Real Estate Espresso

Today I want to talk about learning AI, and why it's fundamentally different from learning most other professional skills.If you decide you want to become a doctor, you commit to a long, structured journey. Years of study, exams, residency, and then a licensing body tells the world, “Yes, this person meets the standard.” Same thing with engineering, law, accounting, IT security, even trades like electrical. You put in the reps, you cross the stage, you get the credential.And yes, the world changes. Doctors have continuing education. Lawyers track case law. Engineers adapt to new codes. But the underlying framework, the language, the standards of practice, those evolve slowly enough that your investment in learning compounds over a career.AI is different. In AI, what worked 90 days ago can be obsolete today. Not because the fundamentals changed, but because the toolset changed. The interface changed. The capabilities changed. The cost changed. The workflow changed. And the people around you, your competitors, your employees, your vendors, they are all adapting in real time. If you learned “the way” to do something with an AI model last quarter, there's a decent chance you are already working off an outdated playbook.So what does that mean if you're serious about learning it?It means you're not learning a profession with a stable body of knowledge. You're learning to operate inside a moving river.-------------**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)  

Today I want to talk about something that looks like it belongs in an auto industry newsletter, but it's actually a leading indicator for the broader economy, and it matters for real estate investors.Walk onto an auto dealer lot today and you'll see a lot more sheet metal sitting still than you're used to seeing. The lots look full, and in many cases, they are. But the more important metric is not “how many cars you see,” it's how long they're sitting there.Cox Automotive reported that in January 2026 the U.S. market began February with inventory around 2.77 million units, and the key line was this, days' supply jumped to 98, driven by a notably slower sales pace. When days' supply rises, the story is simple, the vehicle is not moving, the consumer is hesitating. And that jump happened fast. Cox noted days' supply around 76 in the prior period, then up to 98 as sales slowed. CarEdge tracks market day supply by vehicle, essentially how long it would take to sell existing listings at the current sales pace. In late winter 2026, some models are showing truly abnormal numbers, deep into the multiple hundreds of days. The attached notes you provided list examples like the Dodge Charger around 406 days, the Jeep Grand Wagoneer around 463 days, and the Volkswagen ID.4 around 480 days of supply, which is beyond “slow,” that's a demand breakdown at the price point. Even some Korean cars are showing huge inventory. The Hyundai Sonata has 201 days of inventory on dealer lots. The Hyundai Santa Crus has 222 days on dealer lots. The Buick Envision which incidentally is made in China has 267 days of inventory on dealer lots. The are more than a dozen models with over 200 days of inventory on dealer lots. ------------**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)  

Today we're looking at the book Abundance, by Ezra Klein, co-authored with Derek Thompson, published in 2025. Ezra Klein is a writer and editor. He has a columnist and editor at The Washington Post, a policy analyst at MSNBC, and a contributor to Bloomberg. He's written for The New Yorker and The New York Review of Books, and appeared on Face the Nation, The Daily Show, PBS NewsHour, and many more. He has earned a reputation of being somewhat left wing in his views. There is a danger in type casting people. As you will see, much of what he talks about in his book could be considered part of the libertarian and Republican core beliefs. In real estate, we live and die by the gap between what people need and what the market can deliver. When housing is scarce, rents rise, household formation slows, employers struggle to hire, and communities get brittle. Abundance is a book that argues the United States has not merely stumbled into scarcity, it has, in many ways, designed it. The authors' central claim is that we've built layers of well-intentioned rules and processes that make it painfully hard to build housing, infrastructure, and clean energy at the scale we say we want. -------------**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)  

Shadow Stats, launched by John Williams is famous for exposing the distortions in the currently published official economic statistics. Each successive administration has tweaked the metrics with small adjustments that make the numbers look slightly better. Cumulatively, over time, the distortions are large. On today's show I'm speaking with Jay Morse, part of the core team at Shadow Stats live on location in Sonoma. To connect with Jay and to learn more, email jaymorse.shadowstats@icloud.com or johnwilliams@shadowstats.com. The website is shadowstats.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)  

Today we are talking about a policy idea that keeps resurfacing around the world, taxing unrealized gains.If you have ever underwritten a deal, you already know the difference between a gain on paper and cash in the bank. Unrealized gains are accounting gains. They exist because an asset is worth more today than it was yesterday, at least according to some valuation method. But until you sell the asset, refinance it, or otherwise monetize it, that gain is not cash flow. It is potential.In the Netherlands, there is proposed legislation that would tax unrealized capital gains. It is being discussed under the umbrella of reforming “Box 3,” the part of the Dutch personal income tax system that applies to savings and investments. The Dutch lower house adopted a bill on February 12, 2026, often referred to as the Box 3 Actual Return Act, with an intended effective date of January 1, 2028, although the Finance Minister has already indicated amendments may be needed and that Senate approval is uncertain. So why is the Netherlands going down this road? Because their current system has been under pressure for years.Historically, Box 3 taxed investors based on a deemed return, a fictitious assumed rate of return, rather than what someone actually earned. When interest rates were near zero, people with cash savings were taxed as if they were earning healthy investment returns. Courts rejected that approach, and the government has been trying to craft a replacement. In response, a bill was advanced to move from deemed returns to “actual return.” The catch is in how “actual return” is defined.  Under the bill the system would tax actual annual returns at a flat rate, and that includes value increases that have not been realized through sale, in other words, unrealized gains. -------------**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)  

Today we are talking about a piece of legislation in Florida that, if it ultimately becomes law, could reshape how property taxes are calculated across the state for decades to come. It is House Joint Resolution 203, often referred to as HJR 203, and it has just passed the Florida House. Now, first, a reminder, a joint resolution like this is not a typical statute change. It proposes a constitutional amendment. In Florida, that means voters ultimately decide, and it generally requires a 60 percent approval threshold on the ballot. So what does HJR 203 propose?The short version is that it would gradually expand the homestead exemption for non school property taxes by $100,000 per year for ten years beginning in 2027, and by 2037, it would fully exempt homestead property from non school ad valorem taxes. School district levies remain. So why does this matter to real estate investors, even investors who do not own homesteads?Because property taxes are not just a line item. They are a transfer system. If you change who is exempt, you change who must carry the load, or you change what services get funded, or both. And if you change the tax base, you can change market behavior.------------**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)  

I'm coming to you live from Sonoma California where I've been attending a small business mastermind event. Today we are talking about something that, on the surface, looks like agriculture and tourism, but underneath is a case study in economic gravity. This is the result of direct observation and conversation with people who are local to the market. Northern California wine country, Napa and Sonoma in particular, has an aura of permanence. Rolling hills, tasting rooms, hospitality, luxury brands, and a global reputation built over decades. When something has that much cultural momentum, people assume it is immune to basic supply and demand. It is not.Every business lives inside a box of four forces, supply, demand, capital cost and regulation. We're not going to talk about capital cost today. When supply expands faster than demand, prices compress. When regulation rises, costs increase and flexibility disappears. When all three move against you at once, even great operators can find themselves trapped. --------------**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 biggest obstacle to manufacturing in the US. When I was deeply involved in the tech industry as a microprocessor design engineer, there was a culture. It's a culture that has turned out to be unhealthy and is one of the core reasons why we don't have manufacturing in North America. There will continue to be announcements of new data centres, of manufacturing, and perhaps other major investments. The success of those initiatives is not about tariffs, or the real estate, or the tax incentives offered by the local government. It's going to be about growing the talent pool of skills to gain critical mass in those geographic locations. Only then you will see the transformation of industrial activity in the country. That kind of brain trust is not developed in a week or a month. Where we have dozens of people with that deep expertise in a major city, you will find tens of thousands in Taiwan and China. ------------**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)  

Joseph lives in California and has a property in central Florida. The issue is a series of tenants causing damage and defaulting on their rent. Should I sell and cut my losses? -------------**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)  

Brett is based in Jacksonville Florida and specializes in reducing capital gains taxes. On today's show we are talking about substantial estate taxes that kick in above $15M in assets. Brett shares strategies for mitigating those taxes. To connect with Brett and to learn more visit capitalgainstaxsolutions.com. He also has a new book, available on Amazon called Building A Capital Gains Tax Exit Plan.-----------**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)  

Kelley is based in NYC and is the President of Rose Valley Management, an institutional firm with over 10,000 apartments in their portfolio nationwide. On today's show we are talking about how market dynamics have changed with the current over-supply in many primary markets. It involves adapting to market conditions to create a more competitive offer for existing tenants. To connect with Kelley, you can find her on LinkedIn at https://www.linkedin.com/in/kelley-brine-37a4525/or visit https://www.rosevalleymanagement.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)  

Today we're talking about a phenomenon that's showing up in land markets across North America, especially in regions being marketed as “next wave” data center corridors.There is real data center demand. No question. But there's also a growing layer of speculative behavior that is creating noise, inflating expectations, and in some cases putting landowners at risk.Here's what's happening.A group of land speculators, often with no backing from an actual data center owner or operator, are putting large acreage under contract with the hope of reselling those contracts. They're not buying the land to build. They're trying to control the land long enough to flip the paper.In hot markets, controlling the asset is sometimes more valuable than owning it, at least for a short window. If you can tie up 200 acres near transmission lines and a proposed substation, you can market the contract like you're bringing a “site” to the table, even when you have no real end user.-------------**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)  

You've heard me say it numerous times. Energy is the economy. If you don't believe me, just look at Cuba. The country is being starved for oil and the country is unable to function. At first it was just the United States imposing sanctions on countries that it sees as violating international law. That includes Russia, Venezuela, Iran, North Korea, and certainly a few others. But those sanctions have been largely paper exercises involving money and financial instruments. It's only when a physical blockade of oil tankers severed energy trade routes that we started to see a real tangible impact. Other countries have joined in and impounded vessels that were carrying sanctioned oil. When it comes to global oil prices, the usual metrics of supply and demand seem to rule the day. The measure surplus or shortage is based on inventories consisting of tank storage and “oil on the water” which is oil in the hold of a ship. But what about the dark fleet that doesn't report its inventories? They are called “dark" because they turn off their AIS transponders which allows for position tracking. They participate in ship-to-ship (STS) transfers in international waters, and these ships frequently change country of registration to make tracking more difficult.That is how a “shipping problem” becomes an “oil price problem,” even when there is plenty of crude in the ground.An oil tanker crunch is coming. New ships are not being built fast enough and these older ships are going to be very difficult to bring back into good standing with the world's major insurers. We could see a global oil shortage because of a shortage of insurable ships. --------------**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)  

I asked an AI tool to write a program for me from scratch. Let me be clear, I've never written a software program for MacOS. I have not read any of the documentation on where to start or how to do it. I asked Claude to create a game of tic-tac-toe. The AI tool did the entire job in less than 15 minutes. I now have a functioning game of tic-tac-toe on my computer. It cost only a few pennies to create it, far less than the $2-5 that it originally estimated. The true power of the process is that I got the AI to write the instructions for writing the software from a pretty vague set of specifications. It showed me that far more complex problems can be solved using this approach with only a few minutes of thought. This opens up the world of solutions that would have been unthinkable only a few months ago. These tools are collapsing the cost of writing software virtually down to zero. The large scale adoption of these approaches will change the world. It has already. -------------**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)  

Mainstream headlines are saying, “home sales have slowed.” And on the surface, that's true. January's existing-home sales number came in down 8.4% from December, to a seasonally adjusted annual rate of about 3.91 million units, according to the National Association of Realtors. But here's the question I want to explore today. Did demand actually slow, or did unusually cold January weather interfere with the mechanics of completing transactions in a way that makes the data look worse than the underlying reality?Now before you leave, today's podcast episode was an experiment. The podcast sounded like me, even to me. But it was not me. It was actually a synthesized version of my voice using artificial intelligence. This is the technology of Eleven Labs at work. I provided about 30 minutes of recorded audio from myself in order to train the AI to create a voice that sounds like me. I'd like feedback from you the listener. Drop me an email at victor@victorjm.com and let me know if you could tell it was not me. Maybe you thought it was actually me talking. Let me know that as well. I'd like to know either way. Let me be clear, I have no intention of stopping recording the podcast live. ---------------**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)  

There's an article in the most recent issue of the Harvard Business Review making the rounds arguing that organizations are doing too many transformations, too often, and that constant change is damaging. The authors point to change fatigue, shaken confidence from customers and investors, and leadership teams spending more time “doing transformation” than building products, serving customers, and creating value. They even recommend getting off what they call the “transformation treadmill,” and instead building a system that senses change early and makes steady adjustments.No question, the diagnosis of change fatigue is real. If you've ever watched a company reorganize itself three times in two years, you know exactly what they mean. People stop believing anything is real. They wait it out. The organization learns helplessness. The best people leave. So yes, random change, change for optics, and change that is disconnected from a real business problem, that is destructive.But here's where I want to rebut the conclusion.We are entering a period where the rate of change is not just high, it's accelerating, and it's being driven by artificial intelligence. And AI is not a productivity feature you bolt onto last year's workflow. AI is a general-purpose capability that changes how work is performed, who performs it, what skills matter, and how decisions get made. Treating it like an “add-on” is the corporate equivalent of adding a turbocharger to a horse.--------------**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)  

Sean Roberts is CEO at Villa Homes specializing in volumetric modular construction in California and Colorado. The products range from backyard ADU solutions to fully detached homes rebuilding from the wildfires in Altadena. On today's show we are talking about the product design features and how the company is scaling.To connect with Sean and to learn more, visit villahomes.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)  

Jimmy Vreeland is based in St. Louis and invests in three different markets where he has a portfolio of single family homes at scale. To connect with Jimmy you can find him on Instagram and Facebook at:https://www.facebook.com/jimmy.vreelandhttps://jimmyvreeland.com/https://www.instagram.com/jimmyvreeland------------**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)  

This is a real estate podcast. But there is no part of the modern world that is insulated from advances in AI, as well as the negative consequences of AI. Today we're talking about the EU AI Act, and what it can mean for real estate investors who own property in Europe, especially if you use “smart” building tech like security cameras, access control, tenant screening, or building automation. I've long held the opinion that European legislation can often serve as a canary in the coal mine for what might happen elsewhere in the world. So we are looking at Europe's AI Act in that context. ------------**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)  

California AB 835 was signed into law in October 2023 and it directs the State Fire Marshal to research and develop recommendations for building standards that would allow “single stair” multifamily buildings above three stories, then report back to the legislature and the California Building Standards Commission. So this is not yet a statewide code change that suddenly makes single stair buildings legal everywhere tomorrow. It is a state-driven pathway to rewrite a very specific rule that has shaped apartment design for decades.And that rule is simple: once you go above a small building size, most codes require two enclosed stairways. That requirement drives the floor plate, the building core, the hallway length, the number of units you can fit, and the economics of what is even possible on a narrow or oddly shaped lot. Any time you touch fire and life safety code, you will get pushback, and some of it will be sincere and valid.The pro-single-stair argument is that many global cities allow this form safely with modern fire suppression, compartmentalization, smoke control, alarms, and design standards. There is ample research pointing to a strong safety record for small single stair apartment buildings and arguing the U.S. code is out of step with the evidence.------------**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)  

Welcome to the Real Estate Espresso Podcast, your morning shot of what's new in the world of real estate investing. I'm your host, Victor Menasce.On yesterdays show we talked about the employment numbers for the US from payroll processing company ADP. The ADP numbers were a weak but in my view accurate reflection of the state of the labor market in the US Today the Bureau of Labor Statistics published their employment report for January. I'm here to tell you to skip the headline and in particular pay attention to the part most people skip, the revisions. Because right now, the revisions are the story.The headline for January 2026 says total nonfarm payroll employment rose by 130,000, and the unemployment rate held at 4.3%.If you stopped there, you might conclude the labor market is reaccelerating. But here's the problem. In the same release, the BLS tells us that the entire year of 2025, after benchmark revisions, amounted to only +181,000 jobs on a seasonally adjusted basis. Think about that. One month, January 2026, prints 130,000, which is roughly the same magnitude as the entire net job growth for all of 2025. That should make you skeptical, not euphoric.------------**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)  

We regularly look at macro economic data to forecast interest rates. Interest rates affect one of the three main variable associated with any project. Those three variables are construction costs, capital costs and rent. Everything else is a rounding error by comparison. We are expecting new payroll data from the bureau of labor and statistics later this week. However, those numbers are full of approximations and adjustments. To me, the most reliable data actually comes from private enterprise which is the real time payroll data from ADP. The ADP data is not a survey or a statistical sample. It's the real data taken from real payroll transactions in the past month. We're going to start with the employment data and then look at bond yields. We know that the Fed funds rate has dropped 75 basis points in the past year. But the yield on the 10 year treasury has hardly budged in spite of everything that has happened. So let's start with the payroll info and analyze from there. The latest ADP National Employment Report, released on February 4, 2026, indicates a significantly cooling U.S. labor market. Private sector employment grew by only 22,000 jobs in January, falling well short of the Dow Jones consensus forecast of 45,000.If we look by sector, the modest growth was almost entirely propped up by Education and Health Services, which added 74,000 jobs. Without this surge, the overall private sector numbers would have been negative.Treasury yields generally shifted lower as the market reacted to the signs of a rapidly cooling labor market. This trend was amplified by a "flight to safety" as investors moved out of riskier assets like equities and into the relative security of government bonds.------**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)  

Today we're going to connect two stories that, on the surface, look very different. One is Japan, where government bond yields have been rising, and the commentary on financial social media is busy declaring Japan is “blowing up.”The other is the spring of 2023 in the United States, when Silicon Valley Bank, Signature Bank, and First Republic, all failed within weeks of each other. These events rhyme because the underlying physics is the same. Duration risk plus leverage plus flighty funding can turn a paper loss into a real loss in about a weekend.Let's start with the basic math. When interest rates rise, bond prices fall. That's not an opinion, that's bond arithmetic.--------------**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)  

Max Hansen has been practicing lawyer at the forefront of tax sheltering for nearly 50 years. His company was acquired by Accruit where he is now a senior partner. On today's show we are talking about structures for fractional ownership of property that can be sheltered from capital gains tax.To connect with Max and to learn more, visit https://accruit.com or email him directly at maxh@accruit.com. He can also be reached at 800-237-1031.-----------**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)  

Robert Siciliano is based in Boston where he specializes in digital security for businesses. On today's show we are talking about closing up a few of the wide open vulnerabilities that most businesses are exposed to.To connect with Robert visit protectnowllc.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)  

On today's show we are talking about an office turnaround that can serve as a powerful lesson for all investors. This is a single office building in downtown Toronto, 70 York Street, and why its turnaround is one of the most practical case studies we have for navigating what many are calling the office apocalypse.It's a story about control, execution, and the discipline to create certainty in an uncertain market.Let me set the stage. 70 York is a 17-storey office building of roughly 210,000 square feet, connected to the PATH system, a well located asset in Toronto's core. It's not a brand new glass tower, it's a mid-80s vintage building with the kind of fundamentals that can still work, if you can get the leasing right. And then it lost its anchor tenant, HSBC.When a building is empty, it's tempting to cut rent to fill space. But cutting rent is not the only lever, and it's often the most destructive lever. What you want is durable tenancy, credit quality, and term length.The reported 6.8-year average lease term tells you KingSett pursued durable income. That matters for refinancing. It matters for valuation. And it matters for the eventual buyer.Which brings us to the exit.The building was sold off-market to Desjardins Global Asset Management and the Desjardins Group Pension Fund for about $134.6 million, reported at roughly a 6.5 percent cap rate and about $639 per square foot.In a world where office transactions are scarce, and capital is cautious, an off-market institutional sale tells you something. It tells you that stability, even in an office market, still has a buyer.But notice the order of operations. They didn't sell a vision. They sold certainty.-----------**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 I'm sharing an observation on the psychology of change and how it is impacting both investing and the voting public. ------------**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 gold rush is followed by a hangover. That's been true throughout history. It happened during Tulip Mania from 1634-1637. There was a gold rush in railways in the 1830's in the UK and then later in the 1870's to the 1890's in the US and Canada. There was an actual gold rush in 1896-1899 in the Klondike region of the Yukon close to the border with Alaska. It happened with automobiles in the early 1900's. It happened in radio and then in TV, and then with the Internet. But seriously folks, this time it's different, this AI thing is here to stay and the projections for its impact on the economy are well quantified. There are an increasing number of tools that are showing maps of both existing and planned data centres. The limiting factor for new data center investments is often described as being infrastructure related. That means optical fibre, large supply of base load electricity, and in many cases, ample water supply to provide cooling. The latest tool is a new open source database on a map called The IM3 Open Source Data Center Atlas. It provides locations and facility footprints (when available) of existing and projected data centers across the United States (U.S.).-------------**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)  

For really boring and predictable, visit YStreetCapital.com to learn more about our US Storage Fund. Register for our investor portal. Any investment would is restricted to accredited investors residing in the US by prospectus only and in compliance with SEC regulations. -------------Today we are going to talk about a quiet but meaningful shift on construction sites, one that most investors never see directly, but one that materially affects cost, schedule, and execution risk. We are talking about robots that translate CAD drawings into dimensionally accurate framing layouts directly on the job site.This is not science fiction. This is happening today.For decades, the process of laying out walls has been surprisingly analog. Usually the most experienced member of the framing crew would take printed drawings, pull tapes, snap chalk lines, mark plates, and hope that nothing drifted. Errors were common, especially as buildings became more complex and tolerances tighter. Every mistake cascaded downstream into framing conflicts, mechanical clashes, and rework. The state of the art today replaces that manual translation with robotic layout.The most widely deployed example is Dusty Robotics and their FieldPrinter system. The concept is straightforward but powerful. The robot takes a BIM or CAD model and prints the layout directly onto the slab or deck using ink, at full scale, with millimeter-level accuracy. Wall lines, door openings, column grids, even labels can be printed directly where the framer needs them.Another major entrant is HP, through its SitePrint robot. HP brings decades of large-format printing expertise into construction. SitePrint performs a similar function, translating digital models into printed layouts on concrete floors. The significance here is not just accuracy, but repeatability. A robot does not get tired. It does not misread a dimension. It prints what is in the model, every time.-----------**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 adoption of AI in the workplace. We're going to look at three studies that were done last year by Harvard University and the Boston Consulting Group. The third was done by Microsoft and looked at about 370,000 employees using Copilot. The studies looked at AI usage and productivity gains for certain types of tasks. The results were quite striking.The study found that even with widespread initial usage for the first three week, many employees stopped using AI in their daily work. In fact, the true adoption of AI in daily work seems to be following an 80/20 rule with nearly 80% dropping the use of AI almost altogether. For those on mobile devices, usage continued, but the usage shifted to being more like a search tool rather than a full on AI assistant.The issue doesn't appear to be related to basic training. People are averaging 6 hours of training and they learn how to generate prompts. The issue is that they hit a wall. The study found 20% monthly active usage. The rest are dormant after that initial period. So why am I telling you this? This is a real estate podcast, not an AI podcast. Real estate investing is a business like any other business. It has all of the same basic functions. It has a finance function, operations, customer service, quality assurance, project management. All of these functions can have their productivity improved to some degree with the adoption of AI somewhere in the workflow. -----------**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 not a new book. In fact I read it more than 20 years ago for the first time. It was first published in 2001. This book is a business classic at this point. Good to Great by Jim Collins is one of those rare works that rewards disciplined thinkers.When I think about business books that genuinely belong on the short list for serious operators, not motivational reading, not trend-chasing commentary, this title consistently earns its place. In fact our leadership team recently refreshed itself on the principles of this book. -----------**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)  

Tim Baldwin is based in Pensacola Florida where he is a lawyer specializing in helping landlords. On today's show we are talking about the special considerations that landlords need to take into account when renting to tenants. To connect with Tim, visit https://pmlawsolutions.com/ or you can email him directly at tim@pmlawsolution.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)  

Let's talk demographics. The Baby Boom started in the wake of WW2 in 1946. If you were born in 1946, then you are 80 years old now. You are the oldest baby boomer. The baby boom covered the time period from 1946 until 1964. The youngest baby boomer is 61 years old. We keep hearing that the baby boomers are driving the need for senior housing, specifically assisted living and memory care. The problem is that the boomers have not been old enough to need senior housing in large numbers. That's finally changing. The real wave is still another 5 years away, but it's starting. Staffing is the top issue for all operators. Staffing shortages during the pandemic forced many communities to cap occupancy, even when demand existed. That constraint is easing, but not uniformly. Wages remain elevated. Recruiting and retention are ongoing challenges.The best operators are treating labor as a strategic asset, not a variable expense. Investment in culture, training, and career paths is translating directly into higher occupancy, better resident outcomes, better employee retention and stronger margins.-------------**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)  

Today's show is a listener question. But first, I'd like to invite you to consider investments that are boring, but predictable. That's how we think about industrial storage. Our Y Street Capital storage fund is heavily focused on this segment while at the same time offering diversification. This is for accredited investors only residing in the US in compliance with SEC regulations. To learn more, visit YStreetcapital.com and register for our investor portal. Today's question comes from Tony who writes:"I'm hearing and seeing that there is excess capacity in the trucking industry. Freight rates are below profitable levels for many companies. How will this translate into demand for industrial real estate?"-------------**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)  

This is the final segment in our mini series on amenities. Last week we started a mini-series on Amenities. The deep dive into amenities is based on the outstanding work by apartment operator Greystar, the largest operator of apartments in the US with over 100,000 apartments in their portfolio. We are working with Greystar on our own active adult project in Spokane Washington. If you want to learn more about that amazing project, come and register to our portal at YStreetCapital.com and we will have more to share about the project. This is not a solicitation for investment and of course any investment would be by prospectus only in compliance with SEC regulations.We spoke last week about technology, storage, co-working space, outdoor amenities, kitchens, and security.Today we're talking about fitness centers. -----------**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)  

Last week we started a mini-series on Amenities. The deep dive into amenities is based on the outstanding work by apartment operator Greystar, the largest operator of apartments in the US with over 100,000 apartments in their portfolio. We are working with Greystar on our own active adult project in Spokane Washington. If you want to learn more about that amazing project, come and register to our portal at YStreetCapital.com and we will have more to share about the project. This is not a solicitation for investment and of course any investment would be by prospectus only in compliance with SEC regulations.We spoke last week about technology, storage, co-working space, outdoor amenities, kitchens, and security. Today we're talking about packages. Not financing packages, not incentive packages, but the literal boxes showing up at the front door every single day, and what they're quietly telling us about resident behavior, operational risk, and capital allocation in multifamily real estate.The data comes from Greystar's 2024 design survey, specifically focused on package delivery and handling inside apartment communities. On the surface, this looks like a narrow operational topic. But as with many things in real estate, when you zoom out, it reveals something much bigger about how people live and what they value.-------------**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)  

Last week we started a mini-series on Amenities. The deep dive into amenities is was based on the outstanding work by apartment owner and operator Greystar, the largest operator of apartments in the US with over 100,000 apartments in their portfolio. We are working with Greystar on our own active adult project in Spokane Washington. If you want to learn more about that amazing project, come and register to our portal at Y Street Capital and we will have more to share about the project. This is not a solicitation for investment and of course any investment would be by prospectus only in compliance with SEC regulations.Greystar recently published their latest amenities and apartment features market study, based on year-over-year survey data from 2023 to 2024. We spoke last week about technology, storage, security. On today's show we're talking about kitchens. Not from a lifestyle perspective, but from a design, capital allocation, and investor-return perspective.--------------**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)  

Nick Jain is based in Philadelphia where he is investing in a portfolio of single family homes within a small radius. This is similar to the redevelopment that my team has been engaged in for nearly a decade. On today's show we are talking about managing supply and demand as more supply enters the area. To connect with Nick visit https://www.eaglerockcfo.com/ or his personal website at https://nickjain.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)  

Dave Becker is a principal at Time Equities, a Manhattan based equity player with $8B in assets under management. On today's show we are talking about how David is approaching the market even with asset classes that have some challenges like office. To connect with David, you can find him on LinkedIn, or visit timeequities.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)  

We are continuing our deep dive mini-series into amenities is was based on the outstanding work by apartment owner and operator Greystar, the largest operator of apartments in the US with over 100,000 apartments in their portfolio. We are working with Greystar on our own active adult project in Spokane Washington. If you want to learn more about that amazing project, come and register to our portal at Y Street Capital and we will have more to share about the project. This is not a solicitation for investment and of course any investment would be by prospectus only in compliance with SEC regulations.Greystar recently published their latest amenities and apartment features market study, based on year-over-year survey data from 2023 to 2024. On Friday last week we talked about the overall trends in amenities. Yesterday we talked about  storage, technology, and security.On today's show we are talking about co-working space and outdoor amenities spaces and then next week we will cover kitchens, fitness, e-commerce, and parking. --------------**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)  

Last week we started a mini-series on Amenities. We took a short break from the mini-series to cover a few consequential items from the World Economic Forum which is still underway in Davos. They're probably still more that we could be covering from Davos, but there are only so many things you can cover in a daily show. After all, this is not my full-time job.The deep dive into amenities is was based on the outstanding work by apartment owner and operator Greystar, the largest operator of apartments in the US with over 100,000 apartments in their portfolio. We are working with Greystar on our own active adult project in Spokane Washington. If you want to learn more about that amazing project, come and register to our portal at Y Street Capital and we will have more to share about the project. This is not a solicitation for investment and of course any investment would be by prospectus only in compliance with SEC regulations.Greystar recently published their latest amenities and apartment features market study, based on year-over-year survey data from 2023 to 2024. On Friday last week we talked about the overall trends in amenities. On today's show we are going deep into one aspect and over the next several days we will cover storage, technology, securitykitchens, social space, fitness, e-commerce, and parking. Today we're going to cover storage, security and technology packages and what is expected in new modern buildings. -------------**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)  

A new groundbreaking capability was conceived, developed, and released to the world in 10 days. Yes, you heard that correctly. 10 days can change the world. That sounds like some historic platitude. What I'm referring to is a new software application that was introduced only a few days ago. That's software application which runs on the Mac was developed from concept to release in the wild in 10 days. Let that sink in for a moment. Inside most companies, you would have trouble getting the marketing focus group to get together and convene a meeting to discuss the future content for the release of a software application may be sometime next year. The application I'm talking about is Claude Cowork from anthropic. Yes, it is an AI application. This is a Real Estate Investing podcast. So stay with me. We're not here to talk about AI. We are here to talk about the impact of this software application on your Real Estate Investing business.------------**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 at the World Economic Forum held in Davos, a panel of economists gives their economic forecast for the upcoming year. This was no exception. On today's show we're summarizing the results of those panel discussions. --------------**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)  

Each year, the World Economic Forum convenes political leaders, central bankers, corporate executives, and institutional investors to take the pulse of the global economy. The headlines that come out of Davos often feel abstract, even theatrical. But buried beneath the sound bites are themes that matter deeply to real estate investors, especially those who think like capital allocators rather than speculators. This year's forum is dominated by a sober tone. Gone was the optimism of a rapid post-pandemic recovery. In its place was a recognition that the world is settling into a period of structural change rather than cyclical volatility. That distinction matters, because structural change reshapes how capital flows, how risk is priced, and where real assets fit in a portfolio.-----------**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)  

Scott Carson is based in Austin Texas. From there he invests in distressed debt on a nationwide basis. The idea is that you can purchase distressed debt at a discount, work with the borrower to modify it and then season the modified debt for 12 months. After that the loan is a performing loan which can be sold. Money is made between the purchase price of the distressed loan and the sale price of the performing loan. To connect with Scott, visit https://weclosenotes.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)  

Christina Kovacs is based in Fort Lauderdale, Florida. She is a multi-family apartment investor with assets across the midwest. On today's show we are talking about working with third party management at a distance and how to work with remote managers. To connect with Christina, visit https://www.christinakovacs.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)  

Today, I want to talk about amenities. Not in the abstract, not as a checklist, and not as a race to add more stuff, but as a lens into tenant psychology, capital allocation, and disciplined product design.Greystar recently published their latest amenities and apartment features market study, based on year-over-year survey data from 2023 to 2024. And while it's tempting to read this kind of report as a menu of “what to add,” that's exactly the wrong way to use it.This data is not a prescription. It's a diagnostic.The folks at Greystar are the largest owner and operator of apartments across the US. So with 100,000 units in almost every state they can speak on the topic with some level of authority. -------------**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)  

When developers talk about underwriting, they often focus on the numbers and forget the product. Yet in real estate, the product is inseparable from the math. One of the most common strategic mistakes I see is the instinct to blend into the average of the market. It feels safe. It feels conservative. And it is often the most dangerous choices you can make. It's a choice that is made even more compelling by the appraisers who look at your project and force you into the middle. Appraisers can't make up the data and if there are no comparable 3BR apartments on the 9th floor with a 400 SF roof terrace, they end up discounting the value of a product that may well be differentiated in the market. Market positioning is not about being different for the sake of being different. It is about understanding where comparable projects truly sit in the competitive landscape, and then making an intentional decision about where you belong relative to them. The problem with “average” is that it usually represents a statistical midpoint, not a customer, and certainly not a clear value proposition.------------**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 accelerating training by orders of magnitude and the impact that this can have on the global arms race for the best artificial intelligence.The key to learning fast is intensity. If you follow the human paradigm the key to learning is practice and repetition across a wide range of conditions. The problem is that humans learn very slowly if you think about it. Think about the experience required to become an expert at driving a car. The vast majority of miles driven are completely uneventful and contribute next to zero in terms of driving experience. The same boring freeway driving mile after mile doesn't make you a better driver. When you do improve it is the result of exceptional conditions. It's when a cyclist comes into your lane without checking over their shoulder. It's when a driver opens the door to a parked vehicle and you need to swerve to avoid hitting them. But still, these events are relatively infrequent.The way to accelerate the learning process is the same way that pilots train. They use a simulator. The simulator can artificially generate exception events that are rare and difficult to recreate in the real world. Engine failure, hydraulic failure, fire, avionics failure, frozen pitot tube, ice build up on the wings. So many cases that a pilot needs to train on repetitively to handle the real world situations when they occur. If you are a user of AI, you're probably thinking about whether the tool is giving you good results or not. If the results are less than you would accept, then the natural reaction is to abandon the use of AI for that particular function. But what if you could train the AI with a minimum amount of effort? A well crafted prompt to generate a series of simulation use cases could change the quality of the output, not just for your single query. The simulation use cases will train the AI forever. --------------**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)  

The housing market is going to change again. I don't mean the actual market. I'm talking about the rules and initiatives from the US federal government. The person to watch is Bill Pulte, the current director of the Federal Housing Finance Authority. This agency oversees lending agencies like Fannie Mae and Freddie Mac. If the last name sounds familiar, it's because Bill is the grandson of William Pulte, founder of the Pulte Group, the third largest home builder in the US. Prior to joining the administration, Bill sat on the board at Pulte Group and founded Pulte Capital Partners, an investment firm focused on building and housing-related businesses.Over the next few weeks, the administration is evaluating over 50 initiatives aimed at improving home ownership affordability. So for the next few weeks, we can anticipate changing rules. That means nobody who is paying attention should be making any big decisions until the new rules are clear. But then investors are also accustomed to working in a relatively stable environment where the rules don't change every year, or every month, or every week. ---------**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)  

ATTEND George's Online BirthdayIf you can't attend in person and would like to wish George Happy Birthday, send an email to podcast@victorjm.com and put George in the subject line. I'll make sure he gets your best wishes. Today's show is dedicated to my friend and advisor George Ross. If you've been listening to this show for a while, you'll know that George has been a frequent guest on the show. I've known George for 16 years and we've been spending time together monthly since that time.I'd like to invite you to a virtual online birthday party for George. I'm hoping for a huge turnout and for all of you to get some first hand wisdom from George in that session. George is 98 years young. His actual birthday was earlier this week. The get together this month is going to be a surprise for George. ------------------**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)