Our Mission
“To represent our client’s interests over and above our own while exercising the best due diligence possible in advising clients concerning the disposition or acquisition of net leased investments.”
A Personal Story
In April of 2015 I was an agent involved in a real estate closing representing a buyer acquiring a $2,000,000 parcel of industrial property. During this same period I happened to be reading Martin Ford’s “Rise Of The Robots,” about “technology and the threat of a jobless future.” Of special interest to me was information documenting automation and the impact on the future of American jobs. Martin Ford’s book, in a round about way, caused me to rethink my role in helping my clients and the focus of my business.
I began thinking back about my flying career as a naval aviator in 1970 as a Lieutenant in the Marine Corps. The automation that controlled the airplanes I flew in the Marine Corps during the seventies was pretty much limited to holding altitude, making turns and some point to point navigation. By the time I was flying the Boeing 737, 757, 767 and retiring off the Airbus 330, the systems were so advanced we could program the auto flight system on the ground to climb, level off, fly point to point cross country or around the world, descend at a given place, change airspeed, and land itself in extremely low visibility. Often the runway was not visible at touchdown.
The automation has proven reliable and safe. We also ride trains in the airport without a human at the controls. Based on my airline experience, I developed a personal interest in the long-term impact of automation and technology on our lives, good and bad. Martin Ford’s research is focused on the impact on the future of jobs. As a parent, this topic hits close to home and one of the reasons I am such a strong believer in net leased retail real estate.
It is a hedge against the possibility that our children and grand children will face an uncertain job opportunities.
Martin Ford’s book offers a look at the present and a look into the future when many jobs may not exist. Below are just a few excerpts from Mr. Ford’s book that illustrate that our society needs less people to produce the same level of output as in years past. Less people means less jobs, less jobs means a need for income from other sources. Voila, rental income from real estate.
Below are a few examples Mr. Ford illustrates in his book.
Parkdale Mills, in South Carolina, has the same level of production with 140 employees that required 2,000 factory workers in 1980.
Labor force participation in the economy has decreased from a high of 87% to 70% in 2013.
The US needs to create approximately 1 million jobs a year to keep up with population growth. 2000-2010 resulted in a deficit of 9 million new jobs.
In 2013, researchers at University of Oxford’s Martin School concluded approximately 50% of over 700 hundred US job types will ultimately be susceptible to full machine automation.
The University of California Medical Center in San Francisco prepares, bar codes and packages 10,000 individual doses of medication every day without the physical input of a pharmacist.
Machinery eliminated the majority of agriculture jobs. Workers moved to manufacturing. Robots are eliminating most manufacturing jobs. Workers have moved to service jobs. Automation, computer software, artificial intelligence, machine learning, algorithms and cloud computing are now eliminating those jobs.
Research indicates there may not be enough jobs in the future for everyone that needs one. Experts predict no amount of education can compensate for the speed and efficiency of modern technology and no industry is on the horizon that technology cannot handle with minimal input of human workers.
Like many of you, I am a parent and would like to see my children and grandchildren live happy and prosperous lives. Part of that experience depends on financial security, usually starting with a good education followed by a good career in their chosen profession. Martin Ford has produced a compelling argument that good jobs are disappearing at a disconcerting rate. If it is true that good jobs are gradually disappearing in the American economy due to automation and technology, my children and yours are at risk.
Secure passive income from net leased investments, in my opinion, is an excellent opportunity to provide long-term cash flow and an increase in net worth. Creating ownership in real estate that provides corporate guaranteed cash flow while the property increases in value can create future security for you and your children if in fact the jobs we depend on become harder and harder to find.
Kent Lawrence