The Real Estate Espresso Podcast

This week, a whole bunch of new capabilities were rolled out with no fanfare of announcements, by none other than Google. These capabilities were rolled into Google earth where there is a whole host of new layers that can be enabled. Some are included in the free offering, and the rest require an upgrade to either their Professional service or their professional advanced service, The Pro account costs $75 / month per user and the Pro Advanced is $150 per month. When I look objectively at what is being offered, the price is high and the services are underwhelming compared to other much more comprehensive offerings in the market. So when I look at it objectively, the Google offering is noteworthy because it is being offered by Google. The offering surprising because it is so far behind what other startups are offering in the market. If google wants to get serious about playing in this space, they certainly have the scale and ability to compete. But the market for these types of services is small compared to the general consumer market. For that reason, I doubt that Google will aim to dominate the space. ----------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)

Email: podcast@victorjm.com and put the word "Bonus" in the subject line. There are two months remaining in the calendar year. For many that means some last minute tax planning. This year re-introduced bonus depreciation in the US at 100% write-off. If you are looking to take advantage of this lucrative tax strategy, then you might consider one of our industrial or storage investments that would qualify for bonus depreciation this year. We have several projects that could be a potential fit to your investment portfolio. If you’re interested in learning more, send an email to podcast@victorjm.com and put the word bonus in the subject line. That’s podcast@victorjm.com and we can hop on a quick discovery call to see if there is alignment between your investment objectives and our projects for which we are currently raising capital. Any investment would be for accredited investors, by prospectus only and in compliance with US securities regulations. -------------- On today’s show we are talking about the question of maintaining a function in-house, versus outsourcing. This is a classic question that every business will deal with at one time or another. On today’s show I’m going to outline the criteria that I believe should come into play when making a decision to staff internally versus outsource. Let’s start with the four different ways that a person might become attached to your organization. Which of these you are going to choose is a function of the role you’re looking to fill within the organization. The first question to answer is whether the function is core to the business, or not core. -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Rates continue to fall today. There were two rate announcements, only hours apart. This morning the bank of Canada reduced its benchmark lending rate by 0.25%. Weakness in the labor market was the top cited reason for the drop in rates. This afternoon at 2:30, Chair Powell stood at the podium as he does every six weeks and announces the results of the two day FOMC meetings. The Fed dropped their benchmark lending rate by 0.25% to a target range of 3.75% to 4%. This is the second consecutive rate cut by the Fed, a move aimed at supporting a labor market that has shown signs of weakening even while inflation continues to run above the Fed’s 2% target. When you start to look at all of the corporate layoffs and the rising unemployment rate, it is very reminiscent of the 2001 recession that was led by layoffs in the tech sector. So while the news of lower interest rates is welcome, the rates are a reaction to a faltering economy where just this week alone, more than 75,000 people lost their jobs. I’m not counting the smaller layoff announcements of only a few hundred people in that total. These are big numbers. You don’t see these kind of numbers in a growing economy. So the likelihood is high that the US is already in recession, but it is politically unpalatable to say that out loud. What’s more, there is no data being collected or reported, so the economy can limp along under the cover of the government shutdown. Then there is the government shutdown itself. Those families are not getting paid and you can guarantee that they’ve cut back on discretionary spending. That’s a few million people who are not traveling to resorts or dining out in fancy restaurants. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On today’s show we are talking about how to search the Real Estate Espresso Podcast. With over 2800 episodes there is a significant body of work. We have many loyal listeners and I often hear about past episodes from listeners. Searching 2800 episodes for something you have heard in the past can be a daunting task. So much so that most people won’t even try. So we have made the investment in creating a custom AI tool, specific to the Real Estate Espresso podcast. Let’s imagine that you want to know what did Victor have to say about a particular topic, Victor AI will summarize the information in the podcast on that topic. For example, if you asked about what I had to say about industrial property metrics in Dallas, it will summarize the content and also take you to those specific episodes on that topic. We are undergoing internal testing before releasing it to the general public. But we expect to formally release it in the coming weeks. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

CLICK HERE to learn more about our Bradenton Crossing project. Have you finalized your tax strategies for 2025? There is still time in 2025 to take advantage of bonus depreciation which can result in huge tax advantages for the savvy investor. That’s the icing on the cake for an otherwise really strong investment opportunity. The opportunity is a 35 acre project in Bradenton Florida. The property is anchored by a charter school that has 800 students and is income producing. The student’s are not eligible for depreciation, but the buildings are. If you’d like to learn more, send an email to info@ystreetcapital.com and put the word Bradenton in the subject. Our team will get in touch to give you more information. Send an email to info@ystreetcapital.com. ----------- On today's show we are talking about energy and global monetary rivalry.

Max Hansen is a senior manager with Accruit and leads organizations in Denver and in Montana. On today's show we are talking about some of the more sophisticated ways of using the 1031 for sheltering gains from tax. To reach out to Max, call 800-237-1031, or visit Accruit. -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Dave Seymour is based in Boston where he became known for the star of the hit A&E TV show Flipping Boston To connect with Dave, reach out to him directly at: https://www.linkedin.com/in/daveseymour343/ or on his website at https://www.freedomventure.com/

On today’s show we are talking about the impact of data centre infrastructure on the cost of new construction for single family homes and apartments. Data centres are power hungry beasts and building them will require a lot of electricians. The concern is that the US does not have enough electrician now. Many of those electricians are nearing retirement and the number of new entrants to the trade are not replenishing those who exit. There are so many electricians required for data centres that there will not be enough for the scale of work required across all sectors. The net result will be a massive increase in the cost of building housing because of the labor being siphoned off to build data centers. That’s the theory. So on today’s show we are going to analyze whether that hypothesis is indeed true. Will we really have a shortage of electricians and what do we need to change in the way we build homes in order not to be facing massive increases in cost? Let’s start by examining how much demand is being added to the network. We will try to calculate how many electricians will be pulled out of the market just to service the data centre industry. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On today’s show we are talking about how to interact with a lender. If you’re in the game of real estate, chances are you’ve borrowed money. Lenders come in all shapes and sizes from the traditional community and regional banks, to the larger agency debt like Fannie Mae or Freddie Mac, to the government sponsored loans from HUD or SBA. There are then numerous private options including debt funds, CMBS loans, preferred equity, CPACE and mezzanine lenders. They all have one thing in common. They will go through an underwriting process that requires you to provide documentation about the borrower, the guarantor if it’s a recourse loan and the property. Those requirements will be listed generally on a term sheet, and then perhaps later in the process in a commitment letter, or a closing checklist. On today’s show I’m going to share what we believe are best practices, or at least I’m going to share how we manage this process in our development company. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On today’s show we are talking about how to best use artificial intelligence in your daily business. AI is not good at producing a finished work product that you would be happy to deliver to a customer. There may come a time when that is true. But today, if you are delivering something of true value, you need to be creating at least a portion of that work. I have not encountered a scenario where an AI tool was able to take something from start to finish in one step. In frustration I took the idea produced by Gemini into a simple image editor. I uploaded the image, and typed in the 28 words. I spent a coupe of minutes formatting the text and in the span of about 4 minutes I had a finished product, fully formatted and ready to send. I had wasted about half an hour trying to get AI to produce a finished product. The real value of the AI tool was in accelerating the creative process and as a brainstorming tool. That first step was genuine help. The rest was an exercise in frustration and wasted time. When it was clear that creating the final product could be done in a matter of minutes, essentially editing 28 words, I should have jumped off the AI train and reverted back to the old fashioned, but tried and true method of editing a file. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On today’s show we are talking about cutting corners in quality assurance. We are all extremely busy. That’s certainly true for me. My average day consists of 5-6 hours of scheduled appointments. Against that backdrop, it’s difficult to get anything done that requires focus time. So when you’re too busy, there are tempting shortcuts. These include delegating tasks to other people in the organization, and sometimes taking advantage of tools like artificial intelligence to save time in the review process. When I was in the world of tech product development, we used to attach a cost to a defect making its way into a product. Depending on when the defect was detected, the cost could be higher or lower. A defect uncovered early in the design phase was nearly free. There was almost no cost to that defect. If a defect made its way out into the field and ultimately resulted in an outage of the telecom network, the cost of that defect was massive. The earlier in the process a defect is uncovered, the lower the cost and the later in the process, the higher the cost. Not surprisingly, nearly 40% of the investment in the product development was actually spent on quality assurance. That sounds like a high percentage and it is. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On today’s show we are unpacking the critical details every sophisticated investor, developer, needs to understand about the different types of flood plain designations and how wetland mitigation can make or break your deal. First, why do people even want to develop in flood plains? For one, the land doesn’t usually present itself as a flood plain. It’s completely dry most of the time. But, like every opportunity, there are layers of risk and regulation you need to run through. The U.S. government, via FEMA, essentially maps out risk using what’s called Flood Insurance Rate Maps, or FIRMs. Picture these as overlays on your site plan that tell you how often the water is likely to rise and cause problems. But what is your flood map is out of date? 75% of existing FEMA maps are out of date. As you know, the US government is in a budgetary shutdown, with no signs of a quick resolution. Even if you are not relying on government funding for a loan, if your property is in a flood plain, your lender will require paperwork from FEMA before they can close the loan. So the government shutdown means your loan cannot close until the government re-opens FEMA gets caught up on their backlog of requests. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Jon Yoo is with Convoy Home Loans based in Los Angeles. They specialize in DSCR Loans for commercial investors. On today's show we are talking about some of the market dynamics. To connect with Jon, visit https://convoyhomeloans.com/ or email him at info@convoyhomeloans.com. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

We have two guests on today's show. Garrett Sutton is well known as one of the Rich Dad advisors for asset protection. His son Ted has joined the practice and is going to succeed Garrett in the long term. On today's show we are talking about some of the new legislation at the state level that will affect investors. So far only New York has enacted its own corporate transparency act. But there are other states that are considering it. The result could be a complex patchwork of regulations that will make compliance much more complicated than a single federal statute. To connect with Ted and Garrett, visit https://www.corporatedirect.com/. They also have a new Youtube channel called TENERO. --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On today’s show we are talking about the mobility of wealth. Everyone I speak with from NYC is extremely fearful of the change that seems likely in the Mayor’s office next month based on early polling results. Many are considering leaving the city. Even those who want to continue to work in the city are moving to nearby cities and states. Some are going to New Jersey. Some are going to Connecticut, others to Pennsylvania. NYC has become a tale of two cities. There is a lot of wealth in Manhattan specifically. There are about 350,000 millionaires concentrated in a small radius on the island of Manhattan. There are about 120 billionaires in NY. But New York is about more than just a financial capital. It’s a city of 8.5M people spread across the five boroughs of Manhattan, Brooklyn, Queens The Bronx, and Staten Island. Last night’s mayoral candidate debate pretty much sealed the outcome of the election which is only 19 days away. Frontrunner Zohran Mamdani is an eloquent speaker. He speaks nonsense with conviction, with stories, and with data to back up his nonsense. A great orator can be persuasive. I understand that people who don’t understand money think that someone else will pay for their sense of entitlement. Free stuff can be attractive on election day. In the 1970’s it was hard to believe that NYC could recover. It seemed doomed to a life of decay, crime, and outright chaos. We have experienced the resurgence of the city, slowly at first under Mayor Ed Koch, then more recently under Mayor Rudi Giuliani and Michael Bloomberg. This podcast is about real estate and real estate investing and not NYC politics. Why are we talking about this? Because businesses are not returning to NYC. Things are going to be ugly in NY for a while. If wealth is leaving NY, the obvious question is where is the wealth going? Where are these people moving? Who will be the biggest beneficiaries of New York’s loss? ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On yesterday’s show we talked about how AI might be influencing the functional obsolescence of industrial warehouses. On today’s show we are looking at another aspect of AI and how it could affect the value of industrial real estate. On today’s show we looking at how transportation is going to evolve with the advent of autonomous trucking. Will this have an impact on industrial property? Now this sounds like science fiction and something that is going to be in the distant future. But it’s much closer than you think. Many of these new trucks will also be electric vehicles. I don’t know when Tesla’s semi truck will hit the market in a big way. The first production Tesla Semis were delivered to PepsiCo in December 2022. Since then, a small number of trucks have been delivered to a handful of other customers for real-world testing and fleet integration. Let’s put this in perspective. The power supply to charge just one Tesla Semi is the same power required to supply about 988 homes. Let’s say that you want to be able to charge a couple of trucks at a time and you need to add 1000 If your warehouse is not sitting next to a major power source, how are you going to find the spare power capacity for 2000 homes at the site of your industrial warehouse? If you can’t get the power, then your warehouse is going to be functionally obsolete. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

AI is continuing to make headlines on nearly a daily basis. But this is a real estate podcast, not an AI podcast. We need to assess the impact of AI on real estate. On today’s show we are looking at whether AI will change the design of industrial warehouses and render some of the existing warehouses functionally obsolete. The introduction of robotics has profoundly changed the design of industrial warehouses, moving them away from layouts optimized for human movement to a new paradigm centered on efficiency, density, and data-driven automation. This shift is driven by the capabilities and requirements of different types of robots, leading to significant changes in space utilization, infrastructure, and overall workflow. So all of these changes will impact the design of a warehouse. Your 50 year old warehouse might require too many functional changes to adapt to this new world and just might be functionally obsolete. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Today's question comes from Steve who writes: "How do municipalities allow zoning and use applications that are filed by an entity that doesn’t own the property? Can a group of citizens argue that the applicant doesn’t have property rights when they don’t own the property?" ---------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

As real estate investors we need to be paying attention to many aspects of the economy. After all, we are investors first and foremost and real estate investors second. Our investments do not occur in isolation. They are influenced by the surrounding environment. If the stock market rises, how does that affect real estate? If the stock market crashes, how does that affect real estate? On today’s show I’m going to predict a stock market correction and using history as a guide, predict the impact on the economy as a whole and real estate in particular. A stock market correction (a decline of 10% or more from recent highs) can trigger or accelerate an economic downturn. ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Keith Weinhold is based in Anchorage Alaska. I had the pleasure of visiting with Keith on his home turf a few weeks ago where he gave my wife and I a tour of the city. On today's show we are talking about divesting fully from Anchorage and redeploying capital into the Tampa Bay area. Tampa and Anchorage are almost extreme opposite ends of the country. A unique element of Keith's strategy has been to invest in new construction properties. The benefits include lower maintenance and higher tenant retention. Keith is the host of the "Get Rich Education Podcast", running weekly since 2014. You can connect with him there. ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)