“We are almost out of Industrial Inventory for purchase in the industrial sector in Deer Valley Airpark.”

This is true. Even though there was about 1 million new square feet added to industrial market over the last 18 months, there are almost no properties left to purchase in the industrial market between 4,000 and 20,000 square feet.

“Lease rates in the industrial sector have fully recovered from the recession of 2007 to 2016.”

This is mostly true. Industrial leasing rates are back to about $0.75 psf (NNN) on an average that is pretty close to the numbers of 2006.

“Industrial land pricing has fully recovered to pre-recession prices.”

This is not true. Though industrial land pricing has seen a significant jump, we are only about 50% back to pre-recession pricing. During the full recession, land prices dropped to $0.10 to the dollar in Deer Valley Airpark. Land that previously sold for $14 per square foot could be had for 1/10 of that price during the recession and even at that pricing there were little to no takers. Those prices have now climbed back to $7 to $8 psf today.

“The recession hurt land pricing greater than building pricing.”

This is true. Though industrial building pricing fell significantly in general those buildings could be purchased for about 50% of previous values but land fell to 10% of previous values.

“Residential developers are preparing large projects along 19th Avenue Northwest of Happy Valley Road.”

This is True.

“The auto mall planned along Interstate 17 just North of Loop 303 is still in the process.”

Maybe. There is a rumor that it might be resurrected.

“A new monster retail mall along the West side of Interstate 17 South of Carefree Highway may be in the works.”

This is only a rumor so far.

Fake News?

We’ve all heard of fake news in today’s world. Well here’s what all real estate brokers will tell you about that. There might be fake news, maybe, but there are definitely fake investors, buyers and clients out there. Every one of us, if you’ve been in the business long enough, has or will run into the “Big Spender” that doesn’t have any intention of buying a thing.

We’ve all heard the story of the old farmer that walked into the Mercedes dealership in his overalls and no sales person wanted to deal with him, so they sent the rookie to waste his time. Of course the farmer bought three of the most expensive Mercedes Benz with cash right then and there. It’s a great story and every one of us brokers will give the benefit of the doubt if there’s a client out there with big plans to make big deals. Even if the picture doesn’t look right. You never know right? Better to be the rookie than the salesman

I’m not ashamed to say I’ve given more than one of these clients my time and attention. Like I said, you never know right? And you always have to let it run its course until the truth comes out. But my biggest question is; what’s the end game with these people? They’ve never received anything from me except my time and energy. They never had intentions of buying anything. Is it an ego thing? The few times I’ve been involved with these Fake Clients they also invested their time and energy. And when it’s all said and done, and we’ve discovered they never had any money to begin with I ask; what was it all for? What was in it for them? I don’t think I’ll ever know. I’ve asked plenty of other brokers and not one has an answer. On occasion I’ve heard of the investor ask to borrow money from the broker and I understand that was their end game but most Fake Clients just go away in time. In the end it was just a total waste of everyone’s time and effort. If you have the answer I sure would like to know.

Back to work making rookie mistakes.