(April 17, 2024) — Despite a general slowdown, rent prices continue to climb, especially upon lease renewal, complicating the Federal Reserve’s strategy to temper inflation and adjust interest rates.

Too damn high: After a spike in rental costs due to high demand from pandemic lockdowns and soaring home prices, rent growth is finally cooling. However, economists say that the decline needs to be steeper. March’s shelter inflation, which includes home and apartment rents, was recorded at 5.7%, substantially higher than the average rate between 2015–2019 of around 3.3%. This figure contributed to the unexpected rise in the March consumer-price index, complicating the Fed’s strategy to reduce short-term interest rates.

Renewal vs. Asking Rents While asking rents for vacant apartments have stabilized, renewal rents, which are what tenants pay when renewing leases, continue to rise, with a 4.6% increase noted in January. This stubborn trend is particularly pronounced in cities like Indianapolis and Miami, where renewal rents have increased by over 7%.

Single-family impact: The single-family housing market is experiencing continued growth in both sales and rentals. Property research firm Attom states that median rent for a three-bedroom house exceeds wage increases in over half of the 341 counties studied. Attom’s Chief Executive, Rob Barber, explains that this trend is primarily driven by a shortage of available homes for sale, which has elevated rental demand and enhanced landlords’ profitability.

Looking ahead: Economists predict a continuing decline in shelter inflation, with expectations that it will drop below 4% by year’s end, closer to historical norms. Jay Parsons from Madera Residential points out that the upcoming spring and summer leasing seasons could further reduce landlords’ ability to raise rents due to increased vacancies and a peak in new housing supply, likely leading to cooler renewal rates.

TUCSON, Ariz. (April 17, 2024)—The University of Arizona Center for Innovation (UACI), which serves as Tech Parks Arizona’s science and technology startup incubator network, is pleased to announce the open call for the UACI Sponsored Launch Fueled by the Oro Valley Chamber of Commerce and Town of Oro Valley competition. The winning startup will receive sponsored entry into UACI at Oro Valley, the prestigious bioscience-focused incubator, along with resources, specialized facilities, services, and expert guidance to grow their business. 

In alignment with its mission to grow scalable startup ventures that fuel the Arizona economy, UACI has teamed up with Oro Valley leaders to support science and technology early-stage companies. The competition launch is part of a growing collaboration between UACI, the Town of Oro Valley, and Oro Valley Chamber of Commerce over the past four years, which has supported several startups in Oro Valley through previous Sponsored Launch programs. Building on the momentum and great interest of entrepreneurs living in the region, the three organizations are making the sponsored entry available again.  

The winning startup will receive one sponsored year of admission at UACI, which includes a structured incubation program, customized business mentoring, and the ability to work alongside other startups in a fast-paced environment. UACI provides the people, programming, and space to successfully launch and scale a business. The program offers wet and dry laboratory space, meeting rooms, and assistance through a 28-point roadmap that helps them with everything from refining their business model to obtaining funding. 

Application submissions are open now and close on Friday, April 26, 2024. Applicants must meet specific qualifications, including having a startup team that lives or operates in the Town of Oro Valley and is looking to make a significant difference in the local and global community through innovation. Specific application information can be found by visiting the UACI website.  

In addition to a one-year sponsored entry into UACI, the winning startup will receive membership in the Oro Valley Chamber of Commerce. This membership grants access to events, exclusive deals, and connections to a network of businesses in Oro Valley. Moreover, the municipal support from the Town of Oro Valley empowers UACI to drive economic development in the region. The combined value of this package, totaling $10,000, is generously funded by the Oro Valley Chamber of Commerce and the Town of Oro Valley.  

As a region, Southern Arizona has recently experienced an increased interest in entrepreneurship, and the business ecosystem is ripe with educational offerings and promising locations for startup ventures. Oro Valley’s steady population growth, booming bioscience sector, and potential for geographic expansion make it particularly attractive to scalable ventures and innovative technologies.  

FURNITURE COMPANY MAKES THEIR SUCCESSFUL PROCESS AVAILABLE TO ALL COMPANIES GRAPPLING WITH RETURN TO WORK

PHOENIX, ARIZ. (April 16, 2024) – With a strong belief in the mantra that “One size misfits all,” Goodmans recently commissioned a third-party research company to conduct one-on-one interviews with their employees to discover compelling reasons they would choose to return to the office in person.

Employees have worked from home since 2020, yet Goodmans enjoyed record revenue during and after the pandemic. In 2020, 2021, 2022, and 2023, Goodmans had its highest revenue in the company’s 70-year history.

Goodmans’ top priority each year is to be recognized as a top place to work in the Valley. A rigorous customer satisfaction goal follows this, and, finally, a financial goal. While Goodmans enjoyed customer satisfaction and economic success, they did not achieve Best Places to Work after 12 consecutive wins. They decided to prove their theory that an expertly designed workspace can enhance culture and provide comfort and efficiency.

“It seemed like a no-brainer to conduct extensive research into what would compel our employees to return to the office without a mandate. We discovered they wanted a robust variety of work settings, flexible enough to suit how they work on any given day. Employees determine what their day will look like and the space provides the support they need to do their best work,” said Adam Goodman, CEO of the furniture company. “Our people have returned to the office of their own volition, not because we required it.”

The company designed a new showroom (at the same Phoenix location, 1400 E. Indian School Rd.) based on the survey results. Happy hours and free lunches are less important. Separate and distinct areas for socializing and undisturbed focus work are now the priority.

Goodmans’ employees are returning to the office in droves, without a mandate, offering each other warm welcomes and hugs.

Josie Kohlan, who has worked at Goodmans for five years, participated in a research interview.

“I love that we are not required to come back to the office. The fact that Goodmans is investing in ways to invite us back to the office is heartening to employees,” said Kohlan, Goodmans’ director of sustainability. “I really love flexibility and working the way I feel each day. It’s convenient and empowering to be allowed to work remotely or work in an office that you actually want to be in.”

Each employee had the opportunity to speak with the researchers. The survey found that employees want a workplace design that enables them to socialize and offers separate spaces to complete their work in uninterrupted privacy. According to the research, a new patio and comfortable working outdoors are important to employees.

Continuing their tradition of innovating flexibly, Goodmans actively listened to their employees and created unique solutions for other companies grappling with the return-to-work discussion. Their process is available to customers looking for the right path back to the office.

Employees’ top priorities:

• “Keep it Separated” – Zones for quiet and loud activities

Goodmans designated different zones for silence and collaborative activities with noise.

• “Midday at the Oasis” – Comfortable environments

Goodmans created a new lounge/café that serves as the heart of the office (like a kitchen at home) with a cappuccino machine and cold brew on tap. Goodmans built a patio to enable employees to work outside in nice weather. Goodmans also constructed a wellness room for employees to nap, enjoy infrared light therapy, sound therapy, and exercise on a treadmill desk. In addition, employees will enjoy music, plants, and comfortable furniture throughout the showroom.

“Right Tools, Right Place” – Every workspace has functional technology and equipment

Goodmans created a virtual reality lab to show customers what their designs will look like. It also added technology carts that enable employees to charge devices. Thus, any surface that someone might use for work, whether a desk, project table, or kitchen counter, will have access to power.

• “Can You Hear Me Now?” – Conference rooms optimized for hybrid in-person and online meetings

The connectivity will be increased to avoid frozen calls, multiple microphones will be added to conference rooms so everyone can hear, and the conference rooms will feature multiple displays. In addition, the large conference room can be separated into two smaller conference rooms based on meeting size.

• “Not Your Average Librarian” – A new team member to oversee a comprehensive design library

Goodmans has hired a full-time librarian to manage the new spectacular design library, freeing designers to focus on customers.
Kohlan loves the new showroom design, especially the “biophilic” approach of seeing a plant or a window from most seating areas. She is excited to work on the patio in the cool months and believes the wellness room is aligned with the next generation of workers.

“The design is holistic and integrated and feels true for this unique set of people,” she said.</span>

Barb Skrzecz has worked at Goodmans for 33 years, starting as a design intern and working up to an account executive. She has seen updates to the showroom over the years, but now she thinks customers will be “wowed.”

“The renovation is stunning. It is a beautiful space. It has been crafted with a different feel from previous showroom versions. It has a dramatic statement,” Skrzecz said. “I’m happy to say this is where I work. It is a place to be proud of.”

Goodmans created a “Welcome Back” event for employees at the end of March to celebrate their return to the office and provide an orientation about the amenities. Employees spent time in each area of the showroom learning about the new features: how to use the sound bath in the wellness room, make cold brew in the café, store design materials in the library, use the new virtual reality goggles, and interact with the sustainability initiative of a honeybee hive, etc.

Goodmans is a 70-year-old, people-centered, commercial furniture and interior construction company representing MillerKnoll and DIRTT. Our vision is to Change the Community by leveraging our talent and resources and fostering a commitment to conscious capitalism. Goodmans is proud to be the first Benefit Corporation in Arizona. Visit www.goodmans.com.