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

Jackson Hole Community Provides $475k in Scholarships

NAI was honored to be part of the Jackson Hole High School Scholarship night on Thursday April 23rd, 2009. As reported in the Jackson Hole News & Guide, "Businesses, nonprofits step up in tough economic climate."

NAI was one of 6 new scholarship presenters including Windermere Real Estate. The winner of NAI Jackson Hole's inaugural scholarship is Luis Quiroz. Congratulations Luis!

Boom Town, U.S.A.-- Pinedale Wyoming -- ABC World News Report

Where is the best place for job-seekers in the U.S.A.?

According to ABC's World News, Pinedale, Wyoming has the lowest unemployment rate in the country. Charles Gibson reports: http://www.abcnews.go.com/Video/playerIndex?id=7465049

My sister Kirby lives in Pinedale and forwarded me the link to this story. She works at the Pinedale Aquatic Center, a $20 million public facility that is featured in the clip. My brother-in-law works for a gas company in Pinedale. They enjoy living in Wyoming, and my family loves visiting because the Aquatic Center is such a blast. Pinedale is about 75 miles southeast of Jackson Hole.

If you have questions about Pinedale commercial real estate, don't hesitate to give us a call at (307) 734-8700 or email our Wyoming brokers Steven Keim or Meagan Hill.

Interested in Pinedale, Wyoming jobs? Check out the job board at Pinedale Online.

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

Teton Valley Seminar Presented by Windermere Real Estate & Targhee Hill Estates

If you haven't been to one of Julie Bryan's seminars, you are missing out! Take advantage of this great opportunity to learn about the Teton Valley market. --Kaly

TETON VALLEY SEMINAR

Teton Valley, An Emerging Market

April 9^th, 2009 from 2-5p.m. at the Timberline Bar Conference Room

Victor, Idaho

Followed by a 5-6 p.m. Social Hour

Sponsored by Windermere Real Estate & Targhee Hill Estates

Presenting a Market Report, Analysis, and Discussions regarding the Teton County, Idaho supply of real estate and current market conditions. This powerful informative meeting will provide information and valuable discussion for anyone involved with Teton County real estate.

Guest speakers include

• Julie Bryan, Owner/Broker of Windermere Real Estate, and Bill Coleman;

Power Point presentation discussing supply, median price ranges, development projects in the Teton County, Idaho “pipeline”, and, current PUD ordinance impacts

• Reid Rogers; Chamber of Commerce Teton County, Idaho

Report regarding the sponsorship of the Greater Yellowstone Center by National Geographic, Grand Loop and Scenic By-Way corridor, Urban Renewal, Grants attained by the Chamber, updated marketing report.

• Doug Self; Driggs City Planning.

Issues and Plans underway for Driggs City planning

• Bill Knight; Victor City Planning.

What is currently underway with Victor City planning

• Patrick Vaile; Teton County Planning Director,

Impacts of and working with the new PUD Ordinance, Development, Areas of Impact information

• Mike Potter, of PC Development, and Bill Coleman, of Targhee Hill Estates;

Development Issues facing Teton County, Idaho

• Steven Keim and Meagan Hill, introducing the new NAI Global commercial real estate company in Driggs and and Jackson Hole—NAI Commerce One / Jackson Hole
• General Discussions and Q&A
• Social Hour

Attendees will receive a copy of the power point presentation

This is your opportunity to get the broad and accurate picture of data surrounding the Teton County Development

Contact Julie Bryan to register for this free seminar. Space is limited.

Julie F. Bryan

Broker/Owner, Windermere Real Estate/Teton Valley/Jackson Hole

307-699-0205

jbryan@windermere.com

NAI Commerce One / Jackson Hole Offers PowerSale Accelerated Marketing Program

PRINCETON, NJ, March 9, 2009 – NAI Commerce One / Jackson Hole announced it is participating in the Commercial Property PowerSale™, an Accelerated Marketing Program created by NAI Global to help property owners and financial institutions dispose of troubled real estate needs.

NAI Global is the premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide. NAI Commerce One / Jackson Hole is the exclusive NAI member firm in Jackson Hole + Teton Valley markets.

“The global economic slowdown and frozen credit markets have caused a major disruption in the traditional property sales market, and we are working closely with our clients to find the right marketing solution for their properties,” said Steven Keim of NAI Commerce One / Jackson Hole. “NAI’s accelerated marketing program is a boon for clients who need to sell an asset or portfolio, but are having difficulty in today’s economy.”

The Commercial Property PowerSale™ employs a variety of accelerated marketing techniques that have proven effective in previous economic cycles when traditional sales channels are gridlocked. Property owners will have the option of offering their property for sale via a series of live online auctions, sealed bids or a unique combination of the two formats. Properties in the Commercial Property PowerSale™ benefit from an aggressive marketing campaign that includes focused print, broadcast and electronic advertising, and a direct-to-buyer outreach to more than 175,000 active buyers. Sellers are assured a shortened sales process and a date certain sale schedule. The three program options – Auction Marketing, Sealed-Bid and Sealed-Bid Plus™ – set up a competitive bidding environment that creates urgency, forcing buyers to act immediately.

“The Accelerated Marketing Program is designed to meet the demands of our clients – property owners and financial institutions – with troubled assets, as well as sellers with healthy properties that are having trouble finding a buyer in today’s market,” said Finn. “Together with our longtime partner, Higgenbotham Auctioneers International, we have successfully completed more than $2.3 billion in sales through accelerated marketing programs. We are able to leverage our knowledge and relationships with the most active buyers at any given time to help our clients achieve the best possible value for their asset, despite the current economic climate.”

The program is open to both private and institutional owners and will include the sale of both commercial real estate equity and loans. Sellers may submit an individual asset or an entire portfolio, and property types will include everything from office, industrial, retail, hospitality and multifamily properties, to residential subdivisions and land for development. Both performing and non-performing commercial real estate loans may also be offered for sale. The NAI team will evaluate each property and guide the seller through the program process, helping them to choose the sales vehicle that best suits their needs.

The May 1st PowerSale includes over 50 properties totaling $150 million in value. NAI Commerce One is working with Windermere Real Estate and the Grand Teton Team in offering two properties in Teton Valley, Idaho. Click here for more information.

Property owners and financial institutions interested in learning more about the Commercial Property PowerSale™ should visit www.naiglobal.com/powersale or contact Meagan Hill at (307) 734-8700.

Victor, Idaho Receives Orton Family Foundation Grant

The city of Victor, Idaho has received a promising $100,000 "Heart and Soul" community planning grant from the Orton Family Foundation, whose mission is to help build vibrant and enduring communities through thoughtful planning centered around key assets. The Victor City government has made a matching monetary commitment.

According to the Orton Family Foundation, Victor's ultimate goal is to “go beyond land use and design, and toward our social fabric and how [to] create opportunities to grow a more economically, ecologically, and socially diverse community.”

Project goals include:

• Identifying the Heart & Soul elements of Victor and utilizing them throughout the project.
• Engaging as many residents as possible in the Heart & Soul discovery process.
• Effectively engaging the fast growing population of people ages 20-39.
• Using Community Viz or other GIS-based tools for alternative scenario planning and decision making.
• Creating a Main Street Advisory Committee and a subcommittee to track progress and results of the Envision Victor process.
• Producing a Transportation Plan for downtown Victor and a Capital Improvement Plan.
• Adopting design review guidelines and standards for downtown Victor.
• Identifying new public/private partnerships to advance Heart & Soul Community Planning, including new business opportunities that could contribute to downtown growth and resilience.

Victor is located in the Teton Valley between Driggs, Idaho and Jackson Hole, Wyoming at the crossroads of Highway 31, Highway 33, and Highway 22.

NAI Commerce One is currently assisting Teton Land Development in marketing Trail Creek Crossing, a new mixed-use development in the city of Victor located on Highway 31.

For more information on Victor, please contact Meagan Hill.

LINKS

Orton Family Foundation Web Site Information on Victor's Heart and Soul Grant

Teton Valley News Article on the Grant

Brokers to Attend Teton Board of Realtors Annual Luncheon

Clinton Arnold and Kaly Shippen will represent NAI Commerce One at the Teton Board of Realtors Annual Luncheon at Teton Pines on Thursday. This annual membership meeting will be held to vote for the 2009 slate of Directors including the President Elect and one Director as well as two important changes to the TBOR bylaws. The guest speaker will be the Wyoming Association of REALTORS® President Kevin Bromley who will provide an update as to the State of Real Estate in Wyoming. The 2008 REALTOR® of the Year will be honored as well.

NAI Commerce One has plans to open offices in Jackson Hole, Wyoming and in Driggs, ID this fall with the local assistance of Julie Bryan and the agents at Windermere Real Estate. NAI's Wyoming office will operate as NAI Jackson Hole.