Nestled in Utah’s picturesque Wasatch Range, Park City offers more than just breathtaking landscapes. This mountain paradise provides real estate investors with exciting prospects in 2023. Read on to learn about the trends shaping Park City’s commercial real estate (CRE) market, from the constant demand for industrial spaces to the changing office scene.
INVESTING IN PARK CITY COMMERCIAL REAL ESTATE
Park City, with its stunning natural beauty and thriving business community, presents a unique and dynamic market for investors. Here’s how the CRE market is predicted to look in 2023, as well as possible Park City commercial real estate opportunities.
Industrial space development will be fueled by e-commerce
The rise of e-commerce has generated an urgent need for technologically advanced industrial facilities where businesses can optimize their logistics and ensure timely delivery. Industrial rents are expected to increase year over year, with class A and new construction sites
benefiting the most.
Multi-family properties take center stage
Despite 2022’s record inflation, multi-family properties have shown remarkable resilience during
the pandemic. In 2023, these properties are expected to maintain their dominant position and
for investors to reap the rewards.
The housing inventory imbalance is a major factor driving the success of multi-family properties.
As the pandemic recedes, the quantity of available homes for sale remains half of what it was
before the crisis. Because of this scarcity, multi-family properties have witnessed a large surge
in demand for rental units.
Retail buildings primed for repurposing
Online shopping has transformed the retail business, posing a threat to traditional brick-and-
mortar shopping centers. Following the pandemic, retail buildings had to be converted to meet
new demands. Developers are implementing a variety of adaptive reuse strategies in an effort to
breathe new life into neglected commercial assets. Among these are:
Converting vacant retail areas into mixed-use spaces that combine commercial and
residential features
Converting dated offices into multifamily dwellings
Restoring older retail buildings using modern infrastructure and innovative design
A focus on sustainable development
In August 2022, Congress passed the Inflation Reduction Act, which emphasizes environmental
and energy conservation. Property owners, particularly those in the commercial real estate
sector, now have a wealth of new opportunities to incorporate eco-friendly improvements such
as high-efficiency HVAC systems and electric vehicle charging stations for a more sustainable
and greener future. The act encourages tenants to live in environmentally friendly buildings by
offering tax credits and incentives. As commercial real estate strives to fulfill the growing
demand for eco-conscious living and working spaces, pedestrian-friendly features and
walkability will become more prevalent in new developments beyond multi-family dwellings.
Office rentals remain affected by the pandemic
Even after three years since the onset of the pandemic, remote work remains prevalent in many
companies. The shift to a remote work culture continues to negatively impact traditional office
spaces. Furthermore, the recent rise in interest rates has made it more challenging for
commercial property owners to qualify for mortgages and loans.
However, amidst these changes, there’s a glimmer of hope for office spaces. Hybrid workplaces
are expected to gain traction, offering remote work and in-person collaboration. Experts predict
that in 2023, advancements in office development and design will incentivize employers to bring
employees back to the physical office environment.
Discover potential commercial real estate opportunities in Park City, UT and gain insight into the
latest industry trends with Team Schlopy. Call 435.640.5660.