In this episode, Bo and Timmy discuss the economic and real estate impacts of new jobs in Owensboro, Kentucky, following Gov. Andy Beshear’s announcement of new dollar bills coming to the community because of Zyn. They analyze the difference between basic and non-basic jobs, explaining how basic jobs create a multiplier effect in the local economy.

Using economic base analysis, they determine the impact of 400 new basic jobs, leading to a projection of 2,684 total new jobs and a predicted population increase of 5,395 people. They also discuss how these changes will affect various sectors of the real estate market, including multifamily housing, retail space, and office space.

Additionally, they highlight the importance of maintaining a certain level of vacancy in the office market to ensure efficiency and flexibility for businesses. Overall, the conversation provides valuable insights for real estate professionals and business owners in Owensboro.

Takeaways:

• Basic jobs have a multiplier effect in the local economy, creating non-basic jobs and increasing economic activity.
• The economic base multiplier can be used to predict the total number of jobs that will be created as a result of new basic jobs.
• The population employment ratio can be used to estimate the increase in population due to new jobs.
• Retail demand is driven by disposable income, which can be influenced by the increase in population and employment.
• Understanding the impact of new jobs on the local economy is crucial for commercial real estate professionals. Job announcements can have a significant impact on the real estate market, creating demand for various types of properties.
• Projected population growth and disposable income can help predict the demand for multifamily housing and retail space.
• Maintaining a certain level of vacancy in the office market is crucial for efficiency and flexibility for businesses.
• Understanding the specific needs and preferences of the target market is essential for successful development and investment in real estate.
• Sharing knowledge and insights through podcasts and other platforms can help professionals and businesses make informed decisions.

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⏰ Time Code ⏰

00:00 Introduction and Subscriber Update
03:26 Announcement of New Jobs in Owensboro
11:53 Understanding Basic and Non-Basic Jobs
19:13 Calculating the Economic Base Multiplier
25:46 Predicting Population and Employment Growth
32:13 Impact on Retail Demand
39:50 Calculating Disposable Income and Retail Demand
42:46 The Impact of Job Announcements
45:21 Predicting Demand for Multifamily Housing and Retail Space
53:23 The Need for New Rental Units
57:02 The Importance of Vacancy in the Office Market
01:09:21 Demand for Office Space
01:13:19 The Need for More Office Space

📒Show Notes📒

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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 https://www.barroncommercial.com

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