The Real Estate Espresso Podcast

On today’s show we are taking another look at artificial intelligence. So far when we think of AI, most people think of something like ChatGPT or Google Gemini. But this is the tip of the iceberg. The real revolution is going to be the combination of AI and robotics. We are talking about a complete remake of virtually all physical products in existence. Think of autonomous vehicles, autonomous lawnmowers, autonomous aircraft, autonomous cooking tools, autonomous construction equipment.The US administration seems focused on bringing manufacturing back to the US. But instead, the US should be focused on winning the factories of the future. These facilities will first need to manufacture the robots that will be used to manufacture the products. If we don’t take that first step then we will be doing some manufacturing in the US with Chinese robots. That virtually guarantees that our western economies will be relegated to a second tier economy. Europe is a lost cause. They’ve erected so many regulatory barriers that Europe is has no chance to achieve leadership in AI. So on today’s show I’m going to showcase one startup company, Bedrock Robotics.Their focus is on excavators for heavy construction. -----------------**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 what happens when there is an announcement about jobs moving. It seems like a zero sum game in which there are winners and losers. Yesterday’s announcement from the White House had those characteristics. If you’ve been following this show for a while, you know that my development firm Y Street Capital, together with a few partners owns a large parcel of land consisting of 1783 acres in Colorado Springs. The project is a large master planned community located on the eastern edge of Colorado Springs. The development of the city is constrained by the mountains on the west side. It has developed North and South. Denver is about an hour to the North. The city has also developed East which is where our property is located. Our immediate neighbour is Schreiver Space Force Base. There are numerous assets in Colorado Springs.Colorado Springs is a major hub for U.S. military space and defense operations, and as a result, many of the assets located there are part of the newly formed U.S. Space Force, which was created from elements of the U.S. Air Force.The move was widely anticipated. Our sources said that the announcement would happen before the end of August. (We were off by two days.) Our sources tell us the move is anticipated to affect about 750-1000 jobs. Schriever Space Force Base is not being moved, nor are the ground bases in Alaska or elsewhere around the world. While the move is negative for Colorado Springs, we anticipate that the Golden Dome announcement from earlier this year will require growth in both Colorado Springs and Huntsville in order to be realized. Much of the growth that was announced for Huntsville is linked to the Golden Dome program, and not the wholesale relocation of Space Force from Colorado to Huntsville. Therefore, we do not foresee a long term negative impact.-----------**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 taking a look at a paper published in the past week by Stanford University.But first, I’d like to let you know about an opportunity for one lucky individual to participate in the creation of the real estate espresso podcast. This is an unpaid internship position which will give you the opportunity to learn and to contribute to how guests for the podcast are selected. The work represents a couple of hours a week. If you, or someone you know might be a good fit for this position, we will be accepting applications to join our podcast team. Send an email to podcast@victorjm.com and let me know a little bit about yourself and how you think you might be a good fit. Again send an email to podcast@victorjm.comOn today’s show we are taking a look at a paper published in the past week by Stanford University.There is a lot of news coverage about how AI is changing the world of software development. This is seen as a bellwether for what is to come elsewhere in the economy. Software is ideal for tools like AI in that it is a much more restricted language than natural language with a much smaller vocabulary. It’s at the intersection of math and language, so it’s much easier for a large language model to work on. The Stanford paper was widely quoted in the media and it tells us a few things about the state of AI and how it is affecting hiring. The first, and perhaps most striking fact is the substantial and measurable decline in employment for workers aged 22-25 in occupations deemed most exposed to generative AI. This group has experienced a 13% relative decline in employment since late 2022, a period that coincides with the widespread adoption of tools like ChatGPT. For the most AI-exposed occupations, young workers experienced a 6% decline, while older workers saw an increase of 6-9%. This tells us that junior positions are being displaced, but the most experienced workers are using AI to augment their work and multiply their productivity. -------------**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)  

Our book this month is "The Four Obsessions of an Extraordinary Executive: A No-Nonsense Breakdown" by Patrick Lencioni.It's not a new book. It was first published in 2000. The author is founder and president of The Table Group, a firm dedicated to helping leaders improve their organizations’ health since 1997. Prior to founding The Table Group, Lencioni served on the executive team at Sybase, Inc. He started his career at Bain & Company and later worked at Oracle Corporation.The core of the book are four obsessions that the author believe are core to a healthy organization.Obsession #1: Build a Real Leadership Team, Not a Social ClubObsession #2: Stop the Confusion and Get ClearObsession #3: Communicate Until You're Sick of Your Own VoiceObsession #4: Put Clarity into the Company's DNA-------------**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)  

Galiano Tiramani is based in Las Vegas, Nevada where the factory for Boxable.com is located. The idea behind Boxable is optimizing the entire end to end construction process and creating an efficient shipping package that allows for cost effective transportation. By reducing as much of the site work to the bare minimum, it is possible to reduce the overall cost of construction. To connect with Galiano or to learn more visit boxable.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)  

Adam Gower is based on the Central Coast of California. He has over 40 years experience in commercial real estate. On today's show we are talking about how to connect authentically using LinkedIn as a vehicle for building relationships. To learn more, visit gowercrowd.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)  

Every year the Kansas City Fed hosts the Jackson Hole symposium. All eyes are on the opening speech from Jerome Powell which was widely covered by the news media. To me, the more interesting talks are the invited speakers who give talks on various elements of the economy. The theme this year at Jackson Hole is demographics and the impact on the labor market. So this week we will be doing a mini series summarizing the most noteworthy talks from Jackson Hole this year. The paper we are examining is by Emi Nakamura from Berkeley University. In this paper the author is examing the Taylor Rule named after John Taylor who came up with the observation after six years at the Fed, specifically examining the Alan Greenspan years. Emi Nakamura shows convincingly that the Taylor Rule rarely if ever applies in the real world, except for those six years. -------------**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 global response to US negotiating tactics. The President is used to negotiating with a single party across the table. But he lacks experience negotiating with millions of people who are not party to the negotiation. The current negotiating stance of the US administration is highly combative and employs methods designed to maximize US leverage in the negotiation. There are three possible responses to this approach Engage In NegotiationsGive in to US demandsTake steps to reduce or eliminate the US negotiating power It’s that 3rd approach which is not getting very much attention. It also presumes that you know who you are negotiating with.  --------------**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)  

Every year the Kansas City Fed hosts the Jackson Hole symposium. All eyes are on the opening speech from Jerome Powell which was widely covered by the news media. To me, the more interesting talks are the invited speakers who give talks on various elements of the economy. The theme this year at Jackson Hole is demographics and the impact on the labor market. So this week we will be doing a mini series summarizing the most noteworthy talks from Jackson Hole this year. Some of these talks are considered boring by the news media and they don’t get covered. But for those who seek to understand how the economy functions, these talks are very interesting.On today's show we are examining a paper called "Interstate Labor Mobility and the US Economy". It has four authors, two from the University of Michigan and two from Europe. Their paper discusses how Gross migration rates within the United States have undergone a subtle but significant transformation over the past five decades. While some sources, notably the Current Population Survey (CPS), paint a picture of a steep decline, plunging from over 3% to a mere 1.2% by the end of the sample period, a closer look at more robust data tells a different story. Using IRS data, the authors show that labor force mobility declined to 2.5% from 3% over that same time period. They further break down the components of why people move. One factor that I believe was not adequately addressed is the rise of remote work. People don't have to move for work in many instances. That virtual mobility may in fact be by choice rather than necessity. -------------**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)  

Every year the Kansas City Fed hosts the Jackson Hole symposium. All eyes are on the opening speech from Jerome Powell which was widely covered by the news media. To me, the more interesting talks are the invited speakers who give talks on various elements of the economy. The theme this year at Jackson Hole is demographics and the impact on the labor market. So this week we will be doing a mini series summarizing the most noteworthy talks from Jackson Hole this year. Some of these talks are considered boring by the news media and they don’t get covered. But for those who seek to understand how the economy functions, these talks are very interesting. Our first one is focused on a talk by Claudia Goldin from Harvard University.-----------**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)