Facebook to build massive data center in Eagle Mountain

Facebook to build massive data center in Eagle Mountain


Facebook is set to build a new data center in Eagle Mountain that will span nearly one million square feet and represent a $750 million investment in the city.

Eagle Mountain has worked for nearly a decade to lure data centers to the city — a plan officials say works well for the more isolated area. While Eagle Mountain can’t competitively draw other industries, the city — geographically the third-largest in the state — is a perfect fit for data centers that require a lot of land but not too many new employees.

While the data center, which is set to be completed by 2020, will most likely only bring in about 30 to 50 jobs, officials say that low number is best for the city so there is no significant impact on local resources like schools, police services or traffic. The city will also see a 1,000 percent return on investment, according to a fiscal impact study commissioned by the city.

Facebook has promised to spend at least $100 million to expand the city’s infrastructure to accommodate the project. This investment would, in turn, expand infrastructure in all of Cedar Valley and increase the county’s power grid by an anticipated 48 percent.

The data center will be powered by 100 percent net-new renewable energy through utilization of Rocky Mountain power renewable energy tariffs, and Facebook will purchase its own water rights and construct the required water infrastructure with money from its own pocket.

The state would grant Facebook an estimated $150 million in tax breaks for the project’s first phase, with taxes waived for up to 20 years per phase. Those tax breaks may include hundreds of millions of more dollars if the company decides to continue to build on its lot.

The officials who voted on the project chose to approve it if the state could implement a 40-year cap on the agreement.

The data center in its first phase would increase property taxes currently collected for the 490-acre site by 12,000 times. The project will benefit the city, county, Alpine School District, Central Utah Water Conservancy District and Unified Fire Service Area, officials said.

The data center is set for construction at the Sweetwater Industrial Park between a mink farm and water treatment facility.

National Industrial Market Trends Unprecedented


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Market Intel from the top 10 construction activity markets in the country show signs of amazing buoyancy, although turmoil in the stock market related to potential trade wars and protectionist policies could put a damper on activity.  How this affects our local market remains to be seen but from our perspective it has not slowed deal velocity yet.

Salt Lake City, while not on the list of the top 10 construction markets in the country has similar dynamics to Denver which did make the list.  Nearly 70% of all under construction space in that market is pre-committed.  Our Utah market remains robust for both new speculative construction and leasing activity.  While tenants may enjoy more choices of available spaces here than Denver or other intermountain markets, spaces are rapidly being consumed and the number of spaces above 200,000 SF with immediate availability are limited to just three buildings in the entire market!

We found the following graph showing historic availability vs. construction vs. pre-commitments very interesting.  Give us a call at IPG Commercial to share your opinion, or request guidance for your next industrial real estate play.

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Graph source: CBRE Research, 2017 

Busy Bees


I drove by the new 2.4 million square foot Amazon facility just west of the Salt Lake International airport a couple of days ago.  What a site, literally. 

The speed at which this 840,000 SF footprint building has risen from the ground is quite astounding.  With 70 facilities and nearly 100 million square feet under roof, I suppose Amazon has learned a thing or two about hiring the right teams.  Velocity and organization are now the new norms of what individuals and business entities expect now.  You go online, you press “one-click” ordering and the package shows up.  Clients are expecting that same type of service now in other areas, healthcare, groceries, mortgage loans…real estate services too.

The stakes are high, the demands are real and the opportunities are immense.  I hope in all our “busy-ness”, we can take time to slow it down, to focus on the things that are important to us, family, friends, a higher calling, whatever that may be for you. 

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Industrial and supply chain real estate expected to soar in 2018


Low vacancy rates and high demand for warehouse space are forming perfect conditions for the industrial sector in 2018.  The trends unfolding that should make 2018 a banner year for industrial real estate –

1-The three Ts of Trump – Trade, Tax and Transportation infrastructure.

2-E-commerce continues to set records. 

3-Urban logistics move closer to the customer.

4-Continued investment in the darling of U.S. real estate. 

5-The Fourth Industrial Revolution is well underway.

To see full article, visit:  http://www.logisticsmgmt.com/article/industrial_and_supply_chain_real_estate_expected_to_soar_in_2018


Its the Most Wonderful Time of the Year


It’s the most wonderful time of the year! (Did you just sing that along with me?) As we get closer and closer to Christmas it seems like the days get fuller, the nights colder and the holiday spirit hums near a fever pitch- especially if you have children. But the other amazing thing that happens this time of year is that we tend to instinctively turn outward. We hunt for the perfect present for each of our loved ones. We even make sure to give neighbors and friends a token of what they have meant to us in the last year. And we tend to be more charitable than we are most other times of the year. At IPG we have also been feeling the urge to turn our hearts outward toward our fellow man. We have been trying to find ways to impact the lives of others in large and small ways, and at the same time trying to find more love and charity within ourselves. It is said that by small and simple things- great things shall come to pass. Who has not felt the ripples caused by a positive act? Whether it is a stranger who purchases breakfast for a restaurant full of patrons, a benevolent stranger who pays off $10,000 in layaways, or just a smile and help with a door in a crowded shopping center, these acts tend to create ripples of positive energy that radiate out and affect others.   In this New Year, our IPG team has decided to commit ourselves to being the stones that create the positive ripples in others’ lives. Our acts might not always be big and most of the time they will be anonymous, but we hope that they have a positive impact on not just our team but those who are touched by the positive ripples of our actions. You never can underestimate the power that a simple act can have on another. We hope that you can join with us and help us create positive moments in the lives of others.