SCOTTSDALE SKIES   by Steve Kates
COMMERCIAL REAL ESTATE   by Stephen A. Cross, CCIM
HEALTH WATCH   by Keith Jones
A NEW POINT OF VIEW   by Dave Sherman
INSURANCE & BENEFITS   by Paul Breslau

 
 
SCOTTSDALE SKIES
 
Author: Steve Kates

Welcome to 2009!

Here’s hoping that this year is good for all! During 2009, you will hear of many connections between world events and the mystery of the night sky. (That is the stuff of astrology.) While there are many things that we simply do not understand in science, I focus on the sights that we can predict and explain.

Visual astronomy is a wonderful way to put positive energy back into your life. So, my wish for 2009 is simple: clear skies and great objects and events to view, along with health and prosperity.

January starts off with wonderful sights. Venus, the brightest of the major planets, will be easy to see just after sunset. Riding high in the southwest at sunset, Venus reaches its maximum distance from the sun, as viewed in the sky. Venus can get some 47 degrees away from the setting or rising sun. When this occurs, we call it an “elongation.”

On Jan. 14, Venus lies some 47 degrees on the eastern side of the sun; thus, Venus will be visible in the southwest sky after sunset. Astronomers call this the greatest eastern elongation of Venus.

As if this was not good enough, Mercury will also be at this position on Jan. 14, some 19 degrees high in the southwest sky, after the setting sun. A keen observer will have an opportunity to view the setting sun, the planet Mercury, and Venus all at the same time.

Add in the crescent moon on the nights of Jan. 2 and 3.

Jupiter will appear very low in the southwest, which will be officially in conjunction with the sun on Jan. 24.

The other major planet visible this month is Saturn, which rises in the east at around 1 a.m. and appears near the meridian by dawn. Saturn looks a little unusual this year as the ring will seem to disappear from view. Saturn will lie in the region between Leo and Virgo and appear slightly dimmer in 2009 as we pass through its ring plane.

For many of you that received telescopes as holiday gifts, get them out and get set to view Saturn! You will see many of the moons move left and right in front of the disk of Saturn.

Observers with larger telescopes will be able to see changes that occur on the cloud tops of Saturn. Saturn also has some of the most powerful displays of aurora found anywhere in the solar system. The Cassini spacecraft send back amazing images of polar aurora around the planet.

Look later in the month for a most amazing asteroid. The first asteroid, 1 Ceres, was discovered on Jan. 1, 1801 by Italian astronomer Giuseppe Piazzi.

This 590-mile-in-diameter rock is the largest of the known asteroids and the smallest of a new classification of objects known as dwarf planets. In January, Ceres is visible with binoculars, moving from Leo to Leo Minor. 1 Ceres reaches its brightest (opposition) on Feb. 25 at slightly below naked eye visibility. 1 Ceres orbits the Sun once every 4.599 years and contains 32 percent of the mass of all asteroids in the asteroid belt. From the world of space, let’s go back 40 years to the amazing story of Apollo 8. This was the first time in history that people from the Earth orbited the Moon!

Apollo 8 astronauts Jim Lovell, Frank Borman, and William Anders left Earth on the most amazing rocket ever built, the powerful Saturn V, on Dec. 21, 1968, headed toward the Moon.

After three days of space travel, Apollo 8 made its way to lunar orbit. As the astronauts rounded the Moon for the ninth time, they began a very special TV broadcast, which in its day was the most-watched TV transmission of its kind.

They began to read the first ten verses of the book of Genesis and were also the first humans to see the “Dark Side of the Moon.”

The mission was a great success, and the crew spent a total of some six days, three minutes and 42 seconds off planet Earth!

This mission paved the way for the future Apollo 11 landing on the Moon on July 20, 1969. As we celebrate the 40th anniversary of this great mission, we are reminded of the national goal set by President John F. Kennedy to land a man on the Moon and return him safely to Earth.

I can remember the live TV broadcast on my parents’ black-and-white TV, of the great Christmas Eve broadcast of 1968!

We now look to the new Constellation program, to take us back to the Moon and Mars. Forty years seems like yesterday! What will the space program be like 40 years from now?

Moon
First Quarter - Jan. 4/ Feb. 2
Full Moon - Jan. 10/Feb. 9
Last Quarter - Jan. 17/Feb. 16
New Moon - Jan. 26/Feb. 24

Planets-
Mercury-
January - Best in evening sky, southwest (Jan. 4)
February - Best in morning sky, southeast (Feb. 13)

Venus-
January - Bright in the southwest at dusk
February - At its brightest after sunset, southwest (Feb. 19)

Mars-
January - Low in the southeast before dawn
February - Low in the southeast before dawn

Jupiter-
January - In conjunction with the sun (Jan. 24)
February - Low in the southeast at dawn

Saturn-
January - Rising in the southeast after 1 a.m.
February - Rising before midnight in the southeast
Saturn at Opposition: March 8, 2009

Steve Kates, “Dr.Sky”® is President of Dr.Sky.com Inc., a multimedia corporation and audio/video production company. He appears on many local radio stations in the West with the “Dr.Sky Minute” as well as “Dr.Sky Show”. Based in Phoenix at KFNX News Talk Radio 1100, Dr.Sky is a regular on “Coast To Coast AM with George Noory as well as a regular talent on AZTV and the Pat Mc Mahon Show and 3TV KTVK in Phoenix.

 

 
 
COMMERCIAL REAL ESTATE
 
Author: Stephen A. Cross, CCIM

The 10 Myths and Misconceptions of Commercial Real Estate

For decades, the real estate industry has been heavily influenced by “insiders” – real estate agents, brokers, owners, property managers and, to a lesser degree, appraisers, economists, academicians and the related trade associations whose mission is to promote the interests of their members. These groups have access to information that “outsiders” – anyone wishing to lease or buy commercial real estate – generally do not; as well as the largely unfettered ability to interpret, manipulate, and disseminate information to suit their purposes.

The insights that follow are intended to draw attention to the rarely discussed myths and misconceptions propagated by commercial real estate insiders, and offer strategies that will enable outsiders to level the playing field when leasing space or buying property.

MYTH 1: The majority of commercial vacancies are advertised. FACTS: Only a fraction of the thousands of spaces available for lease or sublease are advertised to the public, and of those, few mention price. STRATEGY: In order to make fully-informed decisions, tenants and buyers need to know as much as possible about: the number and sizes of available spaces (vacancies), recently-completed transactions (“comps” or comparables), their configuration (condition), and the asking prices.

MYTH 2: Comparables (what others have paid) are readily available. FACTS: While sale prices are part of the public domain and can be accessed by logging on to the website of the County Recorder, information about leases is proprietary, meaning only the property owners, tenants and the agents involved in the transactions are privy to the terms. STRATEGIES: Tenants and buyers would be well-served to retain the services of an experienced real estate advisor who has first-hand knowledge about the specifics of recently completed leases, access to commercial databases, and insight into which property owners are likely to have the most urgent needs.

MYTH 3: The “market rate” is the price tenants and buyers should pay. FACTS: The term “market rate” has devolved to mean little more than the property owner’s asking rate, not their getting rate. If the terms for every lease were known, we would see that each transaction is unique, with different rates, terms, and concessions (any incentive or reduction from the original asking price and/or terms). STRATEGY: Think of the “market rate” as what it is: merely the property owner’s opinion of value…and the negotiation’s starting point.

MYTH 4: One agent can fairly represent both parties in the same transaction. FACTS: The operative word here is “fairly.” In a true arm’s-length transaction, the parties deal from equal bargaining positions. In addition, neither party is under the other’s control or dominant influence, nor do they rely on the other’s fairness or integrity. At least that’s how the legal profession views it, and why it is unethical for both parties to have the same representative in any legal matter. The real estate industry sees it differently (to the detriment of millions of tenants and buyers), and permits a single agent, or multiple agents from the same firm, to represent both parties in the same transaction. This is called a “dual agency” (think “double agent” for the true meaning). Such an arrangement favors the property owner, who receives the highest amount possible, and the real estate agent, who retains the entire commission. STRATEGIES: Dual agency is the real estate industry’s dirty little secret and should never be tolerated. In practice, many tenants and buyers divulge confidential information to an agent they are led to believe is representing their interests, only to discover the agent has an undisclosed conflict of interest when a lease or purchase contract is presented for them to sign. At that point it is generally too late to renegotiate the terms of the transaction. If you suspect that you may have been the victim of an undisclosed or improper dual agency, I suggest contacting the Department of Real Estate to report this potentially unethical behavior. You may also wish to discuss the matter with a seasoned real estate attorney.

MYTH 5: Being treated as a “customer” is a good thing. FACTS: The real estate industry has adopted the seemingly innocuous yet misleading label of “customer” to denote a party who is due the lowest standard of care, accountability and confidentiality in a transaction. In reality, the party due the highest standard of care is known as the “client.” STRATEGIES: Be aware of the distinction between “customer service” and “client service,” and insist on establishing a client relationship with your real estate advisor from the onset.

MYTH 6: Friendly agents and property managers are acting in your best interests. FACTS: Agents and property managers are the eyes and ears of the property owners – their clients. While their stock-in-trade is a friendly manner, their fiduciary duty is to lease or sell the property for the highest amount possible, and with the fewest concessions. STRATEGY: Because anything you tell a listing agent or property manager is likely to be shared with the landlord, and could dilute your negotiating leverage, refrain from discussing your businesses’ circumstances – including your budget, timing and other buildings under consideration – with anyone not on your decision-making team.

MYTH 7: Real estate services are free. FACTS: Real estate transactions typically include commissions that are shared by the agents or advisors representing each party. Even though the property owner writes the commission check, it’s the tenant or buyer that ultimately funds the commission – in the form of rent payments (for leases) or purchase proceeds (for sales). STRATEGY: Make certain that you are receiving full value from your “side” of the commission by having an unbiased, experienced, licensed real estate advisor assist you with the research for suitable spaces and in the negotiation of acceptable terms and conditions.

MYTH 8: Large real estate companies, and/or those with many listings, are the best sources of information for tenants or buyers. FACTS: Full service real estate companies employ dozens (even hundreds) of agents, brokers, property managers and support personnel, and are best suited for property owners who require property management and brokerage services. Regardless of their size, companies that list properties have inherent and unavoidable conflicts of interest when representing tenants and buyers, and tend to suppress competitive negotiations by steering them to the properties they control. STRATEGIES: Because tenants and buyers seek objective and rigorous representation, they should avoid agents and brokers from companies that list properties. When selecting an advisor, obtain confirmation that you will be exposed to all suitable spaces, including those being offered for sublease.

MYTH 9: Leases are less complex than purchases. FACTS: Even the most basic commercial leases contain several dozen interrelated variables that are open to negotiation, and that affect the overall cost of occupancy. As a result, leases are generally more complex transactions than purchases. STRATEGY: Recognize that, in order to make a fully-informed leasing decision, many terms and conditions need to be identified, addressed, and negotiated. Once the economic terms have been negotiated to your satisfaction, retain a competent real estate attorney to review and comment on the legal sufficiency of the lease agreement.

MYTH 10: Real estate agents are experts in real estate. FACTS: Expertise in any field is the result of much training and accumulated knowledge. Yet it takes the equivalent of attending just two weeks of classroom instruction, and then passing a very basic examination, to obtain a real estate license. This limited education is hardly sufficient to qualify anyone to help business people make some of life’s most significant financial decisions. STRATEGIES: Tenants and buyers have a legal right to hold real estate agents and advisors who imply or claim to have expertise in an area of specialization accountable for their actions and recommendations. Select your advisor with the same care as you would an attorney, accountant, or a senior member of your decision-making team, and make certain they have significant and verifiable experience in solving your specific problems.

Closing comments. Be aware that commercial real estate is a highly-competitive and adversarial business. While negotiations need not be combative or confrontational, the process nevertheless pits parties with opposing interests against each other. In the final analysis, a real estate transaction is only as good as the thoroughness of the research, the quality of the information, and the experience of the negotiator…and that’s a fact.

Stephen Cross owns CROSS Commercial Realty Advisors and counsels business owners, healthcare professionals and corporate decision-makers on ways to acquire or lease property at the lowest cost and most favorable terms. Please contact him at (480) 998-7998 or stevecrossrealty.com.

 

 
 
HEALTH WATCH
 
Author: Keith Jones

Resolve to Have a Healthy 2009

The holidays are now a memory – fun, fellowship, and feasting with family and friends. For many of us, that annual ritual of feasting around the holiday table left a legacy of a few extra pounds. And that was followed by the annual ritual of resolving that “this is the year I’ll get in shape and lose that extra weight.” Those extra pounds have a significant impact on our health.

Why do we resolve to be healthier year after year but rarely do anything about it? It takes work, not to mention support. Counting calories, eating the right foods, exercising. Yes, exercise has to be in the mix. Ample evidence shows that a sedentary lifestyle is a major risk factor in heart disease. It’s not coincidental that while obesity is on the rise and people are exercising less, heart disease is becoming more prevalent.

Another disturbing trend is “Metabolic Syndrome,” which is a group of metabolic risk factors present in the same person. These symptoms include high blood pressure, high blood lipid counts (high triglycerides together with low HDL cholesterol), central obesity (gaining weight mainly in the abdomen) and mild diabetes (a resistance to insulin). Any of these risk factors can be serious, but together, they put people at higher risk of developing coronary heart disease, stroke and Type-2 diabetes.

Scottsdale Healthcare’s comprehensive weight-management approach may be just the way to start the New Year. It involves lifestyle-change teachings without being on a “diet,” freeing men, women and children from the discomforts of being overweight – whether it’s just a few pounds or hundreds of pounds.

“All of our weight-management programs can be tailored to each individual’s needs,” says Heidi Donovan, Weight Management Coordinator. A professional team that includes a registered dietitian, a mental health professional and an exercise specialist addresses all aspects of weight management. “Our staff is committed to providing safe and effective personalized treatment options that will help participants achieve weight loss and overall well-being.”

Scottsdale Healthcare’s weight-management programs offer an array of class and appointment times at the Shea campus or off-site. A “wellness card” can be purchased as a five-appointment ($200) or 10-appointment ($375) “A La Carte” package. For more information about weight-management programs or to buy a Wellness Card, call (480) 323-3901.

Emotional eaters, overeaters and people looking to keep their New Year’s resolution to slim down and live healthily can learn to make needed behavioral and lifestyle changes during a 10-week program beginning Jan. 20 called The Psychology of Lasting Weight Loss and Well-Being.

Participants attend weekly classes, conducted by Lisa Galper, PsyD, a psychologist with more than 20 years of personal and professional experience in the field of weight loss. The Psychology of Lasting Weight Loss and Well-Being program is held from 6-7:30 p.m. at Scottsdale Healthcare Shea, 9003 E. Shea Blvd., in the fifth-floor classroom.

Participants receive a wellness evaluation at the beginning and end of the program, a one-hour appointment with a registered dietitian, a one-hour appointment with an exercise physiologist, one-on-one weekly coaching, and a fitness membership for the duration of the program at Scottsdale Healthcare’s Essential Touch Wellness Center & Boutique. The cost is $359. For information or to register, call (480) 882-4636.

Adults interested in dropping unwanted pounds can gain helpful knowledge and tools with Scottsdale Healthcare’s Weighs to Success program. The 10-week program, which can be started anytime, is designed to educate and support adults in making effective, long-lasting changes in their food choices.

Weighs to Success offers an understanding of how to combine carbohydrates, proteins and fats to stabilize your appetite and promote maximum fat loss, practical strategies for challenging food situations and balancing eating for health with eating for pleasure, tips on using supplements, meaningful discussions of current trends in the food and nutrition field, fun and inspiring tools to promote weekly progress, a one-hour individual nutrition consultation, optional weekly body composition testing, a plan to manage plateaus, food logs, and a pedometer.

Weighs to Success is held Mondays from noon-1 p.m. or 6-7 p.m. at Scottsdale Healthcare Shea. The cost is $175. For information or to register, call (480) 323-3901.

Parents can help their children lose weight and put their entire family on the road to healthier living with the KidShape program at Scottsdale Healthcare. The nine-week program is designed for children ages 6-14 and their families. Participants enjoy hands-on nutrition lessons, cooking demonstrations, discussions on how to change behaviors, and fun physical activities in each class.

The program is an opportunity for children to lose weight, feel better about themselves and understand how to become and stay healthy. Teachers for the program are Scottsdale Healthcare professionals certified in nutrition, counseling and fitness. The cost is $425 for two parents/guardians and one child. Interested parents can call (480) 323-3901 to learn more.

Surgical weight loss is an option many adults explore. A new procedure being offered at Scottsdale Healthcare is the sleeve gastrectomy, where the stomach is reduced so it looks like a small tube. In addition to the gastric sleeve, surgeons at Scottsdale Healthcare perform other weight-loss surgeries, including gastric bypass and adjustable gastric band.

Surgeon Robin Blackstone, MD, medical director of the Scottsdale Healthcare Bariatric program, said that many obese patients learn they have serious health conditions. “The primary one is diabetes,” said Dr. Blackstone. “Twenty-six percent of our patients have it. You’d be surprised how many people we’ve diagnosed with diabetes and heart disease.”

“It’s important that every single patient realizes that they have to change their behavior,” she says. “One of the hardest things on the planet is to change your behavior around eating. The problems aren’t purely due to biology. We can fix the biological problem of overeating by creating a new situation anatomically. What we can’t fix is the behavior. The patient needs to understand and be able to fix that.” For more information on bariatric surgery, visit www.shc.org or call (800) 504-9567.

Scottsdale Healthcare is the not-for-profit parent organization of three community medical centers. Scottsdale Healthcare Thompson Peak is located at 7400 E. Thompson Peak Pkwy., Scottsdale, AZ 85255, (480) 324-7000. Scottsdale Healthcare Shea is located at 9003 E. Shea Blvd., Scottsdale, AZ 85260, (480) 323-3000. Scottsdale Healthcare Osborn is located at 7400 E. Osborn Rd., Scottsdale, AZ 85255, (480) 882-4000. Learn more at www.shc.org.

 

 
 
A NEW POINT OF VIEW
 
Author: Dave Sherman

Staying Up in a Down Economy

If you were to listen to the news and to most people, you would think that we were back in the Great Depression. Fortunately, we’re not. Yes, we are going through challenging times, but we’ve been there before. My question for you is: What do you plan on doing about it? Are you going to stick your head in the sand and wait for all of this to pass, or are you going to stand up and do everything that’s necessary not only to survive in this current economy, but to actually ride in it? If you don’t have a good answer to these questions, keep reading.

I’d like to share with you a few ways to deal better with this challenging economy.

1. Stop Moaning and Whining About the Economy. Starting right now, make yourself a promise that you will no longer complain about how the economy is affecting your life. Why? For the most part, people are tired of hearing it and, unless you’re Barack Obama, there is very little you can do to fix this economy. Instead of talking about how bad things are, try to talk about what you can do to make things better in your own little world. If everybody starts to do this, things should start getting better.

2. Stop Watching the News. There is a phrase in the news business that says, “If it bleeds, it leads.” Most news stations only focus on the bad news. They will never tell you about the 275 million people that survived today. They will only tell you about the 13 people that died horribly. Instead of following the news on TV or in the newspaper, I recommend using the Internet. This way, you can look at the headlines and determine whether you really need the details about the world around us.

3. Be Careful About What You Say. The words that come out of your mouth have a tremendous impact on your life and the lives of those around you. When people say that this is a bad economy, I tell them that I prefer to call it a challenging economy. Most people love a good challenge. People want to rise to the challenge. Don’t you? By using a more positive vocabulary, things will always look a little bit brighter.

4. Be Grateful for What You Have. Every day, take a few minutes and identify the many things around you that you are grateful for. For me, I’m grateful for the beautiful weather we have here in Arizona, that I have a roof over my head and food in my refrigerator, and I am especially grateful for my friends and family that provide the support I need to deal with these challenging times. Doing this little exercise doesn’t take long and it will make you feel so much better.

Try applying these four simple suggestions and see what kind of impact it has on your everyday life. There’s absolutely nothing you can do right now to fix this economy. The only thing you can do is fix your own attitude. It has been said, “This, too, shall pass.” Keep a good attitude and a smile on your face and, hopefully, this will pass very soon.

Dave Sherman, a nationally-recognized “Connectologist,” is the owner of Connection Pros, a speaking, training and consulting organization that helps corporations, associations and individuals make more connections with more comfort and success. Check out his website at www.connectionpros.com. He can be reached at (480) 860-6100 or by e-mail at Dave@DaveShermanSpeaks.com.

 

 
 
INSURANCE & BENEFITS
 
Author: Paul Breslau

Health Insurance Review, Preview

This article highlights selected health insurance concepts from my 26 previous articles that are found on our www.healthquoteaz.com/articles webpage. The intent is to combine the information for individuals, businesses and other employer groups to better prepare for the future.

Health Insurance “Bubble”
The health insurance bubble described in the first Your Health Insurance article published in November 2004 remains today. Rate increases of 15 percent per year are unsustainable. Growing older adds another 15 percent per year as verified by any health insurance rate table.

This medical inflation is caused by more people using more medical services more frequently. Additionally, these services cost more and the treatments are lasting longer. Adding it up equates to the 15 percent medical inflation per year, year after year.

Millions of people and thousands of businesses drop their health insurance, and these uninsured add pressure to the bubble. Insurance premiums for individuals, governments, businesses, nonprofits, and everyone continue to increase at unsustainable levels.

Complication
One constant theme repeated throughout many articles is that health insurance is complicated with multitudes of variations and options. Using the expertise of a health insurance agent is repeatedly recommended.

A Charmed Friend or a Dangerous Threat (1/05 article #3) describes the complication for COBRA and HIPAA. Many of the articles focus on employer groups and individuals since that is our expertise. A full article on Medicare or Medicaid has yet to be written.

Resolution of the health insurance complication and pricing bubble will require us to leave our entrenched partisan positions behind. Over time, we must find ways to work together to solve aspects of the health insurance and healthcare issues methodically as outlined in Political Extra (10/06 #13).

Health Insurance Versus Healthcare Insurance can be used successfully for sudden and unforeseen events that cause financial catastrophe. We use insurance to pay for a $10 prescription, an $80 office visit, and for other low-cost, routine services, and this will not work. Health insurance is confused with healthcare. Everyone should have health insurance for sudden and unforeseen, financially-catastrophic medical events. Everyone should have healthcare for low-cost and routine services.

These are two different sides of the healthcare financing coin. Agreeing upon the simple concept is an important first step to moving forward.

Recent Adjustments
The current market adjustment is a flow to health insurance plans with lesser benefits. For example, a new popular plan covers three office visits and has a high $10,000 deductible with very low monthly premiums. These plans will relieve some of the health insurance financing bubble pressure. It will be interesting to see if this will be enough.

Health Saving Accounts are another excellent solution to the differentiation of health insurance and healthcare. These plans have been recently improved upon. Out of Hot Water (7/07 #18), Be Your Own Insurance Company (9/05 #6), and Take the Money, Not the Prize (1/05 #2) all advocate Health Savings Accounts as a viable alternative for individuals, businesses and other employer groups.

Change
While the oil, housing, and investment bubbles have burst, the health insurance and healthcare bubbles have not. Managed and orderly improvements appear to be in everyone’s best interest. Health insurance and healthcare will continue to evolve and change.

What is NOT Broken (3/07 #16) highlights the fact that Arizona has a strong base to start from. The recent articles of Unemployment and Health Insurance (7/08 #24), Navigating the Maze (9/08 #25), and Dual Option Health Plans and Save (11/08 #26) have additional suggestions for short-term improvements. Again, long-term improvements will require the bipartisan and patient work from political and industry leaders.

Please visit www.healthquoteaz.com/articles for our library of articles referenced above.

Paul Breslau, Registered Health Underwriter (RHU), Registered Employee Benefit Consultant (REBC), Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), future Chartered Advisor for Senior Living (CASL) is president of Breslau Insurance & Benefits, Inc. You may contact him by calling (602) 692-6832, visiting www.hraz.com or at his paul@hraz.com e-mail.

 

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