E001: Building Commercial Real Estate Wealth Through Job Announcements | Economic Base Analysis Explained

Want to invest in commercial real estate? Learn how to predict future demand with economic base analysis! In this podcast, Bo Barron, CCIM, shares the formula for quantifying the future demand of commercial real estate space using a real world job announcement as an example. His charmingly clueless little brother, Timmy Barron, ADHD, provides comic relief while asking the questions you wish you could ask. Together, they'll show you how to examine basic and non-basic jobs, population to employment ratios, and the economic base multiplier to make informed investment decisions and find lucrative deals every time. Tune in to this podcast to learn how to build commercial real estate wealth with economic base analysis in a way that's easy to understand. Don't miss the pop quiz at the end of each episode to see if you can beat Timmy's score! Perfect for commercial real estate investors, small business owners, and anyone interested in the field.

📒Show Notes📒

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⏰Time Code⏰

00:00 - Intro

00:40 - Why A Job Announcement Is So Important

01:18 - 2 Types Of Jobs

02:46 - Basic Jobs

03:44 - Example Of A Basic Job

05:04 - How Money Circulates

06:19 - A Basic Job’s Multiplier Effect

07:37 - Non-Basic Jobs

08:01 - Economic Base Multiplier (EBM)

09:09 - How to Figure Out The EBM

09:46 - Economic Base Analysis (EBA)

11:22 - Bureau of Labor Statistics (BLS)

12:22 - The Whole Model

12:43 - Population To Employment Ratio

13:24 - Predicting Demand

14:27 - Apartment Developer

15:52 - Make Money

16:32 - Market The Land 

16:54 - The Pipeline

18:55 - Multiplier In Reverse?

19:07 - Tech Company Lay-Offs

19:42 - Types Of Commercial Real Estate Space

20:11 - Quantifying Demand - Retail

20:54 - Quantifying Demand - Office

21:43 - Quantifying Demand - Office POST COVID

23:11 - New Market - Work From Home

24:27 - Figuring Out The Types Of Jobs

26:15 - The Blackhole That Is BLS

26:52 - ChatGPT 

27:36 - Goldmine Opportunity (Real Example)

37:35 - Too Good To Be True?

40:40 - The Math Is The Math No Matter The City

41:32 - Pop Quiz!

45:35 - Outro

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Bo is the owner and operator of Barron Commercial Group in Owensboro, KY servicing the Western KY and surrounding markets. 

For all CRE inquiries visit http://www.barroncommercial.com

Timmy is an actor, comedian, writer and host. You can follow him pretty much everywhere @timmyhartbarron