Economic Benchmark. for Salt Lake City s Central Business District

Transcription

1 2011 Economic Benchmark for Salt Lake City s Central Business District

2 TABLE OF CONTENTS Introduction... 3 Executive Summary... 4 Employment and Wages... 5 CBD Office Market... 7 Hospitality and Convention Activity... 9 Retail Trade in the CBD... 9 Attendance at the Cultural and Entertainment Venues Tax Revenues in the CBD Housing Market in the CBD Conclusion

3 INTRODUCTION The Central Business District is the regional center for culture, commerce, and entertainment in Utah and a burgeoning urban center in the American West. It is the heart of Salt Lake City, leading the state in business, innovative policy, arts, culture, and entertainment. Whether it is coming to work downtown or going out for a night on the town, the CBD is a compact yet robust, dynamic community. The 2012 Economic Benchmark Study of Salt Lake City s Central Business District (CBD) was completed in June 2012 by the Downtown Alliance in coordination with CBRE of Salt Lake and the University of Utah Bureau of Economic and Business Research. This study is the fourth update of the original CBD economic benchmark completed in The geographic area of the CBD is defined as approximately 200 East, 400 South, 500 West and North Temple. This study is intended to provide background information for policy makers, business owners, civic leaders, interested developers, investors and downtown employees. The study treats in detail the following major economic indicators for the CBD: employment and wages office market conditions retail trade activity cultural and entertainment attendance hospitality and convention business tax receipts housing market conditions photo courtesy of Daren R. Peterson... 3

4 EXECUTIVE SUMMARY Since the first Economic Benchmark of 2002, Utah s capital city has experienced unprecedented times of transformation and growth was a year of recovery for much of Utah s economy. With the exception of housing, all major indicators showed signs of improvement (See Table 1). In the CBD itself, 2011 figures estimate 13,929 fulltime residents and over 65,000 jobs. Office workers dominate employment measurements, with 82% of jobs classified as office work. The CBD s restaurant industry ranks second, representing 11% of employment. The CBD has over 13 million square feet of office space. New office construction in 2011 was significant, with Gateway VI (fully preleased) and Questar Corporate Headquarters adding 273,540 square feet of office and retail space. According to CBRE, absorption for Salt Lake County was a positive 652,381 SF, 63% above the five-year average. Downtown office properties represent approximately one-third of all space in Salt Lake s office market, but only 21% of this absorption. Only class A office space registered positive absorption downtown, with the majority being accounted for in one transaction: the Goldman Sachs relocation to 222 S. Main. City Creek Center, a $1.5 billion dollar mixed-use development, entered final stages of construction in 2011 and opened March 22, Privately funded by The Church of Jesus Christ of Latter-day Saints and backed by a $76 million dollar investment from mall operator Taubman Centers Inc., City Creek Center is the largest project ever in the CBD. This project alone added 1,700 construction jobs, 90 stores, 2,000 retail jobs, 536 residential units, and 5,000 parking spaces. These economic impacts reach out to all of the Central Business District itself. From new businesses opening on Main Street to the CBD S first full scale grocery store, City Creek s positive economic benefit could be felt even a year prior to the grand opening. Hotels in the CBD/periphery operated at 66.1% occupancy in 2011, generating over $160 million in revenue. The Salt Palace Convention Center held 46 conventions with 189,030 attendees. These conventions accounted for 387,951 convention room nights. Spending by convention attendees over the 46 conventions totaled $175 million. Table 1: Summary of Utah s Economics & Forecast Measurement (f) Change 2011 Change 2012 Nonfarm Emp. (000) 1, , , % 2.7% Unemployment % UT Average Pay $38,828 $39,811 $41, % 3.2% UT Nonfarm Wages (million) Residential Permit Value (million) $45,876 $48,111 $50, % 6.0% $1,667 $1,735 $2, % 15.3% Dwelling Unit Permits (000) % 14.9% Nonresidential Value (million) Taxable Retail Sales (million) Total State Tax Revenue (million) $ $1, $1, % 0.0% $25,061 $26,255 $27, % 5.9% $4, $5, N/A 10.4% N/A New Vehicle Sales (000) % 12.9% Oil (millions of barrel) % 1.2% Exports (millions) $13,809 $19,099 $22, % 15.5% Population (000) 2, , , % 1.6% Migration (000) Source: Governor s Office of Planning and Budget, 2012 Economic Outlook... 4

5 In 2011, retail sales in the CBD generated over $455 million in revenue. Total revenue generated in the CBD represents 11.6% of the revenue of Salt Lake County. Total revenue is expected to rise significantly with the opening of City Creek in The 2011 CBD housing market is a story of highs and lows. The average price of condos sold was $196,846. The biggest new addition to the housing market was City Creek Center, adding 111 apartment units, 425 condominium units and over a thousand new residents to the CBD. Table 2 presents the major economic indicators of the CBD economy. Table 2: CBD Economic Profile (Constant 2011 Dollars) Category Amount Employment 65,450 Wages Paid Office Square Footage Office Vacancy Rate 6.6% $2.5 Billion 13.1 Million SF Retail $455,930,560 Retail Square Footage Hotel Rooms (CBD) 6,990 Hotel Occupancy 66.1% Convention Attendee Downtown Room Nights Retail Spending By Convention Attendees 1.8 Million SF 387,591 Housing Units 7463 $175 Million Population 13,929* Parking Spaces 30,179* *2011 estimate Source: University of Utah Bureau of Economic Business Research. CBRE, Salt Lake CVB, Downtown Alliance EMPLOYMENT AND WAGES During 2011, Utah employment grew by 27,000 jobs, or 2.3% from 1.18 to 1.21 million employed. Unemployment rates were 7.0%, around two percentage points lower than the national average 1. Employment in the CBD has increased by only a few hundred jobs over the past four years. The combined effects of the recession and the closure of Crossroads Mall and ZCMI Center limited the possibilities for job growth. The employment in the CBD is estimated at 65,450 jobs in Employment in the CBD is dominated by office workers. 82% of total employment in the CBD is classified as office jobs. Restaurant employment ranks second with 11% of all jobs. The restaurant sector has had the highest longterm rate of growth, increasing by 118% since Restaurants in the CBD employed 7,300 people in Downtown retail jobs in 2011 were 37% lower than in 2001 but this decline is due almost entirely to the loss of Crossroads Mall and ZCMI Center. This loss in retail jobs will be recovered in 2012 with the opening of City Creek Center. In 2011, an estimated 1,700 workers were employed in the retail sector, less than 3% of total CBD employment. Office, restaurant and retail employment account for 95% of all jobs in the CBD and 97% of the wages paid in The 65,450 workers in the CBD earned $2.7 billion in wages and salaries in Nearly $2.5 billion was paid to office workers in Wages paid to office workers have increased by 15% t since Nearly all of this increase is accounted for by a 13% increase in the average wage rate. The remaining increase is attributable to the slight growth in office employment of 750 jobs. With the completion of new buildings, office employment has expanded. The completion of 222 Main Street added 420,000 square feet and two new office buildings in The Gateway added over 300,000 square feet of space. The location of workers in these new offices helped offset the loss of office jobs due to the recession. In 2007 the vacancy rate in CBD office buildings was 11.8% compared to 16.3% in

6 Table 3: Estimated Employment Change by Sector in the CBD Sector Change Office 42,000 51,350 51,250 53,000 53, % 4.7% Restaurants 3,350 7,300 7,400 7,200 7, % 0.0% Retail 1,550 2,700 2,600 1,800 1, % -37.0%* Hotels 1,250 1,800 1,800 1,800 1, % 0.0% Manufacturing % -90.0%** Miscellaneous ,100 1,100 1, % 46.6% Total 49,150 64,400 64,600 64,950 65, % 1.0% *Primarily due to the loss of Crossroads and ZCMI Center. **Primarily due to the relocation of Newspaper Agency Corporation from Downtown to West Valley. Source: University of Utah Bureau of Economic Business Research Table 4: Distribution of Employment by Sector in the CBD Sector Office 85.5% 79.7% 81.6% 82.1% Restaurant 6.8% 11.3% 11.1% 11.2% Retail 3.2% 4.2% 2.8% 2.6% Hotels 2.5% 2.8% 2.8% 2.4% Manufacturing 1.0% 0.8% 0.1% 0.1% Miscellaneous 1.0% 1.2% 1.7% 1.6% Total 100.0% 100.0% 100.0% 100.0% Source: University of Utah Bureau of Economic Business Research Table 5: 2011 Wages by Sector in the CBD Sector Average Annual Employed (#) Wages (000) Office $45,740 53,750 $2,458,525 Restaurant $14,628 7,300 $106,784 Retail $30,240 1,600 $48,384 Hotels $22,835 1,700 $38,820 Manufacturing $37, $1,891.8 Miscellaneous $32,177 1,050 $33,786 Total $41,072 65,450 $2,688,191 Source: Utah Department of Workforce Services, University of Utah Bureau of Economic Business Research Table 6: Percent Change in Wages Paid by Sector in the CBD Sector 2007 (million) 2011 (million) Percent Change Office $2,133.9 $2, % Restaurant $98.3 $ % Retail $49.3 $ % Hotels $40.1 $ % Manufacturing $1.9 $1.9 0% Miscellaneous $32.6 $ % Total $2,356.1 $2, % Source: Utah Department of Workforce Services, University of Utah Bureau of Economic Business Research... 6

7 OFFICE MARKET IN THE CBD At the end of 2011, two stories should be told when looking at the office market in the CBD. Although most of the country still experienced difficult economic times, Utahalong with its largest metro area, Salt Lake- experienced job growth at more than double the national average 2. While the economy continues to grow and office space absorption increases across the state, the CBD s office market area has unique challenges of its own. During the next 12 months, over 350,000 SF of space will be vacated downtown as occupants move to new single-tenant locations or downsize. The effect this will have on the market must be judged considering current tenant occupancy trends. With such a large amount of space entering the downtown office market, stronger tenant demand in the suburban market, and uncertainty in the macro-economic environment, downtown landlords will need to maintain an aggressive business posture. Furthermore, the CBD will benefit from activity and commerce associated with City Creek Center. Urbanization is a national trend, and Salt Lake is not an exception. With unprecedented growth over the past decade and continued enhancements planned for the future, Downtown Salt Lake City is strengthening its identity as a premier urban center in the American West. Table 7: CBD Office Vacancy Rates * 25.0% 7.2% 7.9% 21.7% 23.7% 23.2% 20.0% 17.9% 17.3% 18.9% 17.5% 18.6% 19.4% 18.5% 16.3% 15.0% 14.7% 14.8% 11.8% 12.2% 11.6% 12.2% Class A Class B Class C 10.0% 9.7% CBD 5.0% 0.0% Table 8: CBD Average Office Lease Rates * $35.00 $32.50 $30.00 $27.50 $25.00 $22.50 $20.00 $17.50 $15.00 $12.50 Class A Class B Class C Average CBD County Average $ Class A $18.87 $25.04 $31.53 $29.64 $28.11 Class B $20.07 $20.78 $21.60 $22.59 $22.18 Class C $14.61 $14.99 $14.44 $15.61 $16.79 Average CBD $17.39 $20.14 $23.87 $23.83 $22.30 County Average $18.44 $19.17 $20.25 $19.54 $19.12 * Tables 7 & 8: Office Buildings 20,000+ SF in the CBD. Source: CBRE... 7

8 Table 9: 2011 CBD Office Market Characteristics* Class Base Square Feet Lease Rate (FSG) A 2,770,881 $28.11 B 2,620,086 $22.18 C 1,498,562 $16.79 Total Leasable 6,889,529 $22.30 * Office Buildings 20,000+ SF in the CBD. Source: CBRE Table 10: Major Office Buildings Completed Since 1990 Building Name Address Year Built Square Footage One Utah Center 201 S. Main Street ,709 Dept. of Workforce Services 140 East 300 South ,000 Broadway Center 111 East 300 South ,000 Joseph Smith Memorial Bldg. 15 East South Temple ,400 Social Hall/IRS 150 East Social Hall Ave ,000 Deseret News 30 East 100 South ,750 Gateway Tower West South Temple and Main ,000 Wells Fargo Center 300 South Main Street ,766 Matheson Courts Complex 450 South State Street , East 300 South 30 East 300 South ,095 Gateway One 400 West 100 South ,000 Gateway Two 400 West 100 South ,000 Alphagraphics Buildings (Celtic Bank) 280 South State Street ,193 Gateway Three 400 West 200 South ,903 Gateway Four 50 North 400 West ,000 Gateway Five 200 South 500 West , South Main 222 South Main ,671 Gateway 6 50 North 460 West ,540 Questar 333 South State Street ,000 Source: Utah Department of Workforce Services, University of Utah Bureau of Economic Business Research, Downtown Alliance, CBRE... 8

9 HOSPITALITY & CONVENTION DATA In 2011, the estimated room revenue for hotels in the CBD/periphery was $160 million. This is nearly double the amount since 2007, which estimated revenues at $81.2 million. Average room rate in 2011 was $103.68, a gain over $ in Since the 2002 peak, room rates have steadily increased to surpass previous records set during the Olympic year. These impressive hospitality numbers showcase a burgeoning hotel market and positive tourism and convention strides 3. The Salt Lake Convention and Visitors Bureau conducts surveys on spending patterns of convention attendees. In 2011, the 46 convention groups that occupied the Salt Palace convention space accounted for 387,951 convention room nights. Spending by convention attendees over the 46 exhibits totaled $175 million. For information on tax revenue in CBD, please see the tax section in this report. RETAIL TRADE IN THE CBD The record for retail sales in the CBD was set in 2006 at $618 million (inflation adjusted). In 2011 retail sales, hurt by the recession and downtown construction, fell to $455 million. Although sales have weakened in the past few years the CBD has maintained its share of countywide retail sales. For the past ten years downtown retail has captured 10-12% of countywide retail sales (Table 12). Remarkably the CBD s share didn t fall off after the closure of the Crossroads Mall and the ZCMI Center in The CBD and county comparison includes only those categories relevant to downtown retail. For instance, retail sales of automobiles, gasoline, general merchandise, etc. were not included; these retail categories are confined almost exclusively to the suburbs. The broad retail categories used in the comparison were: clothing, furniture, fast food, food and eating, drinking and specialty retail (books, stationary, gifts, luggage, sporting goods, hobbies, etc.) Table 11: CBD Occupancy & Room Rent Year Occupancy Rate Avg Room Rate % $95.79 $ % $89.75 $ % $83.26 $ % $82.97 $ % $ $ % $85.03 $ % $85.20 $ % $85.35 $ % $92.02 $ % $98.89 $ % $ N/A % $ $160 Annual Room Revenue (millions) Data unavailable Source: University of Utah Bureau of Economic Business Research, Salt Lake CVB, Downtown Alliance The CBD s retail sector (including restaurants) now has about 1.8 million square feet of retail space. Sales should exceed $600 million within a year. Retail establishments, including restaurants, employ nearly 9,000 workers. While retail activity accounts for 13% of the employment in the CBD it has only about 7% of the wages. Even after the completion of City Creek Center, the economic base of the CBD will continue to be heavily dominated by the office sector (private and public). Of the 65,450 jobs in the CBD 82% are office workers ranging from CEOs to clerks. The wages of these office workers totals $2.5 billion. City Creek will continue to get most of the news coverage and deservedly so. The center will be the only major mixed used project to open in the U.S. in City Creek is an exciting project for downtown, adding 700,000 square feet of retail space and hundreds of millions in retail sales. The opening of City Creek in 2012 will give a boost to clothing sales in the CBD. Over the last several years eating and drinking have dominated retail sales with nearly 60% of the retail activity in Food sales at eating establishments totaled $269 million in 2011 (Table 13). Twenty years ago apparel and accessories accounted for as much as 45% of retail activity while eating and drinking captured less than 20%. The relatively recent shift to eating and entertainment has been one of the most distinctive features of downtown retail but City Creek Center is bound to change the distribution of retail sales in downtown. Apparel s share will grow as some suburban spending on clothing shifts to downtown and specialty retail should show a similar pattern.... 9

10 Table 12: Selected Retail Sales in Salt Lake County and CBD Year Salt Lake County CBD: Zip Codes & CBD Share of County 2005 $4,523,187,125 $508,011, % 2006 $5,057,339,059 $618,083, % 2007 $5,263,686,685 $608,265, % 2008 $4,746,408,986 $523,820, % 2009 $4,635,772,599 $492,576, % 2010 $4,580,484,721 $479,428, % 2011 $3,922,336,488 $455,930, % Source: Utah State Tax Commission Table 13: 2011 CBD Selected Retail Sales By Category Category Retail Sales Share Apparel & Accessories $80,192, % Furniture $22,533, % Eating & Drinking $268,099, % Specialty Retail* $85,104, % Total $455,930, % Source: Utah State Tax Commission *Specialty stores, e.g. book stores, jewelry, sporting goods, etc. ATTENDANCE AT CULTURAL & ENTERTAINMENT VENUES Offering a diverse range of cultural and entertainment activities, downtown acts as the cultural core of the entire region and a premiere destination in the American West. This is evidenced by both the development of several new signature projects and the annual attendance numbers. These projects include the Utah Performing Arts Center, (UPAC) The Jessie Eccles-Quinney Center for Dance and Capitol Theatre renovation, and the Utah Theater. UPAC is a proposed 2500 seat, state of the art theater to be located in the heart of the CBD on Main Street between 100 South and 200 South. Ballet West and the Salt Lake County Center for the arts have formed a public-private partnership to renovate the Capitol Theatre and build a neighboring facility just west of the original theatre that will become the home for Ballet West and the Ballet West Academy. The Capitol Theatre renovations will feature lobby and concession expansion, improved seating and sightlines, and a new banquet hall. The Utah Theater, once a movie theater, is a potential site for the development of a high tech film center and digital media facility was a great year for most downtown cultural and entertainment venues. Utah Museum of Contemporary Art, formerly Salt Lake Art Center, had 100,999 visitors and set an all time one day record of 3,613, shattering the previous record of less than 1,000. Energy Solutions Arena, home of the Utah Jazz and Utah Blaze as well as a indoor concert venue, held 33 NBA games in This number is lower than normal due to an NBA lockout early in the season. In addition to the venue structures in the CBD, there are several outdoor events that continue to grow. Signature downtown events include: Twilight Concert Series, Downtown Farmers Market, Dine O Round, EVE, Utah Arts Festival, Greek Festival, Living Traditions Festival, Pride Festival, Tastemakers, Arts Stroll, Days of 47 Parade, Ice Skating at the Gallivan Center, Jazz Fest, Urban Arts Fest, and Urban Flea Market to name a few. Twilight, EVE, Pride, Farmers Market, and the Utah Arts Festival all had record breaking attendance numbers in

11 TAX REVENUE Utah s tax revenue grew in fiscal year Totaling $6.5 billion, tax revenue increased 6.6% over The biggest revenue sources come in state sales and use tax, which has steadily increased year by year. Sales tax for Salt Lake County totaled $170 million 4. Narrowing into the CBD, seven different taxes are applied to retail sales. The total sales tax rate is currently 6.8% and comprised of 4.7% rate for the state and a 2.10% rate for city and county. Restaurant and transient room tax revenues are indicators of retail activity in the CBD. In real terms restaurant sales are below the peak of 2006 but with the opening of City Creek, sales should record some increases. Restaurant tax revenue was $2.2 million in Transient room tax revenue from hotel and motel lodging in the CBD was $3.94 million in Table 14: Transient Room Revenue in the CBD (Constant 2011 Dollars) Year Hotel Room Rents Transient Room Tax Revenue 2000 $92.60 $ $82.80 $ $ $ $78.23 $ $76.55 $ $79.23 $ $82.78 $ $ $ Data unavailable Source: Utah State Tax Commission and University of Utah Bureau of Economic Business Research Table 15: Restaurant Tax Revenue in the CBD (Constant 2011 Dollars) Year Restaurant Sales Restaurant Tax Revenue 1996 $240,440,891 $2,404, $235,905,387 $2,359, $248,761,338 $2,487, $225,123,145 $2,251, $223,194,835 $2,231, $171,314,876 $1,713, $231,152,945 $2,311, $219,908,442 $2,199, $213,240,798 $2,132, $221,796,656 $2,217, $307,452,579 $3,074, $222,022,343 $2,220, Data unavailable Source: Utah State Tax Commission and University of Utah Bureau of Economic Business Research... 11

12 Table 16: Major Tax Revenue Sources* (millions $) Year State Sales & Use Tax Individual Income Tax Local Sales & Use Tax Motor Fuel Tax 2001 $1,431.4 $1,713.1 $314.3 $229.4 $ $1,441.3 $1,610.6 $318.0 $237.9 $ $1,440.0 $1,575.4 $325.2 $236.6 $ $1,501.9 $1,699.2 $331.6 $239.9 $ $1,634.5 $1,933.3 $361.1 $241.5 $ $1,806.3 $2,286.7 $415.9 $240.4 $ $1,857.8 $2,570.4 $463.3 $254.7 $ $1,739.4 $2,602.7 $469.4 $244.7 $ $1,547.5 $2,332.5 $425.1 $235.5 $ $1,402.7 $2,114.4 $398.9 $243.3 $273.2 Corporate Franchise Tax 2011 $1,601.4 $2,298.2 $415.4 $252.5 $260.7 *Starting in FY2011, both individual income tax amounts corporate franchise tax amounts no longer include mineral production withholding tax. Source: Utah State Tax Commission HOUSING MARKET IN THE CBD According to a Salt Lake Board of REALTORS study done by James Wood of the University of Utah, the 2011 housing market sales showed improvement for the first time in four years. In 2011, single-family home sales totaled 9,300, up from 8,565 in New home building was seriously hindered by the recession, with construction down 76 percent from the 2005 peak 5. Please see the Housing Market profile table below for more information. (Table 18) The Salt Lake Board of Realtors data shows that the median sales price for condominiums in Salt Lake City has begun to recover from the downturn years of 2009 and 2010 (Table 17). The 2011 median sales price of $187,785 is 27.9% below the high set in 2008 of $260,426. The single family home market in downtown is a similar story, with the 2011 median 32.2% below the high set in It should be noted that the ZIP Codes boundaries are slightly larger than the CBD boundaries in Table 18. The condominium market grew substantially in 2011 with the addition of three new complexes under the City Creek Living project. Promontory, Richards Court, and The Regent added 424 new condominiums to downtown. Additional City Creek has plans for another development called Cascade, which is projected to add an additional 115 units

13 Table 17: 2011 Profile of the Housing Market Total Housing Units Median Value of Owner Occupied Units Home Ownership Rate Units in Multi- Unit Structures Persons per household Salt Lake County Salt Lake City CBD 364,031 80, ,500 $243,200 N/A 68.5%. 49.7%. N/A 27.1%. 46.6% N/A N/A Population 1,029, ,440 13,929* Source: 2010 US Census for and Zip Codes Table 18: Median Sales price of Condos and Homes SOLD in & Zip Codes Year Condos #Units Homes #Units 2002 $140, $104, $155, $103, $181, $105, $180, $123, $218, $123, $242, $177, $260, $169, $198, $125, $186, $110, $187, $120, Source: Salt Lake Board of Realtors, Downtown Alliance... 13

14 Table 20: Inventory of Condominium Units in the CBD Name Address Units Year Built Belvedere* 29 South State American Towers 46 West 300 South Eagle Gate 115 East South temple Warehouse Condominiums** 317 West 200 South Dakota Lofts** 380 West 200 South The Club 150 South 300 East Broadway Lofts** 159 West Broadway Pierpont Lofts** 346 West Pierpont Tire Town** 300 South 300 West Karrick Building** 236 South Main The Plaza 300 South State Street Uffens Market Place 336 West 300 South Library Square 226 East 500 South Parc at The Gateway 14 South 400 West Brooklyn Condominiums 700 North 300 West Westgate 200 South 238 West (phase 1) Metro Condos 350 South 200 East Sampson Altadena* 276 East Broadway West 300 South* 80 South 300 West Broadway Tower* 300 South 230 East Promontory 99 W. South Temple Richards Court 45 East south Temple The Regent 45 East 100 South The Cascade 90 West 100 South 115 TBA Broadway Park Lofts 300 South 350 West 92 N/A Le Porte Group 237 South State Street 180 N/A *Converted from Apartment Use **Converted from Commercial Use Source: Survey of Apartments... 14

15 CONCLUSION In his award winning urban economics work Triumph of The City, Harvard Professor and Economist Edward Glaeser writes: Cities are the absence of physical space between people and companies. They are proximity, density, closeness. They enable us to work and play together, and their success depends on the demand for physical connection. For Glaeser, the city is the centerpiece of 21st century connectivity and creation. Glaesar s astute observation helps us to frame a few closing thoughts on Salt Lake City s Central Business District. With significant changes in the last decade and ample room for future growth, expect the CBD to strengthen its identity as the regional center for culture, commerce, and entertainment. Our community is dedicated to building a sophisticated 21st century urban community. The Utah Transit Authority announced in 2011 that the airport trax line will be operational by first quarter 2013, connecting an international airport to the CBD and the surrounding Wasatch Front. The proposed 2,500 seat Utah Performing Arts Center secured funding from the RDA for a developer and is currently in the midst of a selection process. Business and policy leaders made progress in determining whether a Convention Center Hotel was right for the CBD community in order to sustain and further develop our growing convention industry. The Downtown Alliance continues to pursue a yearround public market in the Rio Grande neighborhood. A new Grand Boulevards project has been launched to improve the entrance and exits to downtown along 500 and 600 South. In partnership with Salt Lake City, the Alliance continues to work towards a downtown streetcar line, and parking management entity to provide consistent signage, messaging and pricing structure for public and private parking in the downtown area. The physical brick-and-mortar developments that have impacted downtown over the past several years are significant. But more important are the emotional connections that the people of Utah are creating with their urban center. As downtown continues to rise, it will be important to reinforce the sense of ownership and pride that the entire region should have for downtown Salt Lake City

16 Researched, Written, and Compiled by: Jesse Dean, Assistant to the Director, Downtown Alliance Darin Mellott, Senior Research Analyst, CBRE James Wood, Director,University of Utah Bureau of Economic Business Research Contributors We would like to thank the following for their contribution to this report: Darren R. Peterson, CBRE Mapping Center, Funded by CBRE of Salt Lake City Sources 1 & 2 Governor s Office of Planning and Budget 3 Salt Lake County Convention & Visitors Bureau 2011 Annual Report 4 Utah State Tax Commission 2011 Annual Report 5 Salt Lake Board of Realtors 2012 Housing 2012, CBRE and the Downtown Alliance. The property set for this report is unique and not equal to quarterly updates provided by CBRE. Data reflects properties located within the submarket known as the Central Business District. Downtown Alliance boundaries are: 200 East to 700 West and North Temple to 400 South. This report also contains information from third party sources we believe to be reliable. Print date: 6/29/2012