Building Salt Lake is a tremendous online publication focused on CRE not only in Salt Lake City but in Utah generally (strong focus on the Wasatch Front). The attached article references a recent conference that included Utah-based professionals engaged in urban studies, design, land use, and development. A Utah state Senator and state representative also participated. Bottom line: condominiums don’t pencil. And they don’t pencil for a variety of reasons. Arguably the most important being return on investment relative to the time needed to develop projects (stringent lender prerequisites) and design limitations (local zoning and building codes). Compounding the problem is the fact that multifamily construction is far easier to accomplish and provides far greater returns. For the condominium product that is built 90%+ of current renters can’t afford a condo. For these reasons condominium construction as a percentage of new housing stock has declined from 53% in 2005 to 5% in 2022. It’s no wonder that condominiums aren’t a housing option in today’s world. 

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

Please find us at svikhart.com or contact us at 801-550-5684 to learn about the real estate services the firm provides. To subscribe to the firm’s newsletter addressing events of the day please follow this link Newsletters.