Nevada vs. Illinois why does one state have the #1 and #3 cities the US for job growth and the other is hemorrhaging people, jobs and employers?
Anecdotally I can tell you of my experiences from operating in both states.
Nevada has pro-business municipal staff and politicians; Illinois has entrenched patronage workers and a political class beholden to self-enrichment.
Nevada has low taxes and pro-growth government
One has low real estate taxes while the other has a Senate majority leader who has made himself a multi-millionaire by the arcane business of appealing real estate taxes in Cook County.
It is a knockout punch win for Nevada at the expense of Illinois. The Sparks/Reno MSA was Number 1 in the nation for job growth in 2018. The Las Vegas metro area is Number 3 having added jobs at about a 3% clip for the last five years, double the national average. Nevada is currently the 3rd fastest job growth state in the nation.
The Chicago area grew a meager 1.4% which is below the national average. Illinois government at all levels is dysfunctional and parasitic with high real estate taxes ($8.00-$15.00 psf), high sales taxes (10.25%), high workers comp rates, opaque permitting processes, excessive licensing fees, and unpayable pension obligations ($134 billion State of Illinois alone not counting, county and municipal debt).
A Tale Of Two Shopping Centers: Taxes IL = $8.25 psf ➜ Taxes NV = 93¢ psf
The axiom “Demographics are Destiny” continues to be true. Which is why I recommend the book Upside: Profiting from the Profound Demographic Shifts Ahead by Kenneth Gronbach My recent friends Richard and Howard Kang recommended the book to me at dinner in Las Vegas of all places. The book explains why the population shift is accelerating to the south and west. Hint, it isn’t only the weather, but that helps too.
We are voting with our capital with one and perhaps two shopping center investments in Reno and Las Vegas. We have dramatically divested from Illinois to the extent of taking a personal loss to stop the bleeding.
We have also created strategic alliances with partners in Texas, Florida, North Carolina, South Carolina, and Tennessee. All states that promote pro-growth, reduced government sclerosis, and positive results for investment.
About the Author: Michael J. Flight
Michael J. Flight is a real estate entrepreneur who is an expert in commercial real estate, especially shopping center investment and NNN retail real estate. Michael has been active in commercial real estate for the past 35 years and has handled more than $600 million worth of real estate transactions. Michael has been featured on many business podcasts, served on numerous non-profit boards, held elected office, and shared as a featured speaker on real estate investment, poverty alleviation, and free markets. He is also an Amazon #1 Best Selling author with the book DESIRE, DISCIPLINE & DETERMINATION: LESSONS FROM BOLD THOUGHT LEADERS More information can be found at www.michaeljflight.com and www.concordiarealty.com
Concordia Realty Corporation has been successfully connecting sound economics with experience in real estate for more than 28 years. We are a premier private real estate investment and management firm that specializes in Retail Real Estate, including Shopping Centers and Single-Tenant Net-Lease Detail/Medical (“Medtail”) properties. Our wide range of experience has uniquely positioned us to redevelop and repurpose properties that are experiencing disruptions related to technology and merchandising. This experience has built a skill-set that helps to add value to all of our real estate ventures.
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