April 2013 • Vol. 50 No. 4
THE OFFICIAL PUBLICATION OF THE ARIZONA MULTIHOUSING ASSOCIATION
Meeting AMA’s Tributes Finalists By AMA The staff members of an apartment community oversee so many details in the successful oversight of a property. They are charged with keeping residents happy, developing their team into a strong, cohesive unit, and protecting their owners’ assets. But it’s all of the highlights in between that make the multifamily industry great. The leaders in these organizations who keep their teams inspired. The managers who keep residents happy with unique programs. Those stories, and so many more were shared by the nominees for the AMA’s annual Tributes awards. A constant theme in these profiles is the dedication of the indivudals and how they prioritize the development of their staff at every level. Their positive attitudes and professionalism elevate all of their teams. This year, the AMA received a record number of nominations and the Tributes Judges had the opportunity to review more than 450 nominations.
From these impressive staff members, the judges met the individuals and narrowed the field to an incredible list of finalists. This month and in May, the Apartment News will profile these finalists so the membership of the AMA can get to know these professionals and share in their success. This first installment of two issues of profiles is focused on individual team members selected as best in their class. Congratulations to 2013 Tribute Finalists INDUSTRY PARTNER OF THE YEAR-TUCSON Tim Furnas Valley Protective Services, Inc. Tim Furnas, with Valley Protective Services, was very involved with AMA in Tucson during 2012. He planned the closing party for the Big Hearts for
Membership Pays with Sterling Grant By Todd Bradford, AMA It truly pays to be a member of the AMA. Networking, Government Affairs, educational programs, tradeshows, and a chance to share information with others in our industry are but to name a few. One to the ways our members can see an immediate return on their membership dues is through our insurance programs. These programs pay our members twofold: first, by directly offering discounts and dividends directly to our members; and secondly, by providing a strong revenue stream to our association to offset costs and keep our membership dues as low as possible. Earlier this year, we rolled out our newest partnership with Sterling Grant and Associates. This program provides a high level of insurance coverage for our members, while also providing direct discounts to Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327
our members, as well as additional discounts for participating in programs such as the AMA Five STAR program. Sterling Grant has also dedicated Laura Milne as the sole representative to the AMA and our members. Laura has many years experience with the Property and Casualty insurance field, and is always willing to help out our members in any way she can. Sterling Grant offers enhanced coverage benefits for AMA members: • A rated insurance carriers • No Territory Restrictions • Insurance programs with limits and coverages that exceed all lender requirements They also have a myriad of other benefits to AMA members: • General Liability and Umbrella limits up to $100 Million • Superior coverage for buildings, Continued on page 7
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Little Hands drive and was a very active member of the Tucson Trade Show Committee. He is co-chairing this event in 2013. He was also served on the Tucson Maintenance Mania Committee and participated in all the AMA networking events in Tucson. Mike Rochon Distinctive Carpets, Inc. For decades Mike Rochon and his company, Distinctive Carpets, have been amongst the most active industry partners in Tucson. Mike consistently leads committee after committee and devotes a large portion of his days and evenings to the causes of the AMA. The AMA can count on Mike to tirelessly rally both his fellow Industry Partners as well as the management companies to participate in events and make a difference in the community.
Tammy Tupper Redi Carpet Tammy Tupper has been involved with numerous committees within the AMA since 2007, including Big Hearts for Little Hands, the Tucson Trade Show, Membership Committee and Tucson Networking Committee. She also attends all dinner meetings, Tucson golf tournaments, Tucson reverse trade shows and Tucson networking events. INDUSTRY PARTNER OF THE YEAR - STATEWIDE Adam Greco Burns Pest Elimination Adam’s knowledge of the apartment industry in Arizona is unsurpassed. AMA members count on him to be available and involved in many aspects involving the AMA Continued on page 2
Valley Rents Set To Increase By Pete TeKampe, Marcus & Millichap The Phoenix metro area in fourth quarter 2012 recorded its largest rental increase since second quarter 2008. This increase was made possible by improving local economic conditions, declining apartment vacancies and continued reductions in concessions. Reliable population growth numbers for the Phoenix metro area do not exist and therefore should not be used as the basis for any apartment development or investment strategy. As previously reported in Trends, evictions have historically been a reliable indicator of apartment demand and future rent changes. For the time period of YTD through February 28, 2013 compared to the same period in 2012, eviction filings indicate that rental rate increases are likely by early to mid-2013. RENTS Fourth quarter 2012 Phoenix area average asking rents stood at $750, an $8 increase over fourth quarter 2011’s asking rents. This is the largest increase since a $9 increase was recorded in second quarter 2008
compared to second quarter 2007 rents. Vacancies remained under nine percent for the second consecutive quarter and concessions remained relatively low during the period. Reductions in vacancies and concessions lead to modest asking rental rate increases. Rental rate increases will be augmented and potentially accelerated by the demand manifested in the latest eviction information. Rental rate increases will be augumented and potentially accelerated by the demand manifested in the latest eviction information. Highest Submarket Rents in Fourth Quarter 2012 North Scottsdale/Fountain Hills ..... $976 North Tempe ........................................ $927 Chandler & North Paradise Valley (tie) ....................... $887 South Scottsdale .................................. $885 North County ...................................... $838
North Scottsdale/Fountain Hills again claimed the top spot for rents in fourth quarter 2012 at $976, compared to $963 in fourth quarter 2011. This submarket also had the Phoenix metro area’s fourth lowest vacancy rate in fourth quarter 2012. The only other submarket with average rents above $900 for the period was North Continued on page 3