Apartment News - Arizona - January 2013

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January 2013 • Vol. 50 No. 1

THE OFFICIAL PUBLICATION OF THE ARIZONA MULTIHOUSING ASSOCIATION

Valley Vacancies at Lowest Level in Six Years By Pete TeKampe, Marcus & Millichap The Phoenix metro area in third quarter 2012 recorded its lowest apartment vacancy rate since third quarter 2006. Third quarter 2012 also saw the planning and zoning pipeline of new apartment development increase fivefold since third quarter 2010 and continued declines in concession offerings compared to one year ago. Third quarter 2012 marks the first time in six quarters in which asking rents were higher than those observed in the same period of the prior year. RENTS In third quarter 2012 Phoenix area average asking rents stood at $751, a $4 increase over third quarter 2011’s asking rents. As previously noted in Trends, reductions in vacancies and concessions would ultimately lead to modest asking rental rate increases.

Through November 30, 2012, year-todate eviction filings were up by four percent compared to the same period in 2011. As previously reported in Trends, eviction data have proven to be the most reliable indicator of apartment demand in the marketplace.

Light Rail transit all contributed to the area’s relatively high rents. The Chandler submarket had rents averaging $887 for the period, up $20 from one year ago. This submarket’s average rents are highly likely to exceed $900 by first quarter 2013.

Highest Submarket Rents in Third Quarter 2012

The Chandler submarket had rents averaging $887 for the period. This submarket’s average rents are highly likely to exceed $900 by first quarter 2013.

North Scottsdale/Fountain Hills ..... North Tempe ....................................... Chandler .............................................. South Scottsdale .................................. North Paradise Valley ........................

$962 $937 $887 $884 $862

North Scottsdale/Fountain Hills had the highest rents for third quarter 2012 at $962, a $10 increase over third quarter 2011’s rents for the area. This submarket also had the Phoenix metro area’s lowest vacancy rate in third quarter 2012 at 5.4 percent. One other submarket had an asking rent average above $900 for the period, North Tempe. New construction of apartments in the area, area desirability, expansion programs at Arizona State University and the Phoenix Metro

Lowest Submarket Rents in Third Quarter 2012 Central Black Canyon ........................ West Central Phoenix ......................... Metrocenter ......................................... West Phoenix ....................................... Glendale ...............................................

$570 $579 $608 $618 $624

Central Black Canyon rents in third quarter 2012 were $6 higher than those recorded in third quarter 2011. Area vacancies declined from 20.4 percent to 14.6 percent over the same timeframe. Moreover, for the first time in over two years, Central Black Canyon

did not have the Phoenix area’s highest vacancy rate in third quarter 2012. As previously noted in Trends, affordable rental housing within proximity of transportation corridors and employment centers has seen a demand surge. West Central Phoenix is the only other submarket with average asking rents under $600 for the period and this submarket and Central Black Canyon submarket were the only markets in the low rent category to record higher rents in third quarter 2012 than in third quarter 2011. “…Affordable rental housing within proximity of transportation corridors and employment centers has seen a demand surge.”

VACANCY Third quarter 2012 was the first time since third quarter 2006 in which Phoenix area vacancies were below nine percent. Vacancies in the period were 8.8 percent, down from 9.3 percent recorded one year ago. In third Continued on page 3

Governor’s Task Force Hire for the Best Fit, Not Recommends a Change To the Best Resume The Current Prime Contracting Tax System By Curtis L. Odom, Ed.D.

Recruiters are the ones out there on the front lines of the workforce, trying to bring talent into organizations; there are a lot of qualified people out there from a credential standpoint. Fit is where the true challenge lies. Will this person fit our organization? There are many meanings to that. Does the person look and feel to others like they belong here? The answers to those questions play a huge role in the talent acquisition success. Unfortunately, recruiting

By Courtney LeVinus and Jake Hinman, Capitol Consulting This past December, the Governor’s Transaction Privilege Tax (TPT) Task Force unanimously approved ten recommendations for simplifying Arizona’s complex taxing system. These recommendations were included in a Final Report issued to the Governor, the Senate President and the Speaker of the House. Included in the Final Report was the recommendation to transition the state away from the current prime contracting tax system and towards a system that taxes materials at the point of sale. Continued on page 5 Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327

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and staffing is seen by the organization as an easy thing, as a lower level skill. On the contrary, it is probably one of the hardest things under the umbrella of talent management to find the right match of talent to the organization and the hiring manager that needs that talent. Organizations sometimes shy away from being very definitive about the type of person they want, commonly because they don’t want to be viewed as being biased in some way. Personally, I think this is erring too far on the side of political correctness. As a culture and a society, we’ve carried it way too far. Continued on page 2


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