Commerce CRG Mid-Year 2009 Market Review

Throughout, we have continued our commitment to the provisions of cutting edge technology, research and client service; a commitment we have never wavered from, and which we will maintain into the future. Although the specifics of the overall national economic situation remain unclear, we are highly optimistic about the future, and cautiously optimistic about the near future.

 

Like any business in today’s economy, we try to balance economic projections, trends and reports with what we are experiencing in our specific environment. Based on past trends and current economic data, we believe there is reason for cautious optimism. We have seen the number of transactions in the commercial real estate industry increase over the past several months, following a dive that started this past fall. Also, the number of phone inquiries/calls coming into our organization has increased in both quantity and in geographic diversity over the past four months.

 

This quarter the nation’s unemployment percentage rate hit a 26 year high, but as is typical, Utah has a lower unemployment rate than the nation (and has consistently enjoyed that status). In national rankings, Utah has time and again been a top contender for job growth and retention, in-migration and natural growth. In every annual ranking (including this year), Utah has consistently been rated among the best fiscally managed states in the union.

 

Real estate typically emerges from economic downturns following stabilization and increases in economic output and job growth, and we believe this trend will occur in this situation as well. Significantly, we believe this slow, positive evolution towards stability and eventual growth is occurring now.