Land Lines- Week 43

Utah Land

Land Lines – Week 43

The prison relocation continues to be a hot topic, the state has narrowed their search to 4 spots. Davis and Tooele counties have been taken off of the list, the most viable spot seems to be the land around the Salt Lake Airport. We will continue to keep our followers updated as news is released.

On the heels of the groundbreaking of the East Village transit-oriented development in Sandy, attended by U.S. Department of Transportation Secretary Anthony Foxx, UTA is moving forward with its second transit oriented development (TOD) in West Jordan City. Today the Board of Trustees approved the conveyance of land surrounding the Jordan Valley TRAX Station to the joint venture entity established with the chosen developer.

Watch for 3Q2014’s newsletter in the next few weeks, the topic for this edition is boundary lines. If you would like to receive a print version click here. Many of you have received the 2Q Newsletter in the mail, if you haven’t here is the link: http://joom.ag/H55b.

If you or someone you know has been on the fence about selling their land, fall is a great time to start the process, marketing and selling a raw or papered land deal correctly takes time and experience. If you would like to schedule a meeting to discuss selling your property now or in the future please call. I look forward to speaking with you.

If you would like to receive the weekly land stats and headliners click here to subscribe. Past editions are available on the website under the Land Lines topic. Feel free to share with friends and associates.

Sincerely,

Brooke GlaittliLand Sales – 801-554-2332 – www.brookeg.com

 

Week 43 Land Stats

10/19/2014-10/26/2014: Salt Lake, Utah Counties and Davis Counties*

7 land parcels sold, 12 sold in week 42.

33 properties were put on the market, as compared to 30 in week 42.

 

YTD along the Wasatch Front**

5,407single family building permits have been issued, there were 5,302 issued as of week 42.

56 duplex/ twin home permits have been issued, the same as week 42.

113 apartment/ condo permits have been issued, 112 had been issued by week 42.

187 commercial permits have been issued (this number does not reflect all types of permits).

*Source WFRMLS               **Source Construction Monitor

Recent UtahLandowners.com Headliners:

 

Housing News

Pending home sales increased 0.3% in September, suggesting continued steady improvement in existing sales. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), increased to 105.0 in September from 104.7 in August. The September reading was up 1.0% from the same month a year ago, and pending sales were up year-over-year for the first time in 11 months.

The September PHSI increased modestly in the South and Northeast, but decreased slightly in the West and Midwest. Year-over-year, the West, Northeast and South increased 3.6%, 2.9% and 1.7% respectively, while the Midwest declined 4.0%.

Last week NAR reported a 2.4% increase in September existing home sales, and firming job and economic growth suggests that the existing home market will demonstrate steady growth throughout the fall. The housing recovery has moved towards higher ground reflected by a six-year high in September new homes sales.

Read more here.

 

Monday’s Market Numbers

The Trepp survey for the week ending October 24, 2014, showed average spreads basically unchanged, with the implied rate for ten-year, modestly leveraged commercial real estate mortgages equaling 3.64 percent—100 basis points lower than year-end 2013. With just over eight weeks to year-end, the focus is solely on getting deals done, period, with plans for 2016 put on the back burner.

Asking Spreads over U.S. Ten-Year Treasury Bonds in Basis Points (Ten-year commercial and multifamily mortgage loans for properties with 50 to 59 percent loan-to-value ratios)
12/31/10 12/31/11 12/31/12 12/31/13 This week (10/17/14) Last week (10/10/14) Month earlier
 Office 214 210 210 162 149 148 141
 Retail 207 207 192 160 140 137 138
 Multifamily 188 202 182 157 137 133 137
 Industrial 201 205 191 159 140 137 137
 Averagespread 203 205 194 160 142 139 138
 10-yearTreasury 3.29% 2.88% 1.64% 3.04% 2.22% 2.36% 2.57%

The Cushman & Wakefield Equity, Debt, and Structured Finance Group’s monthly Capital Markets Update of commercial real estate mortgage spreads dated September 11, 2014, showed spreads increasing 10 to 15 basis points across the board compared with the prior survey (dated July 4) as lenders seem to be trying to make up some ground after the “great low spreads due to low Treasury yields giveaway” of the past few months. Even with the uptick in rates, it remains an attractive time to finance or refinance commercial real estate.

30-Year Fixed-Rate Commercial Real Estate Mortgages (as of September 11, 2014)
Property Maximumloan-to-value Class A Class B/C
 Multifamily (agency) 75–80% T +160 T +170
 Multifamily (nonagency) 70–75% T +160 T +165
 Anchored retail 70–75% T +190 T +200
 Strip center 65–70% T +190 T +200
 Distribution/warehouse 65–70% T +175 T +200
 R&D/flex/industrial 65–70% T +195 T +205
 Office 65–75% T +185 T +190
 Full-service hotel 55–65% T +250 T +270
 Debt-service-coverage ratio assumed to be greater than 1.35 to 1.

 

Year-to-Date Public Equity Capital Markets

Dow Jones Industrial Average: +1.38 percent

Standard & Poor’s 500 Stock Index: +6.29 percent

NASD Composite Index (NASDAQ): +7.35 percent

Russell 2000: –3.83 percent

Morgan Stanley U.S. REIT Index: +15.74 percent

Year-to-Date Global CMBS Issuance(in $ billions as of 10/24/14)
2014 2013
U.S. $74.7 $67.1
Non-U.S. 2.3 10.3
Total $77.0 $77.4
Source: Commercial Mortgage Alert.

 

Year-to-Date U.S. Treasury Yields

U.S. Treasury Yields
12/31/12 12/31/13 10/2/14
 3-month 0.08% 0.07% 0.01%
 6-month 0.12% 0.10% 0.05%
 2-year 0.27% 0.38% 0.39%
 5-year 0.76% 1.75% 1.49%
 7-year 1.25% 2.45% 1.75%
 10-year 1.86% 3.04% 2.28%