Page 52 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

land package for Toyota so that it would build a manufacturing
plant and create 8,000 new jobs.

When you understand what a city is doing to attract new businesses,
you can gauge how strong the job growth may be.
By the way, the Chamber of Commerce loves to speak to us inves-
tors. They know the only way to turn the city around relatively quickly
is to have us come in and invest.
Here ’ s another good indication that you ’ ve found a prime area to
invest — new big - box retail stores being built in the area. Is Home
Depot, Best Buy, or Wal - Mart establishing a presence in the market?
If so, you can bet these outfi ts did some heavy - duty research and that
there is an economic resurgence going on in that area.

Key Factors

You already know how critical job growth is to the economic vitality of
an area. When jobs are coming into a market, it usually takes the form
of relocations at first. Those attractive economic incentives we just

discussed are enough to cause major employers to decide: “ This area is
for us. ” Relocations can also be a fairly quick shot in the arm.
Job growth then happens in the form of new hiring in the local
market. After that headquarters was relocated to the market, all the sup-
port infrastructure — the markets, shops, gas stations, and so on — will
grow to meet that sudden demand.
As demand for workers increases, the supply of workers drops.
This leads to an increase in median income. This good news will in
turn attract new retailers to the area, and more jobs are created. Aren ’ t
upward spirals great?
Population trends is another key factor. People move for a variety
of reasons and they move in waves. In the early 2000s, a wave of peo-
ple moved from cold - weather states, such as in New England, down to
Florida. Then, as prices rose in Florida, part of this wave was priced
out of that market.

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