Cracking Open New Land Opportunities in Utah
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
Utah gives just about everything commercial real estate fans want: beautiful views, high-demand destinations, and land. As people begin to travel again after the pandemic, one of the top desires is definitely conveniences.
People flooded Utah in the last half of 2021, especially with looming concerns about international travel still lingering. The University of Utah put out an interesting research brief in June about Utah’s hospitality industry, indicating that the recovery is slow, but still present.
Key Insights From the report
The report is from the David Eccles School of Business within the University of Utah. the report has some great takeaways and is only four pages, but here are some highlights to consider:
- Transient room tax revenue surpassed pre-pandemic levels.
- Air traffic into Salt Lake City International is expected to return to baseline levels in 2022 for domestic travel, but international air travel needs another 2 years to recover.
- Short-term rental occupancy rates are up to 67 in small cities and rural areas
- Utah’s top 5 national parks set monthly visitation records every month since October 2020.
This signals that people not only want to go to Utah, they want to do so in a way that is still socially distant yet open to experiences. In addition, this sets the stage for commercial land opportunities in the state as well.
Making the Case for Buying Land in Utah
The idea that land isn’t a major revenue generator compared to other asset classes is a non-starter. Indeed, land is a great addition to a commercial property portfolio because of its versatility.
Land is whatever the group needs it to be to reach the goal. What’s important here is not just to acquire land, but to have a strong strategic vision to put it to the best use possible.
Quick Facts About Utah
Utah is an interesting state with its own set of strengths and opportunities. For example, the state of Utah has over 3.4 million residents, and the top 5% of earners in Utah make over $517,405 on average, according to a data analysis report from Go Banking Rates.
In 2019, the median household income for the state of Utah was $71,621. There’s clearly opportunity across the state, and not just in Salt Lake City.
Profitable Options for Land Acquisition
The key within land acquisition is having a plan, and multiple profitable options exist for land use. However, it is difficult to visualize the possibilities at times, even for the most seasoned within the commercial real estate space.
This is where it helps to have a guide of ideas. The next few sections will offer a sampling of possible ideas within the state of Utah.
Corporate Retreats
While corporate travel did take a sharp turn for the worse, many companies do indicate that they want to return back to the office. Remote work is here to stay, but some top talent indicates a desire for a hybrid structure of some kind.
This can vary from one day in the office to four days in the office. The point is that employees do miss the cultural bonds formed by working together in the same space; bonding over a Zoom call just isn’t the same.
The need to rebuild culture is at an all-time high, and a corporate retreat is a great idea for organizations that need to nurture key players in a unique way. That’s where the land opportunity comes in.
Building outdoor activities for business retreats is a great idea that doesn’t have to require adding in accommodations. Setting up axe throwing or another physical activity can be enough to create team camaraderie, which is what the company was looking for in the first place.
Outdoor Festival Space
Move over weddings, there’s a new player in town. Outdoor festival space takes advantage of letting all of the event planning work fall on the heads of the organizers, while the property owner simply collects a fee for the use of the space.
Setting up multiple agreements for festivals does take a bit of work in terms of ensuring the festivals don’t overlap, but that’s easy enough to manage.
The benefit here is that the owner doesn’t carry a lot of risks. The event planners have to carry insurance for the event, which helps reduce liabilities. Of course, since every insurance situation is unique it’s always best to run through the risk mitigation steps properly with your own legal professionals.
Agritourism
Agriculture and tourism go hand and hand as more and more people have the desire to reconnect with the land. The right land can be left open to not just agriculture, but inviting people out for tours where other items are sold.
The opportunities here are endless, and Utah already attracts a large group of people that are more concerned with issues of sustainability and getting away from technology. It’s very possible to offer items to this audience that are high on their list, especially handmade products.
The handmade goods market shot up to over $500 billion in 2021, with no signs of slowing down anytime soon. Original handmade items signal to consumers that someone has taken the time to make a quality product, which is a strong factor in purchasing.
The Road Ahead
New land opportunities in Utah equal new opportunities to build a commercial property collection to new heights. Even though the path is uncertain, an opportunity is worth getting out of the comfort zone. Growth requires getting uncomfortable and aware of what is necessary to move to the next level.
Trying to build land opportunities isn’t a mission that has to be taken on from an individual standpoint. In fact, it’s very possible to pull off even bigger land opportunities in Utah through working with local people that are already well versed in the space.
The world of commercial real estate is about building lasting connections; it doesn’t hurt to reach out and speak with people that are already in an area with land for sale in Utah.
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