Phoenix-area retail vacancies reach new 40-year low!
New stores have begun opening at the Village at Prasada shopping, dining and entertainment center in Surprise along the Loop 303.
After a record-low in retail vacancies in the Valley last year, Dave Cheatham is expecting more of the same in 2023.
At a 5.7% vacancy rate, the president of Phoenix-based Velocity Retail Group LLC said the latest retail performance metrics are ones he hasn't seen throughout his 40-year career.
"This is a change we haven't seen since 2007. You have 15 years of nothing really exciting happening and now this is a complete game-changer," Cheatham said.
In 2022, Velocity found 3.6 million square feet of positive net absorption, which is calculated by taking the total amount of retail space leased minus what became vacant, in the Valley. That figure more than doubled its average of 1.5 million over the past 10 years. Many of the drivers were tenants in fitness, entertainment, specialty grocers and soft goods leasing space.
Moving ahead to 2023, Cheatham expects strong absorption to continue, meaning an even further drop in vacancy. But a return of power centers in the Valley, anchored by national retailers, could bring more space on the market, particularly in the West Valley, Cheatham said.
The Phoenix Business Journal reported in January that Target Corp. has plans to anchor Prasada North in Surprise. Prasada North is a 350,000-square-foot development by Scottsdale-based SimonCRE that will have a mix of retail and restaurants. The Home Depot Inc. is also planning to build a new store along Loop 303.
"They were ready to go, shovel-ready practically, and then they just got crushed during the Recession. Now, 15 years later, they're the first ones to restart," Cheatham said. "Surprise, Buckeye and Goodyear — that's where most of the new power centers are going to be built."
Rental rates up 8% year over yearVelocity said the high tide for Phoenix's retail vacancy was in 2010 when the rate reached 13.4%
The Valley had reported strong numbers throughout the past year. During the second quarter of 2022, the Valley’s retail sector saw its vacancy rate drop to 6.6%, which was the lowest it had been since 2007, according to a research report from real estate firm Avison Young.
For Q4 2022, Avison Young reported rental rates for retail properties are up 8.1% year over year, accounting for a $21.95 per square foot. New developments, like SimonCRE's 700,000-square-foot Village at Prasada, contributed to more than 1.3 million square feet of retail space delivered in 2022, according to Avison Young.
Here are the top retail leases signed the past year in the Valley:
- Shoppers Supply: 56,921 square feet at 8454 S. Power Rd. in Gilbert
- EoS Fitness: 57,809 square feet at 9101 E. Baseline Rd. in Mesa
- Safeway: 57,860 square feet at 28455 N. Vistancia Blvd. in Peoria
- Hobby Lobby: 60,000 square feet at 1703 E. Bethany Home Rd. in Phoenix
- Hobby Lobby: 64,208 square feet at 15305 W. McDowell Rd. in Goodyear
- American Furniture Warehouse: 154,809 at 1646 W. Montebello in Phoenix
West Valley site once slated for power center now proposed for housing, retail
A mixed-use project with housing, retail and commercial has been proposed for a 101-acre site that was once slated for a regional shopping center in Surprise.
The site is located in the Asante area along Grande Avenue at the southwest corner of Pat Tillman Boulevard and 163rd Avenue.
The area is slated for thousands of additional single family homes and master-planned communities just west of the Loop 303 near the outskirts of Surprise as the city continues growing outward. But it has been missing commercial amenities for some residents.
The longtime landowner, New York-based Kimco Realty Corp., and its development partners, GTIS Partners and Clyde Capital, want to build a neighborhood-focused retail center with a secondary grocer, stores, sit-down restaurants and other uses like cottage homes and a site for a future employer in the health care, finance or tech industries.
About 51 acres will be comprised of neighborhood retail services and employment uses. The other 50 acres will see residential development with an estimated 282 units, said Adam Baugh, a land use attorney and partner at Phoenix-based Withey Morris PLC. The property will also feature trails that lead to a central park area with amenities like basketball courts, open spaces and a plaza.
"In theory, if people are living in Asante, now they don't need to drive down Grand Avenue and into Surprise to get services," Baugh said. "Now they can just stay local, shop local and then maybe hang out in this local space here too."
Originally slated for power center
The site was originally envisioned as a regional shopping center with nearly 800,000 square feet of space, similar to the new Village at Prasada in Surprise. But challenges with access to U.S. Highway 60 due to Arizona Department of Transportation restrictions and across the existing rail line made it difficult for this to become a reality, said Baugh.
"That really made it hard to develop a 100-acre retail power center," he said. "You just can't do that when you don't have access to the freeway that runs right next to that."
The development team is also focusing on a neighborhood center as opposed to a regional destination due to traffic efficiency concerns along U.S. Highway 60.
"If the region struggles to get out here, then the users won't come," he said. "You already have the Asante neighborhood around you, then you don't have to depend on people driving farther away to come here, you can just depend on the village that's already present."
Surprise City Council originally approved zoning for the Asante master-planned area in 2004, but Baugh said it hit "a rough patch" with the Great Recession and that it takes decades to develop a community. He said it's also not as close to freeways like the Loop 303 or Interstate 10.
"Because it doesn't enjoy the same sort of freeway access like these other corridors, it's always really just been a residential area for a long time, but a village concept needs more than just residential," Baugh added. "It needs neighborhood retail but also employment opportunities."
A mixed-use project with housing, retail and commercial has been proposed for a 101-acre site that was once slated for a regional shopping center in Surprise.
The site is located in the Asante area along Grande Avenue at the southwest corner of Pat Tillman Boulevard and 163rd Avenue.
The area is slated for thousands of additional single family homes and master-planned communities just west of the Loop 303 near the outskirts of Surprise as the city continues growing outward. But it has been missing commercial amenities for some residents.
The longtime landowner, New York-based Kimco Realty Corp., and its development partners, GTIS Partners and Clyde Capital, want to build a neighborhood-focused retail center with a secondary grocer, stores, sit-down restaurants and other uses like cottage homes and a site for a future employer in the health care, finance or tech industries.
About 51 acres will be comprised of neighborhood retail services and employment uses. The other 50 acres will see residential development with an estimated 282 units, said Adam Baugh, a land use attorney and partner at Phoenix-based Withey Morris PLC. The property will also feature trails that lead to a central park area with amenities like basketball courts, open spaces and a plaza.
"In theory, if people are living in Asante, now they don't need to drive down Grand Avenue and into Surprise to get services," Baugh said. "Now they can just stay local, shop local and then maybe hang out in this local space here too."
Originally slated for power center
The site was originally envisioned as a regional shopping center with nearly 800,000 square feet of space, similar to the new Village at Prasada in Surprise. But challenges with access to U.S. Highway 60 due to Arizona Department of Transportation restrictions and across the existing rail line made it difficult for this to become a reality, said Baugh.
"That really made it hard to develop a 100-acre retail power center," he said. "You just can't do that when you don't have access to the freeway that runs right next to that."
The development team is also focusing on a neighborhood center as opposed to a regional destination due to traffic efficiency concerns along U.S. Highway 60.
"If the region struggles to get out here, then the users won't come," he said. "You already have the Asante neighborhood around you, then you don't have to depend on people driving farther away to come here, you can just depend on the village that's already present."
Surprise City Council originally approved zoning for the Asante master-planned area in 2004, but Baugh said it hit "a rough patch" with the Great Recession and that it takes decades to develop a community. He said it's also not as close to freeways like the Loop 303 or Interstate 10.
"Because it doesn't enjoy the same sort of freeway access like these other corridors, it's always really just been a residential area for a long time, but a village concept needs more than just residential," Baugh added. "It needs neighborhood retail but also employment opportunities."
New distribution, manufacturing facilities proposed in El Mirage
New industrial projects get initial approval in this Valley city.
Two new industrial projects have been proposed for El Mirage, which has continued seeing an increase in industrial development along with the rest of the West Valley.
The first project comprises a 216,820-square-foot distribution warehouse that will be developed near the northeast corner of El Mirage Road and Olive Avenue.
City documents said the owner, Cold Water Holdings LLC, an entity connected to Utah-based IMS Masonry and Phoenix-based Sutter Masonry LLC, wants to develop a 32-foot-high warehouse for several tenants, some of which includes light manufacturing. Cole & Associates is listed as the applicant and engineer for the site plans.
Just west of the proposed warehouse, a 52,780-square-foot truss manufacturing facility, called Desert Truss West, is being proposed for about 20 acres of an overall 40-acre site near the southwest corner of Dysart Road and Peoria Avenue.
The remaining 20 acres of the property will continue to be used for agriculture until the truss facility is ready for expansion, documents said. The facility is expected to be open from 6 a.m. to 4 p.m. five days a week with approximately 30 employees.
The new facility will also include an additional 12,000 square feet of warehouse space, 4,800 square feet of office and 1,680 square feet for maintenance, according to documents submitted to the city. Vespro is listed as the applicant and civil engineer, while the owner is listed as Cariari Holdings Inc.
This week, the El Mirage planning commission recommended approval to City Council for site plans for the two projects.
New industrial projects get initial approval in this Valley city.
Two new industrial projects have been proposed for El Mirage, which has continued seeing an increase in industrial development along with the rest of the West Valley.
The first project comprises a 216,820-square-foot distribution warehouse that will be developed near the northeast corner of El Mirage Road and Olive Avenue.
City documents said the owner, Cold Water Holdings LLC, an entity connected to Utah-based IMS Masonry and Phoenix-based Sutter Masonry LLC, wants to develop a 32-foot-high warehouse for several tenants, some of which includes light manufacturing. Cole & Associates is listed as the applicant and engineer for the site plans.
Just west of the proposed warehouse, a 52,780-square-foot truss manufacturing facility, called Desert Truss West, is being proposed for about 20 acres of an overall 40-acre site near the southwest corner of Dysart Road and Peoria Avenue.
The remaining 20 acres of the property will continue to be used for agriculture until the truss facility is ready for expansion, documents said. The facility is expected to be open from 6 a.m. to 4 p.m. five days a week with approximately 30 employees.
The new facility will also include an additional 12,000 square feet of warehouse space, 4,800 square feet of office and 1,680 square feet for maintenance, according to documents submitted to the city. Vespro is listed as the applicant and civil engineer, while the owner is listed as Cariari Holdings Inc.
This week, the El Mirage planning commission recommended approval to City Council for site plans for the two projects.
Crescent Crown Distributing has been named a founding partner of Bell Bank Park, the multipurpose sports and entertainment complex in southeast Mesa.
Legacy Sports USA and OVG360, managers and operators of the $280 million Bell Bank Park, announced that the multiyear deal calls for the Mesa-based major beer distributor to have branding rights of select concession stands, a bar, and the naming of Miller Lite Way, a 34,000-square-foot entertainment district with a 402-foot zip line stretching the length of the space, grab-and-go concession concepts, and regularly programmed live entertainment for guests.
“Crescent Crown has strong local roots in the Valley, we are excited to welcome them as a founding partner of Bell Bank Park,” said Chad Miller, CEO of Legacy Sports USA, owners of Bell Bank Park, in a statement. “We know they will feature innovative and strategic activation plans for its products and can’t wait for our guests to see all of the beverage options that will be available to them when they visit Bell Bank Park.”
The financial terms of the deal, which was brokered by Legacy Sports USA and OVG Global Partnerships, the sales arm of Oak View Group responsible for selling across all OVG Arena Development projects, wasn’t disclosed.
Also in the deal, Miller Lite will be the official domestic beer of the park; Huss Brewing, the official craft beer; Corona and Modelo, the official import beers; White Claw, the official hard seltzer; Mike’s Hard, the official flavored malt beverage, SanTan Spirits, the official ready-to-drink beverage; and Western Son Vodka, the preferred vodka.
“We came together with several of our supplier partners who saw the same strategic vision to build our brands with solid marketing plans, and getting our beers, spirits, and other non-alcohol products in the hands of literally millions of people who will come through the gates of Miller Lite Way over the years,” Ian Yonushonis, executive vice president, general manager, Crescent Crown Distributing, said in a statement.
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“We also consider selling beer in the Arizona market as our privilege not our right, and so with that in mind we like to choose partners who give back to the communities they serve,” Yonushonis continued. “That is exactly what Legacy USA will be doing with their Legacy Cares entity, which is dedicated to creating life-changing opportunities for all individuals through access to family entertainment and sports. This is a great partnership and we look forward to working with Bell Bank Park, Legacy Cares, and the Oak View Group.”
Bell Bank Park, the largest multi-purpose sports and entertainment complex in North America, has loaded up the sponsors and the events in recent months.
Phoenix Children's is opening a medical facility for young athletes as it takes on the role of founding partner and official health care provider at Bell Bank Park, in a deal announced in February.
In January, the park announced it had signed a multiyear deal with Santa Monica, California-based ticketing platform Tixr. That makes Tixr the official ticketing partner for all Bell Bank Park ticketed events and the company also bought the naming rights for the 2.7-acre live performance lawn and stage at the park, which will be called Tixr Yard. There will also be the Tixr Gaming Center, which is the venue’s space for esports and home to more than 90 arcade games and 75 gaming PCs.
Legacy Sports USA and OVG360, managers and operators of the $280 million Bell Bank Park, announced that the multiyear deal calls for the Mesa-based major beer distributor to have branding rights of select concession stands, a bar, and the naming of Miller Lite Way, a 34,000-square-foot entertainment district with a 402-foot zip line stretching the length of the space, grab-and-go concession concepts, and regularly programmed live entertainment for guests.
“Crescent Crown has strong local roots in the Valley, we are excited to welcome them as a founding partner of Bell Bank Park,” said Chad Miller, CEO of Legacy Sports USA, owners of Bell Bank Park, in a statement. “We know they will feature innovative and strategic activation plans for its products and can’t wait for our guests to see all of the beverage options that will be available to them when they visit Bell Bank Park.”
The financial terms of the deal, which was brokered by Legacy Sports USA and OVG Global Partnerships, the sales arm of Oak View Group responsible for selling across all OVG Arena Development projects, wasn’t disclosed.
Also in the deal, Miller Lite will be the official domestic beer of the park; Huss Brewing, the official craft beer; Corona and Modelo, the official import beers; White Claw, the official hard seltzer; Mike’s Hard, the official flavored malt beverage, SanTan Spirits, the official ready-to-drink beverage; and Western Son Vodka, the preferred vodka.
“We came together with several of our supplier partners who saw the same strategic vision to build our brands with solid marketing plans, and getting our beers, spirits, and other non-alcohol products in the hands of literally millions of people who will come through the gates of Miller Lite Way over the years,” Ian Yonushonis, executive vice president, general manager, Crescent Crown Distributing, said in a statement.
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“We also consider selling beer in the Arizona market as our privilege not our right, and so with that in mind we like to choose partners who give back to the communities they serve,” Yonushonis continued. “That is exactly what Legacy USA will be doing with their Legacy Cares entity, which is dedicated to creating life-changing opportunities for all individuals through access to family entertainment and sports. This is a great partnership and we look forward to working with Bell Bank Park, Legacy Cares, and the Oak View Group.”
Bell Bank Park, the largest multi-purpose sports and entertainment complex in North America, has loaded up the sponsors and the events in recent months.
Phoenix Children's is opening a medical facility for young athletes as it takes on the role of founding partner and official health care provider at Bell Bank Park, in a deal announced in February.
In January, the park announced it had signed a multiyear deal with Santa Monica, California-based ticketing platform Tixr. That makes Tixr the official ticketing partner for all Bell Bank Park ticketed events and the company also bought the naming rights for the 2.7-acre live performance lawn and stage at the park, which will be called Tixr Yard. There will also be the Tixr Gaming Center, which is the venue’s space for esports and home to more than 90 arcade games and 75 gaming PCs.
Rail giant BNSF Railway wins bid for 3,500 acres in far West Valley for potential multi-modal facility!
Texas-based BNSF Railway Co. was the winning and sole bidder for a 3,508-acre piece of land at an Arizona State Land Department auction held Wednesday morning, just outside of Surprise. This is a big win for the entire NW Valley, said Raoul Sada, President and CEO of the Surprise Regional Chamber of Commerce!
The giant freight company won the auction at the minimum bid price of $49.11 million, or approximately $14,000 per acre, for the massive piece of land located in the Wittmann area just outside of Surprise. It's also located along BNSF's main line and U.S. Route 60.
BNSF said in a prepared statement on Wednesday that is sees Arizona as an important area for economic growth and development and that it determined the land could be a good long-term investment.
"BNSF looks forward to working with state and local governments in Arizona, as well as customers, to determine how best to develop the land into an economic engine in the West Valley," the company said in a statement. "BNSF is proud of its 125 years of contributing to the Arizona economy and will be working with stakeholders in the following months to develop this property."
Behind the dealThe winning bid comes after BNSF started the long process to buy the state trust land in late 2020. The company formally applied for the auction about a year ago and received approval from the commissioner in January 2022.
An appraisal was conducted in July 2021 by Scottsdale-based Wayne Harding & Associates, which concluded the minimum bid price after comparing six land sale prices ranging from $8,000 to $25,000 and adjusting for factors like size of the land, site improvements, zoning and market conditions.
Public records show that BNSF wanted to buy the land for a multi-modal rail transportation and shipping facility and a logistics center with associated warehousing, which could be similar to its other inland ports in metro areas like Chicago and Dallas-Fort Worth.
The auction also moved forward on Wednesday after the state rejected more than 30 oppositions it had received from longtime Wittmann residents. Many said they were opposed to BNSF's plans for the property, which is part of a larger grazing lease, due to concerns about pollution, increased truck traffic, limited infrastructure, safety and the environment.
Some were also opposed to the minimum bid price, citing the recent sale of the Chrysler Proving Grounds for $125 million, or $22,092 per acre, to Apple Inc. But the appraiser determined this sale was less reliable since the property was already incorporated into and zoned by the city of Surprise and has other improvements.
Now, the rail company is a step closer to building a facility similar to what it has envisioned for the Valley since the 2000s, when it wanted to build a rail yard, automotive shipping facility and 16 million square feet of warehouses on 723 acres in the rural community.
The plans proposed in 2007 were also met with backlash from Wittmann residents and ranchers, who protested to the city of Surprise for months. Reports at the time said construction was expected to start in 2012, but the project never came to fruition.
Documents said construction on the new plans could start by 2025 with an opening date of 2028, but BNSF previously said it was "too soon" to know what will be built on the property. To build the facility, BNSF will also have to request a rezone in Maricopa County or a major general plan amendment and rezone in Surprise.
Through WittDev LLC, BNSF plans to bid on more than 3,500 acres of Arizona State Land Department parcels just northwest of Surprise for a proposed intermodal facility and logistics center.
ARIZONA STATE LAND DEPARTMENT
If successful, a facility such as this could have big economic implications for the region, experts said. It could boost interest from manufacturers and distribution companies, resulting in a ripple effect of further economic growth in development and logistics.
This type of facility could also be a major job creator, experts previously told the Business Journal, making Phoenix more competitive for attracting companies.
The Logistics Park Chicago and CenterPoint Intermodal Center - Elwood, for example, represents a $1 billion investment with a 770-acre intermodal yard and at millions of square feet of building space.
The rail company's plans also come at a time when more manufacturers and distribution companies are moving or expanding operations in states like Arizona and Texas. A massive rail facility in the Valley could also be a link to the global marketplace through the West Coast, experts say.
Texas-based BNSF Railway Co. was the winning and sole bidder for a 3,508-acre piece of land at an Arizona State Land Department auction held Wednesday morning, just outside of Surprise. This is a big win for the entire NW Valley, said Raoul Sada, President and CEO of the Surprise Regional Chamber of Commerce!
The giant freight company won the auction at the minimum bid price of $49.11 million, or approximately $14,000 per acre, for the massive piece of land located in the Wittmann area just outside of Surprise. It's also located along BNSF's main line and U.S. Route 60.
BNSF said in a prepared statement on Wednesday that is sees Arizona as an important area for economic growth and development and that it determined the land could be a good long-term investment.
"BNSF looks forward to working with state and local governments in Arizona, as well as customers, to determine how best to develop the land into an economic engine in the West Valley," the company said in a statement. "BNSF is proud of its 125 years of contributing to the Arizona economy and will be working with stakeholders in the following months to develop this property."
Behind the dealThe winning bid comes after BNSF started the long process to buy the state trust land in late 2020. The company formally applied for the auction about a year ago and received approval from the commissioner in January 2022.
An appraisal was conducted in July 2021 by Scottsdale-based Wayne Harding & Associates, which concluded the minimum bid price after comparing six land sale prices ranging from $8,000 to $25,000 and adjusting for factors like size of the land, site improvements, zoning and market conditions.
Public records show that BNSF wanted to buy the land for a multi-modal rail transportation and shipping facility and a logistics center with associated warehousing, which could be similar to its other inland ports in metro areas like Chicago and Dallas-Fort Worth.
The auction also moved forward on Wednesday after the state rejected more than 30 oppositions it had received from longtime Wittmann residents. Many said they were opposed to BNSF's plans for the property, which is part of a larger grazing lease, due to concerns about pollution, increased truck traffic, limited infrastructure, safety and the environment.
Some were also opposed to the minimum bid price, citing the recent sale of the Chrysler Proving Grounds for $125 million, or $22,092 per acre, to Apple Inc. But the appraiser determined this sale was less reliable since the property was already incorporated into and zoned by the city of Surprise and has other improvements.
Now, the rail company is a step closer to building a facility similar to what it has envisioned for the Valley since the 2000s, when it wanted to build a rail yard, automotive shipping facility and 16 million square feet of warehouses on 723 acres in the rural community.
The plans proposed in 2007 were also met with backlash from Wittmann residents and ranchers, who protested to the city of Surprise for months. Reports at the time said construction was expected to start in 2012, but the project never came to fruition.
Documents said construction on the new plans could start by 2025 with an opening date of 2028, but BNSF previously said it was "too soon" to know what will be built on the property. To build the facility, BNSF will also have to request a rezone in Maricopa County or a major general plan amendment and rezone in Surprise.
Through WittDev LLC, BNSF plans to bid on more than 3,500 acres of Arizona State Land Department parcels just northwest of Surprise for a proposed intermodal facility and logistics center.
ARIZONA STATE LAND DEPARTMENT
If successful, a facility such as this could have big economic implications for the region, experts said. It could boost interest from manufacturers and distribution companies, resulting in a ripple effect of further economic growth in development and logistics.
This type of facility could also be a major job creator, experts previously told the Business Journal, making Phoenix more competitive for attracting companies.
The Logistics Park Chicago and CenterPoint Intermodal Center - Elwood, for example, represents a $1 billion investment with a 770-acre intermodal yard and at millions of square feet of building space.
The rail company's plans also come at a time when more manufacturers and distribution companies are moving or expanding operations in states like Arizona and Texas. A massive rail facility in the Valley could also be a link to the global marketplace through the West Coast, experts say.
Liv Communities buys Avondale land to develop apartments near Cardinals' stadium and Now Eyes Surprise
Liv Communities, a Michigan developer with a strong presence in metro Phoenix, has purchased a 13-acre parcel of land near State Farm Stadium in Glendale with plans to build a $94.2 million apartment community.Also on the horizon are plans to introduce a build-to-rent product, starting in Arizona, Noonan said, with plans for Flagstaff, Laveen and Surprise.
Plans call for breaking ground in January 2023 to build 333 units at the southwest corner of 99th Avenue and Indian School Road in Avondale with an expected opening in summer 2024.
Liv Communities plans to build 333 multifamily units on this 13-acre parcel at 99th Avenue and Indian School Road in Avondale.
Linda Fritz-Salazar and Angelessa Ritchie of ORION Investment Real Estate represented Liv Communities in the land transaction.
"This site is ideally located being just a few miles south of the Arizona Cardinals stadium and Crystal Lagoons Water Park, which is currently under construction," Ritchie said.
The west side of the Valley continues to expand, partly because of the number of jobs being created on that side of town, Fritz-Salazar said.
"Developers recognize there is a need to build additional housing and entertainment centers to accommodate the growing resident
base," she said. "We're excited for Liv Communities to bring another quality community to the Valley."
RESIDENTIAL REAL ESTATE
Single-family home rental rate growth in metro Phoenix double national average
A slew of amenities supporting an active and productive lifestyle will be offered 24/7, including a pool, fitness center, cafe and co-working spaces, said Heidi Noonan, vice president of Liv Multifamily, a division of Live Communities.
"But our most important feature is we offer the highest level of hospitality and service," Noonan added. "That's what gets us out of bed every day at Liv. Every day we get to dream up ways to serve our residents, team members and all our stakeholders better. That's the major differentiator."
Founded in Grand Haven, Michigan, Liv Communities now has dual headquarters in Tempe as the company continues to develop communities throughout the Valley.
"We absolutely love Phoenix," Noonan said.
More projects comingThe company had owned assets in the Phoenix market since 2007 before launching its Liv brand in 2012 when it opened Liv Avenida in Chandler. Since then, the company has developed numerous projects all over the Valley, including building 326-unit Liv Goodyear in 2018 and selling it a year later. The company also has built 402 units in Ahwatukee, 322 units in Chandler, two projects in Gilbert totaling 758 units, one in Scottsdale with 240 units and the 385-unit Liv North Valley that sold in 2020.
"It's amazing to see the growth and incredible progress that has happened on the west side and specifically in Avondale," she said. "I can't wait to bring our special brand with our mission to help people live fuller lives to the great city of Avondale."
"We love this product type as well," she said. "It's a great way to live the single-family home lifestyle without financial, land and maintenance burdens."
As the company grows in Arizona, executives are looking at developing in other states, including the Seattle area, Idaho and Colorado, Noonan said.
Liv Communities, a Michigan developer with a strong presence in metro Phoenix, has purchased a 13-acre parcel of land near State Farm Stadium in Glendale with plans to build a $94.2 million apartment community.Also on the horizon are plans to introduce a build-to-rent product, starting in Arizona, Noonan said, with plans for Flagstaff, Laveen and Surprise.
Plans call for breaking ground in January 2023 to build 333 units at the southwest corner of 99th Avenue and Indian School Road in Avondale with an expected opening in summer 2024.
Liv Communities plans to build 333 multifamily units on this 13-acre parcel at 99th Avenue and Indian School Road in Avondale.
Linda Fritz-Salazar and Angelessa Ritchie of ORION Investment Real Estate represented Liv Communities in the land transaction.
"This site is ideally located being just a few miles south of the Arizona Cardinals stadium and Crystal Lagoons Water Park, which is currently under construction," Ritchie said.
The west side of the Valley continues to expand, partly because of the number of jobs being created on that side of town, Fritz-Salazar said.
"Developers recognize there is a need to build additional housing and entertainment centers to accommodate the growing resident
base," she said. "We're excited for Liv Communities to bring another quality community to the Valley."
RESIDENTIAL REAL ESTATE
Single-family home rental rate growth in metro Phoenix double national average
A slew of amenities supporting an active and productive lifestyle will be offered 24/7, including a pool, fitness center, cafe and co-working spaces, said Heidi Noonan, vice president of Liv Multifamily, a division of Live Communities.
"But our most important feature is we offer the highest level of hospitality and service," Noonan added. "That's what gets us out of bed every day at Liv. Every day we get to dream up ways to serve our residents, team members and all our stakeholders better. That's the major differentiator."
Founded in Grand Haven, Michigan, Liv Communities now has dual headquarters in Tempe as the company continues to develop communities throughout the Valley.
"We absolutely love Phoenix," Noonan said.
More projects comingThe company had owned assets in the Phoenix market since 2007 before launching its Liv brand in 2012 when it opened Liv Avenida in Chandler. Since then, the company has developed numerous projects all over the Valley, including building 326-unit Liv Goodyear in 2018 and selling it a year later. The company also has built 402 units in Ahwatukee, 322 units in Chandler, two projects in Gilbert totaling 758 units, one in Scottsdale with 240 units and the 385-unit Liv North Valley that sold in 2020.
"It's amazing to see the growth and incredible progress that has happened on the west side and specifically in Avondale," she said. "I can't wait to bring our special brand with our mission to help people live fuller lives to the great city of Avondale."
"We love this product type as well," she said. "It's a great way to live the single-family home lifestyle without financial, land and maintenance burdens."
As the company grows in Arizona, executives are looking at developing in other states, including the Seattle area, Idaho and Colorado, Noonan said.
More homebuilders scoop up lots in sweet spot of Surprise.
Homebuilders selling homes like hotcakes in North Copper Canyon in Surprise are diving in for more lot purchases.
Homebuilders gobbled up land in Surprise, an area that appears to be a sweet spot for new homes.
After selling more than 700 homes at a community in Surprise since 2018, Landsea Homes has bought another 122 lots in that growing area.
The Newport Beach, California-based homebuilder (Nasdaq: LSEA) paid $7.3 million to Courtland Communities for a 28.7-acre parcel west of the northwest corner of Grand Avenue and Deer Valley Road in Surprise, according to Tempe-based Vizzda LLC real estate database. The deal essentially works out to $254,466.20 per acre.
Also buying land in that new phase of North Copper Canyon is Century Communities, which paid $15.6 million for 49.23 acres north of the northeast corner of 183rd Avenue and Pinnacle Peak Road, according to Vizzda. That deal equates to $317,209.81 per acre.
Plans call for building 630 homes in that area on a total of 139.67 acres, with 20.62 acres of open space, and another 134-lot subdivision on 31.73 acres with 4.9 acres of open space, according to Vizzda.
Oakwood Homes also paid $16.59 million to Courtland Communities for 40.19 acres at the southwest corner of Citrus Road and Norwich Drive in Surprise, according to Vizzda. Equating to $412,882.76 an acre, that land will be home to a 218-lot single-family residential subdivision that will include 2.32 acres of total open space.
"These new lots will contribute to the very busy northwest submarket," said Jim Daniel, president of RL Brown Housing Reports.
Landsea's most recent purchase of 122 lots at The Villages at North Copper Canyon follows the acquisition of 193 lots in May.
Plans call for building homes ranging from 1,776 to 3,045 square feet, with options for two to five bedrooms and the ability to convert 3-car garages into extra rooms or storage.
Some floor plans will offer the optional Live-Gen suite in lieu of parking, for families seeking an in-home flat with ensuite bath, secluded living quarters, kitchenette and a private entrance.
This Live-Gen concept was introduced 10 years ago by Miami-based Lennar Corp. (NYSE: LEN) in metro Phoenix, selling more than 1,000 homes within the past two years here.
Homebuilders selling homes like hotcakes in North Copper Canyon in Surprise are diving in for more lot purchases.
Homebuilders gobbled up land in Surprise, an area that appears to be a sweet spot for new homes.
After selling more than 700 homes at a community in Surprise since 2018, Landsea Homes has bought another 122 lots in that growing area.
The Newport Beach, California-based homebuilder (Nasdaq: LSEA) paid $7.3 million to Courtland Communities for a 28.7-acre parcel west of the northwest corner of Grand Avenue and Deer Valley Road in Surprise, according to Tempe-based Vizzda LLC real estate database. The deal essentially works out to $254,466.20 per acre.
Also buying land in that new phase of North Copper Canyon is Century Communities, which paid $15.6 million for 49.23 acres north of the northeast corner of 183rd Avenue and Pinnacle Peak Road, according to Vizzda. That deal equates to $317,209.81 per acre.
Plans call for building 630 homes in that area on a total of 139.67 acres, with 20.62 acres of open space, and another 134-lot subdivision on 31.73 acres with 4.9 acres of open space, according to Vizzda.
Oakwood Homes also paid $16.59 million to Courtland Communities for 40.19 acres at the southwest corner of Citrus Road and Norwich Drive in Surprise, according to Vizzda. Equating to $412,882.76 an acre, that land will be home to a 218-lot single-family residential subdivision that will include 2.32 acres of total open space.
"These new lots will contribute to the very busy northwest submarket," said Jim Daniel, president of RL Brown Housing Reports.
Landsea's most recent purchase of 122 lots at The Villages at North Copper Canyon follows the acquisition of 193 lots in May.
Plans call for building homes ranging from 1,776 to 3,045 square feet, with options for two to five bedrooms and the ability to convert 3-car garages into extra rooms or storage.
Some floor plans will offer the optional Live-Gen suite in lieu of parking, for families seeking an in-home flat with ensuite bath, secluded living quarters, kitchenette and a private entrance.
This Live-Gen concept was introduced 10 years ago by Miami-based Lennar Corp. (NYSE: LEN) in metro Phoenix, selling more than 1,000 homes within the past two years here.
National RV company buys facility in Surprise, additional acreage for $16M
National Indoor RV Centers recently purchased a 170,625-square-foot facility and a 5.6-acre site to develop a 120,000-square-foot building near Dysart Road and Peoria Avenue in Surprise.
A national recreational vehicle company recently paid more than $16 million for a 170,625-square-foot facility it was leasing and an additional 5.6 acres of land in Surprise as demand for RVs has continued through the Covid-19 pandemic across the country.
Lewisville, Texas-based National Indoor RV Centers, which has five locations across the U.S. and more in the works, purchased the facility for about $15.5 million in August from Rioglass Solar Inc., according to real estate database Vizzda. The company said it initially leased with an option to purchase.
The company had leased the facility for the past two years, used for RV sales as well as service repairs, collision and body work and storing the RVs.
The company also purchased land adjacent to the facility for about $1 million from Camelott Properties LLC with plans to develop a 130,000-square-foot storage facility, according to Vizzda. Both properties are located near Dysart Road and Peoria Avenue about 3.5 miles north of Luke Air Force Base and Northern Parkway.
The company, which offers storage, service, repair and sales for high-end motor homes, first came to Phoenix in a 10,000-square-foot facility in Deer Valley in 2016. The recent sales were brokered by senior vice president Andy Jaffe and vice president Rex Griswold with Commercial Properties Inc.
'Great demand'National Indoor RV Center’s initial plan was to locate in both the East and West Valley, but due to “great demand” for their services, especially indoor storage, they decided to stay in Surprise, said chief operating officer Shaun Huxford.
“We’ve been received so well by the community and by the leadership there in Surprise that instead of going to the East Valley, we decided to double up in the West Valley and build an additional location across the street from the current location,” he said.
According to the RV Industry Association's summer outlook, about 65 million people in the U.S. planned to take an RV trip in the next year while 91% of RVers intended to travel more or the same in the next six months. About 10% of non-RVers also planned to travel in an RV this summer, and about a quarter of leisure travelers were considering buying an RV in the near future.
"That's great news for the RV industry as it strives to meet the record-breaking demand for RVs," RV Industry Association president and CEO Craig Kirby said in a statement on the association's website.
In Arizona, the association's most recent economic data says the state supported 1,061 RV businesses and 14,267 jobs in 2019. It also said RV's annual economic impact in Arizona totaled $2 billion that year.
Huxford said as soon as it made sense to the company financially, their intention was to purchase the facility when they leased it. They also purchased the 5.6-acre land because it was available now and was the only land across the street from the facility, he added.
“It was a good business decision at this time based on how well business is going there,” he said.
The existing facility, built in 2011 on 18 acres of land, was originally a glass manufacturing facility. It consists of 17,000 square feet of high-tech office space, 12 megawatts of heavy power, 600 power drops, 12 drive-in doors and 26-foot clear ceiling height in the warehouse portion of the building. Huxford said they may expand the facility in the future.
National Indoor RV Centers recently purchased a 170,625-square-foot facility and a 5.6-acre site to develop a 120,000-square-foot building near Dysart Road and Peoria Avenue in Surprise.
A national recreational vehicle company recently paid more than $16 million for a 170,625-square-foot facility it was leasing and an additional 5.6 acres of land in Surprise as demand for RVs has continued through the Covid-19 pandemic across the country.
Lewisville, Texas-based National Indoor RV Centers, which has five locations across the U.S. and more in the works, purchased the facility for about $15.5 million in August from Rioglass Solar Inc., according to real estate database Vizzda. The company said it initially leased with an option to purchase.
The company had leased the facility for the past two years, used for RV sales as well as service repairs, collision and body work and storing the RVs.
The company also purchased land adjacent to the facility for about $1 million from Camelott Properties LLC with plans to develop a 130,000-square-foot storage facility, according to Vizzda. Both properties are located near Dysart Road and Peoria Avenue about 3.5 miles north of Luke Air Force Base and Northern Parkway.
The company, which offers storage, service, repair and sales for high-end motor homes, first came to Phoenix in a 10,000-square-foot facility in Deer Valley in 2016. The recent sales were brokered by senior vice president Andy Jaffe and vice president Rex Griswold with Commercial Properties Inc.
'Great demand'National Indoor RV Center’s initial plan was to locate in both the East and West Valley, but due to “great demand” for their services, especially indoor storage, they decided to stay in Surprise, said chief operating officer Shaun Huxford.
“We’ve been received so well by the community and by the leadership there in Surprise that instead of going to the East Valley, we decided to double up in the West Valley and build an additional location across the street from the current location,” he said.
According to the RV Industry Association's summer outlook, about 65 million people in the U.S. planned to take an RV trip in the next year while 91% of RVers intended to travel more or the same in the next six months. About 10% of non-RVers also planned to travel in an RV this summer, and about a quarter of leisure travelers were considering buying an RV in the near future.
"That's great news for the RV industry as it strives to meet the record-breaking demand for RVs," RV Industry Association president and CEO Craig Kirby said in a statement on the association's website.
In Arizona, the association's most recent economic data says the state supported 1,061 RV businesses and 14,267 jobs in 2019. It also said RV's annual economic impact in Arizona totaled $2 billion that year.
Huxford said as soon as it made sense to the company financially, their intention was to purchase the facility when they leased it. They also purchased the 5.6-acre land because it was available now and was the only land across the street from the facility, he added.
“It was a good business decision at this time based on how well business is going there,” he said.
The existing facility, built in 2011 on 18 acres of land, was originally a glass manufacturing facility. It consists of 17,000 square feet of high-tech office space, 12 megawatts of heavy power, 600 power drops, 12 drive-in doors and 26-foot clear ceiling height in the warehouse portion of the building. Huxford said they may expand the facility in the future.
Not considering Employee Retention Credits? You could be leaving money on the table.
May 13, 2021
The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll.
IRS Press Release
Background:
In early March of this year, President Joe Biden signed into law the $1.9 trillion American Rescue Plan Act. Among the Act’s provisions was the further extension of the Employee Retention Credit (ERC), a refundable tax credit for employers that have suffered financial hardship caused by the COVID-19 pandemic. The ERC was first made available on March 27, 2020 through the enactment of the Coronavirus Aid, Relief and Economic Security (CARES) Act, and then previously extended through the Taxpayer’s Certainty and Disaster Relief Act on December 27, 2020.
The general criteria for claiming ERC requires the organization to meet one of the following criteria:
The Story
Experts say companies that don't consider Employee Retention Credits could be leaving money on the table.
The abrupt shutdown of the Paycheck Protection Program has left millions of borrowers in limbo. Those seeking relief through the Small Business Administration's Targeted EIDL Advance initiative are grappling with location requirements that could leave an entrepreneur just a few blocks away from being eligible for funding.
Despite those frustrations, accountants and advisers who are helping businesses navigate Covid-19 relief options say many companies aren’t capitalizing on potentially lucrative Employee Retention Credits — potentially leaving thousands of dollars per employee on the table.
They say the relatively low utilization rate stems from a mix of myth and lack of awareness, but they anticipate increased interest as funding for other relief programs is exhausted.
As we’ve noted, the Employment Retention Credit allows businesses that were required to close or partially suspend operations during Covid-19, or saw business fall by 50% or more, to get a credit of up to 50% of qualifying wages of employees up to $5,000 per employee in 2020. In December, Congress passed legislation that increased the credit to 70% of qualifying wages up to $14,000 per employee through June 30, 2021.
Experts say one of the biggest myths about ERCs is that companies that previously received PPP loans aren’t eligible for the retention credits.
Late last year, Congress ended a prohibition on businesses that received a PPP loan from claiming the tax credit, opening up the tax credit to more than 5.2 million previously ineligible businesses. But the myth of ineligibility for PPP recipients has persisted for months, leading many eligible businesses not to pursue the credits.
After seeing little interest in the program last year as businesses focused on PPP, Marc Valerio, a CPA and partner at Rochester, New York-based Bonadio Group, has started to see more interest in the program.
But he said a lack of awareness persists, as a previously discussed public-awareness campaign didn’t materialize.
Valerio said much of the interest in the program is being generated by payroll companies recommending the option to businesses.
When clients are encouraged by payroll companies to pursue ERCs, experts recommend they also talk it over with their accountant, attorney or adviser to ensure they are eligible and that guidance is followed.
“I talked to someone last week who wanted me to review their ERC [paperwork]. I talked to him and pretty quickly realized they were not eligible,” he said.
While that’s rare, Valerio said filing forms for the ERC isn’t the same as filing for a loan from a bank. It’s subject to an IRS audit.
“With PPP, right or wrong, you got some peace of mind knowing you were going to give it to a bank, and they were going to review it. Then, they were going to send it to the SBA, and they were going to review it, and everyone’s going to kind of give their blessing,” Valerio said. “With the ERC, you’re claiming it on Form 941. It gets a lot of people uneasy.”
When the May 17 tax deadline passes, Valerio anticipates increased interest in the program as accountants are able to turn more of their attention to ERCs.
Aaron Tamaddon, founder of Phoenix-based Stenson Tamaddon, said the change that allows businesses to secure both PPP and ERC could be a lifeline for many businesses — especially those shut out from the latest round of PPP or programs like the Restaurant Revitalization Fund, which is expected to quickly exhaust its funding.
But Tamaddon also acknowledged the awareness issue as well as the complexity of the program as reasons why utilization hasn't been high.
“There are complex payroll calculations you have to do versus [for PPP] going to your banker and being able to apply in a streamlined fashion,” said Ryan Louis, a member at Stenson Tamaddon.
Tamaddon said there’s also the expectation that a business needs to have been devastated by the pandemic to qualify for ERCs, something that also isn’t true.
“They think their business needs to be crushed. Most of the time, they think if they weren’t completely shut down or they didn’t have a huge drop in revenue, then they can’t access any of the funds,” Tamaddon said.
In reality, experts say the formulas are fairly generous when it comes to qualification levels.
However, companies do need to be aware of the rules around the interplay between PPP and ERCs to remain in compliance and maximize benefits.
For example, wages attributable to PPP loan forgiveness are encumbered and cannot be used towards ERC credits, Tamaddon said. He encourages companies to work with advisers who can help them navigate those complexities.
While many of the myths surrounding ERCs focus on eligibility, Tamaddon does offer one word of caution for those who are excited about the potential of the program: It’s not necessarily the fastest form of relief.
Tamaddon said there’s a processing lag when the files are mailed to the IRS that delays the process.
“Patience is a virtue. This isn’t like PPP,” he said. “Those took at little bit of time. This takes a little bit more time.”
May 13, 2021
The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll.
IRS Press Release
Background:
In early March of this year, President Joe Biden signed into law the $1.9 trillion American Rescue Plan Act. Among the Act’s provisions was the further extension of the Employee Retention Credit (ERC), a refundable tax credit for employers that have suffered financial hardship caused by the COVID-19 pandemic. The ERC was first made available on March 27, 2020 through the enactment of the Coronavirus Aid, Relief and Economic Security (CARES) Act, and then previously extended through the Taxpayer’s Certainty and Disaster Relief Act on December 27, 2020.
The general criteria for claiming ERC requires the organization to meet one of the following criteria:
- The employer’s operations were fully or partially suspended due to COVID-19 related governmental order; or
- The employer incurred a decline in gross receipts during a calendar quarter compared to the same calendar quarter during 2019
- For quarters in 2020, the decline must be greater than 50%
- For quarters in 2021, the decline must be greater than 20%
The Story
Experts say companies that don't consider Employee Retention Credits could be leaving money on the table.
The abrupt shutdown of the Paycheck Protection Program has left millions of borrowers in limbo. Those seeking relief through the Small Business Administration's Targeted EIDL Advance initiative are grappling with location requirements that could leave an entrepreneur just a few blocks away from being eligible for funding.
Despite those frustrations, accountants and advisers who are helping businesses navigate Covid-19 relief options say many companies aren’t capitalizing on potentially lucrative Employee Retention Credits — potentially leaving thousands of dollars per employee on the table.
They say the relatively low utilization rate stems from a mix of myth and lack of awareness, but they anticipate increased interest as funding for other relief programs is exhausted.
As we’ve noted, the Employment Retention Credit allows businesses that were required to close or partially suspend operations during Covid-19, or saw business fall by 50% or more, to get a credit of up to 50% of qualifying wages of employees up to $5,000 per employee in 2020. In December, Congress passed legislation that increased the credit to 70% of qualifying wages up to $14,000 per employee through June 30, 2021.
Experts say one of the biggest myths about ERCs is that companies that previously received PPP loans aren’t eligible for the retention credits.
Late last year, Congress ended a prohibition on businesses that received a PPP loan from claiming the tax credit, opening up the tax credit to more than 5.2 million previously ineligible businesses. But the myth of ineligibility for PPP recipients has persisted for months, leading many eligible businesses not to pursue the credits.
After seeing little interest in the program last year as businesses focused on PPP, Marc Valerio, a CPA and partner at Rochester, New York-based Bonadio Group, has started to see more interest in the program.
But he said a lack of awareness persists, as a previously discussed public-awareness campaign didn’t materialize.
Valerio said much of the interest in the program is being generated by payroll companies recommending the option to businesses.
When clients are encouraged by payroll companies to pursue ERCs, experts recommend they also talk it over with their accountant, attorney or adviser to ensure they are eligible and that guidance is followed.
“I talked to someone last week who wanted me to review their ERC [paperwork]. I talked to him and pretty quickly realized they were not eligible,” he said.
While that’s rare, Valerio said filing forms for the ERC isn’t the same as filing for a loan from a bank. It’s subject to an IRS audit.
“With PPP, right or wrong, you got some peace of mind knowing you were going to give it to a bank, and they were going to review it. Then, they were going to send it to the SBA, and they were going to review it, and everyone’s going to kind of give their blessing,” Valerio said. “With the ERC, you’re claiming it on Form 941. It gets a lot of people uneasy.”
When the May 17 tax deadline passes, Valerio anticipates increased interest in the program as accountants are able to turn more of their attention to ERCs.
Aaron Tamaddon, founder of Phoenix-based Stenson Tamaddon, said the change that allows businesses to secure both PPP and ERC could be a lifeline for many businesses — especially those shut out from the latest round of PPP or programs like the Restaurant Revitalization Fund, which is expected to quickly exhaust its funding.
But Tamaddon also acknowledged the awareness issue as well as the complexity of the program as reasons why utilization hasn't been high.
“There are complex payroll calculations you have to do versus [for PPP] going to your banker and being able to apply in a streamlined fashion,” said Ryan Louis, a member at Stenson Tamaddon.
Tamaddon said there’s also the expectation that a business needs to have been devastated by the pandemic to qualify for ERCs, something that also isn’t true.
“They think their business needs to be crushed. Most of the time, they think if they weren’t completely shut down or they didn’t have a huge drop in revenue, then they can’t access any of the funds,” Tamaddon said.
In reality, experts say the formulas are fairly generous when it comes to qualification levels.
However, companies do need to be aware of the rules around the interplay between PPP and ERCs to remain in compliance and maximize benefits.
For example, wages attributable to PPP loan forgiveness are encumbered and cannot be used towards ERC credits, Tamaddon said. He encourages companies to work with advisers who can help them navigate those complexities.
While many of the myths surrounding ERCs focus on eligibility, Tamaddon does offer one word of caution for those who are excited about the potential of the program: It’s not necessarily the fastest form of relief.
Tamaddon said there’s a processing lag when the files are mailed to the IRS that delays the process.
“Patience is a virtue. This isn’t like PPP,” he said. “Those took at little bit of time. This takes a little bit more time.”
After a strong start, Arizona PPP lenders see dip in demand
Jan 29, 2021
The latest round of the Paycheck Protection Program opened up two weeks ago to a rush of applications. Since then, Arizona lenders have seen demand even out.
Community financial institutions had first access to the portal on Jan. 11, and reported a high volume of applications. All lenders, including the largest banks, were allowed to access the portal on Jan. 19.
While the pace of applications has slowed after the opening push, there are still scores of Arizona business owners lining up for a loan nine months after the original PPP system opened. According to data released by the Small Business Administration, as of Jan. 24, 4,640 Arizona businesses have applied for loans worth over $422 million in the latest round.
Gary Sneed, senior vice president and chief lending officer at Desert Financial Credit Union, said that his colleagues have seen this drop in applications outside of Arizona as well.
“I was on an industry call earlier today (Tuesday) with other chief lending officers around the country and their experience was very similar to what we've seen,” he said. “First few days, we had a lot of pent up demand, we got those applications in the system. But since then, we've seen that they were the ones really waiting for the monies. But it's slowed down.”
Sneed and his team think the slowdown may be due to misconceptions about the complexity and difficulty of submitting a PPP application. Earlier this week, the American Bankers Association published a letter detailing the “significant issues that are preventing the program from fully supporting small businesses in need.” The SBA later acknowledged it was working to make fixes.
Desert Financial has encountered these problems, according to Sneed, but it’s done little to slow its progress.
“The issues that are popping up are nowhere near as tough or difficult as it was back a year ago, when we started and the government gave us all four days to get ready.”
As of Tuesday afternoon, Desert Financial Credit Union, the largest credit union in Arizona, had received around 250 applications worth about $10 million. Last year it processed over 1,200 loans worth $49 million.
Congress allocated $284 billion for the latest PPP round, compared to the initial $349 billion that was quickly exhausted and a $310 billion supplement that was not completely used last year. The bank executives interviewed for this story were split on whether or not they thought the latest allocation would be completely claimed by the March 31 deadline.
'Small business owners still need help'Late last year, FirstBank of Lakewood, Colorado announced that Kevin Classen would be taking over as bank president effective Feb. 22. Classen previously worked as the Arizona market president and lived in Phoenix for many years.
In an interview, he said continuing to be a good steward of the PPP lending will be a top priority as he enters his new role.
“We've been through it once and we feel very successful about the first go-round with this in 2020, and we anticipate that being the case in this round as well," he said. "We will stick with this as long as we need to."
Classen acknowledged some delays with the lending portal, but said he suspects the SBA is making improvements to smooth out the system each day.
In last year’s lending, the three biggest banks made about a third of all PPP loans in Arizona. JPMorgan Chase made the most PPP loans in Arizona followed by Bank of America and Wells Fargo.
Joe Trimble, a vice president and small business leader at Wells Fargo, works with customers in New Mexico, Nevada, Southern California and Arizona. He said Wells Fargo's average requested loan amount is just $55,000 in the region.
“Small business owners still need help,” he said. “It’s those businesses who are weathering the storm and still need that help to get beyond the current environment.”
Wells Fargo had received over 2,200 applications worth a requested $107 million in Arizona as of Tuesday.
Jan 29, 2021
The latest round of the Paycheck Protection Program opened up two weeks ago to a rush of applications. Since then, Arizona lenders have seen demand even out.
Community financial institutions had first access to the portal on Jan. 11, and reported a high volume of applications. All lenders, including the largest banks, were allowed to access the portal on Jan. 19.
While the pace of applications has slowed after the opening push, there are still scores of Arizona business owners lining up for a loan nine months after the original PPP system opened. According to data released by the Small Business Administration, as of Jan. 24, 4,640 Arizona businesses have applied for loans worth over $422 million in the latest round.
Gary Sneed, senior vice president and chief lending officer at Desert Financial Credit Union, said that his colleagues have seen this drop in applications outside of Arizona as well.
“I was on an industry call earlier today (Tuesday) with other chief lending officers around the country and their experience was very similar to what we've seen,” he said. “First few days, we had a lot of pent up demand, we got those applications in the system. But since then, we've seen that they were the ones really waiting for the monies. But it's slowed down.”
Sneed and his team think the slowdown may be due to misconceptions about the complexity and difficulty of submitting a PPP application. Earlier this week, the American Bankers Association published a letter detailing the “significant issues that are preventing the program from fully supporting small businesses in need.” The SBA later acknowledged it was working to make fixes.
Desert Financial has encountered these problems, according to Sneed, but it’s done little to slow its progress.
“The issues that are popping up are nowhere near as tough or difficult as it was back a year ago, when we started and the government gave us all four days to get ready.”
As of Tuesday afternoon, Desert Financial Credit Union, the largest credit union in Arizona, had received around 250 applications worth about $10 million. Last year it processed over 1,200 loans worth $49 million.
Congress allocated $284 billion for the latest PPP round, compared to the initial $349 billion that was quickly exhausted and a $310 billion supplement that was not completely used last year. The bank executives interviewed for this story were split on whether or not they thought the latest allocation would be completely claimed by the March 31 deadline.
'Small business owners still need help'Late last year, FirstBank of Lakewood, Colorado announced that Kevin Classen would be taking over as bank president effective Feb. 22. Classen previously worked as the Arizona market president and lived in Phoenix for many years.
In an interview, he said continuing to be a good steward of the PPP lending will be a top priority as he enters his new role.
“We've been through it once and we feel very successful about the first go-round with this in 2020, and we anticipate that being the case in this round as well," he said. "We will stick with this as long as we need to."
Classen acknowledged some delays with the lending portal, but said he suspects the SBA is making improvements to smooth out the system each day.
In last year’s lending, the three biggest banks made about a third of all PPP loans in Arizona. JPMorgan Chase made the most PPP loans in Arizona followed by Bank of America and Wells Fargo.
Joe Trimble, a vice president and small business leader at Wells Fargo, works with customers in New Mexico, Nevada, Southern California and Arizona. He said Wells Fargo's average requested loan amount is just $55,000 in the region.
“Small business owners still need help,” he said. “It’s those businesses who are weathering the storm and still need that help to get beyond the current environment.”
Wells Fargo had received over 2,200 applications worth a requested $107 million in Arizona as of Tuesday.
Can employers require workers to get a Covid-19 vaccine? HR, law experts weigh in.
As health and political leaders craft strategies for distributing Covid-19 vaccines nationwide, questions about workforce implications of the rollout are top of mind for many employers.
The first and perhaps most obvious of these questions: Can I require my employees to get vaccinated? According to Diane Hoffmann, a professor at the University of Maryland School of Law, the answer is yes.
A vaccination is legally considered a medical procedure, which employers can require their employees to receive if deemed necessary to perform their jobs safely and successfully, said Hoffmann, who serves as director of the school's Law and Health Care Program. Given the highly infectious nature of Covid-19, a vaccine mandate may be considered particularly in workplaces where employees must work on site and in close proximity to one another, or in those where they interact extensively with the public.
But just because employers can legally mandate getting a coronavirus vaccination doesn't mean they all will.
There is some precedent for large-scale vaccine mandates, Hoffmann said. For example, most K-12 schools across the country require children to provide proof of certain immunizations before they can attend, and health care organizations such as hospitals and nursing homes often require their employees to get several vaccinations, including an annual flu shot.
However, vaccine mandates in other areas of private industry are relatively unprecedented. Hoffmann said some employers may worry about the legal repercussions of mandating a vaccination, including exposing themselves to a lawsuit if a certain employee has an adverse reaction to the vaccine. Additionally, employers who do opt to require their employees to be vaccinated will have to allow exceptions for people with a religious belief or medical condition that legally precludes them from receiving vaccines. Employers may have to make special accommodations for those who cannot be vaccinated if they establish a mandate.
However, there is also a risk that employees will sue if they are required to come back to a workplace without a vaccine mandate, and they end up contracting Covid-19, Hoffmann pointed out. "For a lot of businesses, this will be uncharted territory," Hoffmann said. "I expect lots of employers will be talking to their lawyers about the legal frameworks here."
The vaccine formulations being distributed are reported to be more than 90% effective, and are cleared for use under the U.S Food and Drug Administration's "emergency use authorization," a system that expedites the availability of certain health interventions during public health emergencies. Hoffmann said employers may want to wait until the vaccines have received full standard FDA approval before they consider making vaccination a job requirement.
That seems to be the route that regional health system MedStar Health is taking. MedStar CEO Kenneth Samet said although his was one of the first health systems in the country to mandate flu vaccinations for its workers, it is not requiring Covid vaccinations for now.
He discussed MedStar's approach to vaccine distribution during a panel event in December hosted by the Greater Baltimore Committee. At that point, MedStar leaders were strongly encouraging employees to get the vaccine if they can. Samet said he would be "first in line" if he were among the essential workers at the front of the distribution hierarchy, but he understands some people may be nervous about the vaccines and will want to wait until more data is in.
While employers mull their options with counsel, human resources expert Amy E. Polefrone said every employer should at least be developing a game plan for when vaccines are widely available. "These vaccines have big implications for everyone getting back to work," said Polefrone, who is CEO of Ellicott City's HR Strategy Group. "Employers should be preparing, and doing everything they can to encourage employees to get the vaccine."
Polefrone said for many companies, the Covid vaccines represent a path to getting truly back to business. She said business owners should be laying plans for how a phased return-to-work strategy might go, and maintaining open communication with their employees. She recommended employers share educational materials about vaccines and invite science and health experts to speak to workers about any questions or concerns they may have.
She also advised that business owners make the process of getting vaccinated as burden-free as possible for employees. Health insurers are expected to cover the costs of Covid vaccinations for their individual and group policy holders. But for those businesses that do not offer health benefits, Polefrone said employers may want to consider subsidizing or covering the costs of vaccinations.
Polefrone said it will take many more months before we have mostly vaccinated workforces, but she is excited to see the first steps in that direction happening. In the meantime, she said companies should expect to continue operating with mask and social distancing requirements, as well as increased cleaning schedules for the foreseeable future.
As health and political leaders craft strategies for distributing Covid-19 vaccines nationwide, questions about workforce implications of the rollout are top of mind for many employers.
The first and perhaps most obvious of these questions: Can I require my employees to get vaccinated? According to Diane Hoffmann, a professor at the University of Maryland School of Law, the answer is yes.
A vaccination is legally considered a medical procedure, which employers can require their employees to receive if deemed necessary to perform their jobs safely and successfully, said Hoffmann, who serves as director of the school's Law and Health Care Program. Given the highly infectious nature of Covid-19, a vaccine mandate may be considered particularly in workplaces where employees must work on site and in close proximity to one another, or in those where they interact extensively with the public.
But just because employers can legally mandate getting a coronavirus vaccination doesn't mean they all will.
There is some precedent for large-scale vaccine mandates, Hoffmann said. For example, most K-12 schools across the country require children to provide proof of certain immunizations before they can attend, and health care organizations such as hospitals and nursing homes often require their employees to get several vaccinations, including an annual flu shot.
However, vaccine mandates in other areas of private industry are relatively unprecedented. Hoffmann said some employers may worry about the legal repercussions of mandating a vaccination, including exposing themselves to a lawsuit if a certain employee has an adverse reaction to the vaccine. Additionally, employers who do opt to require their employees to be vaccinated will have to allow exceptions for people with a religious belief or medical condition that legally precludes them from receiving vaccines. Employers may have to make special accommodations for those who cannot be vaccinated if they establish a mandate.
However, there is also a risk that employees will sue if they are required to come back to a workplace without a vaccine mandate, and they end up contracting Covid-19, Hoffmann pointed out. "For a lot of businesses, this will be uncharted territory," Hoffmann said. "I expect lots of employers will be talking to their lawyers about the legal frameworks here."
The vaccine formulations being distributed are reported to be more than 90% effective, and are cleared for use under the U.S Food and Drug Administration's "emergency use authorization," a system that expedites the availability of certain health interventions during public health emergencies. Hoffmann said employers may want to wait until the vaccines have received full standard FDA approval before they consider making vaccination a job requirement.
That seems to be the route that regional health system MedStar Health is taking. MedStar CEO Kenneth Samet said although his was one of the first health systems in the country to mandate flu vaccinations for its workers, it is not requiring Covid vaccinations for now.
He discussed MedStar's approach to vaccine distribution during a panel event in December hosted by the Greater Baltimore Committee. At that point, MedStar leaders were strongly encouraging employees to get the vaccine if they can. Samet said he would be "first in line" if he were among the essential workers at the front of the distribution hierarchy, but he understands some people may be nervous about the vaccines and will want to wait until more data is in.
While employers mull their options with counsel, human resources expert Amy E. Polefrone said every employer should at least be developing a game plan for when vaccines are widely available. "These vaccines have big implications for everyone getting back to work," said Polefrone, who is CEO of Ellicott City's HR Strategy Group. "Employers should be preparing, and doing everything they can to encourage employees to get the vaccine."
Polefrone said for many companies, the Covid vaccines represent a path to getting truly back to business. She said business owners should be laying plans for how a phased return-to-work strategy might go, and maintaining open communication with their employees. She recommended employers share educational materials about vaccines and invite science and health experts to speak to workers about any questions or concerns they may have.
She also advised that business owners make the process of getting vaccinated as burden-free as possible for employees. Health insurers are expected to cover the costs of Covid vaccinations for their individual and group policy holders. But for those businesses that do not offer health benefits, Polefrone said employers may want to consider subsidizing or covering the costs of vaccinations.
Polefrone said it will take many more months before we have mostly vaccinated workforces, but she is excited to see the first steps in that direction happening. In the meantime, she said companies should expect to continue operating with mask and social distancing requirements, as well as increased cleaning schedules for the foreseeable future.
Maricopa tops list for talent attraction among nation's largest counties, report shows
Continued growth in skilled jobs has propelled Maricopa County to first place among large U.S. counties for talent attraction, according to a new report by labor analytics firm Emsi.
Maricopa County topped the 2020 list, with data collected right before the start of the Covid-19 pandemic, rising from second place in 2019, according to Emsi's Talent Attraction Scorecard. The county, which recorded an 18% increase in skilled jobs from 2015-19, also took the top spot in 2018 and 2017. Clark County, which is home to Las Vegas, ranked second in 2020 and Collin County, home to McKinney, Texas, ranked third.
Caifornia-based Intel Corp. is a major skilled job creator mentioned in the Emsi report. The semiconductor maker continues to grow in Chandler with a $7 billion expansion opening earlier this year and a workforce of more than 12,000.
According to the report, Phoenix is one of only a few of the largest cities in the country that is not seeing an exodus of residents. Manhattan, Brooklyn, Chicago, San Francisco and Los Angeles ranked highest for population losses from February to July 2020, with Manhattan losing 110,978 people due to moving.
Los Angeles County, the most populous county in the nation, ranked last among large counties, those with 1 million or more people, for talent attraction. Cook County, which is home to Chicago and is second largest in terms of population, placed second-to-last among large counties. Maricopa County is the country’s fourth-most populous county.
“Greater Phoenix has always been about bucking the trend,” Chris Camacho, president and CEO of the Greater Phoenix Economic Council, said. “It comes down to job creation and opportunities, plus decades of pro-business or anti-business policy.”
Continued growth in skilled jobs has propelled Maricopa County to first place among large U.S. counties for talent attraction, according to a new report by labor analytics firm Emsi.
Maricopa County topped the 2020 list, with data collected right before the start of the Covid-19 pandemic, rising from second place in 2019, according to Emsi's Talent Attraction Scorecard. The county, which recorded an 18% increase in skilled jobs from 2015-19, also took the top spot in 2018 and 2017. Clark County, which is home to Las Vegas, ranked second in 2020 and Collin County, home to McKinney, Texas, ranked third.
Caifornia-based Intel Corp. is a major skilled job creator mentioned in the Emsi report. The semiconductor maker continues to grow in Chandler with a $7 billion expansion opening earlier this year and a workforce of more than 12,000.
According to the report, Phoenix is one of only a few of the largest cities in the country that is not seeing an exodus of residents. Manhattan, Brooklyn, Chicago, San Francisco and Los Angeles ranked highest for population losses from February to July 2020, with Manhattan losing 110,978 people due to moving.
Los Angeles County, the most populous county in the nation, ranked last among large counties, those with 1 million or more people, for talent attraction. Cook County, which is home to Chicago and is second largest in terms of population, placed second-to-last among large counties. Maricopa County is the country’s fourth-most populous county.
“Greater Phoenix has always been about bucking the trend,” Chris Camacho, president and CEO of the Greater Phoenix Economic Council, said. “It comes down to job creation and opportunities, plus decades of pro-business or anti-business policy.”
New Report Shows Dramatic Floor Traffic Drops
The data is provided Gravy Analytics a market research used by leading brands to measure foot traffic and other market intelligence.
According to the Business Journal, while most businesses saw foot traffic drop dramatically in April, the fitness, hospitality and entertainment sectors are still hurting due to restrictions put on them by state governments, but with the November surge in Covid-19 cases, health officials have warned that in-person shopping could exacerbate the spread of the virus.
Gravy Analytics' latest data was compiled from February, before shutdowns were put in place, through mid-November by aggregating billions of location records collected through mobile phone applications for national brands. In fact, Gravy Analytics tracks consumer foot traffic changes for 200 leading brands across 50 major cities, including Phoenix.
According to its latest data, Hyatt Regency in downtown Phoenix saw the biggest decrease in foot traffic — a whopping 93% drop — since February. This makes sense as the Hyatt Regency is convention hotel and with no major events happening, the number of hotel guests has dwindled.
Movie theater chain AMC Theaters has seen foot traffic decrease 92% since February, and boutique fitness studio Orangetheory Fitness is down 90%, according to Gravy.
The data is provided Gravy Analytics a market research used by leading brands to measure foot traffic and other market intelligence.
According to the Business Journal, while most businesses saw foot traffic drop dramatically in April, the fitness, hospitality and entertainment sectors are still hurting due to restrictions put on them by state governments, but with the November surge in Covid-19 cases, health officials have warned that in-person shopping could exacerbate the spread of the virus.
Gravy Analytics' latest data was compiled from February, before shutdowns were put in place, through mid-November by aggregating billions of location records collected through mobile phone applications for national brands. In fact, Gravy Analytics tracks consumer foot traffic changes for 200 leading brands across 50 major cities, including Phoenix.
According to its latest data, Hyatt Regency in downtown Phoenix saw the biggest decrease in foot traffic — a whopping 93% drop — since February. This makes sense as the Hyatt Regency is convention hotel and with no major events happening, the number of hotel guests has dwindled.
Movie theater chain AMC Theaters has seen foot traffic decrease 92% since February, and boutique fitness studio Orangetheory Fitness is down 90%, according to Gravy.
Restaurants
Hotels
Retailers
Phoenix Business Journals Releases a Special Report
Undersupply drives demand for logistics space in the entire metro area
The industrial logistics space in the Loop 303 corridor in Glendale and Goodyear is expected to grow by more than 200%, from 15 million square feet to 50 million square feet in the next five to six years.
“The Loop 303 corridor is the place that offers development and employment land site solutions,” said Tony Lydon, managing director of Jones Lang LaSalle Inc. in Phoenix.
Land that is zoned or can be rezoned for industrial uses is limited in the metro, so readily available spaces in the West Valley are highly desirable, he said. Plus, companies already in that part of the region need to scale, and the need for additional industrial space already exists.
While demand for industrial space was growing prior to the Covid-19 pandemic, the explosive rise of e-commerce and the strain on the supply chain over the past eight months has put fuel to the fire.
Due to increased e-commerce demand, by 2025 the U.S. will need more than 1 billion square feet of industrial space, which would mean the top submarkets, Phoenix included, would need 6.5 to 7 million square feet of new space per year for the next five years to keep up with the demand, Lydon said.
Tony Lydon, managing director of JLL in Phoenix, said the average market has 88 square feet of industrial space per capita, but Phoenix only has 58 square feet per capita, meaning that even during record-high industrial construction, there is still a need for more space.
“Phoenix has historically been underserved,” Lydon said. “But, with re-shoring, I think Phoenix will be a winner.”
Amazon leads the way
E-commerce giant Amazon Inc. announced massive expansion plans in Phoenix this year, and by 2021 will be the largest employers with with nearly 3,000 employees in Goodyear alone and 20,500 in total across the Valley.
Matthew High, regional director of fulfillment for Amazon, said the talent and workforce in the Phoenix area has been consistently strong. “The workforce, community partners, an abundance of talent and being close to our customers are some of the contributing factors to site selection,” he said.
Undersupply drives demand for logistics space in the entire metro area
The industrial logistics space in the Loop 303 corridor in Glendale and Goodyear is expected to grow by more than 200%, from 15 million square feet to 50 million square feet in the next five to six years.
“The Loop 303 corridor is the place that offers development and employment land site solutions,” said Tony Lydon, managing director of Jones Lang LaSalle Inc. in Phoenix.
Land that is zoned or can be rezoned for industrial uses is limited in the metro, so readily available spaces in the West Valley are highly desirable, he said. Plus, companies already in that part of the region need to scale, and the need for additional industrial space already exists.
While demand for industrial space was growing prior to the Covid-19 pandemic, the explosive rise of e-commerce and the strain on the supply chain over the past eight months has put fuel to the fire.
Due to increased e-commerce demand, by 2025 the U.S. will need more than 1 billion square feet of industrial space, which would mean the top submarkets, Phoenix included, would need 6.5 to 7 million square feet of new space per year for the next five years to keep up with the demand, Lydon said.
Tony Lydon, managing director of JLL in Phoenix, said the average market has 88 square feet of industrial space per capita, but Phoenix only has 58 square feet per capita, meaning that even during record-high industrial construction, there is still a need for more space.
“Phoenix has historically been underserved,” Lydon said. “But, with re-shoring, I think Phoenix will be a winner.”
Amazon leads the way
E-commerce giant Amazon Inc. announced massive expansion plans in Phoenix this year, and by 2021 will be the largest employers with with nearly 3,000 employees in Goodyear alone and 20,500 in total across the Valley.
Matthew High, regional director of fulfillment for Amazon, said the talent and workforce in the Phoenix area has been consistently strong. “The workforce, community partners, an abundance of talent and being close to our customers are some of the contributing factors to site selection,” he said.
SBA Ordered to Release PPP Loan Details
The Small Business Administration is being ordered to release more detailed Paycheck Protection Program loan information — and experts say that could deter fraud and abuse in a future round of PPP loans approved by Congress.
That transparency, which comes in the form of a federal judge ordering the agency to release more details by Nov. 19 absent an appeal, might have a chilling effect on small businesses applying to any future programs, but would help deter future fraud in any new round, said Tenley Carp, a partner at law firm Arnall Golden Gregory.
“The publication of names and PPP loan amounts might very well have a chilling effect on PPP applications during a second round, but I don’t think that is necessarily a bad thing,” Carp said in an email, adding private businesses might not want anyone to know they needed help. “I think the obvious good that public disclosure would do to prevent fraud and abuse in the PPP outweighs even that very legitimate concern.”
And that fraud in the $525 billion that went out in more than 5.2 million loans appears to be widespread, according to a recent Wall Street Journal report. The Government Accountability Office also weighed in with an Oct. 1 report that the program was ripe for abuse, and Thompson Reuters said that recent reporting showed that $4 billion in PPP loans had already been flagged for such abuse.
“If people know up front their names and PPP loan amounts will be 'public knowledge,' that might very well reduce the number of individuals and/or companies committing some form of fraud to obtain PPP funds,” Carp said.
In July, the SBA released data on PPP loans above $150,000, as well as information about the lenders who made them. But it argued in legal filings that detailed information about loans should not be made public, citing federal laws that exempt some government records from disclosure, such as trade secrets and personnel and medical files. The ordered disclosure would include names of businesses that received smaller loans, and exact amounts for larger loans, which had been disclosed as ranges of dollar amounts.
The Small Business Administration is being ordered to release more detailed Paycheck Protection Program loan information — and experts say that could deter fraud and abuse in a future round of PPP loans approved by Congress.
That transparency, which comes in the form of a federal judge ordering the agency to release more details by Nov. 19 absent an appeal, might have a chilling effect on small businesses applying to any future programs, but would help deter future fraud in any new round, said Tenley Carp, a partner at law firm Arnall Golden Gregory.
“The publication of names and PPP loan amounts might very well have a chilling effect on PPP applications during a second round, but I don’t think that is necessarily a bad thing,” Carp said in an email, adding private businesses might not want anyone to know they needed help. “I think the obvious good that public disclosure would do to prevent fraud and abuse in the PPP outweighs even that very legitimate concern.”
And that fraud in the $525 billion that went out in more than 5.2 million loans appears to be widespread, according to a recent Wall Street Journal report. The Government Accountability Office also weighed in with an Oct. 1 report that the program was ripe for abuse, and Thompson Reuters said that recent reporting showed that $4 billion in PPP loans had already been flagged for such abuse.
“If people know up front their names and PPP loan amounts will be 'public knowledge,' that might very well reduce the number of individuals and/or companies committing some form of fraud to obtain PPP funds,” Carp said.
In July, the SBA released data on PPP loans above $150,000, as well as information about the lenders who made them. But it argued in legal filings that detailed information about loans should not be made public, citing federal laws that exempt some government records from disclosure, such as trade secrets and personnel and medical files. The ordered disclosure would include names of businesses that received smaller loans, and exact amounts for larger loans, which had been disclosed as ranges of dollar amounts.
New Fintech Platform For Companies Seeking Investors
A new financial technology company currently in its beta phase is positioning itself as the Match.com for private companies looking to raise capital, according to its founder.
WealthVP, founded by entrepreneur Leif Hartwig, raised over $500,000 from private investors in a seed funding round that closed at the end of September to build the software as a service platform that matches qualified companies — software and sustainability companies to start — with family office investors from all over the world. Hartwig declined to comment about a second funding round.
Accepting applicants
WealthVP is currently accepting applications from 100 qualified companies and at least 25 purpose-driven family offices that are a good match for those companies during the beta phase through the end of 2020, Hartwig said. The official launch date is Jan. 2.
The said he hopes most of the first 100 companies will be based in Arizona.
Qualified companies are required to be generating revenue, have a total addressable market in the world of $100 million, have already received some funding and are seeking at least $1 million in new funding. The companies must submit an executive summary of the business, a pitch book, pro forma and a video to be posted on WealthVP.
Because of the disparity in funding, WealthVP is guaranteeing 25% to 30% of the companies selected to be on WealthVP will be women, veteran and minority founded.
Hartwig, who also serves as WealthVP’s CEO, said he came up with the concept for his new company after realizing that the $2 trillion spent by investors each year in funding businesses is all done through word of mouth and pitch contests.
“In the U.S. alone, hundreds of thousands of cutting-edge companies need capital investment to fully realize market potential,” he said. “Less than 10% will be fully funded, and most will fail due to lack of capital. Through WealthVP, we’re making it easy for world-bettering companies and family office investors to find one another.”
The need is especially critical in Arizona.
“I believe we are one of the top three states in the country for startups, however, we have almost no venture capital money in town,” Hartwig said.
This means many startups won’t get the investor funding they need, or they will get funding from an out-of-state investor and may get asked to relocate the company, he said.
“We truly need this national and international investor community that can see these companies that we have in Arizona,” he said.
The CEO of Phoenix business accelerator Coplex agreed.
"One of the biggest barriers to growth for promising early-stage companies is raising capital,” Brenda Schmidt, CEO of Coplex, said in a statement. “WealthVP reduces the time and complexity of raising funds for founders and reduces the risk of finding qualified startups of investors. This is a game-changer."
WealthVP’s internal advisory board vets any company looking to be on the platform to make sure they meet the minimum qualifications. An analytics firm will then verify the information provided by the applicants.
Once accepted onto WealthVP, companies and investors are matched through the platform’s proprietary algorithm, Hartwig said. Either side can also search for entities by location, financial needs or investment goals, type of company and more. Once a match is made, investors control the conversation and can reach out directly to the companies they are interested in via a secure messaging tool, according to WealthVP.
'The industry needs us'Hartwig said WealthVP doesn't ask for a percentage of the companies seeking investors. Companies will pay to be on the WealthVP platform on a monthly basis.
Next year, he said he expects WealthVP will open the platform to more accredited investors and private companies in varying sectors.
“We want to grow the company to significant value, but we are grounded in values," Hartwig said. "The industry needs us, needs companies like us."
A new financial technology company currently in its beta phase is positioning itself as the Match.com for private companies looking to raise capital, according to its founder.
WealthVP, founded by entrepreneur Leif Hartwig, raised over $500,000 from private investors in a seed funding round that closed at the end of September to build the software as a service platform that matches qualified companies — software and sustainability companies to start — with family office investors from all over the world. Hartwig declined to comment about a second funding round.
Accepting applicants
WealthVP is currently accepting applications from 100 qualified companies and at least 25 purpose-driven family offices that are a good match for those companies during the beta phase through the end of 2020, Hartwig said. The official launch date is Jan. 2.
The said he hopes most of the first 100 companies will be based in Arizona.
Qualified companies are required to be generating revenue, have a total addressable market in the world of $100 million, have already received some funding and are seeking at least $1 million in new funding. The companies must submit an executive summary of the business, a pitch book, pro forma and a video to be posted on WealthVP.
Because of the disparity in funding, WealthVP is guaranteeing 25% to 30% of the companies selected to be on WealthVP will be women, veteran and minority founded.
Hartwig, who also serves as WealthVP’s CEO, said he came up with the concept for his new company after realizing that the $2 trillion spent by investors each year in funding businesses is all done through word of mouth and pitch contests.
“In the U.S. alone, hundreds of thousands of cutting-edge companies need capital investment to fully realize market potential,” he said. “Less than 10% will be fully funded, and most will fail due to lack of capital. Through WealthVP, we’re making it easy for world-bettering companies and family office investors to find one another.”
The need is especially critical in Arizona.
“I believe we are one of the top three states in the country for startups, however, we have almost no venture capital money in town,” Hartwig said.
This means many startups won’t get the investor funding they need, or they will get funding from an out-of-state investor and may get asked to relocate the company, he said.
“We truly need this national and international investor community that can see these companies that we have in Arizona,” he said.
The CEO of Phoenix business accelerator Coplex agreed.
"One of the biggest barriers to growth for promising early-stage companies is raising capital,” Brenda Schmidt, CEO of Coplex, said in a statement. “WealthVP reduces the time and complexity of raising funds for founders and reduces the risk of finding qualified startups of investors. This is a game-changer."
WealthVP’s internal advisory board vets any company looking to be on the platform to make sure they meet the minimum qualifications. An analytics firm will then verify the information provided by the applicants.
Once accepted onto WealthVP, companies and investors are matched through the platform’s proprietary algorithm, Hartwig said. Either side can also search for entities by location, financial needs or investment goals, type of company and more. Once a match is made, investors control the conversation and can reach out directly to the companies they are interested in via a secure messaging tool, according to WealthVP.
'The industry needs us'Hartwig said WealthVP doesn't ask for a percentage of the companies seeking investors. Companies will pay to be on the WealthVP platform on a monthly basis.
Next year, he said he expects WealthVP will open the platform to more accredited investors and private companies in varying sectors.
“We want to grow the company to significant value, but we are grounded in values," Hartwig said. "The industry needs us, needs companies like us."
El Mirage to Get First New Home Development in Years
Two land deals recently closed in El Mirage!
Scottsdale-based Meritage Homes Corp. (NYSE: MTH) paid $5.45 million for a 24-acre parcel, while Phoenix-based NexMetro Communities paid $5.9 million for a 32-acre parcel, according to Vizzda LLC, a Tempe-based real estate database.
Meritage purchased its parcel at the northeast corner of Williams Drive and El Mirage Road from Kimco Realty Corp. and De Rito Partners, while NexMetro bought its parcel from an entity tracing to Herb Dreiseszun, according to Vizzda.
Meritage's parcel is called Camino Crossing, which has 123 lots sized 45 feet by 115 feet. Brian Rosella, broker with Kidder Matthews, represented Meritage.
Plans call for building single-story homes starting at 1,500 square feet, with prices starting under $300,000, said Fred Hermann, Phoenix division president for Meritage. A variety of home designs will range up to 2,500 square feet for two-story homes.
"The West Valley is an exciting market for Meritage to open a new community," Hermann said. "With recent price appreciation it is difficult to find a new home at entry-level pricing."
Camino Crossing will be the first new home development in El Mirage in years, said Jim Belfiore, founder of Belfiore Real Estate Consulting in Phoenix. "With no new supply and little resale supply to be had in the immediate area, Meritage Homes is likely to wish it had more than the 123 homes the builder has to offer," Belfiore said. "Meritage has become a go-to metro Phoenix area turnkey homebuilder offering home shoppers a one-stop shop for their piece of the American dream."
Belfiore said he expects Meritage to find instant success at Camino Crossing, similar to its success at Ellison Trails in Laveen, where Meritage sold 30 homes in the first 30 days of offering them.
At the same time, NexMetro's move into supply-constrained, affordable El Mirage just makes sense, Belfiore said.
"The area has had no new rental product, and as such, lease-up is likely to be rapid," he said.
By Angela Gonzales – Senior Reporter, Phoenix Business Journal
Oct 7, 2020, 1:00pm EDT
Two land deals recently closed in El Mirage!
Scottsdale-based Meritage Homes Corp. (NYSE: MTH) paid $5.45 million for a 24-acre parcel, while Phoenix-based NexMetro Communities paid $5.9 million for a 32-acre parcel, according to Vizzda LLC, a Tempe-based real estate database.
Meritage purchased its parcel at the northeast corner of Williams Drive and El Mirage Road from Kimco Realty Corp. and De Rito Partners, while NexMetro bought its parcel from an entity tracing to Herb Dreiseszun, according to Vizzda.
Meritage's parcel is called Camino Crossing, which has 123 lots sized 45 feet by 115 feet. Brian Rosella, broker with Kidder Matthews, represented Meritage.
Plans call for building single-story homes starting at 1,500 square feet, with prices starting under $300,000, said Fred Hermann, Phoenix division president for Meritage. A variety of home designs will range up to 2,500 square feet for two-story homes.
"The West Valley is an exciting market for Meritage to open a new community," Hermann said. "With recent price appreciation it is difficult to find a new home at entry-level pricing."
Camino Crossing will be the first new home development in El Mirage in years, said Jim Belfiore, founder of Belfiore Real Estate Consulting in Phoenix. "With no new supply and little resale supply to be had in the immediate area, Meritage Homes is likely to wish it had more than the 123 homes the builder has to offer," Belfiore said. "Meritage has become a go-to metro Phoenix area turnkey homebuilder offering home shoppers a one-stop shop for their piece of the American dream."
Belfiore said he expects Meritage to find instant success at Camino Crossing, similar to its success at Ellison Trails in Laveen, where Meritage sold 30 homes in the first 30 days of offering them.
At the same time, NexMetro's move into supply-constrained, affordable El Mirage just makes sense, Belfiore said.
"The area has had no new rental product, and as such, lease-up is likely to be rapid," he said.
By Angela Gonzales – Senior Reporter, Phoenix Business Journal
Oct 7, 2020, 1:00pm EDT
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Eight of America’s 400 Richest Live in Arizona!
It still takes at least $2.1 billion, unchanged for the past three years, to make the Forbes cut! Even in these trying times mega-fortunes are still being minted. This year there are 18 new members to the ranks, and eight of the richest people who made their piles in everything from electric trucks to the now-ubiquitous Zoom.
According to the Phoenix Business Journal here are the Eight for Arizona:
Carvana founder Ernest Garcia II and his son, Carvana CEO and co-founder Earnest Garcia III were the wealthiest, with net worths of $9.6 billion and $4.2 billion, respectively. That’s a jump from $5.7 billion and $2.3 billion, respectively, in 2019.
Anaheim Angels owner Arturo Moreno rounded out the top three in Arizona, coming in at No. 238 in the nation with a net worth of $3.4 billion, up from $3.3 billion in 2019, an amount that was enough to make him the richest Arizonan on Forbes’ April list of the richest people in the world, where he ranked No. 590.
The Arizona cohort included one newcomer: Trevor Milton, the founder and former executive chairman of zero-emissions vehicle maker Nikola Corp. which went public at the beginning of June as part of a reverse-merger with
The net worth of Bennett Dorrance, who owns a 15% stake in Campbell Soup, went from $2.8 billion in 2019 to $3 billion this year, landing at No. 278 on Forbes’ list. Dorrance is the grandson of John T. Dorrance, who invented condensed soup.
The three other Arizonans on Forbes’ list saw their wealth decline since 2019.
Mark Shoen, who owns about a fifth of U-Haul parent company Amerco, had a drop from $3.3 billion in 2019 to $2.7 billion in 2020.
Joe Shoen, the president and chairman and 21% stakeholder of Amerco, had a net worth drop from $2.7 billion in 2019 to $2.3 billion in 2020. Mark Shoen ranked 319th on Forbes’ list and E. Joe Shoen ranked 359th.
Bob Parsons, the founder of web hosting firm GoDaddy who has since sold his stake in the company and retired from the board, saw a net worth drop from $2.7 billion in 2019 to $2.2 billion in 2020, ranking him No. 378 among the nation’s wealthiest.
Jerry Moyes, the founder of Swift Transportation, now part of Knight-Swift Transportation Holdings Inc., had made the grade when Forbes released its annual list of the world's wealthiest people in March of this year when he had a net worth of $1.2 billion, but fell off the latest ranking
Forbes used stock prices from July 24 in its calculations of wealth.
It still takes at least $2.1 billion, unchanged for the past three years, to make the Forbes cut! Even in these trying times mega-fortunes are still being minted. This year there are 18 new members to the ranks, and eight of the richest people who made their piles in everything from electric trucks to the now-ubiquitous Zoom.
According to the Phoenix Business Journal here are the Eight for Arizona:
Carvana founder Ernest Garcia II and his son, Carvana CEO and co-founder Earnest Garcia III were the wealthiest, with net worths of $9.6 billion and $4.2 billion, respectively. That’s a jump from $5.7 billion and $2.3 billion, respectively, in 2019.
Anaheim Angels owner Arturo Moreno rounded out the top three in Arizona, coming in at No. 238 in the nation with a net worth of $3.4 billion, up from $3.3 billion in 2019, an amount that was enough to make him the richest Arizonan on Forbes’ April list of the richest people in the world, where he ranked No. 590.
The Arizona cohort included one newcomer: Trevor Milton, the founder and former executive chairman of zero-emissions vehicle maker Nikola Corp. which went public at the beginning of June as part of a reverse-merger with
The net worth of Bennett Dorrance, who owns a 15% stake in Campbell Soup, went from $2.8 billion in 2019 to $3 billion this year, landing at No. 278 on Forbes’ list. Dorrance is the grandson of John T. Dorrance, who invented condensed soup.
The three other Arizonans on Forbes’ list saw their wealth decline since 2019.
Mark Shoen, who owns about a fifth of U-Haul parent company Amerco, had a drop from $3.3 billion in 2019 to $2.7 billion in 2020.
Joe Shoen, the president and chairman and 21% stakeholder of Amerco, had a net worth drop from $2.7 billion in 2019 to $2.3 billion in 2020. Mark Shoen ranked 319th on Forbes’ list and E. Joe Shoen ranked 359th.
Bob Parsons, the founder of web hosting firm GoDaddy who has since sold his stake in the company and retired from the board, saw a net worth drop from $2.7 billion in 2019 to $2.2 billion in 2020, ranking him No. 378 among the nation’s wealthiest.
Jerry Moyes, the founder of Swift Transportation, now part of Knight-Swift Transportation Holdings Inc., had made the grade when Forbes released its annual list of the world's wealthiest people in March of this year when he had a net worth of $1.2 billion, but fell off the latest ranking
Forbes used stock prices from July 24 in its calculations of wealth.
Lagoon Water Park, Entertainment Venue Headed to West Valley.... A new regional tourism asset for the NW Valley!
A beach party in Arizona might not be such a wacky idea in a couple of years because the West Valley will soon be home to an 11-acre beach lagoon, planned to include scuba diving, windsurfing and water jet packs as part of a 48-acre entertainment destination. TV News Story The planned project be near the Westgate Entertainment, near E 95th Avenue and Cardinals Way, near the State Farm Stadium. The developer of the project is ECL Glendale LLC. Crystal Lagoons Island Resort, will have a similar feeling to Downtown Disney, with experiential retail, amusement park rides, a 4D theater, a themed hotel and other hotel uses on the site. The project will also include an “aero bar,” a bar in the middle of the lagoon on a vertical structure that becomes elevated 135 feet in the air so patrons can get a 360-degree view. It also will include the world’s largest helium balloon. The balloon will be on a tether with a gondola that raises riders 400 feet in the air. The 4D theater will incorporate sensory elements like smell, temperature or moisture into the viewers’ experience. The theater will be in conjunction with SimEx-Iwerks Entertainment, which has access to Disney proprietary character and products. |
Industrial Construction Report
Phoenix is on track for a record level of new industrial supply to be completed in 2020, but so far new supply has outpaced demand, according to CoStar research. According to data compiled by Jessica Morin, director of market analytics for CoStar “Phoenix ranks ninth for U.S. markets with the most industrial space under construction. When the space under construction is completed, it will expand the market’s existing stock by 3.1%. That being said, Glendale and Goodyear have the most space under construction as compared to their existing space. Glendale will add about 40% to its inventory and Goodyear will add about 20% when the space under construction is completed. Nationwide, industrial net absorption was forecast to remain negative through the remainder of 2020 and into the beginning of 2021, according to a study done by NAIOP. However, Arizona has not seen the steep decline some other markets have suffered, Suzanne Kinney, president and CEO of the Arizona chapter of NAIOP said. “There have been a handful of large deals that have gone our way,” Kinney said, adding that several manufacturers have recently moved or expanded in Phoenix recently, and users like food and beverage makers are also growing in the area. Some of the growth, such as the pivot by Honeywell in Phoenix to make personal protective equipment, were directly related to the Covid-19 pandemic, Kinney said, but other moves were “a continuation of the positive trends we’ve seen over the past few years.” |
Arizona Supreme Court refuses to take up lawsuit from bar
According to the Phoenix Business Journal
08-26-2020
The Arizona Supreme Court has denied hearing a lawsuit filed by more than 100 bar owners against Gov. Doug Ducey over the manner in which he closed bars down this summer.
The growing group of bar owners took the matter straight to the state’s highest court, but Supreme Court Chief Justice Robert Brutinel wrote in the Aug. 25 order that the issue should first be reviewed by a lower court.
The ruling seems to be based more on procedure than the content of the lawsuit.
Ilan Wurman, the attorney representing the bar owners and a law professor at Arizona State University, has already filed another suit in Arizona Superior Court.
In the lawsuit, Wurman and the bar owners argued that Ducey’s order to close down bars to slow the spread of Covid-19 did not actually close down all bars in the state, but targeted just the owners with series 6 or 7 liquor licenses.
Under Ducey’s executive order hotel bars, casino bars, microbreweries, wineries, private clubs, distilleries and restaurants with bars were allowed to stay open because they operate with a different series of liquor licenses.
Wurman argues that the distinction between liquor license series has nothing to do with public health.
Besides asking for the court to deem Ducey’s executive order unlawful, the lawsuit is seeking damages for bar owners including for revenue that was lost when these businesses were forced to close but competitors could stay open.
According to the Phoenix Business Journal
08-26-2020
The Arizona Supreme Court has denied hearing a lawsuit filed by more than 100 bar owners against Gov. Doug Ducey over the manner in which he closed bars down this summer.
The growing group of bar owners took the matter straight to the state’s highest court, but Supreme Court Chief Justice Robert Brutinel wrote in the Aug. 25 order that the issue should first be reviewed by a lower court.
The ruling seems to be based more on procedure than the content of the lawsuit.
Ilan Wurman, the attorney representing the bar owners and a law professor at Arizona State University, has already filed another suit in Arizona Superior Court.
In the lawsuit, Wurman and the bar owners argued that Ducey’s order to close down bars to slow the spread of Covid-19 did not actually close down all bars in the state, but targeted just the owners with series 6 or 7 liquor licenses.
Under Ducey’s executive order hotel bars, casino bars, microbreweries, wineries, private clubs, distilleries and restaurants with bars were allowed to stay open because they operate with a different series of liquor licenses.
Wurman argues that the distinction between liquor license series has nothing to do with public health.
Besides asking for the court to deem Ducey’s executive order unlawful, the lawsuit is seeking damages for bar owners including for revenue that was lost when these businesses were forced to close but competitors could stay open.
According the the Phoenix Business Journal
Nine Arizona companies, all of them based in the Valley, made the cut for Inc. magazine’s list of the top 500 fastest-growing firms in the nation for 2020.
Topping the state list was last year’s national leader and Inc.’s 2019 cover story, Freestar LLC, a company that helps publishers boost revenue by optimizing their online advertising. This year, Freestar dropped to No. 36 overall on a still-staggering growth rate of 7,239%.
The Inc. 500 is the top tier of the larger Inc. 5000 list, which ranks the 5,000 fastest-growing, privately held U.S. companies.
Counting the nine Arizona companies on the Inc. 500, the state had 107 companies on the full Inc. 5000 list. This is up from the 104 that made the list last year.
Here are the nine companies that made the upper tier of the Inc. 5000 to land a ranking in the 2020 Inc. 500:
- No. 36, Freestar, Phoenix, 7,239% growth
- No. 148, Handwrytten, Phoenix, 2,572%
- No. 196, CellTrust Corp., Scottsdale, 2,145%
- No. 210, Attribytes, Chandler, 2,062%
- No. 258, Maverick Performance Products, Chandler, 1,724%
- No. 319, Simple Living Solutions, Scottsdale, 1,421%
- No. 337, Titan Solar Power, Mesa, 1,348%
- No. 432, Exerscribe, Scottsdale, 1,064%
- No. 448, Centauri Health Solutions, Scottsdale, 1,019%
Landlords sue, say Ducey lacks authority to stop evictions
According to the Arizona Capitol Times Landlords and mobile home park owners from around the state are asking the Arizona Supreme Court to void an executive order by Gov. Doug Ducey blocking evictions of tenants who do not pay their rent.
The lawsuit claims the governor lacks the constitutional authority to tell constables around the state not to process eviction orders, even those issued legally by judges. It also contends that the gubernatorial directive is violating both the property rights of landowners as well as their right to enter into contracts.
In seeking review, the lawsuit acknowledges that the governor can exercise certain powers in a public health emergency. But attorney Kory Langhofer, who prepared the legal filing, said that Ducey, in unilaterally barring landlords from enforcing the terms of lawful lease agreements, created “an indefinite economic welfare and redistribution program, rather than a public health measure to contain the COVID-19 contagion.”
According to the Arizona Capitol Times Landlords and mobile home park owners from around the state are asking the Arizona Supreme Court to void an executive order by Gov. Doug Ducey blocking evictions of tenants who do not pay their rent.
The lawsuit claims the governor lacks the constitutional authority to tell constables around the state not to process eviction orders, even those issued legally by judges. It also contends that the gubernatorial directive is violating both the property rights of landowners as well as their right to enter into contracts.
In seeking review, the lawsuit acknowledges that the governor can exercise certain powers in a public health emergency. But attorney Kory Langhofer, who prepared the legal filing, said that Ducey, in unilaterally barring landlords from enforcing the terms of lawful lease agreements, created “an indefinite economic welfare and redistribution program, rather than a public health measure to contain the COVID-19 contagion.”
PPP Loans helped nearly 1,500 local businesses
A new Surprise Regional Chamber of Commerce report showed almost 1,500 small businesses in the Northwest Valley have received $155 million in PPP loan assistance.
Based the Chamber’s latest data, the PPP loans helped to retain 6,879 workers in the region (El Mirage, Sun City, Sun City West, Surprise, Waddell and Youngtown.) However, several small businesses in Surprise and surrounding areas are still suffering from the COVID-19 slowdown and waiting for Congress to act on additional bailout money.
“When the previous bailout programs were rolled out there was much confusion and turbulence, and small businesses did not initially fair well,” Chamber President and CEO Raoul Sada said. “The Chamber wants to do its part, making sure that does not happen again, and we are lobbying Capitol Hill for a packages that favor small businesses.”
Key Points:
•The SBA has just released a massive trove of data on PPP loans. This was a significant step forward in transparency by the government, prior to this the SBA resisted requests to share the recipients of the funds. This is why it is so important for the Chamber to hold government officials accountable, and for us to demand transparency at all levels of government (local, state and federal!)
•More than 81,000 Arizona businesses and nonprofits have received forgivable loans through the federal government's Paycheck Protection Program totaling $8.6 billion, according to the U.S. Small Business Administration.
•The Paycheck Protection Program, which was designed to avert mass layoffs during the Covid-19 pandemic.
•PPP loans are not made by SBA. PPP loans are made by lending institutions and then guaranteed by SBA.
•According to the data, 58 businesses in Arizona received between $5 and $10 million, the maximum amount allowed under the program. But the vast majority of loans, approximately 86%, are valued under $150,000.
•Close to 1500 small businesses received PPP loans in the six cities that make up the Chambers service territory. The amount of cash infused into our local economy was over $154 million dollars! Based on application data, the loans help to retain 6,879 workers in our region.
•Approximately 42 businesses were non-profits (2.8% of the recipients)
Based the Chamber’s latest data, the PPP loans helped to retain 6,879 workers in the region (El Mirage, Sun City, Sun City West, Surprise, Waddell and Youngtown.) However, several small businesses in Surprise and surrounding areas are still suffering from the COVID-19 slowdown and waiting for Congress to act on additional bailout money.
“When the previous bailout programs were rolled out there was much confusion and turbulence, and small businesses did not initially fair well,” Chamber President and CEO Raoul Sada said. “The Chamber wants to do its part, making sure that does not happen again, and we are lobbying Capitol Hill for a packages that favor small businesses.”
Key Points:
•The SBA has just released a massive trove of data on PPP loans. This was a significant step forward in transparency by the government, prior to this the SBA resisted requests to share the recipients of the funds. This is why it is so important for the Chamber to hold government officials accountable, and for us to demand transparency at all levels of government (local, state and federal!)
•More than 81,000 Arizona businesses and nonprofits have received forgivable loans through the federal government's Paycheck Protection Program totaling $8.6 billion, according to the U.S. Small Business Administration.
•The Paycheck Protection Program, which was designed to avert mass layoffs during the Covid-19 pandemic.
•PPP loans are not made by SBA. PPP loans are made by lending institutions and then guaranteed by SBA.
•According to the data, 58 businesses in Arizona received between $5 and $10 million, the maximum amount allowed under the program. But the vast majority of loans, approximately 86%, are valued under $150,000.
•Close to 1500 small businesses received PPP loans in the six cities that make up the Chambers service territory. The amount of cash infused into our local economy was over $154 million dollars! Based on application data, the loans help to retain 6,879 workers in our region.
•Approximately 42 businesses were non-profits (2.8% of the recipients)
Surprise Independent News Coverage
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See What Businesses are Open and Their COVID-19 Safeguards Based on a self -reported survey, as on 05/11/2020. Information is subject to change without notice. The collection and dissemination of the data was a combined effort between the City of Surprise and the Surprise Regional Chamber of Commerce. ShopSurprise Receive Special Deals, Promotions and Community Messages from Local Merchants, and your Chamber of Commerce. All messages are sent Directly to Your Phone! Get advance notice of new restaurants, grand openings, community events and more. It's FREE! Enroll Now |
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Chamber’s NW Valley COVID-19 Consumer Survey Results Are In
Survey Results Make the Paper-Click Here to Read the Article Consumers, not the government, will ultimately decide when the economy will open—that is why it is important for citizens and businesses to know what people are thinking. Please share your comments on our Facebook page! Government leaders and public health officials will make decisions, and issue guidance on when we return to work, but truly regaining some semblance of normalcy will be determined by how people feel and what motivates them to act or not act. The Chambers recent survey sheds more light about what consumers are thinking in the NW Valley . Share your comments on our Facebook page Take Our 1-Minute Survey |
Business COVID-19 Survey Results
Survey Makes Front Page of Surprise Independent- Read the Story
CEOs across the globe are coming to terms with the reality that business will be anything but normal over the coming months as the impact of the coronavirus pandemic continues to escalate.
But while revenues are set to suffer a short-term hit, the majority of leaders remain confident that their companies will be back on solid footing within the year, according to a new study on the business impact of the outbreak of COVID-19.
The survey results found that 82% of business leaders expect declines in revenues over the next six months, but more than half (54%) anticipate revenues will be back to normal in a year’s time. And 61% of CEOs expect their total fixed investments to remain unchanged year on year.
How Business Owners are Responding
Among the industries seeing the greatest impact from the fallout are hospitality and travel (89%), education (87%) and media and entertainment (80%). Meanwhile, production firms in agriculture, factories, mines and utilities reported some uptick in revenues.
Nevertheless, business leaders across the board (95%) said they’re taking new measures curb the impact of the virus. That includes communicating more regularly with employees (68%), adopting new health and safety procedures (67%), cancelling major events (64%) and halting business travel (53%).
Meanwhile, other respondents, when asked for their advice for business leaders, recommended the following:
Citation: The Survey was conducted by YPO a global leadership community of more than 29,000 chief executives in 130 countries. Full Press Release
Survey Makes Front Page of Surprise Independent- Read the Story
CEOs across the globe are coming to terms with the reality that business will be anything but normal over the coming months as the impact of the coronavirus pandemic continues to escalate.
But while revenues are set to suffer a short-term hit, the majority of leaders remain confident that their companies will be back on solid footing within the year, according to a new study on the business impact of the outbreak of COVID-19.
The survey results found that 82% of business leaders expect declines in revenues over the next six months, but more than half (54%) anticipate revenues will be back to normal in a year’s time. And 61% of CEOs expect their total fixed investments to remain unchanged year on year.
How Business Owners are Responding
Among the industries seeing the greatest impact from the fallout are hospitality and travel (89%), education (87%) and media and entertainment (80%). Meanwhile, production firms in agriculture, factories, mines and utilities reported some uptick in revenues.
Nevertheless, business leaders across the board (95%) said they’re taking new measures curb the impact of the virus. That includes communicating more regularly with employees (68%), adopting new health and safety procedures (67%), cancelling major events (64%) and halting business travel (53%).
Meanwhile, other respondents, when asked for their advice for business leaders, recommended the following:
- Focus on the facts
- Communicate regularly with employees and stakeholders/customers
- Stabilize supply chains
- Make short-term and long-term plans
Citation: The Survey was conducted by YPO a global leadership community of more than 29,000 chief executives in 130 countries. Full Press Release
USMCA AGREEMENT IS A WIN FOR THE NORTH WEST VALLEY
By any measure, the push to get the U.S.-Mexico-Canada Agreement (USMCA) passed — which preserves and strengthens our economic ties with our neighbors and top two export markets — was a three-year-long process. And it did not happen by accident.
The U.S. Chamber, the Surprise Regional Chamber as well thousands of chambers from around the country put the full weight of our alliances behind this historic effort. A special thank you to all local businesses in our region who contacted their elected officials and encouraged them to support the agreement. The new U.S.-Mexico-Canada Agreement is expected to usher tangible benefits for the NW Valley including agriculture, technology, manufacturing, and other business sectors, industry analysts say.
Here’s a brief overview of what’s in it:
- Country of origin rules: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA).
- Labor provisions: 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour by 2023. Mexico agreed to pass new labor laws to give greater protection to workers, including migrants and women. Most notably, these laws are supposed to make it easier for Mexican workers to unionize.
- US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, a big issue for Trump.
- Intellectual property and digital trade: The deal extends the terms of copyright to 70 years beyond the life of the author (up from 50). It also includes new provisions to deal with the digital economy, such as prohibiting duties on things like music and ebooks, and protections for internet companies, so they’re not liable for content their users produce.
- Sunset clause: The agreement adds a 16-year sunset clause — meaning the terms of the agreement expire, or “sunset,” after 16 years. The deal is also subject to review every six years, at which point the US, Mexico, and Canada can decide to extend the USMCA.
First-Ever Scorecard Released
Who Made the List? Our first-ever scorecard evaluates the votes of each state senator and representative and represents the positions of the West Valley Chamber Alliance that were communicated to our state lawmakers throughout the 2019 Regular Session. The scorecard helps the business community know where their elected officials stand on issues that affect us all. Click Here for Full Report
The Surprise Regional Chamber of Commerce (Districts 13, 21 and 22) would like to recognize Rick Gray, Frank Carroll, Tim Dunn and Joanne Osborne for having 100% scores in support of pro-business policies.
As a Chamber, we commend those elected leaders with scores above 80% and recognize them as Free Enterprise Champions for recognizing the vital role businesses play and supporting those businesses through common sense, pro-business, and growth-oriented public policy. All elected officials in Districts 13, 21 and 22 earned the Free Enterprise Champion designation which included Rick Gray, Ben Toma, Frank Carroll, Kevin Payne, Tony Rivera, David Livingston, Tim Dunn, Joanne Osborne and Sine Kerr.
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TAKE THE SURVEY NOW
2020 Business Climate Census Survey
Many in our business community are experiencing both challenges and successes as our economy grows. As we work to secure the NW Valley's future, it is crucial that the Surprise Regional Chamber of Commerce understand what issues are most important to businesses. The purpose of the Business Climate Survey is to track trends and issues affecting businesses and to inform elected officials about the issues and concerns of the local business community.
Click Here Now, To Take Our Annual Business Climate Survey
2020 Business Climate Census Survey
Many in our business community are experiencing both challenges and successes as our economy grows. As we work to secure the NW Valley's future, it is crucial that the Surprise Regional Chamber of Commerce understand what issues are most important to businesses. The purpose of the Business Climate Survey is to track trends and issues affecting businesses and to inform elected officials about the issues and concerns of the local business community.
Click Here Now, To Take Our Annual Business Climate Survey
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