Tuesday, April 29, 2014

Is Gastonia Ready For Dynamic Pricing of Commercial Properties?


There was a recent article in the Charlotte Observer, Link to Article about dynamic pricing for apartments. To back track quickly, airlines use dynamic pricing to price passenger tickets. Therefore you may pay a few hundred dollars to fly to New York and the passenger in the next seat might have paid a thousand dollars based on when they purchased the ticket.

As a commercial landlord I read this article with interest but I could not overcome my aversion to pricing my commercial units on this model. Oh, they have the right, until rent controls, to price this way but is it right to do it? This is pricing for obtaining the highest price the Buyer will tolerate. This model seems to create its own opposition by creating dissatisfaction among the Tenants. Potentially causing a political reaction for rent control and surely creating turn over at almost every lease renewal.

Given the Value Proposition I believe to be inherent in any business transaction. Value=Price/Quality I cannot see pricing our units via this Dynamic Method. I do not want to have a building where duplicate 1,500 Sf units might rent for several hundred dollars differential.

That said rents differ due to feature and amenity differences. Increasing costs like, property taxes, insurance, maintenance, waste services and water/sewer cause price increases cause rents to rise. However our rents will always be based on the Value Proposition of a quality space at a price fair to both the needs to the Tenant and Landlord.
Contact me to obtain information on the 1,500 Sf or 3,000 Sf units currently available.

Tuesday, April 8, 2014

Why The Economy Continues To Struggle

Small Business and conversly those of us serving small business with rental spaces and construction services are still struggling to recover from 2008. Two recent articles point to some very real causes of the slow recovery.

First:

According to a report released Monday by the Tax Foundation, this year Tax Freedom Day falls 111 days into 2014, on April 21.

By April 21, to group says, Americans will have made enough to pay the $3 trillion in federal taxes and $1.5 trillion in state taxes — more than they will spend on food clothing and housing combined.

This does not take into account sales taxes, property taxes, excise taxes and a whole host of user fees and taxes.

Second:

The number of Americans who were enrolled in Medicaid at any time during fiscal 2013 exceeded the entire population of the United Kingdom, according to new data published by the federal government’s Medicaid and CHIP Payment Access Commission (MACPAC).

Were Medicaid a nation instead of a U.S. entitlement program it would be the 20th most populous country on earth.

This does not account for all the regulations, rules, etc.. being made everyday about taxes, the evironment, health care, work place safety, etc... In 2013 in the short work week because of the Veterans Day holiday, agencies added nearly 1,700 pages to the 2013 Federal Register making the yearly total 68,313 pages. That’s the equivalent of a new regulation every two hours and 33 minutes.

When taxes exceed spending on basics like food/clothing/housing combined I think we can all agree it is an unsustainable burden. Can we provide free health care to the 20th most populous nation in the world? When new regulations occur every 2 hours and 33 minutes I think we can see too much intervention by government.What are we as Americans to do?