Developers now eyeing big picture over the quick buck
Apr. 23, 2006 12:00 AM
It’s not all about the money these days in metropolitan Phoenix’s real estate world, at least with some developers. Some builders are talking more about planning for the Valley’s future than what they can make on a deal.
[Jay’s opine: Trust me, it IS all about the money.]
Look at the Superstition Vistas deal in the far southeast Valley. That giant swath of desert owned by the Arizona State Land Department could easily turn into the next series of Valley subdivisions with congested roads and not enough jobs or retail to support the homes. But for what is likely the first time in Arizona, developers, utilities and a wide range of government agencies are brainstorming how to work together to grow better. [And “grow better” = “more money”. Duh.]
The groups even paid the Morrison Institute, a public-policy think tank, to come up with some ideas of how to better develop the 176,000-acre Superstition Vistas site.
Now look at Papago Park. A dozen prominent Valley real estate executives got together to brainstorm how to make it metro Phoenix’s version of New York’s Central Park.
And some in that group will likely never make money off the park’s facelift.
[Jay’s opine: If you don’t think a well devloped and high traffic Papago Park won’t make money for these folks, I can hook you up with an agent selling swampland in Florida. Check the real estate values around Central Park compared to other parts of Manhattan…]
Also, at recent real estate industry forecasts, the talk has been more focused on water shortages, transportation problems and housing affordability than how much a building sold for or how many housing permits a builder pulled in a subdivision.
Some market watchers, like Rob Melnick of the Morrison Institute, say the Valley’s real estate market is at a crossroads. Developers see growth coming and realize there’s more money to be made if it does. [Jay says, “Um, so much for it not being all about the money…”] But if the area’s problems aren’t tackled now, growth will slow.
Talking about the issues is a good start. But it’s time for action.
The average rent on a Valley apartment jumped 6.3 percent in the past year. That’s the biggest annual increase since the mid-1990s.
It now costs $772 a month to rent the typical apartment in metro Phoenix, reports RealFacts. Renters are bound to be shocked because the monthly payments on apartments had been basically flat since 2001.
[Jay’s opine: And when apartment rents rise, typically rental rates across all types of housing rise. Rents have been flat here for quite some time.]
Sweet home Arizona
Does the band Lynyrd Skynyrd have ties to the Valley’s real estate market?
According to the Arizona Department of Real Estate, a group of people claiming to have connections to the Southern rock band is contacting real estate agents across the state, claiming to have an investor who wants to buy houses or land. They try to rush the deal and ask for the agents to pay for their hotel rooms and meals. Then when the real estate agent finishes all the paperwork, the potential buyer disappears. And the deal never closes.
The Phoenix Police Department has received several complaints from real estate agents foiled by these Lynyrd Skynyrd groupies.
[Jay’s opine: The Arizona Department of Real Estate should receive several complaints about idiotic real estate agents. Any agent who falls for this scam ought to have their license revoked. Too bad there’s not a minimum IQ requirement for getting a real estate sales license…]