The Real Estate Espresso Podcast

Latest Episodes:

The Facts On Home Affordability May 17, 2023

Show notes

On today’s show we are talking about why the math of home affordability is broken. The critics of home affordability put the blame at the feet of developers and home builders for not building affordable homes.

But the price of homes in the resale market is set entirely by market forces. This is a function of the laws of supply and demand, combined with the ability to pay.

The simplest evidence of that is the fact that many homes were selling above asking price over the past three years. There is nothing forcing a buyer to offer above the asking price for a home.

Who is to say that homes should cost less, when clearly buyers are willing to pay more. The value of any asset is always viewed through the eyes of the buyer and what they are able and willing to pay.

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Host: Victor Menasce

email: podcast@victorjm.com

Is Biomass Green May 16, 2023

Show notes

In the world of economics, it’s vital to understand energy. Energy is the economy. The economy and real estate are connected through multiple threads.

The ESG movement of environmental sustainability and governance has its heart in the right place. The problem is the so-called greenwashing which is the process of adopting the branding of something green and environmentally friendly, but doing something dirty under the covers.

On today's show we are going to be digging into some pretty shocking movements under the banner of ESG.

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Host: Victor Menasce

email: podcast@victorjm.com

AMA - Should I Invest In this Industrial Deal? May 15, 2023

Show notes

Today's question comes from Ms. Cortes in Atlanta who asks:

I’ve been offered an opportunity to invest in a ground up construction of a new warehouse located near I-10. I’ve sent you the entire package of information from the deal sponsor including the webinar and the investor package. I’d love to get your perspective on the offering and whether this is something you would consider investing in.

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Host: Victor Menasce

email: podcast@victorjm.com

Office Building Reconstruction with Matt Pestronk May 14, 2023

Show notes

Matt Pestronk is based in Philadelphia and specializes in redeveloping office assets in the North Eastern states. On today's show we are talking about the subtleties of office conversion projects. You can connect with Matt at postcre.com

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Host: Victor Menasce

email: podcast@victorjm.com

Shopping Center Investing with Michael Flight May 13, 2023

Show notes

Michael Flight is based in Oak Brook, Illinois and has been investing in shopping centers since the 1980's. On today's show we are talking about the changing nature of retail and how the retail apocalypse is not upon us. Michael has been doing some innovative work in the realm of combining blockchain technology with commercial real estate. To learn more about this get a copy of his blockchain paper at investonmain.com or visit his investment company at libertyfund.io.

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Host: Victor Menasce

email: podcast@victorjm.com

A Simple Site Plan Approval Process May 12, 2023

Show notes

On today’s show we are talking about the process of getting approvals for even simple projects.

We are talking about a project that recently received full approval to move forward with construction. Even in cases where the zoning is not changing and no new buildings are being built, it is possible that the site plan application results in a review of similar scope as a major planned used development.

Some areas are more difficult to develop than others due to the simple physical attributes of the site.

The property in question is in Winterhaven Florida. This is the site of our next industrial outdoor storage project. I’m pleased to report that this project has reached full approval to move into construction. Winterhaven, like much of central Florida has a lot of lakes. I mean a lot of lakes. On today's show we are talking about some of the complexity of designing in an area with a high water table.

As many of you know, our development company at Y Street Capital is very active in the world of storage among other things.

I’d like to invite you to an educational session where we are going to do a deep dive on this subsegment of the storage asset class called industrial outdoor storage. The webinar is going to be on Tuesday May 16 and there are a few time slots to choose from.

If you’d like to attend the webinar to learn more about IOS, click on the link in the show notes where you will have the opportunity to register for the information session.

This will be a relatively short webinar focused primarily on education you on the various factors, metrics and requirements of the industrial outdoor storage segment.

To register, click on the LINK

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Host: Victor Menasce

email: podcast@victorjm.com

Storage Market Segmentation May 11, 2023

Show notes

On today’s show we are going to look at an asset class that continues to attract attention from both individual investors and institutional players. That asset class is storage. Storage is seen as a recession resistant asset class. There are clearly many signs that the global economy has entered recession, even if there have not been any official announcements to that effect.

But saying storage alone is too simplistic. The asset class segments further into many types of storage, each with their own specific needs and customer base.

As many of you know, our development company at Y Street Capital is very active in the world of storage among other things.

I’d like to invite you to an educational session where we are going to do a deep dive on this subsegment of the storage asset class called Industrial Outdoor Storage. The webinar is going to be on Tuesday May 16 and there are a few time slots to choose from.

If you’d like to attend the webinar to learn more about IOS, click on the link in the show notes where you will have the opportunity to register for the information session.

https://event.webinarjam.com/register/2/5yq61fn

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Host: Victor Menasce

email: podcast@victorjm.com

Housing Growth in Manufacturing Centers May 10, 2023

Show notes

On today show we’re talking about housing needs in manufacturing corridors. Yesterday I attended a meeting involving politicians and city staff from five different communities along the St. Lawrence River seaway. Many of these communities have experienced a resurgence in Manufacturing as North American companies have expanded domestic manufacturing capacity. During the pandemic these communities experienced a huge influx of population from people seeking a lower density lifestyle with incredible outdoor amenities and still remain within an hour of a major city.

The problem is that many of these communities are experiencing a severe shortage of housing. That is a combination of new housing, affordable, housing, or merely available housing at any price.

Several themes stood out from the conversations involving politicians, city, staff, and major employers. The employers are struggling to attract new workers because of the lack of available housing. So instead they are just poaching from each other instead of growing the pool of employees.

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Host: Victor Menasce

email: podcast@victorjm.com

The Number One Underwriting Mistake May 09, 2023

Show notes

On today’s show we are talking about one of the most overlooked line items in a property budget. This is the dreaded repairs and maintenance line.

Operating budgets make reasonable assumptions about the natural timeframe for equipment replacement, and the lifetime for windows, roofs, caulking, and so on.

Where it gets difficult is when big ticket items hit all at once due to supposed one-time events.

It seems like no property owner is immune.

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Host: Victor Menasce

email: podcast@victorjm.com

Decisions Based On Flawed Data May 08, 2023

Show notes

On today’s show we are looking at the underlying data that is being used as central in the narrative about the health of our economy and the flight against inflation.

The message out of the White House and the Fed is that the economy is strong, too strong even. Look at all the strong employment numbers.

Each month we keep hearing how we have a hot jobs market. Interest rates have to go up to fight inflation and the number of people entering the job market is indicative of a hot economy.

The fact is, if you look through the history of jobs reports you see that there is a consistently large discrepancy between the headline number that is reported and the subsequently revised numbers.

The headline number catches the headlines and that’s what sticks in people’s memory. Additionally, we see policy makers like the Federal Reserve setting interest rate policy based on those headline statistics.

But then those numbers get revised which means they were wrong. Decisions are getting made based on bad data.

How wrong do you ask?

Well, the March 2023 headline report was for 236,000 jobs created in the month of March. That was later revised down by 71,000 jobs. In February, the report was for 326,000 jobs. That was later revised down by 78,000 jobs to 248,000 jobs. The January number was revised down by 45,000 jobs.

I don’t want to mislead you. The corrections are not always downward revisions. The bureau of labor and statistics has been wrong in both directions. During the pandemic, they mis-reported the numbers of job losses by hundreds of thousands.

The problem is that interest rate policy is being set on the basis of a flawed model of inflation.

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