Category Archives: Commercial Real Estate

Payson Arizona Voters Want More Businesses and More Jobs.

Attracting more businesses that bring more jobs is apparently what residents of Payson Arizona want based on last weeks election results.Town of payson arizona

 

Despite Payson having seen a significant increase in new business licenses in the past year,  mayoral challenger Randy Roberson had launched a tenacious attack on the incumbent’s economic development efforts. His criticism even included the effort to keep

one of Payson’s only manufacturing firms,ATAC, LLC, from leaving Payson.

 

Interestingly, Jim Antich, founder and managing member of  ATAC,LLC, demonstrated his support for the mayor where he wrote recently in the Payson Roundup –  Wow, I guess “The Voice of Rim Country” i.e. Roberson, Lockhart and Brown’s idea of new economic development for Payson would be an additional title loan and check cashing business or possibly a new “medical” marijuana distribution business on Highway 87 instead of sustainable manufacturing careers … go figure.

 

Payson, please vote for Mayor Evans, Ed Blair, Fred Carpenter and Su Connell; help us ensure our future remains in the Rim Country.

 

The employees of ATAC and their families want to graciously thank Mayor Evans. Without Mayor Evans’ endless compassion, his selfless dedication, his visionary leadership and his worldwide political relationships, ATAC would have gone the way of Ruger 27 years before and bypassed Payson.ambitious plans to support future development by expanding the town’s water supply, and even Evans’ hands-on efforts to recruit new businesses.”

 

Mayor Evan has said work on the water supply and job producing businesses like a university and the industrial park have laid a strong foundation for Payson’s growth to a diverse population of 40,000. He has also said that he has generally worked 60 hours a week or more during his whole tenure as mayor to lay that groundwork.

In addition to the efforts to keep the expanding ATAC. LLC from leaving Payson, a number of new business have opened in Payson for example, just within the past few weeks we have seen the opening of Scrubs And More Boutique, House of Color, Pirate Cove and Native Grill & Wings to name a few.

 

Well the people of Payson have spoken and apparently they want more businesses and more jobs to continue to open in Payson, mayor Evans collected 55 percent of the votes cast compared to 45 percent for Roberson.

Payson council incumbents Fred Carpenter and Su Connell both received enough votes to avoid a November runoff.


If you too are considering opening or relocating a business to Payson, let me know how I can help you with your commercial real estate needs.

 









 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial and/or its affiliates.

 

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

Are You Trying to be a “Jack Of All Trades” in your Business?

Being a “Jack of all trades and a master of none” is not a good strategy your business.

Payson Arizona

I frequently talk to business owners who have paid the penalties “literally”, of hiring one of their regular “vendors” to provide additional services for them that was obviously outside the “vendors” area of expertise.

 

We are all in business to make money and it is difficult to turn down business form a regular customer/client and while meeting every need of every customer may sound customer-centric, that approach often leads to not serving any customers well.

 

Being in the real estate industry, many people think real estate is real estate. All real estate is not the same. Can you think of anything that a commercial building has in common with a house? If you said they both have at least one bathroom I urge you to think how the bathroom in a commercial building resembles the bathroom in your home. Right try again.

 

Well not only are the features between a house and a commercial building different, but the marketing strategies between residential and commercial real estate is also vastly different.

 

I am a commercial real estate agent, I do know however, many very qualified residential agents, so even though people give me strange looks when they ask me to help them buy or sell their home, and I refer them to one of those residential agents, even family members.

 

Even the largest of companies can’t afford to chase every dollar—only the dollars that align with their business strategy.

 

Let me know how I can help your with your commercial real estate needs.

 









 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial and/or its affiliates.

 

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

Why Limit Yourself to Only One Commercial Real Estate Agent?

One might think having multiple commercial real estate agents competing with each other to locate the “right” commercial property for you to buy or lease would increase your chances of success, but is that the case?20131206_081927

 

I sometimes talk with business or property owners who are reluctant to make any long term commitment with one agent, which is understandable as what if they later find themselves unhappy with their representation and many believe they have the best chance of finding a property if they speak with ten or so agents.

 

What many of these business or property owners don’t understand is that most (all that I am aware of) serious commercial real estate agents all have a premium Loopnet account and CoStar, so they all have access to all the same properties.

 

This being the case, by not committing to have a commercial real estate agent to exclusively represent them, they are actually less likely to find that “right” property.

 

Why do I say that, well put yourself in a real estate agents shoes for a moment.

 

If you were a real estate agent and you had 20 investors or tenants that called you and only two of them are willing to commit to work with you exclusively, who are you going to spend most of your time and effort working to service?

 

Would you, as an agent, run around town trying to get the best deals with clients that are not loyal to you, or concentrate on those buyers or tenants who have selected you to represent them?

 

Yes, in selecting a commercial real estate agent, you need to choose carefully, but you need to choose.

 

Let me know how I can help you with your commercial property needs.









 

The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial Properties and/or its affiliates.

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.

 

2014 Should be a Strong Year for the Commercial Real Estate Industry.

The commercial real estate industry should have a strong 2014, if academic economists and former policy makers are right in their predicting that the U.S. economic growth will accelerate this year.

Payson office building near Payson Regional Hosptital

office condos in Payson Arizona

 

“2014 is going to be a better year,” Martin Feldstein, a professor at Harvard University and chairman of the Council of Economic Advisers under President Ronald Reagan, said yesterday in Philadelphia. “There is no reason for pessimism about our near future if we adopt appropriate policies.”

JPMorgan Chase & Co. (JPM) is among the Wall Street banks turning more optimistic, predicting this week the economy will expand 2.8 percent this year, an increase from its 2.5 percent estimate of a month ago and faster than the 1.9 percent it calculates for 2013.

 

Former U.S. Treasury Secretary Lawrence Summers and John Taylor of Stanford University agreed in interviews that stronger growth this year was possible even as they clashed over what more policy makers could do to speed expansion.

 

Federal Reserve Chairman Ben S. Bernanke told a recent conference that headwinds to growth may be abating, cited a healthier financial industry, greater balance in housing, less fiscal restraint and accommodative monetary policy as reasons for optimism in coming quarters.

Bernanke added, “Of course, if the experience of the past few years teaches us anything, it is that we should be cautious in our forecasts”.

 

Having paid down (or defaulted on) nearly $1 trillion of household debt, U.S. consumers have aggressively improved their balance sheets and are better-positioned to increase spending. According to Federal Reserve data, household debt-service burdens are at their lowest level in more than 30 years,. Also, according to the Fed, Household wealth relative to disposable income has surpassed its historical average. This should give consumers the confidence to spend more of their disposable income, which will result in job creation.

 

In terms of absorption of inventory, we have seen and likely will continue to see extremely low levels of new supply, 2013 essentially tied with 2011 and 2012 as the weakest year for commercial construction since the late-1970s, according to Census Bureau data.

 

Investment in commercial real estate should increase as total returns to commercial real estate have been quite strong for three consecutive years now. Those commercial real estate investors who may have felt as if they have missed the party may now conclude that it is safe to go back into the water, based on the analyst recommendations s in favor of commercial real estate we have regularly seen in both the mainstream and financial press.

 

Commercial real estate’s potential to hedge inflation and interest-rate risks may attract income-oriented investors. Commercial real estate stands out as an attractive alternative that can provide relatively high yields and some degree of inflation along with interest rate protection.

 

As U.S. economic growth accelerates this year, according to academic economists and former policy makers, the commercial real estate industry should have a strong 2014.









The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial Properties and/or its affiliates.

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

Is Your Office An Asset Or A Liability for Your Business?

Some important things to consider when selecting an office for your business to insure your office is an asset.20131206_081927

The office location

That’s right in real estate its about location location location, but for different reasons that searching for a home. Getting a professional office space for your company could be the shot in the arm needs to get to the next level. Whether to improve employee retention or because you want to look more professional to potential customers, getting a professional office space is the right move to position your business for further growth.

Things to consider:

  • How easy is it for your employees to get to work? Are you near major access roads? (Easy access from your employees homes.)

  • Is there ample parking for your employees and guests?

  • What about ingress and egress to and from the property?

  • Are you close to an airport? If the proximity to an airport is important to you.

 What about any Amenities?

  • Is there a daycare provider nearby?

  • Are there good places to take clients/customers to lunch?

  • How far do employees have to travel for lunch, going to a pharmacy, doctors’ offices, etc.? You can increase employee productivity through decreased time away from the office.

If you are in a convenient area, employees are able to get to work on time and spend less time out of the office. Having a lot of amenities in the vicinity will improve the employee’s satisfaction and results in fewer employee turnovers. This will also help you attract and keep the best talent.

The office building

It’s critical that the property where you occupy space is efficient. To that end:

  • Is the building appropriately priced within your budget for your business?

  • Are the office operating costs high or low?

  • Is the office buildings load factor high or low?

  • Is it more space than you actually need?

  • How old are the building’s systems, example: HVAC, Internet and other communications capabilities. Will they likely need to be renovated, and how will that disrupt your operations?

Locating your business in an office building that is efficient and has a low operating cost reduces your business’s occupancy expense. Quality systems, a healthy environment and plenty of amenities can reduce your employees’ out-of-the-office time and increase your employee’s satisfaction rating.

The office space itself

Space efficiency is a hot topic these days in the commercial real estate world, as businesses are trying to keep their expenses down, while providing room for growth.

As Millenials will be making up 75% of the workforce in 11.5 years, we can expect the rapid changes in today’s office space is inevitable.

More things to think about:

  • Having standardized offices and workstations can reduce your overall real estate costs.

  • Is the amount of space in line with industry standards for employee-to-space ratio (1 employee per 200 to 350 rentable square feet)?

  • Do you have enough public spaces to optimize productivity ( meeting rooms, employee break room, printers, copiers etc.)?

  • Do you have a sublease plan ready if you need to downsize?

Let me know how I can help you find an office that’s an for your business that increases productivity and employee satisfaction, while decreasing your costs. A true win-win!

 









This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

Are You Out of Touch, Or is it just Me?

 Is it best practice to interrupt my client I am meeting with, when they are speaking, so I can answer my cell phone or reply to a text or read an email?

Do you mind if I answer my cell phone when you and I are in a meeting?

Being in the commercial real estate business, I generally find myself in meetings with property owners or business owners who’s schedules are very busy.

I respect their time and truly appreciate their taking time out of their busy schedule to meet with me and as such I have made it a point to shut off or put my cell phone or put it on vibrate and not answer my cell phone or read my texts or emails when I am in a meeting with them.

I instead check and respond to any texts, emails and voice mail messages that may have come in during our meeting right after the meeting.

Apparently not everyone believes this is the proper way to handle communications these days.

I recently read a post on social media by a residential real estate agent I know ( not just Facebook “friends”) who regularly boosts about how he always answers his phone (even when with clients).

In my opinion if you are at a meeting or meal, and you answer a call, you’re basically telling the person you’re meeting with that someone else is more deserving of your time than they are.

There is always a rare exception of course. A couple of years ago my dad was in the hospital scheduled to have bypass surgery in a couple days. I was flying out the day before but was still meeting business owners to discuss commercial real estate two days prior. I briefly explained the situation and apologized in advance that if the phone vibrated I would answer it. (fortunately it didn’t)

I believe if you are expecting an important phone call during your meeting and there’s no way you can reschedule it, then make sure to let the person you’re meeting with know ahead of time.

This isn’t the best scenario, but if it happens, you can say “I have to answer this” and briefly explain why before taking the call.

Am I out of touch, is it best practice to interrupt my client I am meeting with, when they are speaking, so I can answer my cell phone or reply to a text or read an email?

If so I apologize in advance if you try to call me and get a voice mail, and it takes me 20 minutes or an hour or so to call you back.

If someone schedules in advance, time out of their busy day to meet with me, I appreciate and respect their time.

Let me know how I can help you with your commercial real estate needs. If I don’t answer the phone, I will call you back as soon as I can and also give you the undivided attention you deserve.

 

Why Pay a Commission to Sell Your Commercial Property?

Do you think selling your commercial property yourself really save you money? Really?

I understand, we all want free stuff, but how much will it cost you to sell your commercial gilbert office condoproperty without a commercial real estate professional?

Going down to the local Walmart and buying one of those little red and white for sale by owner signs may work ( I would still recommend help from a residential real estate professional ), to sell a house. But that little red and white for sale by owner sign will be even less effective with a commercial property.

A commercial property is not a house, just think about it, I bet 100% of the people you know have a strong desire to live indoors ( you can’t get a bigger market than that). The percentage of people you know that have a strong desire to buy a commercial property is, wow, unless you are in the commercial real estate business, you likely can count them all on one hand.

Target marketing is required to successfully market a commercial property, mass marketing , like you do with houses for example is not enough, because the masses have no need.

I talked to a nice gentleman the other day that had put one of those red and white for sale by owner signs in the window of his commercial property. After a year and a half, all that has happen is the phone number he wrote with a black marker on the sign has faded, to the point it is difficult to read.

He didn’t seem to be concerned about the the building being unsold and vacant for over a year and a half, after all it is paid for so it wasn’t costing him anything to sit there, right.

What about taxes? What about insurance? Oh that’s true, money going out and no money coming in, sounds more like a liability than an asset! That may be a reason to pay a commission to have the building actually marketed by a commercial real estate professional.

Let me know how I can help you with your commercial property needs.









This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

Phoenix-Mesa Gateway Airport Area to Become a Premier Business Destination

The Phoenix-Mesa Gateway Airport area has the ingredients to become one of the nation’sindustrial buildings mesa premier destinations for companies looking to relocate or expand.

 

The Mesa Tech Corridor is an area near the northern end of the Gateway area along Elliot Road between the 202 Freeway and Signal Butte Road is a great fit for tech companies of all types, especially data centers and other large power users, offering water, freeway access and, most importantly, significant power capacity and infrastructure.

 

The Phoenix-Mesa Gateway Airport area is also a great place for research and development (R&D) and for tech companies to grow. With nearby the Gateway area’s higher-eduation “knowledge corridor,” that includes Arizona State University’s Polytechnic campus and Chandler-Gilbert Community college.

 

Arizona State University (ASU) Polytechnic’s College of Technology and Innovation is located in the Gateway area with more than 12,000 students and significant R&D activity. Moreover, Mesa and ASU have also launched the Mesa Technology Accelerator, where high-tech companies can go to super-charge their growth. Arizona Laboratories for Security and Defense, a place for companies doing highly sensitive research and manufacturing is also in the Gateway area.

 

The Gateway Area, bordered by US 60, Pecos, Signal Butte and Power Roads, the Gateway area is 37.5 square miles (24,000 acres) of land, much of which has been earmarked for commercial and industrial development. This includes land and buildings available for companies to expand or relocate.

 

Matheson Tri-Gas, Inc’s recently announced presence, will be a critical draw for new companies and very attractive to existing businesses. Companies such as TRW, Lockheed Martin, L-3 Communications, CMC Steel, MGC Pure Chemicals, FujiFilm, CRM Rubber, Able Engineering, Cessna, Embraer and many others call the Gateway area home.

 

2,200 acres have been designated as Foreign Trade Zone #221 where companies can reduce, defer or eliminate the payment of import duties and tariffs. Active users of the zone who qualify can also receive a significant reduction in real and personal property tax.

 

Portions of Phoenix-Mesa Gateway Airport have been designated as a Military Reuse Zone offering companies a transaction privilege tax exemption, tax credits for job creation, and property reclassification allowing both real and personal property to be reclassified, which could result in property tax savings.

Let me know how I can help with your commercial property needs!









 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

Phoenix-Mesa Gateway Airport’s Terminal Expansion Underway Again

The current phase of Phoenix-Mesa Gateway Airport’s terminal expansion will build anindustrial building near phx mesa gateway additional two gates and an additional outdoor courtyard. Increasing the total number of gates from eight to 10.

Phoenix-Mesa Gateway Airport, which recently announced a 44 percent increase in passengers over 2011, was the fastest growing commercial airport in America last year based on passenger percentage growth.

 

The airport’s fifth expansion will be completed by the Thanksgiving rush and will enable the airport to accommodate more destinations and air carriers. Long-term expansion plans call for a new terminal to be built near its eastern border with links to Ellsworth Road, three Loop 202 interchanges, and the future Gateway Freeway.

 

This no doubt is welcome news for the Gateway area’s higher-education “knowledge corridor,” that includes Arizona State University’s Polytechnic campus and Chandler-Gilbert Community college, as well as Scottsdale based DMB Associates current nearby Eastmark development, a 3200 acre development on the former GM Desert Proving Grounds in Mesa.

 

Eastmark will include housing, resorts and commercial space. DMB will begin with 800 homes, but the plan for Eastmark is to grow to 15,000 homes and 20 Million Square feet of commercial space ( that is more commercial space than downtown Phoenix according to Tevor Barger, a consultant to DMB ).

 

This should also come as welcome news to the developers of the Gateway area, as well as provide investment opportunities of the already existing commercial office and industrial buildings available for sale, for lease as well as commercial land for sale in the Phoenix-Mesa Gateway area.

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

Arizona’s Recession-Tattered Economy Improving, Strong Growth Expected in 2014-15

Arizona’s economy, commercial real estate and job markets, while at a slow pace are all office condo in payson arizonarecovering.

 

CNNMoney reports that the latest data from the ADP National Employment Report found that hiring picked up in the private sector hired 188,000 in June, according to the new report, up from 134,000 in May. The strongest pace of hiring since February and exceeded economists’ expectations of 150,000 jobs.

 

UA economist and EBR Center director George Hammond said “The Arizona economy continues to grow and improve in early 2013, but the pace overall is slow compared to historical standards,” “The outlook calls for the state to gather speed during the next two years, but only after another year of sluggish gains.”

 

While the tourism industry, call centers and healthcare industry have been hiring. The challenge for Arizona’s economy is securing more high-wage job growth.

 

Hammond expects more sustained economic growth in 2014 and 2015 both for jobs and the overall economic picture.

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.