings in

energy costs by simply switching from

a non-reflective to a cool roof

membrane. This can be enhanced with

rebates or incentives provided by state

and city governments and local utility

companies. Currently, Rocky Mountain

Power is providing a 10 cents-per-

square-foot rebate for installing

qualifying cool roofs in Utah. Most of

these incentives need to be applied for

before the project begins.

Daylighting

Daylighting, the use of natural light

to illuminate the interior space of a

building, is now a popular way for

building owners to save energy and

money and increase worker

satisfaction, sales and productivity.

Prismatic skylights refract the sun’s

rays into thousands of tiny micro

sunbeams, diffusing the direct sunlight

into a softer, brighter light. Building

owners can reduce their electrical

lighting requirements by as much as 70

percent when using prismatic skylights

in as little as 4 percent of the roof surface.

Light sensors and lighting controls

often allow enough light to enter the

building through the prismatic

skylights, eliminating the need for

artificial lighting during most of the

day.This can make a substantial impact

on utility bills for the building user,

often yielding ROIs in less than two

years. With effective material life spans

matching that of commercial roof

systems (20 years or more), the savings

add up and the amount of carbon

emitted is reduced substantially.

Eric Pauly is the senior project manager

for CentiMark Roof Systems, a

commercial roofing contractor specializing

in all aspects of commercial roofing.

Contact Eric at 801.633.0189. UF

roofing



A partments are sexy. Some who

read this article willimmediately want to argue

that statement. However, in Utah rightnow it would be hard to argueotherwise.

So let me explain. I originallystarted brokering apartments because Iam conservative by nature, andapartments in the greater Salt LakeCity area are arguably the mostconservative commercial real estateinvestment play out there. Utah is a safebet. Owning apartments in Utah hasproven to be like buying an insurancepremium for your money.

Adjectives like conservative and safeare not the typical words used to describesexy.However,perspectives,opinions anddefinitions have changed recently, whichis having an enormous effect on theoverall Utah apartment market.

Before I attempt to explain whyapartments are sexy, first I’ll clarifywhat sexy meant prior to the recession.The exact start date of the recessionseems to be as much personal as it isstatistical, and for me it was October2007 – very personal.

Prior to October of 2007, sexy camein all shapes and sizes, and the“investment of a lifetime” came by myoffice at least once a week. Chasinghigh yield was sexy. Hard money loanswere sexy. Refinancing the equity out ofyour home to develop residential lotswas sexy. Buying a second homebecause you could – super sexy. Sexywas telling a conservative safe deal at 8percent “no” because your neighbor hada deal that was guaranteed to pay 25percent plus you get a back rub. Safe,conservative apartments were not sexy.

As the Oracle of Omaha, WarrenBuffet, has often been quoted, “Whatmatters most is not the return on your

money, but the return of your money.”

Chasing yield became costly quickly.

Retail, office and industrial investments

have been off as much as 30 to 40

percent from their pricing at the peak

of the market in 2007. A high

percentage of those properties are now

worth less than what is owed on the

property. People have lost money, and

the definition of sexy has now been

completely re-written.

Sexy is now simple, smart,

conservative and looking for long-term

relationships. This “flight to quality”

has pushed Class A investments up in

value, resulting in an upward pricing

pressure on conservative solid

investments like apartments in strong

markets such as Utah.

Apartments are now sexy.

Commerce Real Estate Solutions

Annual Apartment Market Report

reveals that Utah is at the tipping point

of trends that have already received

national attention: declining vacancies

and increasing rents. The Utah market

is expecting vacancy to decline below 5

percent and rental increases upwards of

6 percent over the next year. Utah

apartments have hit the national radar

in a big way. The stability and strength

of apartments, coupled with the

anticipation of rent growth, reduced

upcoming new inventory. Changing

national multifamily trends have

positioned Utah apartments so well

that they have become the new

definition of sexy.

To say the Utah apartment market

is hot would be a gross understatement.

An unprecedented amount of equity

Apartments are SexySexy is Simple, Smart, Conservative and Looking for Long-TermRelationshipsBy Mark Jensen




ADVERTISER INDEXAmerican Anchor www.american-anchor.com ................................41

BELFOR www.belfor.com ..............................................................48

BIG-D www.big-d.com ....................................................................2

BOMA www.bomautah.org ............................................................33

Certapro Painters www.certapro.com ..............................................17

Coldwell www.coldwellutah.com ......................................................31

CSS www.css-clean.com....................................................................45

Dana Sohm www.sohmphoto.com ....................................................38

Diamond Security www.diamondsecurity.com ................................26

Dynamond Cleaning www.dbmcompany.com ................................41

Geneva Rock www.genevarock.com ..................................................4

Hunt Electric www.huntelectric.com ................................................26

IREM www.iremchapter33.org ........................................................25

Jacketta Sweeping www.jackettasweeping.com ................................32

JAN-PRO www.jan-pro-utah.com ..................................................24

Layton www.laytonconstruction.com ................................................23

Mountain West Small Business Finance www.mwsbf.com ............39

MSS www.mss84.com ......................................................................37

Pro Touch www.myprotouch.com......................................................20

Questar www.thermwise.com ............................................................7

R & O www.randoco.com ................................................................47

Rocky Mountain Power www.wattsmart.com ................................28

Securitas Security www.securitas.com ..............................................45

Sprague www.spraguepest.com..........................................................35

Staker-Parson www.stakerparson.com ..............................................21

Utah Controls www.utahyamas.com ................................................43

Utah Disaster Kleenup www.utdk.com..............................................3

and debt are actively looking to acquire

apartments in Utah. Money is chasing

yield, but it is chasing fair yield with

the potential of upside. Through the

end of the year, CAP rates will

continue to be compressed and values

increased. Vacancy will continue to

decline, which will put upward pressure

on rents. Utah is headed into a

landlord-friendly market where

apartments have become sexy.

What is driving rents up as well as

apartment values? Currently, there is a

reduced supply of new product coming

online this year versus the last two years.

The number of units that have come

online each year in Salt Lake County,

going back to 1980, average 1,427 units

per year. In 2009, 2,442 units were

added with another 819 in 2010, which

was a large influx of new product that

was absorbed and continues to be

absorbed. This year, through April

2011, only 193 units have been added.

New supply, in the short term, will

continue to see a decline for several

reasons. The primary reason for the

lack of new product is the dearth of

availability of financing. The principle

financing source of apartment

development has been HUD. The lack

of available ground poses physical

barriers. Finding cities willing to zone

or permit new apartments is another

road block.These barriers will continue

to make it difficult to get apartment

approvals. There is also a new

generation of “lifestyle renters,” people,

who for mobility, inability to buy a

home and/or for less stress in their

lives, have chosen to rent instead of

own. Statistically, the number of renters

has grown over the last five years, and

research shows it will continue to grow.

The new definition of sexy will

continue to have a huge effect on the

Utah apartment market. After two

years of difficult operations, tenant

skips and concession wars, owners are

staring into a landlord market and are

preparing to reap the rewards. Now isthe time to start increasing rents andpositioning assets for higher cash flowand/or a potential sale. Capitalizationrates will continue to be compressed asrents rise. Values, after being somewhatstagnant for a while, will begin to rise.Barriers will keep competition away inthe short term. With vacancy expectedto dip below 5 percent in Salt LakeCounty this year, apartments offer alow-risk investment with a foreseeableand predictable strong future.Conservative and safe are the newpretty girls in town.

Mark Jensen is aninvestment specialistat Commerce RealEstate SolutionsCushman &Wakefield AllianceMember. He can be

reached at [email protected] or801.303.5469. UF

multifamilycontinued from page 44



Utah FacilitiesP.O. Box 970281Orem, UT 84097-0281

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Utah Facilities November 2011