SpaceX in South Texas

During class, we discussed that Tesla motors is moving to Nevada bringing thousands of jobs bringing $100 billion in economic activity. Tesla CEO Elon Musk is taking his pribately owned SpaceX company to south Texas right at the mouth of the Rio Grande River. SpaceX’ vision as found on their website is “SpaceX designs, manufactures and launches advanced rockets and spacecraft. The company was founded in 2002 to revolutionize space technology, with the ultimate goal of enabling people to live on other planets.”

Photo Source: http://www.spacex.com/sites/spacex/files/spacex_default.jpg

Some key points from an article are provided below: 

• SpaceX will be the first private commercial orbital launch facility in the world

• Site will be operating by 2016 launching 12 flights per year

• Texas offered $15 million in incentives

• $80 million in improvements will be made to Boca Chica Beach

• SpaceX will bring 300 direct jobs to the southwest border region

• SpaceX already has a facility in central Texas that does rocket testing

The activity in this region will be extremely interesting to watch. With the 300 direct jobs serving private commercial orbital launches, it is safe to say that other additional nonbasic jobs will be added to the local economy. Additionally, tourism should be expected to increase. The article mentions the prevailing immigration issues in the region which bring connotation of regional/local decay and relatively poorer economic conditions. The attraction should bring positive effects to the region in the form of renewal, increased labor, and increased overall general market conditions. 

Article source: http://news.yahoo.com/spacex-breaks-ground-texas-orbital-launch-facility-194228703--finance.html#

http://www.spacex.com/

Fast Growing City Under 150K People!

According to the Census Bureau, San Marcos is the fastest growing city in the US by percentage growth and with population over 50,000. From July 2012 to July 2013, San Marcos grew by 8%. The 2009 & 2012 ACS 5-year estimate data was used for analysis. Although the city grew by 8% according to the Census, the employment figures were far less appealing for the 2009-2012 period. Another data source may prove beneficial for analyzing more current figures.

San Marcos
2009 ACS 5-year Estimates Population: 49,565
2012 ACS 5-year Estimates Population: 46,131

Below, we can see that the population for San Marcos has been trending upward but a decrease between 2010 and 2011. Currently, the market is regaining that lost population. Investors may be able to capitalize on a currently depressed economy that is recovering.

Economic Base Analysis

 Employment Growth from 2009 to 2012

 National Employment Growth

Industry Mix Table

Regional Shift Table

 Summary Table: Shift Share Components of Growth

San Marcos: Shift-Share Results

See: http://www.foxnews.com/politics/2014/05/22/census-bureau-says-texas-utah-home-fastest-growing-cities/

Data Source: Census, 2009 & 2012 ACS 5-year Estimates, Table. Selected Economic Characteristics

Real Estate Development and Partners

In this past week we discussed various participants in real estate development. A developer isn't someone who knows everything about developing a piece of real estate but he better know people who know the various components of real estate development. He will rely upon professionals who are experts in their subject area. For my blog, I would like to high-light urban planners and the public entities, particularly in the case of a planned development in Bellingham, Washington. 

Georgia-Pacific owned a property that was historically industrial and operated as a pulp and tissue mill from the 1920's until 2007. The 137-acre property was put on the market, but due to the historical operations contamination was pervasive throughout the site. The Port of Bellingham expressed interest in a portion of the property for initial development as a public marina but later decided to purchase the property for full redevelopment of the Bellingham waterfront into mixed-use development including light industrial, commercial, retail, residential and public spaces. Costs to remediate made the property difficult to sell. The Port was able to envision a use for the entire property in addition to other adjacent properties that were being acquired or owned around the Bellingham waterfront. The Port partnered with the City and Department of Ecology in order to make the remediation and redevelopment of the site feasible. A master plan was approved in 2013 detailing the various uses and layout of the entire waterfront district. Planners and the local government took on this project when the private market could/would not. The public nature of the partnering entities and funds available that made this project feasible financially. Additionally, they entire waterfront district could be planned holistically allowing for arguably better integration of uses and serving as a public good. 

Source: https://www.djc.com/stories/images/20130520/AerialViewJS2_big.jpg

Source: http://www.ccim.com/sites/default/images/cire-legacy/MarApr07-bilsky-lydia.jpg

2013 Master Plan

Most interesting piece of Real Estate...

What is the most fascinating, interesting, or inspiring parcel of real estate from your perspective?

This is such a loaded question and one that I am not willing to commit to answering. But for sake of the class and assignment I will submit an answer. I'm going to pick one that I've visited. It is a place called Tortuguero in Costa Rica which is translated Land of Turtles. I took a winter study-abroad trip in my undergraduate education to Panama and Costa Rica and we happened upon this resort. What makes it most interesting to me is my affinity for tropics and beach towns. I also reserve the right to choose another tropical beach town when I come across another better one. We had to take a one hour river ride to access the resort which was located along a peninsula with the ocean to one side of the resort and the river and jungle to the interior. I enjoy leisure and aesthetics. For me, this place was paradise and invigorating. It may not be interesting from an operational, historical, and investment perspective, but I hope to return here again. We were greeted with punch and rum drinks and taken to our simple but comfortable cabins made of rain forest woods. Everything is designed to adhere to the tropical and humid environment. The resort provided meals and everything. As removed as the place was, the food was phenomenal. This was the first time I ever had Sea Bass and was blown away by how great fish can be. I've really only ever had Fried Catfish prior to this point. Howler Monkeys howled in the distance. Toucans hopped among the trees. Poison Arrow Dart Frogs suctioned to trees. We kept our distance as told. With the land comes a new way of living. Urban amenities are not near; only a small village - Tortuguero Village. Yet, people call the area home. The rain forest is their backyard. Real Estate can be special for various reasons. Many times it is due to historical significance or unique profitability. I choose Tortuguero for the sentimental and unforgettable experience I had there compounded by the attractive nature of the tropical rain forest and neighboring ocean. It's something completely foreign to me, and that is attractive.

Source: http://sportfishing-costarica.com/wp-content/uploads/2013/05/Tortuguero1.jpg

Source:  http://www.eclipse-tours.com/app/cms/www/index.php?id_menu=35&pk_categoria=13&pk_product=176&id_menu=35 

Howdy!

Good Day,
This blog will introduce myself.

Name: Wayne Day

Major: Master of Real Estate '15, PhD Urban and Regional Science '17

Hometown: I consider a few towns my hometowns. McKinney, Van Alstyne, and Carrollton, Texas

What would I like to get out of this class? For Real Estate Development Analysis: I'm hoping to gain a good overview of the development process and various considerations when planning for and/or analyzing a development. For Real Estate Market Analysis: I'm hoping to understand various points of analysis when understanding what types of real estate products will be successful for development or where various products are in the supply/demand cycle.

Hobbies and Interests: Right now it's school. Lots of it. So when I get free time I just like to veg out. I like movies and anime. I'm still getting my bearings in College Station, but if I'm in Dallas I'll go out with friends and eat. I really like food. I like it even more when people cook for me. I would like to pick up Muay Thai fighting again.

Short-Term Goals: Graduate!; be completely debt free; get appraisal and brokers licenses; create and land opportunities related to my career

Long-Term Goals: Graduate! always be debt free; amass wealth for purposes of benevolence and generational transfer; consistently travel; own various investments and businesses; participate in academia and teaching

What is unique about you? I consider myself blessed and my life is a dream. Though times may seem stagnant, if I take a break and look at where I'm at in life and what I have, I'M BLESSED! I'm a dork. That's what I think. But I've come to accept that. The nerdiest thing I do is I like anime. Also, I think I've almost died a few times. Once due to MRSA infection on my leg which almost had to be amputated. Another time was on a 4-wheeler. Surprisingly I didn't get hurt at all since I didn't crash, but it was a close encounter with seeing the lights. I'm a sucker for buying premium things. If there is a regular version of something or a premium deluxe edition, I'm gonna get the premium deluxe. I'm also a sort of wanderer. I tend to be a part of various social groups without identifying with any one. I guess I just like diversity.

Items from Bucket List:

Dive with Great White Sharks (in cage of course!)

Climb a mountain, I'm thinking Mt. Kilamanjaro.

Live in another country for at least 2 years

Learn Spanish and some Asian language (still undecided)

Give away tons of money

Favorite sites:

Business/Academic

http://recenter.tamu.edu/

www.wsjonline.com

Whatever gives me the sources/resources that I need! Life is a hunt and a grind!

Personal/Entertainment

www.imgur.com

www.uncrate.com

www.animefreak.com

www.woodinked.com

7mcity.com