Jackson Hole, Wyoming Commercial Real Estate Report

It’s been a while now since I’ve used this forum to address any topic directly relevant to our Industry. There’s a simple reason for this, day after day I see, I read, I hear reports from various sources providing commentary and projections on the future of the market and the industry, so the last thing the world needs is another wind bag blowing smoke.

Here are the facts for 2009 in the Jackson Hole Commercial Real Estate Market;

Total No. Leases: 7
Total No. Building Sales: 4
Total No. Lot Sales: 1
Total No. Transactions: 12
Total Volume: $17.9m

Notes:

1. Transactions include commercial leases, commercial building sales and commercially zoned land sales as reported in the MLS.

2. Wyoming is a non-disclosure state so not all transactions are reported.

3. The majority of lease transactions are conducted outside of the MLS directly between the Landlord and the Tenant.

What does this mean? Truthfully - Not very much. By the numbers 2009 was a more ‘normal’ year in the context of the past decade. 2005, 2006, 2007, 2008 were ridiculously high, 2000, 2001, 2002, 2003, 2004 were generally on par with 2009.

However, coming off a 4 year sugar high, 2009 felt like detox for our industry and for our city and county revenue streams. Less permit activity, less fees paid for applications etc.

As we know, perception is reality. 2009’s perception was pain. 2010’s forecast…you’re not going to get one here, try the hundreds of commercial commentating windbags, take the average of the forecasts, divide by your age and then stand on your head. That should give it some clarity.

Seriously, what we do know is that there is little to no commercial lending available at present and nationally the CMBS market will face many new challenges in 2010 as existing loans fall due without a new vehicle to pick them up. Until the national CMBS picture gains some clarity and direction, we don't expect to see any significant recovery in the Commercial Real Estate market.

Meagan Hill is a Commercial Real Estate Investments Specialist and Principal of NAI Jackson Hole servicing the Jackson Hole WY and Teton Valley ID markets.

For further information, contact Meagan at (307) 734-8700 or meagan@naijacksonhole.com

Wyoming Tax Benefits for Investors

By Meagan Hill

Happy New Year! We know that many of you are spending the time between Christmas and New Year trying to reconcile your records and finalize $ before the end of the Tax Year. As you wrestle with these challenges, take a minute to consider the Tax Benefits of Investing or Residing in Wyoming;

No State Income Tax;

If you’re unfortunate enough to still be working, no state income tax

= more disposable income

No State Company Tax;

If you’re an entrepreneur, no state company tax
= more profit

No State Excise Tax;
If you buy groceries or gas, no state excise tax
= more disposable income

No Tax on the Sale of Real Estate;
If you sell Real Estate in Wyoming, no tax on the sale of real estate
= more capital gain for You

No State Gift Tax;
If you are a generous soul, no state gift tax means you can gift real estate to your heirs without paying gift tax
= more inheritance for your heirs

No State Inheritance Tax;
Wyoming’s estate tax is tied to the federal tax credit and applies only to those with substantial estates.
= more inheritance for your heirs

No Tax on Out of State Retirement Income;
= more disposable income

Set up a Dynasty Trust
protect your assets from federal estate taxes for up to 1,000 years;
= more inheritance for your heirs

No Tax on Mineral Ownership;
a ‘hidden’ property tax that does not exist in Wyoming
= more disposable income

No Intangible Taxes;
no taxes on stocks and bonds
= more disposable income

Low Property Taxes.
2009 mill levy is 57.32 for teton county, WY
= more disposable income

When you’re done counting your $ and realizing the opportunity that Wyoming presents, take a minute to remind yourself of the ‘work-life’ balance benefits;
• Grand Teton + Yellowstone National Parks;
• Fly Fishing + Big Game Hunting;
• Skiing, Hiking, Mountain Biking; Rafting; Golf.

Still questioning my logic? Is the devil inside arguing with you? Look at the numbers.

Commercial Office + Retail suites or entire buildings are down 20-25%.

Start small - use your IRA to Invest in a Commercial Office or Retail suite for $500,000-700,000; or

Go for it - Leverage the opportunity presented by the economy with the rare offering of several landmark buildings in Jackson Hole.

To maximize all the tax benefits you will need to become a resident of our fine county. Lucky You! Right now, the Median Home Price is down 25% from 12 months ago.

Still unsure, give us a call.

Meagan Hill is a Commercial Real Estate Investments Specialist and Principal of NAI Jackson Hole servicing the Jackson Hole WY and Teton Valley ID markets.


For further information, contact Meagan at (307) 734-8700 or meagan@naijacksonhole.com

Routine Building Maintenance...and...The SWAT Team

By NAI Jackson Hole broker Meagan Hill


Now that you have your Building Audit complete and you’ve separated your Routine Maintenance from your Long Term Replacement schedule, do not file these papers in the drawer. It’s time to do a little short term planning and preparation.

Routine Building Maintenance provides an exceptional income stream for many Contractors in our area. With a little forward planning, you can find the best Contractor for the best price AND why not secure this service for the future?

Each year we all need to give our Property some lovin’ – clean windows, clean carpets, sweep chimney, clean outside light fittings, replace light bulbs, snow removal, lawn mowing, painting, handyman repair work, the list goes on. Each of these items are essential to maintaining our Asset Value and maintaining our Tenants.

Instead of making the hurried call in the spring, consider listing out all of these Routine Building Maintenance items and inviting bids from local Contractors to complete this work for you over the next 3 years. Imagine being able to forecast your Maintenance Budget out 3 years with some degree of certainty. Imagine being able to schedule your Maintenance Work in advance with confidence that you will have the right Contractor at the right time for your Property and your Tenants business.

All the planning in the world cannot completely protect you from the inevitable emergency in the middle of the night. This is where your own Property SWAT team comes into play. While many of you probably hold a list of folks you can call at a moment’s notice, few have any idea what it will cost and all of you are terrified of what it will cost in the end. Don’t be. Use the Routine Maintenance Bid process to get a schedule of values from each Contractor so you know what their Call Out Fee and Hourly Rate will be in the middle of the night. Use this information as part of your selection process and then put a Budget forecast aside for Emergencies.

All done? Congratulations, you’ve reached Property Owner Nirvana. Daunted by the thought of the task? Contact our office for further information.

Meagan Hill is a Commercial Real Estate Investments Specialist and Principal of NAI Jackson Hole servicing the Jackson Hole, Wyoming and Teton Valley, Idaho markets.  Check out her commercial real estate blog on ActiveRain by clicking here.

For further information, contact Meagan at (307) 734-8700 or meagan@naijacksonhole.com

Serious Price Reduction: Restaurant with Liquor License

Retire to the Tetons! Well located, popular Bar & Grill for sale in the center of downtown Victor, ID, just 30 minutes from Jackson Hole, WY. Superbly located at the base of the Teton Range with views of the Big Hole Mountains to the west. Powder skiing within 30 minutes drive or try one of seven championship golf courses, the nearest just 3 minutes drive.

Property features 5,800 square foot stick framed building complete with bar, dining room, billiard room, events/function room, outside patio seating and kitchen on 0.44 acres. Dining room, kitchen and equipment renovated in 2000 ($240,000 invested). Balance sheet, P+L available. $800,000 price also includes liquor license & business. Previously listed at $1,300,000, excluding liquor license.

Take advantage of the 40% price reduction in this great property / business TODAY.

Contact

Meagan Hill, NAI Jackson Hole

Steven Keim, NAI Commerce One

Tel (307) 734-8700

Cell (307) 413-2982

Fax (208) 525-8188

Email Meagan Hill

Email Steven Keim

Not Just Another Mountain Town

Why Teton Valley Idaho is a hidden jewel in the Gem State

Positioned on the western side at the foot of the Teton Range, Teton Valley Idaho represents not one, but four superb mountain towns nestled in the midst of a steadfast rural, agricultural and ranching community.

At the northern end of the Valley lies the City of Tetonia, ID population 247 (2000 census). At the center of the Valley lies the City of Driggs, ID population 1,100 (2000 census). At the eastern edge of the Valley lies the Town of Alta, WY population 400 (2000 census). At the southern end of the Valley lies the City of Victor, ID population 840 (2000 census).

Each location offers a its own diverse flavor of mountain town living, centered around the principal theme – “…go outside and play…”

As you commute to your job during the week, or commute to your favorite park to play on the weekend, consider these Teton Valley facts;

1-2 minutes drive to: World Class Fly Fishing; Cross Country Skiing;
15-30 minutes drive to: Grand Targhee Resort; championship Golf; Hiking, Mountain Biking
15-45 minutes drive to: Upland Game + Bird Hunting;
30-45 minutes drive to: Jackson Hole WY; Grand Teton National Park;
90-120 minutes drive to: Yellowstone National Park

Ever considered shifting gears during your commute? National Geographic has. In April 2009, National Geographic announced that Driggs, ID would be the home of the first Geotourism Center in the US. Teton Valley lies within the Greater Yellowstone Region, and its selection as a center for sustainable tourism reinforces the beauty and significance of this region.

Confused? Here’s a simple explanation of Geotourism provided by National Geographic.

“Geotourism is the kind of travel that sustains or enhances the geographical character of a place — its environment, culture, aesthetics, heritage, and the well-being of its residents.”

Teton Valley Idaho is evolving from a once predominantly rural/ag./ranch community into one that includes recreation based tourism. This transition has brought both public and private development projects.

Private development tends to garner ample media coverage, and Teton Valley’s growth has generated its fair share of News through large scale projects including the Grand Targhee Expansion; Huntsman Springs; Teton Springs; Teton Reserve; Teton Saddleback Vistas, among many others. Each of these projects reflect different phases of the development cycle, some are complete pending construction of homes on previously sold lots; some are being completed in phases; others are yet to break ground.

Public development has gained momentum over recent months and threatens to rival the pace of the private folks. Idaho Transportation Department’s investment in Scenic Byways during 2009 will work in parallel with National Geographic through the construction of the new Geotourism Center; Urban Renewal funds will see streetscape improvements constructed in Driggs; Teton Basin Ice + Recreation will soon commence construction on the new Ice Arena in Victor as soon as Steel is delivered, whilst the new Transit Facility will be constructed alongside the Ice Arena this summer.

Forward planning continues in Victor with the work of Envision Victor, an organization created following the receipt of a $100,000 grant from the Orton Family Foundation to guide the Community through a detailed planning process

“Envision Victor seeks to implement a new kind of planning in our City, a process that is focused on engaging our citizens, bridging our divisions, and honoring our shared values, in order to realize a vibrant and enduring Victor for years to come. The first phase of the project will last two years, but we hope it will continue well beyond.

The Goals and Objectives of Envision Victor are summarized as;
• Engage and connect all segments of the Victor community
• Describe and articulate the City’s Heart and Soul
• Enhance a sense of belonging
• Enact a new model of planning and decision making
• Develop a land use plan that incorporates visions and values of its citizens
• Strengthen the ability of the Citizens to integrate the ideas of the Citizens into tangible products such as transportation, capital improvements and main street plans

Construction will commence in mid July 2009 on a Bike Park in Victor. An initiative of non-profit Victor Velo, City of Victor has approved development of a bike park within the boundaries of Pioneer Park. An in‐town bike park is designed to pack as much fun as possible into a small space while teaching the youth of Victor Idaho about the lifetime sport of cycling. Victor Velo will begin the construction of a pump track & set of dirt jumps as the next step towards a multi‐discipline cycling facility unique to Southeast Idaho. A pump track is a cycling feature that looks similar to a skate board park, but made of dirt, and is designed to accommodate cyclists of all ages and skill levels.”

With so much activity on the horizon in an otherwise dark economic environment, it is imperative that growth Teton Valley is managed with the degree of stewardship deserving of the Greater Yellowstone Geotourism region.

With its many wildlife corridors and unspoiled vast wilderness areas, this delicate ecosystem, combined with unparalleled recreation has been seeking a way to harmonize with one another. Recent changes in City and County Planning Ordinances has cast a might tighter net across growth and will result in more intensive scrutiny of development proposed in designated wildlife corridors and wetland areas, potentially making development in those areas difficult and costly.

To learn more about Development + Business opportunities in the Teton Valley and Jackson Hole region, contact Meagan Hill, NAI Jackson Hole (307) 734-8700, meagan@naijacksonhole.com

To receive a copy of a power-point presentation detailing Teton Valley’s growth and supply, including economic changes, contact Julie Bryan, Broker/Owner of Windermere Real Estate/Teton Valley/Jackson Hole. You can email jbryan@windermere.com or call 307-699-0205.

Order or Download a copy of National Geographic’s Greater Yellowstone Geotourism Map

Download a copy of the Commonsense Guidelines to Living in Teton Valley

Written by Meagan Hill with contributions from Julie Bryan

Writer's Bio.

Meagan Hill is a Commercial Real Estate Investments Specialist with NAI Jackson Hole. Born in Sydney, Australia, Meagan's career began in Construction + Property Development including both private development and government agency work, reaching from Australia to Seattle, San Francisco, Chicago, Dallas and onwards as far as India and Italy. During her career, Meagan's roles have varied immensely, covering a broad spectrum of the real estate, property development and construction industries. Meagan is a Green Star Accredited Professional (Australian equivalent of LEED) and brings a commercially viable, sustainable perspective to her work. Meagan has received several industry awards including winner of the National Association of Women in Construction Award (2000) and Young Achiever of the Year (2006) from the Property Council of Australia (ACT) Australia.

Jackson Hole Ranked in list of Top Ten Adventure Towns

Tourism Review.com recently ranked Jackson Hole third in its list of the Top Ten Adventure Towns of the World, touting it as a place that "lives from adrenaline tourism". Jackson Hole gets 459" of average snowfall! Check out the article here. If you want to talk to a Jackson Hole expert (in adrenaline tourism AND commercial real estate), contact Meagan Hill at the NAI Jackson Hole office!

Jackson Hole News & Guide Article on May 1st PowerSale

Check out the article by by Kevin Huelsmann of the Jackson Hole News & Guide on the upcoming PowerSale!
2 big Victor parcels head to Web auction: 1 is 60 acres; the other is 25 acres.
Jackson Hole, Wyoming, April 8, 2009:
http://www.jhguide.com/article.php?art_id=4456

Water Wise Innovations Presentation Tonight

Wednesday, February 18
5:30-7:30 PM
Driggs Community Center

Enter into the brave new world of water-smart development! Find out what you can do to save water – and money! – in your home, your neighborhood, and beyond. Light refreshments and an opportunity to socialize will be available beginning at 5:30 pm. The presentation will begin promptly at 6:00.

Conserving water makes cents!

Every day the media reminds us that we are faced with an increasingly complex and interconnected array of economic, environmental, and social challenges on every scale. These range from global economic slowdown and climatic changes, to increasingly contentious conflicts between ground and surface water users in Idaho, to the need to deal with a local sewage treatment facility that has reached capacity. Although a wide variety of collaborative and creative solutions will be required to surmount these challenges, conserving water is one way you can start making a difference today.

Join presenters Meagan Hill, Managing Partner of Kingswood Co, LLC, and Meghan Hanson Powers, of Natural Dwellings Design, to learn about cost-effective ways to use water more efficiently, help preserve water supplies for future generations, and save money and energy in the process!

For more information on FTR’s Water Wise Series, please call 208-354-3871, email amy@tetonwater.org, or visit our website: www.tetonwater.org

FTR is a non-profit organization working for clean water, healthy streams and abundant fisheries in the Teton Valley. For more information about FTR and its programs or if you would like to make a contribution, please visit our website www.tetonwater.org, stop by our office at 36 E. Little Avenue in Driggs or call 208-354-3871.

Brokers Attend 2009 NAI Global Commercial Real Estate Convention

The 2009 NAI Global Convention kicks off today at Caesar's Palace in Las Vegas. Steven Keim, Steven Frei, Kaly Shippen, and Brent Wilson of Idaho Falls, Meagan Hill of Jackson Hole, and Kendra Jenks of Twin Falls are attending the annual event. They will be networking and participating in educational sessions about their specialties, including investment, office, property management, asset services, retail, CCIM education, and marketing. Marketing Director Kaly Shippen will be presenting on the power of social networking and blogs in one of the event's marketing sessions.

The keynote speaker for the 2009 Convention is acclaimed speaker and sales coach Jeffrey Gitomer. Gitomer's clients include Coca-Cola, BMW, AT&T Wireless, MacGregor Golf, Hilton, Enterprise Rent-A-Car, AmeriPride, Time Warner Cable, Liberty Mutual Insurance, Wells Fargo Bank, Baptist Blue Cross Blue Shield, Sports Authority, IBM, The New York Post, and hundreds of others. Attendees of the 2009 Convention represent hundreds of offices across NAI's network that spans 55 countries.

Meagan Hill to Present at Water Wise Series in Driggs

Event: Water Wise Series
Date: Wednesday, February 18, 2009
Time: 5:30pm to 7:30pm
Place: Driggs Community Center

Enter into the brave new world of water-smart development! Find out what you can do to save water – and money! – in your home, your neighborhood, and beyond from Wyoming Realtor and Green Star Accredited Professional Meagan Hill.

This ongoing series of public presentations is designed to educate Teton Valley adults about water resource issues that affect our community. Unless otherwise noted, Water Wise classes meet on the third Wednesday of each month, from 5:30 to 7:30 PM, in the Driggs Community Center. Light appetizers and an opportunity to socialize are provided during the first 30 minutes. Presentations begin promptly at 6:00.

For more information, please visit the Friends of the Teton River website.