Many members of the Arizona Automobile Dealers Association spent 2021 struggling to get popular makes and models onto showrooms due to supply chain issues. And it looks like 2022 will hold even more challenges for those buying and selling new cars, although a recent survey provides a suggestion to make the buying experience less costly.
On Dec. 15, the Federal Reserve Board released a policy statement which sets the stage for an interest rate increase next year. In total, three rate hikes are expected in 2022 if a set of fiscal events occur as projected.
As if the increased cost to finance a new vehicle isn’t enough, the rising cost of insurance premiums next year is another economic challenge expected to impact auto sales. In 2022, rates are expected to increase five percent, even among popular “discount” insurers.
This will likely drive some buyers away from a vehicle they could otherwise afford to finance but cannot afford to insure, according to DealerPolicy.
To better understand the role of insurance in the auto-buying process, Vermont-based DealerPolicy recently conducted a survey of auto dealers and car-buyers about the impact premiums have on new car sales, 70 percent of which occur at a dealership.
What DealerPolicy found is that a large majority of car shoppers believe auto insurance is inseparable from the overall car buying experience. In fact, 72 percent of prospective car buyers considered the cost of premiums before signing a sales agreement.
“For most people, insurance consideration begins before the vehicle is purchased,” the survey report states, adding that nearly half of buyers indicated the cost of auto insurance influenced their decision of what vehicle to purchase.
DealerPolicy found that 90 percent of the responding dealerships admitted insurance coverage has at times negatively affected the ability to make a sale. But the survey highlights a window of opportunity for dealerships to address the reality that 70 percent of buyers expect their insurance rates to go up but only 29 percent bothered to shop around ahead of time for a better rate.
According to the survey report, 71 percent of buyers responded in the affirmative about welcoming an opportunity to get assistance with auto insurance at the dealership during the purchase process. Such assistance could be as simple as a referral to a local independent or franchised insurance agent or someone at the dealership connecting the buyer by phone with some insurance companies.
Dealerships could even arrange for an independent or franchised agent to be on-site.
“It’s clear that there is room for improvement for both audiences when it comes to auto insurance,” the survey concluded.
One option is utilizing a digital insurance marketplace where buyers can easily shop for competing car insurance from their smartphone while in the dealership showroom. The survey found dealers and buyers overwhelmingly agreed such an option would improve the purchase experience.
It would also ensure better owner satisfaction by providing drivers with an understanding of how much insurance will cost even before the vehicle is driven off the lot, the survey found.
Tips and information about purchasing a new vehicle can be obtained from any member of the Arizona Automobile Dealers Association. https://www.aada.com/Home/DealerLocator/
The Arizona Chapter of NAIOP, otherwise known as the Commercial Real Estate Development Association, has released its 2022 legislative public policy agenda which seeks to continue the momentum of recent sessions, NAIOP Arizona’s CEO Suzanne Kinney announced this week.
“With the monumental changes of the past two years, 2022 presents a unique opportunity for our market to break away from the pack,” Kinney said. “We will aggressively pursue legislation that will help accelerate our movement towards Tier 1 status for business attraction and job creation.”
Leading NAIOP Arizona’s legislative efforts will be its 2022 Executive Committee comprised of Kinney; Board Chair Rusty Kennedy of CBRE; Board Vice Chair Cathy Thuringer of Trammell Crow Company; Treasurer John Orsak of Lincoln Property Company; Programs Chair Phil Breidenbach of Colliers International; and Secretary Derek Flottum of Irgens. The group’s immediate Past Chair is Danny Swancey of ViaWest Group, who was preceded by Jim Wentworth of Wentworth Property Company.
NAIOP Arizona’s guiding principles involve supporting policies that drive demand for commercial real estate in Greater Phoenix and throughout Arizona, promote legislation that positions Arizona to be the preferred choice for corporate locations and expansions, and encourage “organic business growth through public policies that encourage entrepreneurship and new business formation.”
According to Kinney, the Arizona Legislature made significant progress this past year to blunt the impact of income tax increases imposed on small businesses and other taxpayers through Proposition 208. Another achievement was a two percent reduction of the commercial property tax assessment ratio, which remains a top policy priority in an effort to achieve parity with other types of property owners.
Kinney also said NAIOP Arizona will continue to oppose legal efforts and new ballot initiatives that would reduce Arizona’s economic competitiveness. And in response to recent lawsuits about economic development incentives, NAIOP will work to refine the system so that complicated development projects which bring value to the community can avoid time-consuming and costly litigation.
On the federal front, NAIOP will work with Arizona’s Congressional delegation to prevent damaging tax policy proposals from going into effect. Of particular concern are restrictions on 1031 like-kind exchanges, the taxation of carried interest as ordinary income rather than capital gains, elimination of the stepped-up basis for inherited assets, and removal of tax deductions for qualified pass-through entities.
The 900-member NAIOP Arizona is part of the main 19,000-member NAIOP, considered the leading association for developers, owners, and related professionals in office, industrial, retail and mixed-use real estate. The state chapter is the fifth largest out of 53 chapters across the United States and Canada.
“The growth of our chapter underscores its importance and relevance in Arizona’s commercial real estate industry,” said Kinney. “We’re extremely proud of what the chapter has accomplished considering the economic challenges of the past year and a half. We are a resilient industry.”
In 2021, NAIOP supported the development of CRE leaders through Diversity Student Scholarships for those pursuing a graduate degree in commercial real estate. One of the four scholarships was awarded to NAIOP Arizona member Margarita Effron, a graduate student in Arizona State University’s Master of Real Estate Development program.
Other members of the NAIOP Arizona board include Jenna Borcherding of VanTrust Real Estate, LLC; Matthew Krause of Krause Architectural & Interiors; Chris Anderson of Hines; Chris Burson of Alliance Bank of Arizona; Danielle Feroleto of Small Giants; Jeff Foster of Prologis; Tom Jarvis of Willmeng; Jeff Moloznik of RED Development, LLC; Kate Morris of Transwestern; Michael Olsen, of Globe Corporation; CJ Osbrink of Newmark Knight Frank; Darren Pitts and Velocity Retail Group; and Candace Rosauro of Layton Construction.
Phoenix-based Freeport-McMoRan Inc. (FCX) has announced the addition of former Monsanto Company CEO Hugh Grant to its 11-member Board of Directors. Grant, who was named CEO of the Year in 2010 by Chief Executive magazine, served as Monsanto’s CEO and Chairman of the Board from 2003 to 2018 when the company merged with Bayer AG.
Grant’s appointment was made shortly after Ryan M. Lance, the Board Chairman and CEO of ConocoPhillips, was named a director on Freeport-McMoRan’s board.
It was also recently announced that Freeport-McMoRan will have a new Chief Financial Officer as of March, when Maree E Robertson assume responsibility for the company’s accounting, finance, and tax functions. Robertson, who will also hold the title of senior vice president, will report to Kathleen L. Quirk, who was named President of Freeport-McMoRan earlier this year.
Freeport-McMoRan operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold, and molybdenum. The company is one of the world’s largest publicly traded copper producers, with assets and mining operation across the globe, including Indonesia, South America, and multiple locations in the United States, many of which are in Arizona.
The National Rural Electric Cooperative Association has recognized Arizona State Rep. Gail Griffin with the organization’s 2021 Regional Award for Outstanding Service. The award recognizes outstanding service at the regional or state level to electric cooperatives.
Griffin (R-LD14) serves areas of Cochise, Graham, Greenlee, Graham, and eastern Pima counties. She was nominated for the award by Grand Canyon State Electric Cooperative Association (GCSECA) and Sulphur Springs Valley Electric Cooperative (SSVEC).
In nominating Griffin, SSVEC Chief Executive Officer Creden Huber touted the representative’s myriad efforts to assist Arizona’s Cooperatives, including her protection of the capital credits program, her willingness to work together to solve policy problems, and her understanding of cost and maintenance concerns involving pole attachments by cable and telecommunication companies.
Huber also noted Griffin’s appointment as chair of House Natural Resources, Energy & Water Committee gives her responsibility for ensuring legislation that may negatively impact Cooperatives is addressed in committee. Griffin previously chaired the Senate’s NREW Committee.
“For the past 20 years, your guidance, passion and dedication to the electric co-op family gained you a reputation as a great leader in the electric cooperative program,” NRECA CEO Jim Matheson wrote in the award notification. “Your strong commitment to the seven cooperative principles and work on advocacy, education and training had a profound effect throughout the State of Arizona.”
Griffin takes pride in being a strong proponent of Arizona’s electrical cooperatives throughout her time in the Legislature.
“They are consumer owned, not-for-profit entities that ensure their members are provided with reliable and affordable service,” she said upon receiving the award. “I will continue to champion electrical cooperatives for the vital role they play in strengthening rural Arizona.”
NRECA represents more than 900 consumer-owned, not-for-profit electric cooperatives, public power districts, and public utility districts across America.
Many Arizona small businesses were forced to shutter under Gov. Doug Ducey’s various pandemic executive orders, never to reopen. But after Michael Pollack learned his six-screen Pollack Cinemas in Tempe had to close in March 2020, he decided to use the time to renovate the business, which finally had its long anticipated reopening last week.
Pollack has achieved great success as a commercial and industrial real estate investor in Arizona, California, and Nevada. But he told AZ Free News that owning Pollack Cinemas “is more of a labor of love.”
Before Arizonans heard of COVID-19, the projectors at Pollack Cinemas had been running seven days and nights a week for several years. But indoor movie theaters and other “non-essential” businesses were suddenly closed down for several months. What could have been a curse became an opportunity, says Pollack, who was on hand Dec. 10 when the projectors were turned back on and movie-goers ponied up $3.50 for a ticket, the same price as the last decade
Yet despite the modernization, Pollack insists the discount theater’s motto remains the same – that quality is never compromised for price.
“Our mission has always been to provide our customers with a unique experience that starts at the front door.,” Pollack said. “At the heart of our theater is our vision to bring families together for a movie at a price everyone can afford.”
During the closure, Pollack and his wife Cheryl oversaw renovations that involved every aspect of their business located at McClintock Drive and Elliot Road. Many of the changes, such as touchless fixtures throughout the restrooms and 1,300 all new seats with an easier-to-sanitize leatherlike covering, were influenced by COVID-19.
“We’re trying to do everything we can to be as safe as possible,” Pollack said.
There are also new ceilings throughout the six theaters as well as new flooring and new contemporary lighting. But other upgrades, including an upgraded sound system, a redesigned concession stand, and 16 holograms located throughout the lobby, were about providing a high quality experience for audiences.
“The truth is it was a complete makeover,” Pollack says, one that would not have had as good of an outcome without the efforts of several Arizona contractors, including Shamrock Electric and Merestone Event Production. “Everything has been extremely well received.”
According to the Independent Cinema Alliance, its segment of the movie industry was responsible for $3 billion in annual sales pre-pandemic. That represented nearly 20 percent of the North American box office.
For now, Pollack Cinemas will show movies Friday through Sunday, with the family-friendly “Elf” returning for its annual holiday run. The other days are set aside for the six theaters to be rented out for meetings and special events, including one theater which seats nearly 290 people and can be easily transformed to host small concerts.
Pollack isn’t expecting to have sell-out audiences anytime soon. He understands it will take time to get movie-goers back into the habit of going out again.
“There are loyal movie-goers out there,” Pollack says, adding that he hopes to draw in new guests, particularly those only used to watching movies on little screens. “Pollack Cinemas has always offered a very cool, unique experience. No matter how big your home screen is, it’s not the same experience as you get at a movie theater. I look forward to sharing it with as many people as we can.”
On Dec. 17, there will be a special early screening of the biopic “American Underdog” about former Arizona Cardinal quarterback Kurt Warner. It will be joined by several other movies, including Guillermo del Toro’s highly anticipated suspense / thriller “Nightmare Alley” with its all-star of Bradley Cooper, Cate Blanchett, Rooney Mara, David Strathairn, Willem Dafoe, Toni Collette, Ron Perlman, and Mary Steenburgen.
Pollack says he expects to offer online ticket purchasing later this month as well as reserved seating. More information about Pollack Cinemas and showtimes are available at https://www.pollacktempecinemas.com
