Below is an incredible graph. States have let their infrastructure go to hell and it is costing consumers a ton of money in car damages. Take a look below to see what your state is costing you.I also pulled cities within the Metro Phoenix market to see what individual cities are costing us. 1—Lack of … Continue reading What is Your State’s Poor Infrastructure Costing You?
I messed up. This is a narrative that edits what I sent over earlier this week. Below is the narrative and orange are my edits. Sorry for sending incorrect information. Craig Over the past several years, one of the trends my team has been tracking is the number of California companies that are moving to … Continue reading Most Expensive U.S. Office Submarkets
The trend of being able to work from home is now here for all of us. The COVID-19 quarantine has forced the issue. And according to a detailed study by Nicholas Bloom of Stanford, it’s good business. Bloom did a two-year study on the effectiveness of working from home. Below is a nice summary from a … Continue reading Working From Home
The last decade (pre-COVID-19) was a lesson in taking the long road. I remember meeting with a couple CEOs of homebuilding companies every year and hearing the same story from 2009-2012: “Last year was bad but this next year is going to be a lot better.” This was the message for four straight years. Multifamily, on … Continue reading A Decade of Home Building
In 2015, I said this was not a good investment. In 2018, I said, I couldn’t believe this was still going on. In April this year, I reiterated this was going to crash….and it finally has. But that doesn’t mean I’m happy I was right. What was my prediction? WeWork (now We Company) was not … Continue reading I Got One Right… and I am not happy about it
There has been a lot of talk about the middle class getting squeezed and the numbers below bear this out. Take a look at the graphs. What does this mean to the average worker? Rent, medical costs and tuition have increased more than income, shrinking savings. The median hourly wage in the U.S. … Continue reading The Shrinking Middle Class
I keep telling my team: right now is what the top of the market feels like. In the United States, one out of every seven people moving out of state moves to Arizona. The economy is hot. How long can it continue? Who knows, but NAIOP is forecasting another great year for the rest of … Continue reading The National Office Market continues to roll on
When I wrote How to Win in Commercial Real Estate Investing, I spent all my words on the process of investing. Not the psychology of the business. Below is a great (and short) article on the 4 P’s of being a successful investor. I would recommend that everyone think about these words before they jump … Continue reading Being A Successful Real Estate Investor
We all know we have to do our homework when analyzing any business opportunity. Doing due diligence from every side and perspective will help protect your interests (and money). Below are some reminders and a priority list for conducting your due diligence to limit your risks and hopefully ensure your ROI: – Financials first, all … Continue reading Analyzing Business Opportunities
When writing my LIFEies (my weekly blog on personal development) I get to share very complex ideas that are made simple by lots of people. Like Albert Einstein said, “The definition of genius is taking the complex and making it simple.” For this narrative, however, I focus on more complex Commercial Real Estate developments. But every … Continue reading Rules for Capital
In many ways, I am jaded after being in the CRE brokerage business for so long. Representing office tenants means you get to see just about everything. But I also live in an Arizona bubble most of the time. So I was SHOCKED at the amount of property taxes that the highest-taxed buildings in America … Continue reading The Highest Taxed Buildings in America
I have a great friend, Trish, who has been a mentor to me for the past 30 years. She is in the residential ownership and management business, and has been a great insight into the changes happening in that sector. Which is why I’m not surprised by the below article, and the size of the … Continue reading Meet Your New Landlord At Home
The long and stubbornly slow recovery continues. Q1 2018 numbers are out and the Metro Phoenix office market absorbed 686,469 square feet of net positive space, lowering overall vacancy to 19.39%. We are now into the 8th straight year of positive absorption in office jobs. Vacancy varies throughout the Greater Phoenix area with a high of 30.5% in the Sky Harbor … Continue reading 1-Minute Phoenix Metro Office Update: Q1 2018
I grew up 20 minutes from the Mexican border. My dad and three of my siblings still live in Sierra Vista, AZ. I know firsthand the good and bad of living next to an international border and all the issues surrounding both sides. Given the recent political turbulence surrounding globalization, NAFTA, and the United … Continue reading Growing Together
The biggest waste we consistently see is clients underutilizing their office space. Planning for growth that never occurs, thinking you “need” the space for visiting people, and making work areas and offices too big — there are multiple ways that companies waste money. Office space, and even more important facilities, can significantly reduce costs through … Continue reading Underlying Organizational Costs
t’s always warm in Phoenix. In the summer, we go above 110 degrees on a regular basis. On the other hand, the Phoenix office market continues to move along at a steady pace…like it’s 70 degrees. BUT, all is not lost. Many companies are beginning to realize the true cost of having all their … Continue reading Businesses are Relocating to AZ
One thing I constantly stress to my team is that to be successful in this industry, you have to be willing to learn and adapt to the times, or quickly become obsolete and watch your business disappear. As a 20+ year Counselor of Real Estate (CRE), I love our annual top ten issues affecting commercial … Continue reading 10 Issues Affecting Commercial Real Estate 2017
The Metro Phoenix office market continued on its eight-year positive course, albeit at a slower pace, for the 3rd quarter of 2017. As any athlete will tell you, a win is a win and all the [market] players will take it. The 216,037 SF of office space absorbed fell short of expectations, however, some large leases were … Continue reading 1-Minute Phoenix Metro Office Update: Q3 2017
One of my favorite movie quotes is from Jerry Maguire – “Show me the money!” And that’s exactly what the below chart does. This very informative chart shows spending trends over the past 75 years in America. Some key points for me: — Education spending is trending up. Not sure if this is Americans valuing education … Continue reading Spending Trends in America
The second quarter was not quite as busy as the first, but there is still good news as our market slowly (painfully slow) continues to improve. Vacancy held steady at 18.8% despite new construction, and we continued our streak of continuous positive net absorption (job growth). We haven’t had negative net absorption since 2009. The pace of … Continue reading 2-Minute Phoenix Metro Office Update: Q2 2017
estate are simple. A tenant needs office space. An owner needs to lease their space to a tenant. But once you get into the details of the transaction, things become complicated really fast. A good amount of my time working with clients is spent answering their questions. I even wrote 2 books on the subject … Continue reading 5 Frequently Asked CRE Questions
The good news keeps coming. Metro Phoenix just landed 4 cities in the top 20 best US cities for finding a job in 2017. Arizona is open for business. If you are looking to relocate, or know someone who is, there is no better area than the Valley of the Sun. Here are a … Continue reading 4 in the Top 20!
Everyone talks about the negatives that happen in our lives. But some of the most incredible transformations are going on right in front of our eyes as well. A few months ago, I shared with you Dr. Peter Diamandis’ email about how the world is getting better (Click here to read that post). Today’s topic also comes from Diamandis, and … Continue reading Demonetized Cost of Living
Crowdfunding Commercial Real Estate acquisitions is all the rage. However, like everything, there are opportunities and liabilities in placing your investment dollars in a crowdfunded deal. Below are two different articles with highlights. But first, a quick summary: Liabilities: Investors lack the industry knowledge and experience needed for real estate investments Too many uncommitted investors High legal fees … Continue reading CRE Crowdfunding
The current recovery has been anemic, not just economically but in terms of new office construction as well. Long term, the lack of new buildings is good as overbuilding is not a concern. With the emergence of millennials in the work force and live/work/play environments, suburban office markets have been even slower to recover. As the Central Business District … Continue reading Suburban Office Markets
Steady net absorption (more space being leased due to job growth) continues to chip away at Metro Phoenix’s office vacancy as we head into Q4 2016. This quarter, Phoenix benefitted from medium-sized companies expanding. We hope these companies continue to grow. The metro Phoenix office market is on pace to perform roughly the same as 2015, i.e. … Continue reading Metro Phoenix is Getting Better…Slowly
Anytime you look to the future, the word disruption always enters the conversation. I spend way more time now looking at companies that are trying to disrupt the brokerage business than I ever did in my entire career. As a 25-year CCIM, I found the below article worth sending out as one of my narratives. Many … Continue reading Who Will Be the Uber of CRE?
Arizona is growing again. Of all the states boasting job growth, we are at the top. We have been doing it with regional headquarters relocations, internal growth, and a robust tech market. I give a lot of credit for this growth to our pro-business Governor Doug Ducey. This narrative is decidedly not political, but our growth … Continue reading Finally AZ is Growing Again!
It seems like I am stalking all Millennials these days. Readers know why. They are changing the way we do business. Below is an article on how they are changing Commercial Real Estate. Here are a few takeaways for me: Smartphones are here and they are being used for EVERYTHING. All our websites, media, packages, flyers etc. need … Continue reading Stalking Millennials and CRE
While we specialize in leasing commercial office space, we watch the housing market very closely. Housing is a precursor to office space growth. Regular readers know this housing market recovery has been slow and multifamily has been on fire for the past 5-6 years. While there are lots of reasons for this, affordability may be one of them. The below … Continue reading How Much You Need to Make to Buy a Home
Office leasing is off to a good start in 2016. Here in Metro Phoenix, the market saw 641,000 square feet (SF) of net absorption (office jobs added) recorded in the first quarter. This means Metro Phoenix is on track to absorb approximately 2.5 million SF for the year. That would mean another year of consistent, average … Continue reading Understanding The Office Market: Q1 2016 Phoenix Office Report
Most of the time we hear how important China is becoming; how the reemergence of Russia is going to affect the US; and of course all the dramatic stories of the meltdowns of Greece and now Puerto Rico. I always try to wrap my head around how these developments will play out in my backyard … Continue reading Wrap Your Head Around These Companies vs. Other Countries
Below is a great snapshot of Arizona and where we are with our economy. In addition, I’ve added a couple extra tidbits that are not in the below infographic: –Arizona still lags in job creation. We are not quite back to 100 percent of our jobs lost (even though we have regained 314,000). This is the first … Continue reading Snapshot of Arizona Economy
My favorite economist who tracks the national economy and the US office market is Peter Linneman. He produced the graph below which shows job loss and gain during the recession. This graph demonstrates exactly why I follow the jobs market so closely and why most office markets in the US have been slow to recover. Surprisingly, there are just a few … Continue reading Employment Growth – Employer Payroll Survey vs. Household Survey
Every now and then I see cool graphs that grab my attention. Site Selection magazine ran the below graphs showing the top industries and the top projects of the year (2013). I found the following insights: –Where companies are headquartered and the size of each company are very interesting. There is some clustering, but not always. –Transportation is driving the … Continue reading Spheres of Influence
In my weekly narrative, I spend quite a bit of time thinking, talking, and looking at the future. Below are seven bold predictions by some of the leading thinkers in our industry. Here a few key predictions that stand out: –Malls will soon be extinct –Technology will run buildings (we see that coming today) –Green buildings will become the norm … Continue reading 7 Bold Commercial Real Estate Predictions
The local paper in Phoenix, The Arizona Republic, published a great summary about the Arizona economy and my favorite topic—Jobs. Please take a look below for the full article, but here are a few highlights: –We are still at 60% of jobs recovered from pre-recession numbers. –Construction, typically our get-out-of-the-slump card, is severely lagging. –One bright spot … Continue reading 5 Measures of Arizona’s Economy As Fall Season Arrives
No recovery is smooth. There are fits and starts. There are blue skies and cloudy. The Phoenix housing market, which in past years has driven the office market, has cooled off and is pulling back. Nobody thinks this will be a full recession, but there are clear signs that all is not peachy in Phoenix. I believe this to be true … Continue reading Phoenix Housing Double Dip Recession?
Over the last two weeks, I have talked about the numbers behind the job numbers in the US and Arizona. Of course, there are people much more qualified and articulate who actually track this kind of data for a living. Arizona State University’s annual Economic Outlook produced some quality information that I thought I would … Continue reading Highlights from Arizona State University’s Annual Economic Outlook
Last week I discussed the labor market and what is happening in Arizona with job gains and the office market. This week I have pulled some information from the Brookings Institute on our economy and the recovery compared to the rest of the US. Here are some of my takeaways: –Phoenix will remain one of … Continue reading Comparing the U.S. and Phoenix Economies
Job creation news made headlines a few weeks back touting that the United States had recovered all of the jobs that were lost during the great recession. In Arizona, however, we are still way behind our pre-recession levels. Over the next two weeks, we are going to try to tie jobs, the Phoenix office market, … Continue reading A Look at the Numbers Behind the Current Headlines About Job Creation