Forbes lists Arizona No. 1 for projected job growth

 

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Forbes ranked Arizona. No. 1 for projected job growth. 

Mike Sunnucks

Senior Reporter- Phoenix Business Journal

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Arizona ranks at the top of the charts among U.S. states for projected job growth over the next five years, according to Forbes magazine and Moody’s Analytics.
Forbes lists such as these are commonly sited by business executives, site selectors and the news media.
The business magazine projects Arizona with 3 percent job growth over the next five years with annual economic growth of 4.6 percent.
That puts Arizona just ahead of Texas in the job rankings. The two states often compete for technology, back-office and solar jobs and investments.
Colorado comes in third on the Forbes list; North Dakota fourth and Florida fifth.
Nevada, Utah, Georgia, Idaho and Oregon round out the top ten states for projected job growth.
Arizona, Nevada, Florida and Oregon were all hit hard by the Great Recession. The Forbes ranking is a marked turnaround for Arizona, which has been grappling with recouping jobs lost during the recession.
Arizona Gov. Jan Brewer lauded the top ranking as a validation of business tax cuts, sales tax simplification and other policies shes pushed through the Legislature during and after the recession.
“This report reinforces Arizona’s commitment, as a right-to-work state, to business growth and success, and validates the work we have done to make the Arizona comeback a reality,” said Brewer said.

Mike Sunnucks writes about politics, law, airlines, sports business and the economy.

VAN TUYL AND EISENBERG TEAMING UP TO DEVELOP RETAIL CENTER IN NORTH SCOTTSDALE

Read the BREW story here.

Commercial Real Estate Brokers’ Survey

On September 17, 2013, a group of the Valley’s most successful brokers were brought together by The W. P. Carey School of Business and the Center for Real Estate Theory and Practice to provide meaningful, insightful, and relevant input on the commercial real estate market in Phoenix. These brokers came from a variety of sectors and specializations as well as a cross section of the many brokerage houses in the Valley.

The purpose of this Forum was to seek consensus on forward looking key indicators of the commercial real estate market in the Phoenix metropolitan area. The Forum was conducted as an open discussion facilitated by Pete Bolton, Managing Director of Newmark Grubb Knight Frank (NGKF) and it was centered around what is truly happening "on the street" in terms of commercial real estate. The intention of this gathering was to detect current trends, discover similarities and differences among various sectors and submarkets, and document anecdotal evidence, opinions and insights of the group. As the facilitator Pete Bolton said, "Nobody knows this market better than the brokers, period, the end."

READ THE SURVEY HERE

Major renovations coming to Camelback Esplanade

Read the Business Journal story here.

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September 2013 Dear Frank, Phoenix new home inventories and mortgage rates are climbing. For realtors, it's the perfect storm. Phoenix new home inventories are steadily climbing and that's good news for realtors. As of September 16th of this year, there were 17,877 single family and condo homes listed for sale in Phoenix. When compared with the seven-year low of 14,547 homes in inventory in July 2012, it's clear that a recovery in the housing market is occurring. New Home Inventories, Rising but Still Low However, sales rates of new homes are still less than one third of what's necessary to keep pace with the Valley's current population growth. That's because construction companies who survived the painful recession are being cautious about overproducing or overestimating the demand for their homes. Photo from activerain.com Currently the region has 208 subdivisions with more than 10 available plots, according to CRA, a Scottsdale-based real estate brokerage firm. By comparison, the area had 710 similar subdivisions in 2007-three times as much.   With the lingering pessimism among the construction companies who managed to hold on during the painful recession of the last few years, and the potential for another market collapse has made them more strategic in their thinking and less apt to saturate the market again.     With less supply and more demand, new housing prices are continuing to rise. The median Listing Price in September is $254, 833, up significantly from its 7-year low of $139,960 in January 2011. So how do today's mortgage rates play into this? Interest Rates are on the Comeback Trail Mortgage rates have been on a sharp increase, rising from historic lows of 3.5 in May of this year to a national average of about 4.71 today, according to Bankrate.com. Although not great news for home buyers, it's great news for realtors, because climbing rates increase buyers' determination to buy a home now before rates go even higher. Customer service is our #1 priority, so you can trust us to handle your clients with absolute integrity and professionalism. Talk to us at the Eddie Mortgage Team and we'll get your client into the loan program that is right for them. Call us today! Sincerely, Eddie Knoell -Vice President- Signature Home Loans LLC Office: 602-248-4200 Mobile: 602-677-3105 Fax: 602-680-5184 Email: eddie@eddiemortgage.com Apply Online: www.EddieMortgage.com NMLS# 210917   -Equal Housing Opportunity-

Phoenix area sees dramatic drop in empty houses

Read the story here

 

6 Reasons Why Now Is a Great Time to Invest in Apartments

 

 

 

Winning in real estate investing requires that you follow two simple rules:

1. Understand which asset classes have the best risk/reward ratio.
2. Invest in the best locations for your asset class and strategy.

Investing in apartments provides stability and safety, even as other economic sectors endure dramatic swings.

In this article, I’d like to discuss Rule 1 (best asset classes) and review the compelling reasons for why resident-occupied cash flow real estate – specifically apartment buildings – are the asset class of choice for the next 20 years.
Fact 1: Baby Boomers (~76 Million) , the largest demographic group in US history are aging and the largest part of that group is moving into the “Over 55” group. As an age group, those over 55 begin to downsize their homes and rent more. In fact, those over 55 as a group rent more than they own.
Fact 2: The Echo Boomers (~72 Million), the second largest demographic group in US history, are moving into the 18-30 range. This age group contains the largest group of renters and rents for 5 to 7 years before purchasing a home, if at all.
Fact 3: U.S. Immigration is continuing to increase and will grow year over year into 2030. U.S. Immigrants as a group rent far more than they own and often continue to rent even after they could own a home. If you can provide quality rental properties in areas that capture a greater than average percentage of U.S. Immigration along with just national average growth, than you will have positive absorption. This means you will have low vacancy rates and still have the leeway to charge favorable rent for your units.
Fact 4: The national average of home owners vs. renters has taken a very large hit. Due to the artificial increase in the home ownership rate over the past few years, people who were not really in a position to own a home, entered and then departed the ranks of home ownership. We have seen a rapid transfer back to the average, which is driving increasing numbers of renters. Every 1% decrease in the home ownership rate is 1 million new renter households.
Fact 5: Multi-family housing starts are at an all time low. We have seen a 97% decrease in multifamily starts in the United States in recent years. This means that we’re not even building enough units to keep up with current population growth. Due to the current financing market, this decrease in new apartment development will increase occupancy rates nationally over the next few years. It will not be as dramatic at first. Single-family housing vacancy (that can be blamed on over-building) still needs to correct itself, but we believe that correction will happen soon enough and leave apartments in a great position to meet housing demand.
Fact 6: Multi-family Apartment Investments are historically one of the most stable of the commercial asset classes. You can make more growth equity in the Retail or Office asset classes, but you are exposed to a more volatile economic cycle. Apartments have some exposure to the economic cycle, but it’s nowhere near as significant. That is because the population cycle is not nearly as volatile as most economic cycles. As a result, the type of affordable housing that Multi-family Apartments represent will provide stability and safety, even as other economic sectors suffer through dramatic swings.
These 6 facts point to an overwhelming conclusion: More and more Americans will need rental housing in the coming years, and that trend will continue for decades. At 37th Parallel, we see these compelling facts plus great investment opportunities, and we are very optimistic about our future and the future of our clients.
The underlying fundamentals for apartment investments are very strong and we encourage you to learn more about this asset class and how it can improve your investment results

Read more: http://www.creonline.com/blog/6-reasons-why-now-is-a-great-time-to-invest-in-apartments/#ixzz2fjcnXjKo

August Existing Home Sales Rise to Highest in 6 1/2 Years

Existing-home sales increased in August and reached the highest level in six-and-a-half years, according to the National Association of Realtors®.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, are 13.2 percent higher than in August 2012.
Sales are at the highest pace since February 2007 and have remained above year-ago levels for the past 26 months.


Read more: http://www.creonline.com/blog/real-estate-investing-news-this-week-2013-09-21/#ixzz2fjbydxud

How to Inspect Windows, Doors to Stop Air and Water Leaks

 S&S Southwestern Management, LLC

How to Inspect Windows, Doors to Stop Air and Water Leaks

Article From HouseLogic.com

By: Lisa Kaplan Gordon
Published: January 07, 2011

Inspect windows and doors regularly to stop air leaks and water seeps that create high energy and repair bills. We'll show you how.

Take a look at windows, doors and skylights (http://www.houselogic.com/home-advice/windows-doors/window-replacement-tax-credit/) to stop air leaks, foil water drips, and detect the gaps and rot that let the outside in and the inside out. You can perform a quick check with a home air pressure test, or do a detailed inspection (http://www.houselogic.com/home-advice/saving-energy/do-it-yourself-energy-audit/). Luckily, these inspections are easy to do. Here's how to examine the barriers that should stand between you and the elements.

Big picture inspection

A home air pressure test sucks air into the house to reveal air leaks that increase your energy bills. To inspect windows and other openings:

          •Seal the house by locking all doors, windows, skylights, and shutting all vents.

          •Close all dampers and vents.

          •Turn on all kitchen and bath exhaust fans.

          •Pass a burning incense stick along all openings--windows, doors, fireplaces, outlets--to pinpoint air rushing in from the outside.

Windows and the outside world

Air and water can seep into closed widows from gaps and rot in frames, deteriorating caulking, cracked glass, and closures that don't fully close.

To stop air leaks, pinpoint window problems.

          •Give a little shake. If they rattle, frames are not secure, so heat and air conditioning can leak out and rain can seep in. Some caulk and a few nails into surrounding framing will fix this.

          •Look deep. If you can see the outside from around--not through--the window, you've got gaps. Stop air leaks (http://www.houselogic.com/home-advice/insulation/basement-air-leaks/) by caulking and weather stripping around frames.

          •Inspect window panes for cracks.

          •Check locks. Make sure double-hung windows slide smoothly up and down. If not, run a knife around the frame and sash to loosen any dried paint. Tighten cranks on casement windows and check that top locks fully grab latches.

Door doubts

          •Check doors for cracks that weaken their ability to stop air leaks and water seeps.

          •Inspect weather stripping for peels and gaps.

          •Make sure hinges are tight and doors fit securely in their thresholds.

Inspect skylights

Brown stains on walls under a skylight are telltale signs that water is invading and air is escaping. Cut a small hole in the stained drywall to check for wetness, which would indicate rot, or gaps in the skylight.

To investigate skylight leaks, carefully climb on the roof and look for the following:

          •Open seams between flashing or shingles.

          •Shingle debris that allows water to collect on roofs.

          •Failed and/or cracked cement patches put down the last time the skylight leaked.

Got Leaky Windows? 3 Low-Cost Tips to Fix Them

 S&S Southwestern Management, LLC

Got Leaky Windows? 3 Low-Cost Tips to Fix Them

Article From HouseLogic.com

By: Nicolette Toussaint

I used to hang an extra woolly robe in my bathroom because my post-shower route took me past a window so drafty it made me wonder about the etymology of "window." Turns out it comes from the Anglo-Saxon "vindr" and "auga," which translates as "wind eye." How appropriate.

If the "wind eye" focused on you last winter, but you're not ready to invest in new windows, you can still cut your energy bills if you seal those air leaks-and if you do so now, you'll prevent cool air from escaping your home this summer.

Here are three low-cost tips to help keep air leaks at bay:

#1: For most windows: Just fill the gaps (http://www.houselogic.com/articles/8-easy-ways-seal-air-leaks-around-house/).

Easier said than done if you're dealing with old, flaky caulk, weather stripping, or adhesive that's really tough to remove. But if you don't clean it off well, your new caulk and stripping won't adhere well and could peel away before you see any benefits.

However, a common household product, petroleum jelly, removes that adhesive goo quite well. Just rub the jelly over the sticky goo, let it sit for a few minutes, then wipe away. Another swipe with rubbing alcohol will remove the greasy film left from the jelly. (This technique, by the way, also works for removing price labels.)

#2. For older windows with rattling panes: Make baffles.

Cut quarter-round pine strips to fit. Use finishing nails and wood glue to secure them just inside the framed glass. Once you've caulked and painted the strips to match, they will disappear into the framework and look like part of the original window. It worked wonderfully on my 1920-era casement windows.

#3. If you want window treatments, too: Install waffle shades.

Folding fabric shades that are made with cells that trap air have great insulating properties-so good that some of them qualify for federal energy rebates (http://www.energystar.gov/index.cfm?c=tax_credits.tx_index), which have been extended into 2011. They start at around $50-still less expensive than new windows-and you get a new look, too.

Leaky windows are a big deal, winter or summer. What ways have you found to fix your windy windows?

How To Insulate A Garage Door

 S&S Southwestern Management, LLC

How To Insulate A Garage Door

Article From HouseLogic.com

By: Lisa Kaplan Gordon
Published: December 03, 2012

Garage door insulation cuts energy bills and street noise. Here's how to insulate your garage door.

Garage door insulation can make your life warmer, cooler, and quieter. It lowers energy bills, acts as a barrier between you and street noise, and brightens an otherwise dreary space.

Garage door insulation (http://www.houselogic.com/home-advice/insulation/save-money-with-insulation-upgrade/) is an easy DIY project; it'll cost you about $200 to insulate two 9-foot-wide doors.

Types of insulation

Any insulation type (http://www.houselogic.com/home-advice/insulation/insulation-types/) will increase the energy efficiency of your garage door. Here are the most popular types to apply to the back of garage doors:

          •Batt insulation. This flexible insulation, often found stuffed into exterior walls, is commonly made of fiberglass. It's usually backed by paper or foil, which act as vapor and air barriers. Insulating values are R-3 to R-4 per inch of thickness. Cost is about 30 cents per sq. ft.

          •Foam board insulation. These rigid panels, typically made from polystyrene, provide a high insulating value for relatively little thickness. Panels most often range from ½ inch thick (R-3.3) to 1 inch (R-6.5). Foam board often is faced with aluminum or vinyl. ($20 for a 4-by-8-ft. sheet that's 1 inch thick.)

          •Reflective insulation. Rigid boards and rolls of reflective insulation have highly reflective aluminum foil applied to one or both sides of insulation materials, such as cardboard and polyethylene bubbles. This type of insulation reflects radiant heat, making it a good insulation choice for garages that heat up in summer or hot climates. Its approximate R-value is 3.5 to 6, depending on the way you apply it. (A 4-by-25-foot roll is $42).

Matching insulation to your garage door

The goal is to match your garage door to an insulation that's easy to install and appropriate for your climate.

          •Steel garage doors. These doors can accommodate any type of insulation. Stuff the flexible insulation in the frames around the panels, with the fiberglass side touching the door. Or squeeze cut-to-fit foam board insulation into the frames.

          •Wood frame-and-panel doors. Cut and fit rigid insulation into the recesses between the door frames. For extra climate control, install two layers of foam board.

          •Flat garage doors. Foam board or reflective insulation is the best fit for garage doors without panels. Glue or tape the insulation to the garage door.

Insulation kits

Even though buying and cutting insulation isn't hard, garage door insulation kits make it even easier. They contain:

          •Insulation - rolls or boards -- cut closer to the size of garage panels than if you bought these yourself, though you'll still have to trim.

          •Fasteners or tape to hold insulation in place.

          •Higher-end kits throw in gloves and/or a utility knife.

Kits to insulate a 9-ft. wide garage door cost $50-$70.

Heads up!

Adding insulation to a garage door adds weight. Extra weight isn't usually a problem with 9-ft. wide doors, but can strain the opening mechanism of larger doors. Your garage door's spring tension might have to be adjusted - a job best left to a garage door professional.

S Corporatio​n Shareholde​r Vs. Partner Partnershi​p Basis

		Stephan Brewer, CPA, CTRS President at www.hesthetaxman.com
	After reviewing a new client's, S Corporation Shareholder basis, and in light of the recent tax court case (Montgomery, T.C. 2013-151), I need to point out the major difference between how basis is calculated for an S Corporation vs. a Partnership. Why is this critical? Your basis in the shares of your S Corporation, or interest in the partnership, is what allows you to take losses on your personal return. When you run out of basis, your losses have to be suspended (it cannot be taken on your personal return). You can see why this would be critical if your entity has reported losses. Obviously you would like to take full advantage of these losses on your personal return. Unfortunately, this has been a trap for many uneducated S Corporation shareholders. I am often surprised when tax professionals seem uninformed or fail to guide their clients on this matter. The following is the major distinction: A loan to an S Corporation gives rise to debt basis of that shareholder ONLY if the loan is made directly by that shareholder or if that shareholder actually advances the funds to pay that specific debt. Two Key Points: 1. The shareholder must loan the funds DIRECTLY. Funds from another entity controlled or wholly owned will NOT meet the requirements. 2. The shareholder must have made an Actual Economic Outlay. Therefore, instead of having an S Corporation borrow from the bank with a guarantee from the shareholder, the shareholder should borrow the money and loan the funds to the S Corporation personally. This is a simplified example of an area of tax law that is anything but simple. Hope this helps you. Stephan H. Brewer, CPA, CTRS www.HesTheTaxMan.com www.facebook.com/HesTheTaxMan

WALTON AND EVEREST HOLDINGS TEAM UP FOR THIRD VENTURE WITH $23.5 MILLION DEAL

Read the BREW story here.

De Vry

From the Phoenix Business Journal

:http://www.bizjournals.com/phoenix/news/2013/09/17/devry-universityphoenix-

campus-other.html

Sep 17, 2013, 3:53pm MST

DeVry University Phoenix campus, other

buildings sold to Cole trust in $56

million deal

Kristena Hansen

Reporter- Phoenix Business Journal

Email | LinkedIn | Twitter | Google+

DeVry University’s Phoenix campus and two other large-scale Valley office buildings have

been purchased by a trust managed by Phoenix-based Cole Real Estate Investments

Inc. (NYSE: COLE) for about $56 million.

The three facilities were part of a larger $100 million portfolio deal that was sold by Irvine,

Calif.-based LBA Realty, according to a recent article by the Business Real Estate Weekly of

Arizona, which first reported the transaction.

In total, the portfolio sale was comprised of six properties — three in Arizona, two in

California and one in Colorado — totaling roughly 833,000 square feet of office and

industrial space, according to Cole spokesman John Bacon, who confirmed the transaction

with me today.

“Our team has identified markets, like Phoenix, that are benefiting from the housing

recovery as presenting high-quality opportunities,” Jeff Holland, president and COO of Cole,

said in an emailed statement today. “With this transaction, Cole and its managed REITs

have approximately 50 net-leased office, industrial and retail properties throughout Arizona.”

The 122,600-square-foot DeVry campus, located near 23rd and Dunlap avenues, sold for

$23 million, or $187.78 per square foot. According to BREW, LBA Realty had paid $16 million

for that facility, which is leased to the university, back in 2007.

The real estate investment trust also paid $18.88 million, or $189.30 per square foot, for

Cotton Center II, a 99,700-square-foot back-office building located within the Cotton Center

DeVry University Phoenix campus, other buildings sold to Cole trust in $56 million deal - Phoenix Business J... Page 1 of 2

http://www.bizjournals.com/phoenix/news/2013/09/17/devry-university-phoenix-campus-other.html?s=print 9/18/2013

business park near 40th Street and Broadway Road in Phoenix. That facility houses a CVS

Caremark Corp. administrative office.

Another $14.42 million was handed over for the Rio Salado Corporate Center, an 82,200-

square-foot back-office building near 3rd Street and Priest Drive in Tempe. That facility is

occupied by medical equipment manufacturer C.R. Bard Inc.

Kristena Hansen covers residential and commercial real estate.

DeVry University Phoenix campus, other buildings sold to Cole trust in $56 million deal - Phoenix Business J... Page 2 of 2

http://

COLE REIT PAYS $56.33 MILLION TO BUY 300,000+ SQ. FT. OF VALLEY OFFICE SPACE FROM LBA REALTY

Read the BREW story here

MONTHLY REPORT – GREATER PHOENIX HOUSING MARKET

Single Family Average Price per Sq Ft	$/SF Jul 2013	$/SF Jul 2012	% Change
New Home Sales	$127.40	$106.88	+19.2%
Normal Re-sales	$126.34	$114.78	+10.1%
Investor Flips	$112.51	$92.87	+21.1%
Short Sales & Pre-foreclosures	$91.17	$78.73	+15.8%
Bank Owned Sales	$104.09	$87.08	+19.5%
GSE REO Sales	$89.14	$72.86	+22.3%
HUD Sales	$70.09	$58.12	+20.6%
Trustee Sales to 3rd Party	$86.54	$75.41	+14.8%
All Sales	$118.62	$95.44	+24.3%

Read the entire report here. 

 

Michael J Orr, Director

 

Center for Real Estate Theory and Practice

W P Carey School of Business

Arizona State University

 

Michael J Orr, Director


Center for Real Estate Theory and Practice

W P Carey School of Business

Arizona State University