Commercial real estate market still frozen

(Park Record) It's hard to go shopping anywhere in Park City without seeing vacant storefronts. Some strip malls have had empty spaces for nearly a year. But retail, with a 9 percent vacancy rate, is actually the bright spot in Park City's commercial real estate market.

According to Chris Donaldson, an appraiser with Cushman & Wakefield, about 15 and a half percent of the area's office space is vacant and 16 and a half percent of industrial space is.

For various reasons, vacancy isn't distributed evenly. The Tanger Outlet Center is nearly 100 percent full while Quarry Village further up Landmark Drive is at 50 percent. That's according to a report Donaldson produced for Commerce CRG that recently split into Commerce Real Estate Solutions and CRG Utah.

Management for Tanger and Quarry Village were contacted but could not be reached.

Residential-property owners are often willing to sit on a home rather than sell it for too low a price. Commercial landlords don't have that worry since they retain ownership, but Donaldson said there are many reasons they allow space to remain vacant.

One is shoppers, like home buyers, are waiting until they're sure the market has hit bottom. Donaldson works in six states and he sees the same trends everywhere. With vacant residential lots and commercial spaces, owners can lower the price 75 percent and still not have takers. Price is inconsequential if buyers aren't buying, he said.

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