Hospitality's out, healthcare's in.

• Author: King, Heather
• Position: Business Trends - Commercial property construction - Brief Article

Commercial Construction

The flurry of construction once evident in downtown Salt Lake City has slowed dramatically. And although the library is still under construction, the AlphaGraphics headquarters and Grand America Hotel are open for business, and the Bennett Federal Building's facelift is nearly complete. One can only conclude that there will be less activity in the coming year.

A Time of Healing

The trend in the commercial construction industry is currently hospitals and medical offices. While many previously hot properties including some downtown office complexes now stand nearly empty, medical facilities are in demand. CAMCO Construction's Director of Marketing Alex Wolfert sees an increase in bids for labs and clean rooms around the valley. Kitchell Contractors' Chief Estimator Mark Mossing explains that doctor's offices associated with new hospital complexes are on the rise.

Alan Rindlisbacher, director of corporate marketing for Layton Companies (Layton Construction), agrees that a viable market can be found in the institutional, municipal and government entities. Layton has several medical projects in process including expansions at the University of Utah Medical Center and the Huntsman Cancer Institute. And Big-D Construction recently completed the McKay-Dee Hospital, of which company President Rob Moore reflects "its atmosphere is a healing environment that is so different than the sterile environment of hospitals in the past. It's been very fun to be a part of that project."

In addition to medical buildings, there also appears to be a rise in senior living facilities. Robert Anderson, senior vice president of Construction Loans from Zions Bank, explains that Zions is lending more construction money to senior care facilities. As the median age of U.S. citizens rises, it seems likely that this trend will continue.

A market also exists for other types of health facilities. Rindlisbacher and Mossing both see growth in sporting and recreational facilities. Mossing believes "Utah will become a mecca for sports, training and housing facilities for athletes--both winter and summer," and that this demand will be a "permanent byproduct" of the Olympics.

Utahns' interest in healthy family living may explain why CAMCO's Wolfert witnesses more clients focusing on health and employee wellness benefits. On-site daycare, cafeterias and exercise areas are just a few of the options being discussed in planning meetings. "The trend this year is...