Our friend Jennifer Delgado, whom we have highlighted in the past, works with small businesses in Phoenix. She is contributing the following article this month to help you navigate the small business legal issues that every new business should consider.

Take it away, Jennifer.

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When an individual turns his or her passion into a viable, thriving business, he or she may not be giving much thought to the small business legal issues. But in this age of expansive business regulations and wide-spread litigation, it is more important than ever to set your business up for success from the start. Here are a few issues every small business owner should consider:

1. Legal Entity Structure: Determining the right legal structure for your business is critical to shielding business owners from personal liability and taking advantage of tax benefits. If there are multiple owners of the business, a strong shareholders agreement or operating agreement will create a solid foundation on how the owners decide governing issues. Choosing the right structure will also set a business up for success if the company is seeking outside investors as well.
2. Labor and Employment: Small companies with employees may not be aware of all of the labor and employment regulations and laws that apply to them. It’s important for business owners to arm themselves with knowledge of these requirements before the company gets hit with a penalty for noncompliance.
3. Intellectual Property: Not protecting the company’s intellectual property before someone else steals it could prove to be costly. If a business has intellectual property worth protecting, getting a patent, trademark or copyright from the outset could save it a lot of time and money in the long term.
4. Payroll/Sales Tax: Making sure that payroll and sales taxes are collected and paid to the appropriate governmental authorities is necessary for any business. A company that fails to remit payroll or sales tax correctly can incur serious penalties or even be shut down.
5. Commercial Leases: Every business that rents commercial space needs to be wary of lease terms that could hurt their business. It’s important that the company’s bottom line be protected by using an attorney to negotiate the lease.

Jennifer Delgado, Esq. is an attorney at Burch & Cracchiolo, P.A., a full-service law firm in central Phoenix. Jennifer advises and represents individuals, small and medium-sized businesses as to business entity structure, corporate formation, compliance matters, day to day operations and commercial real estate transactions.

*This article is for informational purposes only and should not be considered legal advice. Consult an attorney in your jurisdiction for questions or advice.

Phoenix Past and Present is a new photo book by Paul Scharbach, Robert Melikian, and John Jacquemart, three people with long and respected experience in historic preservation.

The new photo book offers unique insight into how Phoenix took shape over the last 100+ years.

Open Phoenix Past & Present and you’ll find 84 pairs of side-by-side images; each page documents a specific location and includes a brief narrative providing historical background and the location of every photograph.

While the book gives appropriate due to well-known Phoenix landmarks like the Orpheum Theatre, Rosson House, Hotel San Carlos, and Tovrea Castle, it also offers a wealth of hidden gems for readers to discover: Mystery Castle, the 1885 Fry Building (the oldest commercial structure in the city), the Phoenix skyline viewed from atop the Westward Ho, the original KPHO-TV building, Arizona Falls, Green Gables restaurant, the Knights of Pythias Building, and many more.

The authors, Central Phoenix homeowners Paul Scharbach, Robert Melikian, and John Jacquemart have lived in Phoenix all their lives.

This is a perfect book to set on your coffee table and impress your friends with your deep knowledge of Phoenix history. Or, if you don’t care about impressing people at your cocktail parties, you can just look at Phoenix Past and Present over a cup of coffee and wonder what our downtown would be like had we maintained more of the row-style structures that downtown Tucson has used to make a vibrant, walkable downtown.

Bitter much, Ken?

No worries, we are re-building that walkable core. We will get there!

Anyway, the coffee table gift book is available at Changing Hands, the Phoenix Art Museum, the Heard Museum, Pueblo Grande, the State Capital Museum Shop and some national chains that I hope you don’t use because we all like to support locally-owned businesses, right?

Our Green Cleaning Tip for November will help you triage your cleaning program amidst the hustle and bustle of the holidays. Thanks again to our friends at Going Green House Cleaning.

‘Tis the season of hustle and bustle and remembering to slow down and embrace the moment. So how do you balance everything? How do you balance being able to embrace your loved ones while staying up on the day-to-day chores?

cook, clean, shop, host, repeat.

It can be overwhelming, can’t it? One of the most anticipated times of year can quickly become the most hectic and stressful time of year. Amongst the hustle and bustle we find ourselves trying to make enough time in the day to accomplish everything on our To-Do Lists and still take time to relax and enjoy the season at hand. Sometimes the most stressful part of the holidays is getting food on the table and still making sure that the house looks good for company at the end of the day. What is it that you should focus on when it comes to cleaning? What is it that your company will notice when they enter your home? Do people even care how your home looks? What are the essentials and where can you draw the line? Well, Going GreenHouse is here to help! Let’s focus on a few main points of polish for getting your home entertaining-ready.

The entryway.

Let’s be honest, it’s the first thing people notice when they approach your home. So what can you do? Wipe down your front door, give the doormat a good shake, and make sure dust and dirt haven’t collected on the floors. These are the first things guests will see when they arrive, so keeping them clean will guarantee a good first impression and will prevent dust and dirt from accumulating with all the foot traffic.

The kitchen.

People tend to gather around the food during the holidays, so make sure your kitchen looks and smells inviting. Don’t forget to dust the light fixtures and flush sink drains with boiling water. After all, you want people to notice the aroma of food in the oven, not the food in your garbage disposal.

The Royal Throne.

Yes, having company means that the loo will see its fair share of guests. Simply wiping down the backsplash and base of your toilet can ensure a good impression… and don’t forget to give the inside a good scrub too. A grimy loo can be the demise of any guest. And to all you hosts out there, nobody likes the embarrassment of a stench left behind, so give your guests the peace of mind of a green-friendly air freshener. Whether it’s air cleansing essential oils or a pleasant candle, give your guests an option for leaving the bathroom smelling pleasant for guests to follow.

The stovetop.

We all know that the stovetop receives a lot of love during the holidays, so keep it clean with a simple mixture of baking soda and water. Nobody wants to see your stovetop leftovers from dinner the night before.

The holiday budget.

The holidays can quickly become an expensive time of year, so save some money and make your own cleaning products. Castile soap is a wonderful multi-purpose solution for all your holiday cleaning needs. Simply fill a pray bottle with water and add Castile soap and your favorite holiday scent: clove, myrrh, pine, sweet orange, cinnamon, peppermint, etc… and just like that you will have a solution for all your cleaning needs!

From our Going GreenHouse to yours, we wish you a Happy Thanksgiving.

Need some help this holiday season? Contact Going GreenHouse for your holiday cleaning needs.

I’ve been driving by the old building at about 2nd Ave and Camelback for years and I was never sure what it was. Was it a hotel? Was it an office? Well, its going to be Arrive Phoenix, by Vintage Partners, who are well known for the redevelopment efforts at Uptown Plaza.

The plan, according to this article, is to build a stylish boutique hotel and dining destination. It is nice to see that the developers (from California) teamed up with the developers of The Newton, Windsor and Churn, and The Orchard, Venue Projects.

The $20M project is another testimony to the importance of adaptive re-use. I’m a fan of adaptive re-use over new-build because renovating an old building is about 90% more earth friendly than building a completely new building. We need more of that these days. Congrats, Arrive Phoenix!

According to the article, Arrive Phoenix will “combine both buildings into a singular and striking 79-room property. Arrive Phoenix will also host a boutique coffee shop, a poolside taco bar, a gourmet ice creamery, and a nautical-themed rooftop craft cocktail bar featuring sweeping 360-degree city views.

Did you catch that bit about the gourmet ice creamery? I guess that means we will have three ice cream shops in a 1/2 mile radius, unless they move Churn in here.

This development speaks again to where the central Phoenix housing market is going. If you are living in the area of this development, you are doing to be in a good place in the long-run.

Now, let’s see if we can find some space for more owner-occupied properties in walking distance to this development. As we say, its not just about in-fill. Its also about walkability.

If you are thinking of moving in to the area, call us quickly at 602-456-9388, and prices will probably go up once this gets in place.

I toured Matt Seaman’s new development, McKinley Row on 4th Ave and McKinley (MetroWest Development).

First, I’m a big fan of Matt. He is one of the few developers in downtown who is focusing on owner occupied properties on in-fill, walkable parcels. While most other large developers can’t get their heads out of the 1,000+ unit mentality, Matt knows that the future of development will be in finding ways to fill in the many small spaces in Phoenix.

Did you know that 43% of Phoenix is made up of empty lots? Let’s use those for housing, rather than sprawling out in to our beautiful desert, thus causing longer commutes and more pollution.

Matt and I were talking about how the Phoenix push to build apartments over the last ten years crowded out those who want to build owner-occupied properties, but also made it difficult for moderate income folks to afford to live downtown. Part of the problem comes from the investors, who don’t like to back condo projects due to potential lawsuit liability issues.

But, I digress. In short, we have a problem in housing and we need more folks like Matt who can build owner-occupied homes and who can find lower cost ways to build homes for folks in dense urban areas.

I’m not one of those agents who believes that everybody should own a home. But, at last count, there was at least a 6 to 1 ratio of apartments to owner-occupied downtown. Where will all of those renters go in a few years when they want to buy a home and they are priced out? Who will have a stake in our downtown if they all move out?

I wanted to share with you Matt’s project. With 18 town home units at 4th Ave and McKinley, and a similar project coming next year at 2nd Ave and McKinley, Matt is creating homes for downtowners.

Matt tells me that McKinley Row is half sold now, with town homes selling as low as the $390s and as high as the $500s.

Have a look at the photos below. They are just my photos. If you want to see the snazzy photos with the CGI furniture in the rooms, have a look at their website.

The photos below illustrate a few features that I thought were unique.

If you are interested in town house living, please give us a call at 602-456-9388. We’ve represented clients on Matt’s projects before, so give us a call.

MetroWest did a good job of setting back the projects, as required by historic preservation. They’ve left green space and space to enjoy the neighborhood.

These are the massive windows in the corner unit, which you can see from the inside in the next photo. Great views of downtown!

Here are those windows from the inside. That’s a nice view to wake up to.

I did not get a shot from the outside, but this corner unit, in addition to having corner windows on the ground floor, has a separate entrance that you can make in to an office.

Y’all know that we don’t host the Get Your PHX events every month anymore –just when I’m inspired, as I have been by Midtown Roots.

When I met with the owners of Midtown Roots early in 2017, as they were building out, I thought this would be a good place to host an event.

Midtown Roots is a dispensary with a community-minded philosophy. They not only have an impressive space at the NW corner of Thomas and Central, with 14 bud tenders stations for patients, but they are also opening part of the building as a community space and a space for daily yoga programming. They are open from 8am to 7pm daily.

This impressed me.  I always like it when a business takes in to account the local community. I’ve seen the owners at local community events, too. So, they are doing their best to be out there.

They also took the time to give tours to local elected officials and neighborhood leaders so that everybody knew what was going on. I’ve seen a lot of dispensaries pop up in the last few years and I’ve heard concerns from neighbors about how little they communicate. Not so from what I’ve seen with Midtown Roots.

The whole issue of medical marijuana can be contentious. So, I appreciate when a local business like Midtown Roots takes their job seriously. They seem to have a wholistic approach to the patients who seek the help of medical marijuana.

So you, our loyal Get Your PHX fan, are going to get an exclusive tour of the facility and accurate information about what the law requires of dispensaries.

Join us on November 16th at 5:30 for a tour, snacks and beverages. (No, silly, the snacks will not have THC in them. I knew what you were thinking!)

PLEASE NOTE THAT THIS EVENT IS NOT ON OUR USUAL SECOND TO LAST THURSDAY OF NOVEMBER.

Where:  2918 N. Central Ave, Phoenix, AZ 85012
When: November 16th at 5:30
Sign us for a free ticket here.
Facebook: www.facebook.com/events/154740685265505/

I don’t have a crystal ball for this November 2017 Market Update.

I don’t know what is going to happen in the market in 2018.

But I do think it is wise to consider the probabilities. I do think that there will be some kind of market shift in 2018. It may only be 3 to 5 percentage points, but I think the changes are increasing every year.

Why do I say this? First, I’ve heard professional economists saying that the over-all economy is due for an adjustment.

Second, I’m seeing the Cromford Index shifting downward from end of last year.

For you long-time readers, you will remember that the Cromford Index tracks whether we are in a buyer’s market or a seller’s market, and by how much. It also precedes market shifts because prices can still be going up while the Cromford Index is trending down. If you look at the chart here, you will see that the seller’s advantage has been weakening since about May. If we see that weakness in January and February, then expect prices to drop a little bit. (Nothing like 2009, by the way.)

Third, the market is crowded with renovation homes right now. Some of them are not that great, by the way. Based on past experience, this seems to be an indication that speculators are crowding the market. When we get too many listings on the market, I think prices will begin to drop.

Fourth, the chatter out there is about quick sales. This is usually a sign of a high market. We had clients who had 15 offers in the first 48 hours of listing their property. Sound familiar?

Our friends at the Cromford Report are not ready to take a stand like this for their November 2017 Market Update. Cromford sees prices strong for next month, expects more listings on the market, which could lower prices at end of year. Here is there take:

“Each month about this time we look back at the previous month, analyze how pricing has behaved and report on how well our forecasting techniques performed. We also give a forecast for how pricing will move over the next 30 days.

For the monthly period ending October 15, we are currently recording a sales $/SF of $150.21 averaged for all areas and types across the ARMLS database. This is up $1.10 or 0.7% from the $149.11 we now measure for September 15.

Our mid-point forecast for the average monthly sales $/SF on November 15 is $152.17, which is 1.7% above the October 15 reading. We have a 90% confidence that it will fall within ± 2% of this mid point, i.e. in the range $149.71 to $155.83.

So we are forecasting the same percentage increase over the next 31 days that we have seen in the average price of pending listings over the past 30 days. This means the third quarter slump is well and truly over and we expect the usual surge in $/SF for the fourth quarter.

Having said that, the actual number of pending listings is lower than usual. Only 2001, 2007 and 2014 saw lower pending listing readings as of October 15, so it appears that the current pricing level is putting a slight damper on demand, at least as far as pending counts is concerned. Sales counts are still looking healthy although the annual sales rate is no longer increasing as it had been a few months ago. This means the market is not expanding as fast as as it was in the first half of 2017. (Emphasis added)

If you are thinking about selling your home, it is a good time to have a deeper look at the data. Give us a call at 602-456-9388 so we can plan ahead and maximize your sale price.

Its time for Phoestivus 2017, this December 14th and 21st.

We have an all-new look, the Return of the Yeti and all the fun and frivolity that you expect from our rag-tag crew of Phoestivonians.

Is that a word?

We will have a new feats of strength. The airing of grievances will again feature live story telling. The Hipster Santa will join us again. And, of course, the Phoestivus pole is still sitting in the middle of it all, watching you to see if you have been naughty or nice.

Check out Phoestivus.com for more information and updates. Vendor applications are closed for this year, by the way.

It seems like every year somebody comes to us in November saying they would like a vendor application. People, please remember that we usually book out by mid October. This is a pretty popular event, y’all!

Phoestivus is one of the best ways for sponsors to address a loyal and targeted audience of about 3,000 people per night.

And, as with every year, this year’s event will be a fundraiser for Community Food Connections, which organizes the Phoenix downtown farmer’s market. The market is one of the few places downtown where you can get locally-gown, whole foods that nourish both our bodies and our community.

Your referrals pay it forward!

In September, we sent donations to the American Red Cross for hurricane relief efforts, thanks to our friends Hunter, Adam and Erin, who referred their friends to us.

When their friends closed on a new home, we circled back and asked what charity they’d like us to support.

Its a simple as that.

The next time you are at a cocktail party, or neighborhood barbecue, and somebody mentions wanting to buy or sell a home, please kindly remember us and you can help support your favorite charity.

Time and again over the years, referrals pay it forward to many different charitable organizations, from One in Ten, to the Nature Conservancy.

Hey, we aren’t the Bill and Melinda Gates Foundation, by any means. But it feels good to us and to our clients to know that we can do this little thing now and again.

We love our community and we believe that it is important to give back when we can. Can you think of any charitable organizations that you’d like to support with your referral, when you pay it forward?

For the 2017 Market Update, we get some help from the Cromford Report. First, here’s their over-all market analysis. Followed below by my more localized analysis of what we are seeing.

“For the monthly period ending September 15, we are currently recording a sales $/SF of $149.06 averaged for all areas and types across the ARMLS database. This is down 11 cents or 0.07% from the $149.17 we now measure for August 15.

On September 15 the pending listings for all areas & types shows an average list $/SF of $153.13, down 0.7% from the reading for August 15.

So we are forecasting another small decline over the next 30 days. (emphasis added) This is slightly unusual since we normally start to see some upward momentum by the beginning of October. Last year at thistime we predicted an increase and the actual result exceed our prediction. We would therefore not be too surprised if today’s forecast turned out to be too pessimistic.”

I added the emphasis for a completely non-scientific and totally gut feeling reason: I can’t shake the feeling that we are over-due for a market correction in 2018. I’m not talking about the 2009 version of earth-shattering, life savings-draining market crash.

I’m thinking more along the lines of a 3-5% downturn, which will, for all intents and purposes, make the 2018 market look more like that late 2015 market.

But, if you are thinking that prices will continue to go up, I’m starting to feel that this will not be the same.

I could see that prices will remain strong in the dense, hip, urban areas that are so popular right now. But they may not be immune to the correction.

What do I base this on?

Here are some admittedly non-scientific bits of analysis. To be fair, few people often predict the market accurately repeatedly, so there is no such thing as a truly scientific method when it comes to market behavior.

Anyway, here is what I’m seeing:

1. The Cromford Index, which is a good predictor of what the market will be doing 3-6 months from now, seems to be flat or moving slightly downward over the course of the year, as opposed to 2016. This could mean that the market is moving slowly more toward a buyer’s market and away from a seller’s market. Is it a small change and perhaps premature to discuss? Maybe, but I’d rather be ahead of this than behind.
2. The renovation market, which seems to be over 50% of all homes that are active in CenPho and historic neighborhoods, seems to be pushing prices far up above market averages in areas that were pretty rough just a couple years ago. I don’t see entire neighborhoods changing character over night just because a few renovators made an old home look like the interior of a Anthropology outlet at the mall.
3. I hear more potential buyers choosing to wait for another year or two because they just can’t believe that prices in some areas will continue to go up. So, yep, its a whiff of a smell in the air, a wil o wisp. But I’ve heard this before. Buyers are tuned in to this frequency, even if subconsciously.
4. I’m seeing more and more of what I would consider fly-by-night renovation operations that are churning out some pretty terrible products faster than a Double-Double from In and Out Burger.

Its totally a gut feeling on my part. Take it with a grain of salt. But, as a person who owns an investment property, I’m thinking of selling while the market is relatively high. If you bought in 2010 at the lowest point of the market, then this may not be a concern for you. But if you want to cash out, I would start considering a move.

As we often say, the real estate market is not the stock market. Don’t approach it that way. At the same time, you will never know the lowest or highest point. If you buy generally in the trough and sell generally near the peak, it is a good place to be.

If you need help thinking through your specific situation, give us a call at 602-456-9388.