We talk a fair amount about Residential Real Estate, but what about Commercial? Fortunately we know people who know people who know.
Our guest this week is Pete Bolton of the Pete Bolton Company. He’s a 30+ year CRE veteran turned mentor and coach. He knows his stuff, and if you’re at all curious about what’s going on with that office you haven’t been to in a while or those stores that you may only be seeing curbside… tune in.
Steve shares some time-specific (and possibly time-sensitive) tips about buying a new/used car. Circumstances have resulted in some extraordinary opportunities (even if you’re just looking for a rental.
Matt’s back! He’s got a fancy new mic, and the same great service and attention to detail. He and Steve share some thoughts about what have to look forward to.
- Automotive news: Hertz files for bankruptcy
- Industrial real estate in Phoenix is on fire
- It’s still a seller’s market in residential real estate
- Let your insurance carrier know about safety features and reduced miles — you’ll save on your premium
Update on the Automotive Industry
First, Automotive News. Hertz Rental Cars has filed for bankruptcy. The good thing about Hertz going bankrupt is that there’ll be a lot of used cars on the market, so you can get a deal on those. The other great idea that since rental car lots are all full, so you can get a great deal on a rental car, too. To find a rental car to buy, just Google the rental company’s auto sales, and you’ll find them. Most of them will still have a warranty. You can even get financing through them. You can even rent a car to test it out. Steve and Felecia tried out a Camaro and hated it. They loved the Mustang. Great way to road-test a vehicle.
A bunch of US states are suing the government for easing the tail-pipe emissions standards. Now, the government is trying to get rid of those, which will bring a bunch of pollution back. So, call your representatives and put a stop to that. We’d also like to see a safety inspection implemented here, to keep people safe. We don’t have car safety inspections now. You might even save on insurance if your insurer knows your car is safe.
Last week, we had a couple of email questions about tires. There are three things to look at on a tire. Look at the treadwear number. The higher the number, the longer the tire will last. Next look at traction, either A or B. A is better and will push water to the side of the tread. Lastly is temperature. You have A, B, or C. Some have a B temperature at a higher price. Don’t get those. You need an A temperature tire here in the desert. An overheated tire can explode. Now, off-road tires don’t have these ratings. They’re an exception.
If you have an off-road vehicle that is only used off-roading for a part of the year, get two sets of tires, one on-road, one off-road. That’ll save the life of both sets.
The Scoop on Commercial and Industrial Real Estate in Phoenix
Welcome Pete to the show. Pete’s been in real estate in the Valley for 30 years. So, what’s going on in commercial real estate? The good news is that restrictions are being lifted. Industrial is still doing great because of the ‘last mile’ delivery people, who are looking for storage space. Nothing has slowed down for them. Felecia’s seen a bunch of new industrial buildings going up near the Mesa Gateway airport. Those keep going because they’ve been financed.
Retail will take longer to recover because we don’t know who’s going to survive. Power centers and retail strip malls are really challenged. Retail is really slow now.
Multi-family is making a comeback. Phoenix has added a quarter of a million people. What about the highway between Phoenix and Tucson? Not likely, at least not soon. There are some big industrial manufacturers going up down there. Also, out by the 303 on the West side. Lots of new space going up. It’s a big employment boon.
What about office space? Some big companies have sent employees home and have told them not to come back until things are all clear. When will that be? Who knows. Companies especially don’t want high-risk category people coming back to work. Others are doing alternative weeks. So, there’s a large consolidation of space. A lot of sub-leasing going on out there. Big companies won’t need all that office space.
So, industrial doing well, multi-family is okay, but retail and office space are hurting. There are also investors out there ready to invest. The thing is, everybody’s in a guessing game right now. Most of the big industrial is going up on the outskirts, in the southwest valley.
The Arizona Real Estate Market
What about residential real estate? Felecia’s phone is blowing up. Ryan is also seeing movement, especially with homes that are priced right. It seems like a seller’s market is back. In April, contacts were down 18%, 30% in May. We’re expecting to see a bounce, almost back up to normal, for June.
Some contracts got cancelled at the end of March and April because of uncertainty in the market. People didn’t know if they were going to get laid off. People need to understand that prices are not going down. Stop waiting for the bargains. What the numbers are telling us now is that there are more people looking for homes than there are homes on the market. Don’t wait! There’s just not enough inventory. And rentals are nearly impossible to find.
Interest rates are still great. If you’re already qualified, you might be able to get even more now, with the lower rate. Every $20,000 increase in price brings real benefits in quality, location, etc.
There are still a lot of new build homes out there. That does put pressure on sellers. Make sure you take care of your home and keep it updated. Be sure you work with an independent Realtor so that you can get a deal. If you hire the builder’s agent, they work for the builder.
What could increase the value or help sell? Get a roof inspection with a 1-year roof warranty. Roofs out here get eaten up by the heat. Get that roof inspected and ready to sell. In fact, a seller’s inspection is important. That way, you’re not surprised by what the buyer’s inspector finds. And make the repairs that the inspector finds.
Remember, that ibuyer apps like Zillow, etc. will make you pay for repairs and take it out of your sale. Don’t work with them. Use a professional, full-time real estate agent.
Car Batteries, Safety and Insurance Premiums
Woohoo! Friendly Auto is getting recognized again by AAA, Carfax, and more. If you’re looking for the Top Shop, go to Friendly. And remember, they offer lifetime warranties, coast-to-coast, with towing! All ASE Certified mechanics, led by Steve and his 43 years in the business.
Friendly is seeing a lot of battery repairs. The deal is that heat kills batteries. It happened to Felecia’s car. Dead battery in the heat. No symptoms, no warnings, only 2 years old on a heavy-duty battery, and it was dead. What is the RC number? It is reserved capacity, how long the battery will last before the battery goes dead. Like RC120 means it’ll go 120 minutes before dying. Cold cranking amps is another rating. The more the better. Here in AZ, it’s not so much an issue, but it’ll give you an idea of the battery’s strength. Also take a look at the date. Don’t buy an older battery.
When it comes to safety and your car, there are some options that’ll bring your insurance cost down. Lane assist, blinking lights on the mirrors are both things that lower your insurance bill. They make accidents less likely. Fewer accidents means fewer payouts which means a reduced premium. Make sure and keep your insurance updated to account for the fewer miles you’re driving these days.
Next week, we’ll talk safety inspections!
Remember, Matt Watson’s State Farm agency is covering the cost of an oil change and vehicle safety inspection at Friendly Auto. Take advantage of that!
The live show is changing to Saturday mornings here on KFNX!
Until next week, Drive Friendly and Stay Healthy Arizona!