Utah Facilities November 2011

Resort Management 14 Nesting at the ’Bird

Industrial Facilities 22 The Big Box Theory

Healthcare Facilities 18

An Example of Smart Growth

2 I UTAH FACILITIES NOV./DEC. 2011

4 I UTAH BUILDINGS FALL 2010

NOV./DEC. 2011

DEPARTMENTS

20 27 29 30 32 34 38 42 44 46

Automated Controls Promise of an open building control system

Real Estate Law Securing your leased property

Disaster Preparedness The Great Utah Shakeout

Janitorial Certified cleaning companies

Pest Control Prepping for winter pests

Financial Planning Small business loans

Parking Lot Maintenance Revisit snow removal contracts

18

Lone Peak Medical Office Building an Example of Smart Growth

Roofing Save money and the environment

FEATURES

Multifamily Apartments are sexy

Advertiser Index

Waterwise Landscapes

36

8 14 22 40

Influential People In Commercial Real Estate

Resort Management Nesting at the ’Bird

Industrial Facilities The Big Box Theory

Interiors Step Out of the Cubicle

On the cover: Influential People in Commercial Real Estate – from Left to Right: Don Francis, Deanna Sabey, Randy Owen and Lorrie Ostlind. Photographed by Dana Sohm in the Kearns Building.

UTAH FACILITIES NOV./DEC. 2011 I 5

PUBLISHER’S LETTER So many wonderful people, so little space. That was our dilemma as we narrowed down our list of influential people in commercial real estate.

If you ask 20 people the same question, you’re likely to get 20 different responses. Choosing several people who have been the most influential in the industry in the past year is a difficult proposition. Our goal wasn’t to identify those who have been most profitable, although in this economy that’s an important attribute. We wanted to highlight people within the industry who are moving it in positive directions.

The people we selected influence real estate over a wide spectrum of issues, from facilities management to real estate development. It’s our

CONTACT Publisher Travis Barrington travis@jengomedia.com

Executive Editor

opinion that the professionals we have profiled are real estate

Kelly Lux kelly@jengomedia.com

standouts among a large number of men and women who are

Advertising

impacting the industry today. They also represent a fair cross section of titles and job descriptions.

Brian Andersen brian@jengomedia.com David Cooper david@jengomedia.com

To come up with this group, we looked for people who not only had a

Associate Editor

tangible track record of real estate success but also great local influence,

Kristen Hutchings kristen@jengomedia.com

the ability to promote change and a deep level of engagement in their

Art Director

company, industry and community. That last criteria is especially

Doug Conboy

important, because we enjoy highlighting professionals who are on the

Contributing Photographer

leading edge of local real estate – those who are shaping not only the industry, but also the industry’s optimism.

Dana Sohm

Contributing Writers Ty Cherry Mark Jensen Stephanie Marthakis Ron Moore Sean Murphy

Brett Parry Eric Pauly Artemis Vamianakis David Wright

Utah Facilities Publisher Utah Facilities

Utah Facilities is a proud partner of:

Copyright 2011 Utah Facilities Magazine. Utah Facilities is a Trademark owned by Jengo Media.

6 I UTAH FACILITIES NOV./DEC. 2011

PO Box 970281 Orem, Utah 84097 Office: 801.796.5503 Fax: 801.407.1602 UtahFacilities.com The publisher is not responsible for the accuracy of the articles in Utah Facilities.

The information contained within has been obtained from sources believed to be reliable. Neither the publisher nor any other party assumes liability for loss or damage as a result of reliance on this material. Appropriate professional advice should be sought before making decisions.

UTAH FACILITIES NOV./DEC. 2011 I 7

T

he commercial real estate industry has been on shaky ground since the United States went into an economic recession. Despite the risks poised to investors, owners, developers and others in the industry, real estate professionals throughout Utah are pushing forward, making strides to improve the industry and get it back on its proverbial feet. Their commitment has been instrumental in Utah’s ability to outperform other states in the nation and remain one of the most fundamental economies in the country. Those who are included in Utah Facilities Magazine’s list of Influential People in Commercial Real Estate 2011 have impacted the industry in various ways in recent years. Their influence reaches all corners of the industry, including property management, commercial development, entrepreneurship and leadership. UF

Property Management

Lorrie Ostlind Hines

8 I UTAH FACILITIES NOV./DEC. 2011

Built in 1911 and listed on the National Register of Historic Places, The Kearns Building was carefully renovated and restored by Hines in the early 1990s.

The building’s exterior, lobby and common areas were completely refurbished. The fire and life safety system was updated, as was the HVAC system. The building wasn’t recognized for its renovations until Hines Property Manager Lorrie Ostlind took over management of the building in 2003. Ostlind worked with her management team to bring the building up to the standards of The Outstanding Building of the Year Awards sponsored by the Building Owners and Managers Association of Utah. The TOBY Awards honor the best of the best in commercial buildings – buildings that are clean, well-managed, operate efficiently, have strong tenant retention and follow environmentallyfriendly practices. By following the benchmark for value creation, service and quality already set by Hines, Ostlind, with her team, started prepping the building for the prestigious recognition.

Ostlind’s efforts paid off. The Kearns Building won the local TOBY Awards and advanced to the regional (including Arizona, California, Hawaii, Nevada and Utah) competition three years in a row in the Historic Category. In fact, the Kearns Building was the first historic building in Utah to win the local TOBY Award and the first to win a regional TOBY Award.

“This competition was a team effort and was a bonding experience for our staff,” Ostlind said. “We worked as a team to submit a plethora of required information. We are proud of what we accomplished and pleased for the opportunity to showcase our beautiful jewel box of a building.”

Ostlind’s involvement in the competition prompted her and her team to become more involved in the community. Last year, they held a food drive, blood drive, Earth Day lobby fair, bake sale for a youth theater group and a book fair for charity.

Photos by Dana Sohm

Facilities Management As the director of Engineering and Construction Management, Asset Services at Coldwell Banker Commercial, Don Francis supervises and trains the property engineering teams on best practices. He leads Coldwell Banker Commercial in qualifying buildings for the Government Energy Star Rating and LEED Certification. Francis is responsible for coordinating and supervising all construction projects in the Utah region.

He has worked on a wide variety of capital and special projects, including the supervision and build out for the FBI building in downtown Salt Lake City. He also managed the 50,000 square-foot build out for the Salt Lake Olympic Organizing Committee and most recently a 30,000 square-foot build out for the Art Institute of Salt Lake City.

Francis oversees the commissioning process on new facilities and the recommissioning of building systems on existing facilities. He looks for innovative ways to maximize the operating efficiency of the building systems and lower operating costs. For example, Francis, who oversees the operations of the 75,000 square-foot Occupational Safety and Health Technical Services Center in Sandy, was able to save the OSHA Office thousands of dollars in repair costs for their HVAC systems, construction management bid specifications and construction management oversight. On another property, Francis helped an owner who despite paying a contractor in full, had liens filed against the property by unpaid sub-contractors.

Coldwell Banker Commercial Staying informed and up to date on the latest trends and technologies is Francis’ key to success.

“Do the research. Push to implement fiscally sound changes and upgrades. Build strong relationships within the industry,” Francis says. “Do not accept the status quo. There are always new challenges to overcome, issues to be resolved and new technologies to be implemented.”

Don Francis

Brokering NAI West President Mike Falk and his team represented the owner of 5995 W. Amelia Earhart Drive at the Bonneville Distribution Center in leasing 395,000 square feet to ITT Corp. The transaction was the largest in Utah during 2011.

The lease is representative of NAI West’s strength and Falk’s ability to lead the company during turbulent economic times. The transaction not only showed customers that they could be confident in NAI’s ability to lease and manage their properties, but it also represented the strength of Utah’s industrial real estate market as a whole, Falk said.

Since 1998, Mike has been helping to grow NAI West. Re-branding the company from NAI Utah to NAI West to better reflect the geographic area and customers was one growth strategy implemented by Falk. Operations were consolidated to a central, 20,000 square-foot Salt Lake City location.

Falk’s vision led to the development of several horizontal and vertical service companies, including NAI West Property Management, NAI West Facility Services, NAI Global Corporate Solutions and NAI CRES Mergers and Acquisitions. During the recession, NAI West leaned on its vertical services that perform well during tough times. In so doing, the company was able to sustain itself.

“Some lines of business do better during tough times and support those that are not,” Falk said. “We also streamlined our operations and eliminated waste and redundancies. This is something that has continued to be a strategic focus for us as we are always seeking to improve.”

In addition, Falk has built a culture that fosters and rewards success, allowing the NAI West team to grow and to share the growth.

“Our goal is not to be the biggest, but to be the best,” Falk said. “We will continue to operate with our customers’ best interests in mind and provide a higher level of service. We will also continue to upgrade and improve our team of employees and agents.”

NAI West

Mike Falk

UTAH FACILITIES NOV./DEC. 2011 I 9

Vendor

Ron Moore RBM Services Inc.

Ron Moore has a history of growing small businesses. In 1987, he was part of a small team that started a packaging equipment manufacturing company.

That same company was one of the fastest growing, privately-held companies in America, with about 70 employees. Moore left that company to start his own small distribution company and later merged with RBM Services. Along with Jon Moss, current majority owner, Moore grew the business organically though networking and hard work. Together, Moss and Moore have tripled the size of the company. With 500 employees, RBM Services has been recognized the last three years as one of the fastest growing businesses in Utah Valley and is the largest locally-owned janitorial company in Utah.

Moore, who began working with RBM five years ago, separated the operations and sales department, which enabled sales people to focus on sales so that the operations department could focus on developing relationships with customers. Relationships are key to the janitorial business, Moore said.

“Our business, like most businesses, is a relationship business,” Moore said.

“We have worked very hard to develop and maintain very strong relationships with people in our industry. That has been the key and the best thing about our business. Working so closely with our customers (usually facilities managers and building owners) you get to know them on a personal level and they become friends.”

Moore says RBM Services will continue to grow through an aggressive sales effort and acquisition of other companies. Currently, Moore is helping to build a specialty flooring and carpet cleaning division for both commercial and residential buildings. The company is also looking to expand into other states.

Education Randy Owen’s involvement with real estate blossomed in 1986 after managing an office park in North Carolina. Owen, now the chief operating officer of Coldwell Banker Commercial, realized then that he wanted to make commercial real estate and commercial property management his career. He found IREM (Institute of Real Estate Management) to be the perfect program to further a focused education in the industry and received his CPM (certified property manager) designation in 1991. He has been a stalwart member of IREM ever since and a strong promoter of their educational programs.

Five years ago, IREM discovered that college graduates in FPM programs needed extra help jumping into real estate, particularly in the management area. Owen eagerly volunteered to share his experiences and knowledge with apprehensive students and inform them of plausible career options they can pursue after graduation. Owen worked with IREM to offer students scholarships, internships and multiple opportunities to associate with successful people in their field of interest. Owen said the program is a chance for students to interact with other CPM members and work on their networking and business relationships. He has given presentations to different schools around Utah – the University of Utah, LDS Business College and Brigham Young University, to name a few – and has seen his efforts rewarded as many students procure local jobs with IREM firms.

Why the push in college programs to become involved with organizations like IREM and obtain a CPM designation?

“In my estimation about 80 to 90 percent of all the commercial real estate in the Salt Lake and Wasatch Front areas are either managed directly or supervised by a CPM of IREM. That’s significant,” Owen said. “The network power of having that much property controlled through our organization in our member firms out there is an interest to me because that’s who I like to associate with from a networking Coldwell Banker Commercial standpoint.”

Randy Owen

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Welcome to Utah As the general manager of the only retail center of its kind to open in the United States in 2012, Linda Wardell has spent the last year prepping for the grand opening of the City Creek Center – the retail portion of the mixed-used City Creek Development – on March 22, 2012.

Wardell oversees all operations of the City Creek Center, including facilities management, security, housekeeping and marketing. Since taking on the position, Wardell, who works for Taubman Properties, the management company of the City Creek Development, has been focusing on developing the strategic plan which defines the operations of all of the different disciplines within the retail portion of the development. The plan helps her and her team focus on what needs to be accomplished in order to facilitate the 800,000 square feet of retail, which includes Nordstrom, Macy's and approximately 80 retail stores.

Wardell discovered her love for shopping centers while watching the construction of a super regional shopping center in her hometown during her high school years. Since then, Wardell has worked her way up the corporate ladder, overseeing large groups of properties. In her 25 years in the industry, she has opened two other large shopping centers, including the Polaris Fashion Place in Columbus, Ohio, and the New Jersey Center. However, Wardell said the City Creek Center, although smaller than the other two shopping centers, has been the most unique shopping center she has managed.

Its most distinct feature is its retractable glass roof, providing a hybrid indoor/outdoor environment.

Wardell loves managing retail centers and has been especially pleased with her role with the City Creek Center.

“I think I have the best job in the world. I love this job, and I wouldn't want to do anything else,” she said. “I wake up every day, and I can't wait to come to work. I have never had two days that are exactly alike. ... We are seeking to make people happy with what we do here at City Creek. We want to provide people with an incredible experience. We can't wait until we can share it with the whole world.”

Linda Wardell City Creek Center

UTAH FACILITIES NOV./DEC. 2011 I 11

Public Service On July 15, 2008, Eric Fairbanks was in the right place at the right time – at least that is how he explains his rise to director of marketing for Utah Disaster Kleenup. After the departure of UDK’s marketing director of 15 years, Fairbanks assumed the marketing reins and led the sales and marketing teams to a new branding level. Fairbanks, who is also vice chair of BOMA Utah’s Emergency Preparedness Committee, began working statewide to help prepare those in the commercial real estate industry for a disaster.

“Utah Disaster Kleenup was founded with the idea that people and commercial entities experience loss on a regular basis. We always seem to plan for the big one, the significant loss – hurricanes, tornadoes, whatever it is – but we forget those day-to-day occurrences that could affect us and interrupt business,” Fairbanks said.

To prepare commercial building owners for an earthquake or other disaster, Fairbanks is asking business and homeowners around Utah to participate in the Great Utah ShakeOut – a full-scale earthquake drill in which Fairbanks has been largely involved. Building owners who participate can determine their strengths in a disaster and what they need to become better prepared should a disaster hit.

Eric Fairbanks Utah Disaster Kleenup

Attorney

Deanna Sabey Sabey Law 12 I UTAH FACILITIES NOV./DEC. 2011

Deanna Sabey, who has been practicing law since 1993, recently left her post as director of the Division of Real Estate for the State of Utah – serving for two years at the height of the mortgage crisis and during the federal rewrite of most banking and mortgage lending laws. As director, Sabey successfully managed the transition of the Utah licensed mortgage originators to the new, federally mandated Nationwide Mortgage Licensing System.

In 2008, Sabey helped smooth the effects of the SAFE Act ( the federal Secure and Fair Enforcement for Mortgage Licensing Act) in which Utah’s residential mortgage lenders and originators were asked to transition from the state licensing database to the nationwide database.

The SAFE Act was introduced to increase consumer protection and reduce fraud by setting certain standards. Because Utah was one of a few states already operating under a system, the laws, administrative rules and processes to conform with federal law all had to be redesigned to match the SAFE Act’s terms. The requirements were rigorous and occasionally unclear, until Sabey straightened out the confusion.

“The Division updated many processes and procedures to make better use of technology. I drove the reorganization of all statutes and rules under the Division’s jurisdiction to make them easier to understand and apply,” said Sabey. Sabey also revised and reorganized the code section under the real estate statute to make it more user-friendly.

“The process involved months of drafting, review and revision within the Division. When the language was satisfactory, I presented it to the sponsoring legislator who then gave it to the Office of Legislative Counsel to prepare a bill in conformance with statutory drafting rules,” Sabey said.

Sabey now runs her own law firm, Sabey Law, in Draper.

Association Representation More than 20 years ago, an employer of Renee Schmid suggested she join a real estate organization, telling her it would be beneficial to her career. Schmid heeded that wise counsel. For the past 18 years, Schmid, who is an asset and property manager for Roderick Enterprises, has been actively involved with the Institute of Real Estate Management and the Building Owners and Roderick Enterprises Management Association, both in Utah. Her positions in BOMA Utah have included the chair of the Education Committee and most recently the chair of The Office Building of the Year Committee. With IREM, Schmid has served as chair of the Experience Exchange Reports and will soon be stepping down from 10 years of service as chair of the Industry Partners Committee.

“BOMA and IREM are important to the real estate industry as they give us property managers and the vendors we work with a chance to get together and discuss the issues we deem important and unique to our industry,” said Schmid. She has enjoyed her assignments and involvement with IREM and BOMA, both of which have proven to be quite rewarding. “I am pleased to be a member of both BOMA and IREM, as they are top-notch, industry-leading real estate organizations and are made up of knowledgeable, experienced members who know their stuff and like to have fun.”

Her involvement with these organizations has improved Schmid’s ability to respond to tenant needs and concerns, negotiate contracts and assist in financial statements and owner reports in real estate. By participating in IREM and BOMA, Schmid has developed close relationships with others in her industry – skills that she has implemented in her relationships with tenants.

Renee Schmid

Environmental Impact For seven years, Alan Matheson has proven his commitment to environmental practices as Envision Utah’s executive director. He recently left his post to serve as the Governor’s Senior Environmental Adviser – a continuation of his pledge to preserve Utah’s environment.

As executive director with Envision Utah, Matheson helped to research effective developmental designs and solutions for Utah – all with Utah’s environmental future in mind. Utah’s population continues to grow, and certain measures must be taken to manage the environmental impact of growth in the healthiest way possible. That’s where Envision Utah – and Matheson – come into play. With the Regional Visioning program, Envision Utah holds workshop exercises in growing communities to evaluate strategies that will most benefit the community and its environment long term. The public’s input is a major driving force behind Envision Utah’s decisions.

“Our region is growing very fast,” Matheson said. “One of the ways we can absorb that growth is to respond to market forces. If we can respond to the demand of transportation choices, we can minimize impacts of growth and give people the choices they are seeking.”

Matheson is committed to finding out what Utahns care about and helping them Governor’s Office understand the long-range implication of the decisions they make. He hopes that by spreading the word, Utahns can collectively make better decisions about the future.

Envision Utah’s current project is Wasatch Choice for 2040 – a partnership with transportation agencies, universities, cities and counties to discuss and implement long-range transportation systems, transit-oriented development and civic and town centers throughout the region. The project will enhance the economy, protect Utah’s beautiful natural resources, provide more choices to how Utahns live and travel, save money and energy and improve air quality and health.

Alan Matheson

UTAH FACILITIES NOV./DEC. 2011 I 13

Nesting at the ‘Bird Managing the operations at Snowbird is similar to operating a small city; the job can be challenging and exciting, but that is what makes it all worthwhile.

By Kelly Lux, Executive Editor

S

nowbird Ski and Summer Resort had 202 days of skiing during the 2010/11 season – the longest ski season in the resort’s 40 years of operations.The 800 inches of snow that kept the slopes open until July 4 this year were welcomed by skiers and management alike. Vice President of Resort Operations Dave Fields calls the nearly 70 feet of snow that fell last winter a blessing – especially when it comes to great skiing.

However, the Greatest Snow on Earth (so called because of Utah’s Lake Effect phenomenon) that tops the mountains of Little Cottonwood Canyon (a yearly average of 500 inches) brings with it more than great skiing and breathtaking views.

The large accumulations of snow can

14 I UTAH FACILITIES NOV./DEC. 2011

be destructive to the buildings and utilities located at the resort, requiring a significant amount of maintenance – especially prior to the snow fall and after the snow melt, Fields says.

“Eight hundred inches of snow is really hard on a facility,” Fields says.

“The snow creep and the settlement of the snow destroys things. It’s hard on parking lots, pavement and sidewalks. Our crew does an amazing job of putting things back together for summer operations so it’s beautiful up here.”

Managing and caring for the 2,500-acre resort is a delicate balancing act – a matter of pleasing visitors and working with various government entities all while dealing

with Mother Nature, says Fields.

Snowbird employes approximately 1,800 employees during the ski season to help with that balance.

Their duties range from operating the 85 runs, Aerial Tram and 10 chairlifts, managing the four hotels/condos and the Snowbird Center, cleaning the approximately 900 guest rooms, waiting tables and running the 15 restaurants and five bars. Fields compares the operations at Snowbird to those of a small city.

The resort gets its water from a water treatment plant in an abandoned mine, and an unified fire station is located on the property.

With nearly one million visitors annually, operations at the resort are ongoing, day and night. Teams are

working all over the mountain at any given time, Fields says. Nearly a dozen Snowcats groom the slopes nightly, working in eight-hour shifts from 4 p.m. to 8 a.m. Snow plows are constantly plowing roads, clearing parking lots and moving snow piles.

“You have to do something with the snow in the parking lots and on the buildings,” Fields says. “And with a year like last year, you run out of places to put it. You have to get creative about where to stack it and where it can melt.”

Maintaining the Resort Most maintenance procedures can be handled by on-site staff, with Snowbird employing its own master electricians, plumbers and

mechanics. Day-to-day operations generally run smoothly at Snowbird, but occasionally something unexpected will occur and require immediate attention, Fields says.

Having a reliable, seasoned staff makes emergency maintenance issues easily manageable.

“We have a core group of people who have been at the resort for 30 to 40 years,some have been here since day one,” says Fields. “They know where everything is buried. They know what is problematic. In a crisis, we rally together and get very resourceful and very creative. When you work in this kind of environment, you have to be creative and resourceful, and we have a lot of people in this company who are very good at that.”

Major maintenance projects are reserved for the beginning and ends of the ski season – usually in May and June and mid-October – when there is a lull in guests. Making time for regular maintenance is essential, says Fields. If you don’t make time, you fall behind in repairs and experience more problems all around, he says.

Preparation for the ski season begins in mid-October after the eightweekend Oktoberfest (Utah’s second largest festival, according to Fields) and involves grooming the mountain, setting up the chair lifts, maintaining the tram and creating snow.

“Ironically, you spend all that energy making snow in the

continued on page 16

Photos courtesy Snowbird Ski and Summer Resort

UTAH FACILITIES NOV./DEC. 2011 I 15

continued from page 15 beginning of the season, but in the spring, you spend a bunch of energy getting rid of it – pushing it out of the way so you can open the alpine slide,” Fields says. “It’s very labor intensive and resource intensive to make a ski slope and then get rid of it.”

Once the snow begins to melt, Snowbird starts prepping for its summer season of mountain biking, hiking and horseback riding. Crews start clearing the snow, replacing winter infrastructure with summer infrastructure. The process can be tricky, especially during years where the ski season is long and summer and winter operations overlap, Fields says.

Maintenance crews also take advantage of the warmer weather to do larger, not-so-sexy maintenance projects, says Fields. This summer, the crew replaced sewer pipes that had been temporarily repaired during the ski season. Construction crews were also working on renovation projects that were planned for the 40th anniversary of the resort. The Cliff Lodge, the resort’s largest hotel, including its guest rooms, meeting areas and spa, was remodeled and the Aerie Restaurant is currently undergoing renovations.

As part of ongoing maintenance,

16 I UTAH FACILITIES NOV./DEC. 2011

Snowbird crews are also responsible for the unusual grass roofs topping the Cliff Lodge, the Lodge at Snowbird, Iron Blosam and Creekside Day Lodge.

The grass helps to drain the snowmelt from the flat roofs, which obviously accumulate a lot of snow during the winter months. Due to the grass on the roofs, the buildings also blend in to the scenery during the summer months.

Maintaining operations so the resort runs smoothly is essential in the hospitality industry, Fields says. Guests, who come to Snowbird from all over the world, want to feel comfortable and expect a clean, highly-functioning resort.

“We do everything we can to make sure people, wherever they are from, feel comfortable here,” says Fields. “In this economy, if you don’t deliver, they will walk down the street because there is someone out there who understands the hospitality industry. It’s about making people feel welcome.”

Avalanches at the Resort Situated in the most avalanche prone canyon in North America, Snowbird Resort is often put on lockdown while crews ensure the safety of Highway 210.The Utah Department of Transportation joins forces with the Forest Service and Snowbird Ski Patrol to close the road for avalanche safety.

While the roads are clear of travelers, Snowbird Resort fires weapons from artillery stations located throughout the canyon to induce avalanches.

“UDOT is very competent when it comes to avalanche forecasting,” Fields says. “They let us know when the hazard is unreasonable, unacceptable or too dangerous. They close the road at the top and the bottom until they are confident the road is safe.”

While the road is closed, Snowbird has the responsibility of caring for its employees and visitors. The resort plans to have enough staff (some live at the resort) on hand to cater to its guests.

Staff who live in Salt Lake Valley are housed in empty rooms – except on nights when the hotels are at capacity.

On those nights, Fields rolls his sleeping bag out on his office floor where he rests until the early morning hours. He gets an early start at work the next day, clearing the snow from the highway and making sure guests can travel safely.

“Those are the kind of things that a lot of ski resorts don’t have to deal with.

They don’t usually have the road issues.

They probably rarely sleep on their office floor,” says Fields. “For me, that’s what makes this place exciting. You are working with Mother Nature, and Mother Nature is pretty wild here in the winter.”

beauty and inspiration of this natural setting – a place dedicated to increasing human understanding through the enhancement of body, mind and spirit,” said Bass.

Summer Activities at the Resort Snowbird is actively working to promote its plethora of summer activities, which means maintaining the resort through the summer months is just as important as winter upkeep.

Employees are actively working to operate and maintain the alpine slide, tram rides, zipline, ropes courses, bungee trampoline, hiking, biking and horseback trails and climbing wall. The summer activities at Snowbird are plenty and little known, Fields says.

“We spend a ton of money every

40 Years and Still Going According to Snowbird.com, “Snowbird Ski and Summer Resort includes the finest facilities the skiing world has to offer.”

After 40 years of operations, the resort continues to make plans to expand and grow with the same ideals. Currently, plans are to expand the resort’s night skiing and renovate the Creekside Lodge, restaurant and maintenance building. In the near future, Snowbird hopes to offer more skiing in a new drainage, perhaps Mary Ellen Gulch.

“The first 40 years of Snowbird’s existence have been exciting and challenging,” said Snowbird President Bob Bonar, one of the resort’s original employees. “We’re looking forward to the next 40.” UF

summer trying to educate people that we are more than a ski resort. It is really hard to change that perception,” Fields says. “ Our summer operations have grown a lot, and it has been successful.

We are continuing to educate people about what we do during the summer.”

Fields believes the resort has the capability of attracting just as many summer guests as winter guests – a dream of Snowbird Co-Founder Dick Bass.

“My underlying dream for Snowbird is the creation of a year-round resort, which respects and complements the

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UTAH FACILITIES NOV./DEC. 2011 I 17

Lone Peak Medical Office Building Follows Trends with Satellite Emergency Department

By Kristen Hutchings, Associate Editor

T

he Boyer Company, which develops and manages commercial real estate properties, is renowned for the extensive Gateway project in downtown Salt Lake – but this retail/mixed-use project is just one of the many areas of real estate dabbled in by Boyer.The company also develops healthcare properties, most recently the St. Mark’s Lone Peak Medical Office Building in Draper, Utah.

The 53,000 square-foot medical office building, worth $11.3 million, opened its doors to the public on May 25, 2010. Rumors suggest that the building is only in its first phase of development with future plans of becoming a full-service hospital, depending on the needs of the community. As of now, Lone Peak contains specialty medical campus and also houses a new development in Utah’s medical field – the first satellite emergency department in the state.

18 I UTAH FACILITIES NOV./DEC. 2011

Operated by MountainStar Healthcare, the Lone Peak ED is an extension of St. Mark’s hospital and MountainStar Healthcare. It receives approximately 10,000 emergency department visits annually. Located on the first floor of the building, the ED is complete with an experienced and specialized staff from St. Mark’s Hospital, along with a full imaging suite containing MRI, ultrasound, CT scanner and X-ray equipment.

Satellite EDs, though a new concept in Utah, have been implemented in different areas nationwide for the past 20 years. As technology improves, more communities are beginning to have a renewed interest.

“Satellite EDs are receiving more attention now as healthcare providers work to identify better methods for delivering patient care in a more costeffective manner,” said Mark Meadows,

vice president of outpatient development at MountainStar Healthcare.

The project manager of Lone Peak MOB, Stephen Richards, agrees and claims that many other states have found the implementation of satellite EDs to be both successful and efficient.

“This may be a beginning trend in healthcare, where emergency rooms are separate buildings that feed into hospitals,” Richards said.

Lone Peak is labeled as a medical office building, but because it houses an ED, it is required to follow hospital and state codes. Requirements include stringent seismic and fire codes as well as a helipad on the property. This is crucial as helicopters and ambulances are instructed to carry victims to the nearest ER. When calamities occur in the mountains, “We are the closest emergency facility to receive them,” Richards said.

MountainStar brainstormed locations

Photos by Alan Blakely

for the Lone Peak Medical Campus that would best service a growing community and decided on Draper, Meadows said.

“MountainStar Healthcare built the campus to meet the community’s need for emergency medicine care. Until then, people who live and work in Draper and surrounding areas had to drive quite a distance to the nearest ED,” said Meadows. “Physicians also deliver primary and specialty care in the MOB, and we provide on-site out-patient diagnostic services in the ED as well.”

One of the goals of satellite EDs and clinics separate from hospitals is to save patients money. While hospitals are expensive, utilizing these buildings diminishes the higher costs often seen in hospital bills, Richards said. With the advances that are occurring in technology today, the improvements are allowing clinics and EDs to step away from hospitals and deliver care in a more efficient and

financially-friendly way. Patients are quickly evaluated and effectively treated at satellite facilities; those who require further attention and overnight assessments are transported to the nearest hospital for further care via ambulance or helicopter.

Meadows also explained that satellite EDs are an example of smart growth.

“We didn’t overbuild for the community; we adopted the smart growth model in the first phase to serve the community’s current needs,”he said.

So although the Lone Peak Medical Campus is large enough to sustain a complete hospital, MountainStar Healthcare saved financially by implementing a facility that met the exact demands of the people.

The community also needed a department dedicated to women’s health. Lone Peak services met this need with specialized, on-site

diagnostic imaging services. Women from the community can conveniently undergo screening tests such as digital mammography and bone density scanning, Meadows said.

Apart from servicing the community and saving lives, Lone Peak Medical Office Building has also focused on saving water with their waterwise landscape. Trees and shrubs that thrive in Utah’s desert climate have been added to the landscape and different conservation mechanisms have been installed for water efficiency.

Lone Peak’s services and its satellite ED have awakened ideas for another possible satellite station in the state.

The University of Utah Healthcare plans to build a satellite ED in Daybreak.

As for further developments of out-of-hospital EDs, only time – and the needs of the community – will tell. UF

UTAH FACILITIES NOV./DEC. 2011 I 19

automated controls

The Promise of an Open Building Control System

By Brett Parry

M

any people assume that automated electronic building control systems are similar to other electronics. For example, if someone purchases a new Sony DVD player, a Samsung TV and a Bose sound system, they expect these items to operate simultaneously without problems, also known as “plug and play.”

Additionally, individuals are accustomed to competitive price shopping when purchasing such items.

Unfortunately, the same type of cohesive operations and competitive pricing has not always existed with electronic building control systems, such as fire alarms, security systems and HVAC/DDC control systems.

The majority of large commercial buildings throughout Utah have automated electronic HVAC control systems or direct digital controls (DDC). Since their inception, DDC were unique to the manufacturers who created them, including all required hardware and software. This effectively created a captive market for DDC manufacturers once facilities had invested in their proprietary brand.

As building owners learned, proprietary control systems locked them in to one manufacturer, and often times one contractor, in a geographic region for support. Many owners became frustrated because the manufacturer or contractor failed to give them the support they needed. Upgrades and service work were often priced at a high premium due to the lack of competition for a given brand.

In the past 10 years, development in the DDC industry have started to address concerns of building owners.

Many developments have targeted open architecture and cohesive operations.

One particular development supported the “plug and play”compatibility concept – making the systems speak the same language.

Common protocol languages were developed that different manufacturers 20 I UTAH FACILITIES NOV./DEC. 2011

could support, which allowed multiple brands of devices to communicate.

BACnet and LON are two protocol languages that were developed to allow open, common communication between controllers and equipment. Almost all DDC manufacturers in today’s industry now offer either BACnet or LON protocol controllers.

Many equipment manufacturers provide their equipment (air handlers, chillers, boilers, lighting controls, VFD’s, make-up air units, etc.) with BACnet, LON or other communication interfaces. By having a communication interface to equipment, manufacturers ensure their systems are compatible with many, if not all, DDC control systems.

Having a universal DDC language, such as BACnet or LON, is only part of what makes a DDC system open.

Another major factor in an open system is its ability to operate with other DDC systems. Even after having a system that supports BACnet or LON installed in their building, many building owners learned they were still tied to one manufacturer or contractor for support.

To resolve this, the industry is now creating methods for different manufacturers to operate mutually.

Truly open DDC manufacturers support multiple dealers and/or distributors in a geographic area, thus ensuring competitive pricing and competition for business.

The building controls industry is moving in the right direction to having a more “plug and play” system, similar to other electronic products.As these control systems are becoming more open, building owners and facility managers are benefiting by having competitively-priced systems, while receiving quality service.

Brett Parry is an account executive for Wasatch Controls, a controls, alarms, video security and access controls contractor.

Brett can be reached at 801.956.0465 or brett@wc-systems.com. UF

UTAH FACILITIES JULY 2011 I 21

Photo courtesy Freeport West

The Big Box Theory Big Box Market Improves as Companies Move Office Space to Warehouses

By Kristen Hutchings, Associate Editor

A

fter a rocky couple of years, big box development is on the rise, and the industrial market is improving. According to CB Richard Ellis MarketView, “Speculative construction projects are making a comeback, while availability and vacancy continue to decrease.”

Freeport West Industrial Properties is one company that is entering into speculation projects. Freeport West, together with Big-D Construction,

recently built the 507,000 square-foot Landmark 8 building in Salt Lake City – one of the largest big box projects to be constructed in the state in 2011.

Approximately 277,000 square feet of Landmark 8 has been leased to a company called International Paper, and another 170,000 square feet have been allotted to Coremark, a distributor of dry goods. The remaining 60,000 square feet will be leased to tenants that Freeport West

what they

ctly ings are exa d il u b x o b s are big Big hese facilitie

big box. T ur sound like: a nsisting of fo o c y ll a ic s a b , and simple, cludes retail in x o b ig B f. roo general, walls and a e spaces. In s u o h re a w strial office and using in indu o h re a w g in ss it is when discu d big box if le e b la is g in uild markets, a b feet. ,000 square 0 5 n a th r e larg

22 I UTAH FACILITIES NOV./DEC. 2011

believes to be the best fit for the building and its other occupants.

“We built (Landmark 8) on spec,” said Mark DeWald, Freeport West’s director of business development. “We knew that Utah was booming, so we saw an opportunity to come out of the ground without a tenant in hand. To be honest with you, it is quite insane because you take the risk of it sitting vacant, and then you’re paying on it.

However, with the strength of our

Industrial Tenant Improvements Trending Toward Energy Efficiency

By Stephanie Marthakis

W

hile tenant improvements (TIs) on industrial properties remain focused on the functional attributes of a building, industrial occupants have broadened the definition of functional to include energy efficiency and optimal usage of space.

company, we were able to roll the dice on that.”

Freeport’s foresight turned out to be dead on. More and more companies are beginning to eye Utah as a possible business venture because of the educated work force, lower taxes, cheap housing and the numerous amenities that the state offers, DeWald said. Apparently, this sudden boom may be the beginning flurry of future companies nestling into the Beehive State.

Why the Boom?

While warehouses continue to gain attention, office space development is seeing a gradual decrease in availability.

“A lot of companies, like Overstock.com, used to have a high power office facility with a warehouse in a separate location. But now, we find these companies are wanting to consolidate an office in the warehouse because it’s cheaper,” DeWald said.

“Warehouse rent is cheaper than office rent, which is why you’re going to see a lot of office vacancy and a lot of office space available. These companies are merging into big box and putting everything under one roof.”

Building an office space can be pricey because of all the physical detail.

So if companies have both an office and a warehouse, it is an efficient move

to unite everyone under the same roof.

Companies that have combined office and warehouse space have seen that merging under a big box building is economical, and it changes the dynamics of their employees for the better – putting white collar and blue collar workers together under one roof.

Secrets of Success Though availability for industrial warehouses has been decreasing, development is still a risky move. Many companies do not have the economic stability or speculative luck that Freeport West has seen. Speculation is always a major concern, especially considering the economic instability of the past couple of years. If you build it, tenants may not come. And for the past couple of years, businesses have seen just that. Many companies have had to turn their projects over to the bank because they lack financial resources and stability, DeWald said. Even if companies do jump back after bankruptcy, tenants may not be inclined to rent from them again

because of the business’s past unstable financial footing.

“Tenants today are looking at the capabilities of the landlord,” said DeWald. “The landlord used to look at the tenant and say, ‘I may lease to you, and I may not.’ Whereas today, the tenant is also looking at the landlord to make sure they’re qualified to deliver and service that size or type of a building.”

In the business marriage between tenants and building owners, both parties want to be sure the other is willing and capable of holding their end of the deal. But how does an industrial company retain this respectability and become as successful as Freeport West? Mark DeWald supplied some answers.

“First, our management team is very sharp when it comes to picking and choosing when and where to develop, and that just comes with experience,” he said. “No. 2, we’re financially sound.

Three, by being in the position that we’re in, we can pretty much beat our competition anywhere and deliver a great product.” UF

Capital vs. Tenant Improvements When discussing tenant improvements, it is important to make the distinction between capital improvements and tenant improvements.

Capital improvements are investments a landlord makes upfront in order to more effectively market a property. These may include parking, lighting and dock upgrades. Tenant improvements, on the other hand, can vary and are subjective to the tenant and structure of the lease terms. These usually include office build out, upgrades to power and improved/additional loading access.

continued on page 24 UTAH FACILITIES NOV./DEC. 2011 I 23

continued from page 23 Utilitarian Product Industrial properties are meant to be more durable than other property types, with function outweighing form by a wide margin. Although today’s industrial user is not focused on new industry standards such as LEED Certification, they are interested in space and energy efficiencies. Office build outs are planned more efficiently, and tenants are demanding better use of energy. This has resulted in new types of TIs that include energyefficient lighting and roof irrigation systems.

Determining Factors As mentioned previously, tenant improvements can vary based on the needs of users and terms of the lease.

In the new economy, landlords are hesitant to spend large sums of money on specialized TIs. Although a percentage of the asking rate is allocated to TI’s, a longer lease term could result in greater improvements.

For example, a 10-year lease with a good tenant could motivate a landlord to agree to allocate more money to TI’s. The type of industrial use is a factor, and TI’s can range significantly from warehouse distribution facilities to manufacturing or cold storage.

Types of Industrial TIs With the exception of a few common TIs, many industrial properties are often leased as-is in today’s economy. The most common form of improvements on industrial properties is the build out of office space. Typically, 5 to 10 percent of industrial square footage is for office space, and 2 to 5 percent of the landlord’s asking rate is allocated to this expense. Depending on tenant needs, other common improvements include increased power capacity and additional loading access.

Market Influence According to a recent CBRE National Industrial View Point publication, U.S. trends indicate that landlords continue to offer aggressive lease rates but are beginning to tighten on free rent and extra tenant improvements. Additionally, cash conscious landlords are reluctant to fund larger tenant improvement allowances.

Locally, landlords of existing industrial properties have begun to invest in retrofitting existing buildings.

This can be attributed to some significant changes in the supply of

24 I UTAH FACILITIES NOV./DEC. 2011

new industrial properties. Over the last 12 months, 1.6 million square feet of new speculative construction was introduced to the industrial base.

Current projects are already attracting tenants as evidenced by the 507,000 square-foot Landmark 8 building that is already 88 percent pre-leased. The addition of these brand new industrial properties has also created upward pressure on lease rates, particularly in transactions over 100,000 square feet.

Currently, Salt Lake County has one of the lowest industrial availability rates in the country. Looking ahead, availability is anticipated to decrease further which will push lease rates up.

This scenario could bode well for landlords as decreased supply increases their ability to negotiate lease terms, including the degree of tenant improvements they are willing to make.

Stephanie Marthakis is research and marketing manager at CBRE. Tom Dischmann, senior vice president of Industrial Properties CBRE, Jeff Richards, first vice president of Industrial Properties, CBRE, and Keith Geisel, associate director of Asset Services, CBRE, contributed to this article. Learn more at www.cbre.com/slc. UF

UTAH FACILITIES NOV./DEC. 2011 I 25

26 I UTAH FACILITIES NOV./DEC. 2011

real estate law

Securing Your Leased Property

By Artemis Vamianakis

S

afety and security are central concerns for every landlord.

Landlords of commercial and residential property have legal responsibilities to ensure the safety of their tenants. A breach of those duties could result in abatement of rent, fines, civil liability or even criminal charges.

In the face of these legal issues, understand your responsibilities and take the appropriate steps to secure your property.

In general, a landlord has a duty to provide reasonably safe premises and common areas for tenants and guests.

The Utah courts recognize an implied warranty of habitability in both residential and commercial leases which requires landlords to keep premises usable for the purposes the premises were leased. In the residential context, for example, the warranty of habitability requires that the property is safe and fit for human occupation and that the bare living requirements are maintained, such as heat and hot water.

If a landlord fails to provide these essential features, or fails to repair them, the landlord is in danger of breaching the warranty of habitability, as well as the contract, and the tenant may take steps to withhold rent or recover other damages. A tenant may also recover special damages when, as a foreseeable result of the landlord’s breach of the warranty of habitability, the tenant suffers personal injury property damage or other injury.

The Utah Fit Premises Act requires residential owners to maintain the premises in a condition “fit for human habitation” and in accordance with local rules and ordinances. The Act imposes a duty on land owners to protect the physical health and safety of the ordinary renter, mandating that an owner “may not rent the premises unless they are safe, sanitary and fit for

human occupancy” and that the owner shall maintain common areas of the residential unit in a “sanitary and safe condition.”

Local ordinances, such as the Salt Lake City Fit Premises Ordinance also preclude a landlord from renting unless the premises are safe. The Fit Premises Ordinance outlines specific health and safety requirements. For example, a property owner shall provide adequate hall and stairway lighting, furnish tenants with adequate locks and keys to exterior doors and protect each tenant’s peaceful enjoyment of the premises.

What a property owner must do to maintain safe premises and to protect the safety of the ordinary renter, such as protection from the criminal act of a third party, will depend on the location of the property and individual circumstances. At a minimum, a landlord must maintain basic security features such as working exterior doors and locks. If the doors and locks become inoperable, the landlord should take immediate steps to repair them.

However, if, for example, the property is located in a known high-crime area, where break-ins or vandalism is prevalent, or if the landlord is warned of criminal activity, landlords may need to take additional action to increase security measures. Such measures may include the installation of an alarm system or hiring private security guards to protect against those foreseeable risks. However, if landlords choose to institute advanced security measures, however, they will have a duty to maintain those advanced measures in good working condition. While advanced security may be expensive, failure to protect against known or foreseeable risk may result in costly litigation.

Ultimately, all landlords are responsible to provide reasonable

security measures to protect their tenants and property and to defend against exposure to fines or civil liability.

What can you do? Start by ensuring that your property meets the safety and security standards outlined by statute and by your local city ordinances. Pay attention to the time periods within which repairs must be made and monitor and maintain common areas such as hallways and lobbies. If you receive a notice from a tenant about a repair, take immediate action to fix it.

Consider your lease as a tool to apportion risk. Certain duties, such as the responsibilities outlined in the Utah Fit Premises Act, may be allocated to a different party by an explicit, signed, written agreement. Pay attention to the crime in the area and consider advanced security measures such as security systems or security guards to protect your tenants and your property where appropriate. Finally, take steps to regularly inspect your property. This will allow you to stay ahead of potential problems and can help protect against criminal activity on your property grounds.

Artemis Vamianakis is an associate attorney at Fabian Law. She concentrates her law practice in real property and complex litigation. She can be reached at 801.531.8900 or avamianakis@fabianlaw.com. UF

UTAH FACILITIES NOV./DEC. 2011 I 27

‘

28 I UTAH FACILITIES NOV./DEC. 2011

disaster preparedness

The Great Utah ShakeOut Exercise Drill will Help Building Owners Prepare for Disaster

By Kelly Lux, Executive Editor

O

they do, you are going to want those n the morning of Tuesday, practiced people from the April 17, 2012, at 10:15, a DHS/FEMA National US&R 7.0 magnitude earthquake Response System.” will shake Utah. The quake will Though relatively safe when collapse 10,000 buildings, damage an compared to the other states, Utah is additional 285,000, kill 2,300 people due for an earthquake, according to and injure 30,000 more.

Wilde. Seismologists and geologists Approximately 350,000 people will be say the Wasatch Fault sees a major displaced from their homes. Damage is earthquake every 350 to 400 years – calculated to amount to $35 billion. like clockwork, Wilde said. But unlike This particular disaster is only a a tornado or a hurricane, residents full-scale exercise, but the scenario is cannot be forewarned about seismic real.

“They asked me to come out here and scare you,” said Tony Wilde, public and private sector planner Tony Wilde, Be Ready Utah for Be Ready Utah with the Utah Department of activity, making it necessary for Utahns Emergency Management. “Get off of to prepare now, Wilde said. your collective rear end and do “If we have a 7.0 earthquake or something.

We cannot be greater in the state of Utah, FEMA lackadaisical.” has determined that help will not Wilde, who spoke at the 2011 arrive to the Salt Lake Area for at least Disaster Symposium sponsored by 72 hours,” Brass said. “There is going Utah Disaster Kleenup, is helping to to be massive destruction along the prepare the state for the Great Utah Wasatch Front.”

ShakeOut and also for a real To help prepare Utah for this earthquake – should one happen. disaster, Be Ready Utah has invited all In reality, disasters rarely strike Utahns to participate in the Great Utah, said Bill Brass, programs Utah ShakeOut – a large-scale manager for Utah Task Force 1, a earthquake drill involving building FEMA Urban Search and Rescue owners, business owners, the Team. Keith Bevan, program specialist government, schools and families. The for Utah Task Force 1, agrees that few main purpose of the ShakeOut is to large disasters occur in Utah with the instruct Utah residents on various exception of fires, which he says are a safety measures they can implement small part of the disaster system. As far before, during and after an earthquake. as disasters go, Utah is ranked 50 out “People who plan and prepare are of 50 states, Bevan said, with the least the ones who will survive,” said Wilde. amount of large disasters occurring in When an earthquake does hit, “you are the Beehive State. going to have to take care of yourselves “Disasters never do happen in the for a while.” Be Ready Utah is asking state of Utah,” Brass said. “But when

People who plan and prepare are the ones who will survive.

Utahns to act as if a major earthquake were occurring during the drill in order to accurately assess their actual preparedness for such an event.

“There will not be any freeway closures, power outages or other simulated effects of the hypothetical earthquake, unless your local government or utility company specifically notifies you about something of this nature,” according to ShakeOut.org. “The ShakeOut is not something you need to leave work to participate in – in fact, participating at work is encouraged.”

The ShakeOut will give building owners the opportunity to practice their emergency plans, said Wilde.

Building and business owners should asses what they will need to keep their business running after a disaster, plan where they can relocate, if necessary, and prepare an evaluation plan post disaster.

In preparation for all disasters, building owners should make sure their buildings are protected under an insurance policy, said Brad Tibbits, director of Property and Casualty Insurance Division for the State of Utah.

“Insurance companies can help you design a program that will cover your assets and property,” Tibbits said.

“Insurance will not solve all of the issues, but it will be a tool. It will help you get back in business.”

Building owners are encouraged to prepare and to participate in the Great Utah ShakeOut, Wilde said. Those who are interested can sign up at www.ShakeOut.org. UF

UTAH FACILITIES NOV./DEC. 2011 I 29

janitorial

Set Your Standards High Certified Cleaning Companies are Worth the Extra Cost

By Ron Moore

S

tandards. Every industry has them. Standards set the bar at an appropriate height, helping to create a certain barrier to entry while weeding out those who aren’t serious about operating a “real” business.

The cleaning industry is particularly susceptible to newcomers. Anyone with a mop bucket, an old pickup truck and his wife’s vacuum can open a janitorial company. Building service contractors can do certain things to set themselves apart from the crowd. It’s called certification. Certification is something facilities managers should look for when trying to choose providers who know what they are doing.

Several good standards are available. One of those is offered by ISSA, the Worldwide Cleaning Industry Association. ISSA guides and administers a process called the Cleaning Industry management Standard to help cleaning organizations set up management systems to ensure quality, efficiency and overall customer satisfaction.

Managing a successful cleaning company, be it a building service contractor or an in-house custodial/ cleaning department, requires hard work, dedication and a thorough understanding of the customer’s service requirements. Whatever standard is used, it should be thought of as a blueprint to develop customercentered, quality organizations.

Does it really matter? And why should I bother? Yes, and because in the long run you’ll be so glad you did.

With the many cleaning companies out there, this is that advanced degree on the resume that sets the candidate apart. Hiring a certified organization 30 I UTAH FACILITIES NOV./DEC. 2011

Any cleaning industry standard should focus on some or all of the following elements: • Systems, including a written janitorial plan, that consistently deliver quality.

• Fulfillment and follow up to ensure the customer’s satisfaction. No news is NOT good news. A system for inspecting what is expected must be developed.

• Health and safety of worker and customer. Yes, you must pay attention to OSHA, EPA, MSDS Sheets, etc.

• Human resources, including recruiting, hiring and training of cleaning personnel. All janitorial companies draw from the same labor pool.

Those that stand out have the best hiring and training practices. Even a mediocre employee can excel in an orderly, focused, systematized culture.

All of the above depends on one thing – leadership. If the management is not committed, nothing will happen. Choose the company with the strongest leaders who clearly define their standards. If the operating standards aren’t clear, people will search and test for a performance standard they think is acceptable. means you have partnered with a cleaning company that takes their work seriously and has paid the price of painful change and continuous improvement.

Most standards and certifications demand dedication to quality in meeting customer requirements. They are based on management principles that are found in all successful organizations. They are not just for large companies with large budgets, but for companies of any size. Some standards require adherence to a particular process or product; others do not. Organizations should be allowed flexibility in choosing the most effective ways to meet their customer’s needs. Hire companies that have their management ducks in a row and who have refined their procedures and processes to create a system.

Cleaning is a business. Most in the industry take great pride in what they

do. Cleaning companies play a major role in maintaining the value of large and important assets. Building owners and managers may pay a little more for the services of a certified company, but in the long run, it is worth it because it is the best value. No one would go to a doctor who wasn’t certified, just because he had a stethoscope and was cheaper than a real doctor.

Certification of some kind provides third party verification that helps companies prove their claim that they are indeed better than anyone else.

Certification also helps facility managers find the best partner.

Ron Moore is president of RBM Building Services, Inc. He can be reached at 801.373.2424. UF

UTAH FACILITIES NOV./DEC. 2011 I 31

pest control

Prepping for Winter Pests

By David Wright

S

pring isn’t the only time for rigorous cleaning and sanitation – an important key to reducing pest populations.

If food is served on-site, food debris can get trapped in tile grout, under equipment and in hard-to-reach corners and crevices, creating a ready food supply for flies, roaches and other pests. Worst yet, this is also where many pests breed, multiplying your problems.

To prevent these siutations, try enlisting the help of bioremediation products that digest grease, fat and oils from kitchen or food prep areas.

Bioremediation turns grease into water, making it a safe way to improve sanitation without harming the environment.

Exterior Insect Control With colder weather, many insects begin migrating indoors, seeking warmer places for the winter. Spiders

32 I UTAH FACILITIES NOV./DEC. 2011

are particularly active in the fall, and so a good exterior perimeter treatment can minimize their impact on your facility.

Making sure you have good seals on all doors and windows is critical in keeping these pests outside of your building.

Rodents Make sure all possible entry points are sealed. Mice can fit under a door with just a quarter-inch gap.

Depending on your location, you may want to install rodent bait stations on the exterior of your building. These serve two purposes: a monitoring tool for rodent activity on the outside of your building, and a way to reduce the rodent population outside which diminishes the pressure of them invading your facility. Finally, strategically placed multi-catch rodent traps on the inside of your facility may be necessary to capture any rodents that enter your building.

Voles If your lawn has voles, fall is the best time to treat for them. They are more likely to respond to baiting programs in the fall because they put on extra weight to get through the winter. Once the snow starts to build up, voles will build tunnels through the buried grass as they search out additional food resources, making it difficult to treat the problem. Their destruction is most evident in the spring once the snow melts, so the time to prevent is now.

David Wright is a sales representative with Sprague Pest Solutions. Sprague Pest Solutions focuses on serving single and multi-location commercial clients in the Pacific Northwest and Intermountain regions. Wright can be reached at 801.412.0606. UF

UTAH FACILITIES NOV./DEC. 2011 I 33

Can the New SBA Debt Refinance Program Help You Through This Tough Economy?

Refinance High Interest, Balloon Payment Building Loans to Low Interest, Long-Term and Fixed Rate Loans

H

as the economy kept you up

Small business has been screaming for help in this economic crisis. Now, there is a program to help small- and middle-sized businesses consolidate their debts, make smaller payments and free up capital for business use.

The United State’s Small Business

at night, worrying you about your business and its future?

Have you almost overdosed on the purple pill to stop that ache in the pit of your stomach created by declining business revenues?

Administration (SBA) through its Certified Development Company (CDC) partners has a new financing tool to help refinance existing highinterest balloon debt used to purchase a place of business and change that into a low interest, mostly fixed-rate

Telos Treatment Center Gets Financial Help Through SBA Debt Refinance Program The business owners of Telos Treatment

the loan for the facilities.The company

offered by Mountain West Small Business

Center, a Provo facility for the treatment

had several high-interest, readjusting

Finance,”said Craig Lamont, CEO of Telos.

of depression and anxiety for young

and floating loans that were expensive.

“We have subsequently lowered our

adults, were puzzled.They had a

“We went to a number of banks and

monthly mortgage payments and the

thriving, money-making business.The ir

credit unions with a healthy pro forma,

savings have been significant.”

treatment was successful and created

having seven years of experience, good

“Telos”in Greek means “ultimate

waiting lists of perspective clients.The

asset value and great credit of the

potential.”With a credible staff, successful

owners had strong credentials and their

principals, and we could not get anyone

treatment practices and a solid financial

finances were in good order. However,

to look at our loan until we found out

footing through the SBA Loan,Telos is

no financial institution would refinance

about the SBA 504 Debt Refinance Loan

achieving that potential, said Lamont.

34 I UTAH FACILITIES NOV./DEC. 2011

financial planning loan. It allows borrowers to use building equity for eligible business expenses like inventory working capital, equipment, payroll, building repairs and other eligible business expenses.

The SBA 504 Debt Refinance Loan is easy to navigate. Existing building debt on an owner-occupied building (51 percent building occupancy by your company meets eligibility) can be replaced with a 20year term SBA 504 Debt Refinance Loan that would be authorized and funded by the SBA through MWSBF. That loan would constitute 40 percent of the amount borrowed, while 50 percent of the loan amount would come through another financial institution that would assume first position with the collateral. The SBA and MWSBF would go to a second mortgage position. The rate of the loan would be negotiated with a term of 10 to 20 years. The remaining 10 percent would remain as equity from your building.

“This SBA Debt Refinance Loan has major implications for small businesses that are carrying unfavorable, float rate debt with constant rate changes and balloon debt features,” said Stan Nakano, Salt Lake District director of the SBA. “We can turn much of the debt into a longterm, low-interest fixed rate loan with the added feature of pulling out building equity that can be used for the business. It’s game changing.”

A building with a mortgage of $1 million and a float interest rate of 8 percent with a 10-year call that appraises for $1.5 million would allow a company to borrow borrow up to $1.35 million (90 percent of appraised value). The SBA portion would be 40 percent of the loan at approximately 5.25 percent fixed rate for 20 years which would be $540,000. The companion financial institution portion would be 50 percent of the loan, or $650,000 at 6.5 percent

(approximate bank rate), and 10 percent of the remaining building equity remains in the deal. The existing $1 million mortgage will leave $350,000 for eligible business expenses that may include inventory, building repairs, equipment replacement, vehicles, utilities, payroll and other business expenses.

Utah’s local CDCs have financed manufacturing facilities, office buildings, restaurants, grocery stores, retail facilities, hotels, motels and any other owner-occupied building structures imaginable.

“We have been waiting for decades to do this type of refinancing. Just recently, Congress and the Administration have realized that allowing small businesses to take advantage of the low interest rate environment and unlock building equity will help generate commerce

and jobs as well as give a substantial boost to the economy,” said Scott Davis, president of Salt Lake-based Mountain West Small Business Finance (MWSBF).

Now, despite the scary economy, you can feel better about your business, get some sleep and stop the heartburn.

MWSBF is a 30-year-old licensee of the SBA, that has financed nearly 4,000 SBA loans in Utah and surrounding states. It has financed manufacturing facilities, off ice buildings, restaurants, grocery stores, retail facilities, hotels, motels and other owner-occupied building structures.

Contact them at 801.474.3232 or www.mwsbf.com. Utah Certif ied Development Company has f inanced nearly 1,000 Utah small businesses. They can be reached at 801.627.1333 or www.utahcdc.com. UF

UTAH FACILITIES NOV./DEC. 2011 I 35

Photo courtesy Jordan Valley Water Conservancy District

Waterwise Landscapes Healthier, More Beautiful and Better for the Environment

By Kelly Lux, Executive Editor

W

ater conservation is essential in sustaining the projected population growth in Utah. To help Utahns preserve water, the Conservation Garden Park in West Jordan is stretching its existing water supplies while educating the public on waterwise landscaping.

“People may think that they have to give something up to save water in their landscapes,” said Clifton B. Smith, garden manager at the Conservation Garden Park.“The fact is that waterwise landscapes are healthier, more beautiful and better for the environment. Done properly, they also save time and money in maintenance.”

36 I UTAH FACILITIES NOV./DEC. 2011

The Conservation Garden Park, managed by Jordan Valley Water Conservancy District,contains interactive education exhibits on nearly 6.5 acres of waterwise landscapes – created to teach conservation methods to the public. While touring the grounds, homeowners and building owners can see waterwise plants that can be used on their own properties.

the gardens, demonstrate how various plants can be used to conserve water.

Waterwise Plants

Shaun Moser, a gardener at the Conservation Garden Park, suggests replacing unused turf with waterwise plants. Examples of waterwise plants – especially native plants – can be found throughout the park. Rocky Mountain Maple trees can be seen in the Woodland Yard, and the Green Mormon Tea is located along the park’s walkways.

The Conservation Garden Park is made up of native and non-native perennials along with a few potted annuals. The yards at the park, which can be seen by a leisurely stroll around

“Using plants native to Utah really helps to conserve water since they are used to using water they naturally get from the weather,” Moser said, referencing the High Desert Garden

landscape Yard at the park. The Desert Yard was watered by hand during its first year and has grown with only natural irrigation since.This yard includes a Mimosa Tree, Desert Four O’Clocks and a Desert Willow – all viable plants for a waterwise landscape.

The Harvest Yard is an example of landscaping that is made up of edible plants and plant products. The Concord Grape Vine growing on a trellis in the yard does well in Utah’s climate and uses little water while also producing edible grapes, Moser said.

Fruit trees can also be a good option for waterwise plants. A common misconception for growing fruit trees is that they need lots of water, Moser said. However, this is not the case, especially for personallyharvested trees. The more a fruit tree is watered, the more fruit it will produce, he said.

Thyme is a good water-conserving

alternative to grass, Moser said. Like grass, Thyme is durable enough to be tread upon. However, unlike grass, Thyme does not need to be mowed, does well in the shade and uses little water.

Native grasses are also a wise alternative to turf, Moser continued.

The ornamental grasses use little water, are easy to maintain and make similar sounds to Quaking Aspen when the wind rustles them. These plants can also add interest to a landscape during the winter months.

Water-Efficient Irrigation Systems Moser suggests that the best way to water your landscape is by combining a pop-up sprinkler system with a drip system. The drip system is effective in planters because it waters the roots of plants directly. Pop-up systems are ideal for turf because they can cover a large area equally.

“If I were installing a system, I

would do the pop-up heads in the grass and the drip system in the planting beds,” Moser said. “I think that is the overall best way to do it.”

Watering less will make the roots of plants grow deeper into the ground and make the plants healthier, Moser said.

Using sprinkler systems during the night or in the early morning will allow for more effective watering since the sun isn’t out and the wind isn’t blowing.

Moser also suggested checking the pressure of sprinkler systems; too high of water pressure will emit small droplets that are easily blown away by the wind.

The Conservation Garden Park showcases many more water-conserving ideas for commercial settings and parkstrips. For more information about implementing water conservation techniques, visit ConservationGardenPark.org. UF

UTAH FACILITIES NOV./DEC. 2011 I 37

parking lot maintenance

Revisit Snow Removal Contracts

By Ty Cherry

A

s each new snow season arrives, building owners and property managers should take an aggressive approach as to how they coordinate snow removal for their properties. Some of the most important aspects to consider with snow removal are price, liability, tolerance level and contractor qualification.

Price seems to be the biggest issue for most property managers and owners.

The old saying “you get what you pay for” definitely applies to snow removal.

Although the lowest price is easier on a budget, it often leads to angry tenants and headaches for management due to poor response time, unreliable equipment and broken promises.

Experienced property managers and owners will most often hire a

38 I UTAH FACILITIES NOV./DEC. 2011

competitively priced company with good references and experience.

The concern of liability due to slips and falls is constantly looming over all property managers’ and owners’ heads.

Many contracts contradict themselves when it comes to liability, so clarify with your snow removal company on how the indemnity clause reads in the contract. If your indemnity clause states that the contractor will carry all liability and fully indemnify anyone involved on site, then the contractor should decide when to commence snow removal services and ice control.

Every property is going to have a different tolerance level when it comes to snow accumulations. Be clear with your snow removal company on how much snow can accumulate before they start

snow removal services and ice control.

Many contracts call for a 2 inch minimum prior to commencement, but the contract also calls for the snow removal company to fully indemnify the owners.

One of the smartest things property managers and owners can do is prequalify a snow removal company before hiring. Asking for references from comparably-sized properties will help you know if a company can handle the scope of work they are bidding on and deliver on what they are promising.

Ty Cherry is the business developer for Aeroscape Property Maintenance and Landscaping. He has 18 years experience in irrigation and landscaping. He can be reached at 801.503.6700 or tcherry@aeroscapeutah.com. UF

UTAH FACILITIES NOV./DEC. 2011 I 39

Gen Y Wants Open Space and Open Communication Photo courtesy ROSI

By Sean Murphy

A

new breed of young, talented and opinionated workers are planting their flags in businesses across the world. Generation Y (age 20-30) has shaped many companies that you have heard of, such as Goldman Sachs, Google and Nike.

Young talent is also infiltrating lesserknown enterprises in your own backyard. Attracting and retaining the newest members of your workforce has a lot to do with the environment they work in, and your tenants may be at a disadvantage at the hiring fair if their workspace doesn’t reflect the core values of Gen Y. Death of the Cubicle (Sort Of) It is hard to let go, but the highwalled cubicle is now only appropriate for a small percentage of workers.

Younger and older generations are thriving in a more open, collaborative environment. A few years ago, this was called a movement, but it is almost a rule now. A low-walled workstation has 40 I UTAH FACILITIES NOV./DEC. 2011

always been more economical, and it is now more appreciated.

Newer workstations have a somewhat similar footprint to those of the last few decades, but the walls are coming down a bit. Tall panel walls and cubed workstations are making way for spaces where workers can actually make eye contact with people around them.

But it is not just about eye contact; Generation Y values a contemporary space where communication and teamwork are encouraged. A physical space that balances privacy with openness is crucial to nurturing this collaboration. Also important are common spaces where people can step away from their desks to share information with fellow employees.

The Social Workplace Although the social business environment is somewhat influenced by the younger members of our workforce, workers of all ages crave collaboration and communication. Productivity today

depends on it, and the environments in which people work must facilitate it.

Open workstations are only a small part of the equation. Individual workspaces should be complemented by multiple, small meeting areas. These areas can be as simple as a tall table with stools, a small traditional meeting table or a cluster of lounge chairs. Smaller meeting spaces don’t even need walls. They can and should be out in the open where they are easily accessed by nearby thinkers.

Gen Y is a very mobile people. They need to get away from their desks a few times a day and thought-share with people around them. This is beneficial to their overall health (which they appreciate), and it’s also beneficial to the way a business functions. What’s more, a block of small breakout areas can serve as delineation between different types of work being done.

Inherent Efficiency The beauty of a space with fewer walls

interiors is that it is actually better for your bottom line. Less material equals lower cost and higher ROI. The separation between workstations used to consist of a tall fabric panel, but now separation can be accomplished with a shared low storage cabinet or light-scale divider. Lower panel walls also allow natural light to penetrate farther into workspaces, reducing the need for excessive artificial light. Airflow is also improved. These are huge steps for environmental sustainability. It should be noted that improvements in sustainability are appreciated by elder generations just as much as the younger ones.

opportunity for communication is elemental in the way a business functions. The physical space in which people work is changing. So step out of your cubicle and embrace the transition.

Sean Murphy is in sales/design at ROSI Office Furniture. He can be reached at 801.486.7711. UF

Perception of Environment Gen Y-ers are generally not jobhoppers. They are looking to earn longterm meaningful experience with businesses that are willing to help them learn. Attracting and keeping this valuable talent has a lot to do with creating an environment that speaks to the way they function. They carry a strong emotional connection to the place they work. It’s only natural since they spend nine-plus hours per day there.

Other generations are following suit.

Realize that business is about connecting with people, and that collaboration is the new rule. A welldesigned workplace with ample

UTAH FACILITIES NOV./DEC. 2011 I 41

Save Money and the Environment with Inexpensive Roofing Options

By Eric Pauly

A

renewed focus on integrating green technology such as rooftop photovoltaic (solar) panels, wind turbines and vegetative roofs onto new and existing buildings has been driven and largely funded by the federal government to reduce the nation’s carbon footprint and increase focus on clean renewable energy.

However, with ROIs that can push out 20 years or more, it is simply not financially feasible for building owners to incorporate these types of green technologies.

Fortunately, several affordable and environmentally-friendly methods, materials and technologies can be utilized. Many of these are simple specification or material adjustments that can save money on the installation cost as well as future utility, maintenance and replacement costs.

Recycle Almost all materials used in commercial roofing can be recycled.

While the technology exists to recycle these materials, the location of the recycling centers are far and inconvenient, which can make the separation and transportation of waste materials costly.

However, some materials separate and transport easily and can save in the cost of paying for disposal containers and landfill fees. Most single ply membranes are recyclable and easy to remove and transport. Lightweight membranes can be folded or rolled and strapped down to a flat bed truck, making it easy to transport large quantities and minimizing the cost of transportation. Other lightweight, recyclable materials like foam plastic insulation can also be easily and 42 I UTAH FACILITIES NOV./DEC. 2011

efficiently transported.

This economy of scale is only applicable with large re-roofing projects that will produce enough recyclable material to fill a flat-bed truck. Partial loads can be arranged as well, but the cost of transportation is excessive when compared to the cost of disposal.

Reuse Reuse the materials on a roof that are still in good condition and won’t affect the performance of a new roof system. IBC (International Building Code) allows for up to two roof systems to be installed on a commercial building. Thus a new roof can be installed over an existing roof and retain the existing R-Values, vapor barriers and roof slope.

Obviously, if areas of insulation have become wet or damaged in some way, they will need to be removed before installing the new roof. Technology, such as infrared cameras, can locate specific areas of wet insulation, which

can then be marked and replaced prior to re-roofing. A new cover board can be installed, along with a new roof membrane with the same performance and warranty as a roof that was removed and then replaced with new components.

The cost savings in this scenario can be substantial. Consider replacing a roof on a 100,000 square-foot warehouse with an R-Value of 21 in rigid foam polyisocyanurate insulation (approximately 3.5 inches). To remove this entire roof system to the roof deck and install new insulation and membrane would cost at least $200,000 more than if this system were to be overlaid with a new cover board and roof membrane. Obviously, local costs for tax, disposal, transportation and labor would contribute to the price.

Cool Roofs Cool roofs in commercial, low slope applications are those with a solar reflectance value of 0.65 or higher when new. That means 65 percent of

roofing the sun’s total radiant heat energy is reflected back into the atmosphere, rather than being absorbed by the building. Cool roofs primarily accomplish two things: substantially reduce the amount of energy needed for cooling and reduce peak electrical demand by an overall 10 to 15 percent.

Cool roofs reduce the urban heat island effect caused by heat-absorbing infrastructure that raises urban ambient temperatures and creates an inversion, which traps air pollution and creates smog.

Most manufacturers have created or enhanced viable roofing membranes that are Energy Star rated and economical. Some roof membrane systems also include 25- to 30-year warranties.

Some conditioned buildings can experience a 20 to 30 percent savings in energy costs by simply switching from

a non-reflective to a cool roof membrane. This can be enhanced with rebates or incentives provided by state and city governments and local utility companies. Currently, Rocky Mountain Power is providing a 10 cents-persquare-foot rebate for installing qualifying cool roofs in Utah. Most of these incentives need to be applied for before the project begins.

Daylighting Daylighting, the use of natural light to illuminate the interior space of a building, is now a popular way for building owners to save energy and money and increase worker satisfaction, sales and productivity.

Prismatic skylights refract the sun’s rays into thousands of tiny micro sunbeams, diffusing the direct sunlight into a softer, brighter light. Building owners can reduce their electrical

lighting requirements by as much as 70 percent when using prismatic skylights in as little as 4 percent of the roof surface.

Light sensors and lighting controls often allow enough light to enter the building through the prismatic skylights, eliminating the need for artificial lighting during most of the day. This can make a substantial impact on utility bills for the building user, often yielding ROIs in less than two years. With effective material life spans matching that of commercial roof systems (20 years or more), the savings add up and the amount of carbon emitted is reduced substantially.

Eric Pauly is the senior project manager for CentiMark Roof Systems, a commercial roofing contractor specializing in all aspects of commercial roofing.

Contact Eric at 801.633.0189. UF

UTAH FACILITIES NOV./DEC. 2011 I 43

Apartments are Sexy Sexy is Simple, Smart, Conservative and Looking for Long-Term Relationships

By Mark Jensen

A

partments are sexy. Some who read this article will immediately want to argue that statement. However, in Utah right now it would be hard to argue otherwise.

So let me explain. I originally started brokering apartments because I am conservative by nature, and apartments in the greater Salt Lake City area are arguably the most conservative commercial real estate investment play out there. Utah is a safe bet. Owning apartments in Utah has proven to be like buying an insurance premium for your money.

Adjectives like conservative and safe are not the typical words used to describe sexy. However, perspectives, opinions and definitions have changed recently, which is having an enormous effect on the overall Utah apartment market.

Before I attempt to explain why apartments are sexy, first I’ll clarify what sexy meant prior to the recession.

The exact start date of the recession seems to be as much personal as it is statistical, and for me it was October 2007 – very personal.

Prior to October of 2007, sexy came in all shapes and sizes, and the “investment of a lifetime” came by my office at least once a week. Chasing high yield was sexy. Hard money loans were sexy. Refinancing the equity out of your home to develop residential lots was sexy. Buying a second home because you could – super sexy. Sexy was telling a conservative safe deal at 8 percent “no” because your neighbor had a deal that was guaranteed to pay 25 percent plus you get a back rub. Safe, conservative apartments were not sexy.

As the Oracle of Omaha, Warren Buffet, has often been quoted, “What matters most is not the return on your 44 I UTAH FACILITIES NOV./DEC. 2011

money, but the return of your money.”

Chasing yield became costly quickly.

Retail, office and industrial investments have been off as much as 30 to 40 percent from their pricing at the peak of the market in 2007. A high percentage of those properties are now worth less than what is owed on the property. People have lost money, and the definition of sexy has now been completely re-written.

Sexy is now simple, smart, conservative and looking for long-term relationships. This “flight to quality” has pushed Class A investments up in value, resulting in an upward pricing pressure on conservative solid investments like apartments in strong markets such as Utah.

Apartments are now sexy.

Commerce Real Estate Solutions

Annual Apartment Market Report reveals that Utah is at the tipping point of trends that have already received national attention: declining vacancies and increasing rents. The Utah market is expecting vacancy to decline below 5 percent and rental increases upwards of 6 percent over the next year. Utah apartments have hit the national radar in a big way. The stability and strength of apartments, coupled with the anticipation of rent growth, reduced upcoming new inventory. Changing national multifamily trends have positioned Utah apartments so well that they have become the new definition of sexy.

To say the Utah apartment market is hot would be a gross understatement.

An unprecedented amount of equity

continued on page 46

UTAH FACILITIES NOV./DEC. 2011 I 45

continued from page 44 and debt are actively looking to acquire apartments in Utah. Money is chasing yield, but it is chasing fair yield with the potential of upside. Through the end of the year, CAP rates will continue to be compressed and values increased. Vacancy will continue to decline, which will put upward pressure on rents. Utah is headed into a landlord-friendly market where apartments have become sexy.

What is driving rents up as well as apartment values? Currently, there is a reduced supply of new product coming online this year versus the last two years.

The number of units that have come online each year in Salt Lake County, going back to 1980, average 1,427 units per year. In 2009, 2,442 units were added with another 819 in 2010, which was a large influx of new product that was absorbed and continues to be absorbed. This year, through April 2011, only 193 units have been added.

New supply, in the short term, will

multifamily continue to see a decline for several reasons. The primary reason for the lack of new product is the dearth of availability of financing. The principle financing source of apartment development has been HUD. The lack of available ground poses physical barriers. Finding cities willing to zone or permit new apartments is another road block. These barriers will continue to make it difficult to get apartment approvals. There is also a new generation of “lifestyle renters,� people, who for mobility, inability to buy a home and/or for less stress in their lives, have chosen to rent instead of own. Statistically, the number of renters has grown over the last five years, and research shows it will continue to grow.

The new definition of sexy will continue to have a huge effect on the Utah apartment market. After two years of difficult operations, tenant skips and concession wars, owners are staring into a landlord market and are

preparing to reap the rewards. Now is the time to start increasing rents and positioning assets for higher cash flow and/or a potential sale. Capitalization rates will continue to be compressed as rents rise. Values, after being somewhat stagnant for a while, will begin to rise.

Barriers will keep competition away in the short term. With vacancy expected to dip below 5 percent in Salt Lake County this year, apartments offer a low-risk investment with a foreseeable and predictable strong future.

Conservative and safe are the new pretty girls in town.

Mark Jensen is an investment specialist at Commerce Real Estate Solutions Cushman & Wakefield Alliance Member. He can be reached at mjensen@comre.com or 801.303.5469. UF

ADVERTISER INDEX American Anchor www.american-anchor.com ................................41

JAN-PRO www.jan-pro-utah.com ..................................................24

BELFOR www.belfor.com ..............................................................48

Layton www.laytonconstruction.com ................................................23

BIG-D www.big-d.com ....................................................................2

Mountain West Small Business Finance www.mwsbf.com ............39

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MSS www.mss84.com ......................................................................37 Pro Touch www.myprotouch.com......................................................20 Questar www.thermwise.com ............................................................7

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Rocky Mountain Power www.wattsmart.com ................................28 Securitas Security www.securitas.com ..............................................45 Sprague www.spraguepest.com..........................................................35

Hunt Electric www.huntelectric.com ................................................26

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IREM www.iremchapter33.org ........................................................25

Utah Controls www.utahyamas.com ................................................43

Jacketta Sweeping www.jackettasweeping.com ................................32

Utah Disaster Kleenup www.utdk.com..............................................3

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UTAH FACILITIES NOV./DEC. 2011 I 47

Utah Facilities P.O. Box 970281 Orem, UT 84097-0281 CHANGE SERVICE REQUESTED

48 I UTAH FACILITIES NOV./DEC. 2011