Utah's commercial real estate market still struggling

SALT LAKE CITY (Deseret News) — The economic meltdown has hit Utah pretty hard, particularly in the real estate realm. And while the residential market is may be on the verge of a turnaround, the commercial market has yet to hit bottom, according to a local analysts.

Speaking to an audience of real estate professionals Tuesday at the Marriott City Center, Ron Schulthies, executive vice president and chief lending officer for the Bank of Utah, said the commercial sector continues to struggle.

"There are leaders and laggers in this economy, and commercial real estate is a lagger," he said.

Schulthies added that while the industry is still in an economic funk, the stage is set for a comeback, with lenders poised to support quality development projects.

"(Banks) have excess funds. … There is a lack of demand, and we would love to put money to work," he told the audience of about 50 industry insiders.

He said banks have a "tremendous incentive to make loans" because doing so would yield a much higher rate of return on investment than the institutions are currently getting with their funds essentially sitting idle.

Despite the hardships experienced in the commercial sector over the past couple of years, John Taylor, investment specialist with Commerce Real Estate Solutions, said the Wasatch Front "is doing better than most markets."

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