Real estate has three parts:
- Economic Growth
- Jobs
- People
The storyline typically goes like this:
- Good Leadership: Strong leadership in local government, plus community-minded business owners and other local people, make plans for the city, county, or state to bring about positive change and incorporate these plans into what is called the “Master Plan.” This Master Plan is made available to the public and typically shows plans for the next five, ten or even twenty-five years.
- Incentives: Incentives are offered by local utilities and governments to attract employers. Employers are typically “sold” on the location because of the incentives, as well as the education of the population, close proximity to transportation, access to essential services like high speed Internet, and other factors.
- Economic Growth: Companies begin expanding and new ones begin making plans around the Master Plan. Word travels about the “opportunities” of investing in this location, or moving a business here.
- Job Growth: As a result of companies moving to an area, the area expands as more jobs are needed to service the new people. Example: an engineer will need a barber, restaurant, and possibly other services to accommodate him in his new location. If thousands of jobs are created, thousands more will be added.
- More People: People move to an area that has a great infrastructure, jobs, and chances for a brighter future. These people help influence and develop a broad culture that makes the community richer such as the arts, museums, etc.
Up-to-Date Location Info
Helpful sites for analyzing these trends are:
- Area Development : Looks at what companies are looking at for new locations and the factors they consider important. Great industry and topic reports.
- Site Net: Resources for corporate location and area economic development.
- Expansion Management: Helps companies find future locations. Looks at national real estate rankings, factors of expanding, etc. Excellent resource for gathering a lot of data. Helps you track the flow of jobs.
Use these three sites to help do your real estate homework.
Discuss
What factors do you see being important to bringing economic development today? What locations (including countries) do you see as great potential investing sites?
Leave a comment and share what you think.
