N EW S Wednesday, February 10, 2016
185 West Broadway Jackson Hole, WY (888) 733.9009
www. jhsir .com
R E A L ES TAT E
®,™ and SM are licensed trademarks to Sotheby’s International Realty Affiliates LLC. An Equal Oppor tunity Company. Equal Housing Oppor tunity. Jackson Hole Sotheby’s International Realty is Independently Owned and Operated.
COMMERCIAL REAL ESTATE SUPPLY FACES SETBACKS
Town poised to reduce levels in response to housing pressure
benefits like long term price stability, lack opportunities in and around Jackson in of competition from new development, and jeopardy of enduring a further reduction, a very tax friendly state in which to derive neighboring counties have the potential to income.” gain. Recent commercial projects have found by Darren Kleiman, Associate Broker Further obfuscating the picture of sites in Alpine, Pinedale and eastern Idaho The pulse of the commercial real estate commercial development in the near future more appealing than working within the market in Jackson Hole continued with a are the pending reductions of commercial confines of regulations within Teton County. strong pace over the past 12 months. As zoning within the town core. Due to the The uncertain state of commercial zoning reported by the Teton County Multiple groundswell of demand for housing solutions within Jackson continues to affect small Listing Service, commercial sales activity saw within Teton County, and the town of Jackson business owners as well. With development an increase in unit sales (non-lease) volume in particular, town planners are pressed to projects focusing heavily on lodging and large of nearly 40% in 2015 over activity in 2014, maintain commercial zoning to 1994 zoning parcels, town inventory is enduring a chronic with the majority of the increase attributed to levels—approximately half of which has shortage of available commercial properties a surge in lodging and light industrial. Truly yet to be developed. In lieu of previously in sub-1,500 square foot storefronts and notable sales of 2015 reported to the MLS anticipated commercial upzoning, proposed office space. were the properties consisting of the Anvil changes to the draft zoning regulations Updated draft zoning is considered to be a and El Rancho Motels/Nani’s Restaurant would now shift the square footage towards priority item for elected officials with future opportunities for public comment expected. package, listed for $8,675,000 which closed housing-specific density bonuses. in November, and the United States Forest With the limited commercial development Service Parcel, listed for $12,000,000 which sold in October. Commercial real estate can sometimes resemble a well-kept kept secret in the Jackson Hole real estate market. When it comes to overall sales activity, a significant amount of transactions close without ever going through the multiple listing service, and for those that are in the MLS, in many cases the sale figures or capitalization rates are undisclosed, underscoring the importance of working with an agent experienced in commercial transactions. When asked to help shed light on commercial values, Bill Van Gelder, Associate Broker with Jackson Hole Sotheby’s International Realty says, “Cap rates have normalized in the 5% to 6% range depending on asset class. Buyers continue to pay more, relative to national options, for commercial properties in Jackson. Buyers Pictured Above (Clockwise): 3,300 square foot commercial condominium with highway frontage 3 miles south of Jackson (#15-2911); have shown a willingness to seek out niche Mixed-use commercial in Pinedale offers restaurant and bar, retail liquor license, offices, four hotel rooms and three undeveloped commercialcommercial markets like Jackson that trade zoned lots (#15-2793); .32 acres of urban commercial zoning with 11,400 square foot of existing retail space and Broadway frontage in off the initial rate of return for more subtle Jackson blocks from the town square (#14-1649).
RESIDENTIAL SPOTLIGHT | NEW AND NOTABLE LISTINGS FROM ACROSS THE VALLEY Town of Jackson
3 Bedrooms | 2 Baths | 1,860 Sq. Ft. | .02 Acres $975,000. #16-65
South Jackson Hole
3 Bedrooms | 2 Baths | 2,400 Sq. Ft. | 3.5 Acres $1,100,000. #16-61
Teton Village
3 Bedrooms | 3.5 Baths | 3,414 Sq. Ft. | .051 Acres $3,250,000. #16-130
FOR MORE AVAILABLE PROPERTIES HERE IN JACKSON HOLE AND AROUND THE WORLD VISIT WWW.SOTHEBYSREALTY.COM