Washington County Commercial Real Estate Market Year End 2009

WASHINGTON COUNTY
Overview
- Washington County felt economic pinch; saw downturn in all sectors
- Infrastructure, other factors keeps the county well positioned for a quick recovery, although employment losses will temper.
Office
- Economy benefitted tenants; landlords who offered improvements and concessions fared best.
- Overall vacancies increased 3+%, but Class A vacancies declined as good tenants upgraded.
- Asking lease rates fell, and new construction was a standstill.
Retail
- 2009 was a tough year for retail—vacancies climbed over 4% with un-anchored and B & C class properties taking the hardest hits.
- Although several new tenants entered the market, all major developments are on hold until the market strengthens.
Industrial
- Sales of land and buildings, which started to slowdown in 2008, got even more sluggish in 2009.
- New building projects are poised for take-off when economy, lending improve.
- National, regional players still see Southern Utah as good location, but movement will continue to be slow.