PROVO — There is no doubt that Utah County is a unique place. How people define "unique" varies. Some people may respond in glowingly positive terms and others, not so much.

Rivalries and opinions aside, while examining local commercial real estate markets, I and many of my colleagues have observed a significant amount of activity in Utah County, including particularly impressive activity in the northern part of the county.

In general, commercial real estate markets will reflect local economies. As such, much of the time and efforts of the research team I work with are spent understanding these connections and how markets will be affected.

Attracting attention

It was clear early in the recovery that Utah County's economy was outperforming not just the nation's, but in some respects, the state's. As this outperformance continues, it attracts more and more attention, as was apparent in subsequent research performed.

So what is attracting all of this attention? Start with a very innovative and entrepreneurial environment. According to analysis done by the Brookings Institution, Utah County ranked second in patent growth during the 20 year period from 1990 to 2010. Much of this innovation is manifesting itself in the tech sector and turbo-charging growth.

Venture capital

Sources of capital are noticing the area. A recent report by CB Insights tracked venture capital throughout the U.S. and the data was telling. Looking at venture capital over the last two years, if Utah County was a state, it would rank 10th in the U.S. by dollar volume. Throughout the last two years, Utah Valley attracted more venture capital than 40 other states. Simply put, the area is home to many successful companies.

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The commercial real estate market in the Salt Lake Valley is reflective of the strong local economy. The growth is keeping overall demand for commercial space steady, and new construction continues to occur in both the industrial and office markets.

For example, Adobe's sizable presence in the state can largely be attributed to its acquisition of the local startup Omniture. Vivint, another local startup, was recently purchased by the private equity firm Blackstone in a deal valued at more than $2 billion. The list of success stories could go on and on.

As Joel Kotkin said in Forbes Magazine, "The future of tech may be best represented not by the fresh-faced 20-something social media CEOs lionized by the media but by the huge tech corridor along I-15 between Salt Lake and Provo, now filling up with the offices of such tech titans as Intel, Adobe and eBay."

Economic growth and jobs

These success stories are contributing to the creation of economic growth and jobs. According to the most recent data available from the Bureau of Labor Statistics, employment in the Provo metro area grew by 4.7 percent over the 12-month period ending in January of 2014.

To give some perspective, job growth in the state over the same period was 2.4 percent or almost half of the growth experienced in Utah County. To be sure, the state's growth is still well above the national rate, but Utah County is experiencing robust growth with some sectors achieving double digit increases on a year-over-year basis.

With such growth it is no wonder that Milken Institute ranked Provo as the second best performing metro area in the country for 2013, just behind Austin, Texas, and ahead of San Francisco and San Jose, (Silicon Valley) California, respectively.

The good news is that many of the ingredients for continued success are present. While Utah's demographics are favorable, Utah County's are even more attractive. According to U.S. Census data, the county is younger and better educated than the state and U.S. as a whole. Furthermore, with two universities (Utah Valley University and BYU) nearby and proximity to Salt Lake County's workforce, growth will be supported.

Commercial real estate

Commercial real estate markets will continue to be positively affected by impressive growth in Utah County. A significant amount of new office construction is currently taking place and, in addition, the University Mall in Orem is set for expansion and redevelopment.

An area of note will continue to be on the southern side of Point of the Mountain, near Thanksgiving Point. This location is often cited by employers as ideal, because they are able to pull from the workforces in both Salt Lake and Utah Counties. Keep an eye on this area as it continues to generate a significant amount of interest and activity.

Happy Valley

In 2012, a piece in the Wall Street Journal referred to Utah as the brightest star on the American flag. The line is a favorite of public officials, but it makes a simple point. Allow me to tag along with that designation by saying that Utah County certainly adds to the luster of what some consider to be the brightest star on the flag.

At the very least, Utah County's growth is worthy of respect and its businesses should attract the support of policymakers as growth will inevitably bring new challenges. For now, barring any major deterioration on the global or national economies, the future is bright for Utah County. With all of this good news—it is a Happy Valley indeed.

Darin Mellott is a senior research analyst at CBRE, the world's largest commercial real estate services firm. Darin is actively involved in the community independently as well as through corporate initiatives. He is also a member of the Utah Economic Council and sits on the board of directors for the Economic Club of Utah. Outside of work, Darin tries to spend as much time as possible in the mountains or traveling. He tweets at @DarinMellott.

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