Tag Archives: W P Carey School Business

real estate market

Real Estate Market Is Recovering, So What’s Next?

As job numbers and consumer spending begin to rise post-recession, the real estate market is also starting to recover. But will we see a repeat of massive growth, skyrocketing prices and cookie-cutter homes? One expert from the W. P. Carey School of Business at Arizona State University analyzes likely future trends.

“We have a lot of people looking at the same real estate data and making decisions at the same time,” explains Mark Stapp, the Fred E. Taylor Professor in Real Estate and director of the Master of Real Estate Development (MRED) program at the W. P. Carey School of Business. “This is how markets wind up with overbuilding and speculation, but I’m actually hopeful that won’t happen in the Phoenix metro area this time. After the recent bust, real estate professionals are paying more attention to differentiating projects and focusing more on users’ wants and values. Also, lenders are enforcing more discipline.”

Stapp says the Phoenix area is one of the markets with the most abundant real estate market data available. On the residential side, Stapp is seeing the emergence of different products to meet people’s changing needs.

“We’re watching the development of new luxury apartments that are big enough to comfortably house families,” says Stapp, who is both a real estate developer and who teaches real estate to mid-level professionals. “Many former homeowners have either decided to get out of the single-family home market because of their recent experiences or they simply can’t buy another home because of credit issues. Renting may be their best alternative.”

In addition, Stapp says it’s tough to get many existing homeowners to sell their houses with prices still down from the peak; they don’t want to lose money. Therefore, developers are introducing new alternatives that might be appealing. They’re integrating more sustainable, energy- and money-saving features. They’re also trying out new designs that appeal to changing lifestyles.

“Real estate is a service business, and developers have to deliver what the customers want,” says Stapp. “We’re already seeing more interest in new-home sales, and developers are getting creative. For example, there’s a very modern Dutch-designed model home from a major local builder. In the past, a risk like that would have been shunned in favor of more cookie-cutter homes that all look similar.”

Developers are also focusing on filling in desirable areas already close to roads and development, instead of building on the outskirts, where new homeowners may be reluctant to live. The median home price in the Phoenix area is already up 25 percent from this time last year, and new-home sales are up more than 40 percent. Plus, Stapp says it won’t be that long for many of those who filed for bankruptcy and/or lost their homes to foreclosure to get back into the real estate market.

“The Federal Housing Administration (FHA), Fannie Mae, Freddie Mac and the Department of Veterans Affairs (VA) all allow people who’ve filed for bankruptcy to get loans after several years,” explains Stapp. “Some developers are planning for that now, since it takes around two years from start to finish on these building projects.”

On the commercial side, Stapp says office-space needs have permanently changed. Thanks to advancements in technology and more forced productivity from fewer employees, more people and equipment can now fit into the same amount of office space. Also, some older buildings just don’t have the right configuration for modern equipment, and parking may be lacking. Therefore, Stapp thinks it will take longer for this sector to recover. However, he feels industrial space is already back in pretty good shape in the Phoenix area, though the situation is fragile.

“If they pull the trigger on too many projects, it will be like overgrazing,” says Stapp. “We don’t want to overbuild again, which would ruin the market for everyone.”

Stapp would like to see a little more regional development planning, plus a good look at the current property-tax structure. He also advocates more self-control.

“Hopefully, the recent fall has instilled a sense of discipline in the real estate community,” concludes Stapp. “Making money in real estate has always been about transactions – buying and selling. Banks make money when they loan; architects make money when they design; construction crews make money when they build. We all have to start putting more time into thinking and planning, even if that means postponing a pay day.”

Stapp is one of the industry experts teaching in the one-year Master of Real Estate Development program at the W. P. Carey School of Business. The program immerses students in the various facets of real estate development, including business, law, design and construction.

For more information about the MRED program and the real estate market, visit www.wpcarey.asu.edu/master-real-estate.


Celebrating Entrepreneurship ~ Nominations Open For Spirit Of Enterprise Awards

Their entrepreneurship helps create new jobs and boost our economy. That’s why we should all be involved in celebrating the importance of Arizona’s best businesses.

You can honor your favorite Arizona company by nominating it for the 2012 Spirit of Enterprise Awards from the W. P. Carey School of Business at Arizona State University. The awards recognize firms that demonstrate ethics, energy and excellence in entrepreneurship. Past winners include well-known companies, such as Cold Stone Creamery, China Mist, Grand Canyon Railway and Ollie the Trolley, as well as smaller businesses that set a great example.

“We want to acknowledge the companies that really make a difference, creating a positive culture both internally and in our community as a whole,” explains Gary Naumann, director of the Spirit of Enterprise Center at the W. P. Carey School of Business.

Anyone can nominate a company, as long as it meets the following criteria:

  • A for-profit enterprise in business for at least four years;
  • Incorporated, headquartered or having a majority of its business operations in Arizona;
  • With three or more full-time employees;
  • Able to demonstrate profitability over the last three years combined.

In addition, one minority-owned business will receive the Gary L. Trujillo Minority Enterprise Award sponsored by Blue Cross Blue Shield of Arizona.

The nomination process is starting this week. Companies must complete and turn in an awards application by July 31.

Winners will be announced Nov. 1 at the 16th annual Spirit of Enterprise Awards event. Hundreds of Valley business and community leaders are expected to attend the awards luncheon at the JW Marriott Desert Ridge Resort & Spa in Phoenix.

For more information on nominating a company, applying for the awards or attending the luncheon, please call (480) 965-0474 or visit www.spiritofenterprise.org.

These awards are just one focus of the Spirit of Enterprise Center, which helps hundreds of businesses each year. The center offers companies the chance to recruit and meet with top student talent, while also allowing students to get hands-on business experience. One key program, Student Teams for Entrepreneurship Projects (STEP), matches teams of W. P. Carey School of Business students with Valley companies to help tackle real-world challenges and opportunities. Companies can also use the center to access other ASU business resources. The center is self-funded and utilizes community sponsorships and volunteers to sustain its activities.

Arizona State University Tech Pioneer Honored

Arizona State University Honors Tech Pioneer As Executive Of The Year

On April 19, Dr. Irwin Jacobs, founding chairman and CEO emeritus of Qualcomm Incorporated, will be honored by Arizona State University for his incredible accomplishments that vaulted us all forward in the technology we use to communicate.

Qualcomm is a leading developer and innovator of advanced wireless technologies, products and services. The company’s portfolio includes thousands of U.S. and international patents on many of the most important inventions and innovations in wireless and related technologies.

“We’re proud to honor Dr. Jacobs for his amazing achievements that link us together through technology and communication,” says Robert Mittelstaedt, dean of the W. P. Carey School of Business at Arizona State University. “He is a visionary, who was a key player in satellite communications as far back as the 1960s, but his greatest impact began when he met with colleagues in his den in the 1980s to talk about forming a new company. Today, that company, Qualcomm, is one of the greatest American technology stories — and a publicly traded, Fortune 500 firm.”

Jacobs will become the 29th Executive of the Year chosen annually by the Dean’s Council of 100, a national group of prominent executives who advise the W. P. Carey School of Business. At the awards luncheon, he’ll speak to a Valley audience about his legacy – moving from a professor to an entrepreneur and greatly influencing a world that now has more than 6 billion cellular connections.

In addition to his immense success at Qualcomm, where Jacobs served as chairman and chief executive officer for 20 years, he is also known for his generous contributions to education, the arts and the environment. He and his wife, Joan, took the “Giving Pledge” — along with billionaires Warren Buffett, Bill Gates and others — to give away more than half of their fortune to philanthropy. He has also been involved in global efforts to support small business growth and better health care in emerging economies.

Jacobs taught at the Massachusetts Institute of Technology (MIT) and the University of California, San Diego. He received a bachelor’s degree in electrical engineering from Cornell University and master’s and doctoral degrees in electrical engineering from MIT, plus honorary degrees from seven other universities. He is a fellow of the American Academy of Arts and Sciences and has received many industry, education and business accolades, including the National Medal of Technology, the Institute of Electrical and Electronics Engineers (IEEE) Alexander Graham Bell Medal, the Financial Times Lifetime Achievement Award for 25 years in telecommunications, the IEEE and Royal Society of Edinburgh James Clerk Maxwell Award, and the Marconi Society Prize. He currently chairs the National Academy of Engineering and the Salk Institute for Biological Studies.

The event to honor Dr. Irwin Jacobs will be held Thursday, April 19 from 11:30 a.m. to 1:30 p.m. at the Fairmont Scottsdale Princess resort in Scottsdale. The W. P. Carey School of Business Dean’s Council of 100 chose Jacobs to follow previous winners, including Michael Dell, chairman and chief executive officer of Dell Inc.; Howard Schultz, chairman and chief executive officer of Starbucks Coffee Company; and Alan Mulally, president and chief executive officer of Ford Motor Company.

The event is part of the Economic Club of Phoenix speaker series. For more information about the club or to reserve seats, call (480) 965-6568, e-mail dc100exec@asu.edu or visit wpcarey.asu.edu/dc100.