Transforming Oklahoma: Insights from Our Latest Episode With Lt. Gov. Matt Pinnell

Welcome back to another episode of "How to Invest in Commercial Real Estate." We are thrilled to bring you an enlightening discussion, featuring a special guest who offers unique insights into the economic landscape of Oklahoma. But first, a quick update on our latest project.

Project Update: Saint Louis Acquisition

We have just relaunched the Saint Louis acquisition, a significant retail deal featuring a big box retail setup with a pad site out front that we plan to spin off. The main tenants are Michaels, Ulta, Petco, and a new 10-year lease with American Freight. This site is strategically located next to a Target and Aldi, which are high-performing retailers. Additionally, there is a Chipotle and Panda Express, both with long-term leases. We are excited about this project and expect to close by the first week of June.

Special Guest: Matt Pinnell, Lieutenant Governor of Oklahoma

In this episode, we had the pleasure of hosting Matt Pinnell, the Lieutenant Governor of Oklahoma. Matt and Criterion’s Joel Thompson share a long history, having gone to high school and college together. Matt brings a wealth of knowledge about Oklahoma's economic development and offers valuable insights into the state's growth.

Economic Highlights in Oklahoma

Matt Pinnell discussed the significant economic developments happening in Oklahoma. Here are some key points:

1. Net Migration Growth: Oklahoma has seen a notable net migration growth, ranking ninth in the country. More people are moving to Oklahoma than leaving, with a significant number coming from Texas. This growth is not just limited to Oklahoma but is part of a larger trend in the central United States.

2. Interest from Businesses: The Oklahoma Department of Commerce has reported unprecedented interest from businesses looking to relocate to the state. This interest is driven by various factors, including lower costs of living, better quality of life, and an increasingly skilled workforce.

3. Tulsa Remote Program: The Tulsa Remote program, which offers financial incentives for remote workers to move to Tulsa, has been highly successful. This program has attracted a diverse group of individuals who are eager to contribute to the local community.

The Role of Aerospace and Defense

Aerospace and defense have become critical industries in Oklahoma. The state boasts significant investments and growth in these sectors, with companies like Boeing and Lockheed Martin establishing operations in Oklahoma. The state's aerospace industry is projected to become the leading industry within the next decade.

Renewable Energy Initiatives

Oklahoma is leveraging its natural resources to become a leader in renewable energy. The state is known as the "Saudi Arabia of Wind" due to its substantial wind energy production. Additionally, there are ongoing efforts to expand solar energy capabilities.

Business-Friendly Environment

Oklahoma is recognized for its competitive tax incentives and business-friendly policies. Despite having an income tax, the overall tax burden is lower compared to states like Texas, making it an attractive destination for businesses.

Key Growth Areas

Beyond Tulsa and Oklahoma City, areas like Lawton, Ardmore, and Durant are experiencing significant growth. These regions benefit from their proximity to major cities and the presence of sovereign Indian nations, which contribute to economic development.

Exciting Developments on the Horizon

Matt Pinnell hinted at several exciting developments, including potential large-scale aerospace projects and new tourism attractions. These initiatives are expected to further diversify and strengthen Oklahoma's economy.

Conclusion

This episode provided a deep dive into the economic landscape of Oklahoma, highlighting the state's growth, business-friendly environment, and future prospects. We are grateful to Matt Pinnell for sharing his insights and look forward to seeing how Oklahoma continues to evolve as a key player in the national economy.

For more information on investing in Oklahoma and the incentives available, visit the Oklahoma Department of Commerce website at OKCommerce.gov. To explore tourism opportunities, check out TravelOK.com.

Thank you for tuning in to another episode of "How to Invest in Commercial Real Estate." Stay tuned for more expert insights and exciting updates in our upcoming episodes.

Navigating the Commercial Real Estate Landscape: Insights from Shannon Robnett's Journey

Introduction:

In our latest episode of "How to Invest in Commercial Real Estate," The Criterion Fund had the pleasure of hosting Shannon Robnett, a seasoned professional in the industry. Robnett, the founder of Shannon Robnett Industries, shared valuable insights into his journey, providing a wealth of knowledge for those navigating the dynamic world of commercial real estate.

Shannon Robnett's Background:

As the episode unfolded, Robnett delved into his rich background, growing up in a family deeply rooted in real estate. Observing his parents' success as a builder and real estate broker, Robnett was inspired to follow in their footsteps. His initial foray into the industry as a general contractor paved the way for a transition over the last five years toward self-performing multifamily and industrial projects.

Key Takeaways:

Diversification in Commercial Real Estate: Robnett's diversified portfolio, spanning from multifamily to industrial projects, offers a unique perspective for investors. The Criterion Fund recognizes the importance of exploring various sectors within commercial real estate for long-term success. Investors are encouraged to consider this strategic approach, aligning their portfolios with the ever-changing dynamics of the real estate market.

Syndication Strategies:

Shannon Robnett's journey evolved from dealing with single check writers to navigating the complexities of syndication. He candidly shared the challenges and benefits of this transition, emphasizing the need for strategic partnerships and capital aggregation. Criterion underscores the significance of building strong networks and fostering collaborative efforts within the industry, as these alliances can be pivotal for achieving sustained success in commercial real estate.

Ground Up vs. Value Add:

The discussion touched upon the strategic choice between ground-up development and value-add projects. Robnett shed light on the profitability and advantages of new construction, providing valuable insights for those seeking sustainable investment strategies. Investors, guided by The Criterion Fund, are encouraged to carefully evaluate the potential returns and risks associated with each approach, ensuring alignment with their overarching investment goals.

Tax Optimization and Creative Thinking:

Robnett's approach to reducing taxes through creative thinking, particularly using Section 179 depreciation, resonates with The Criterion Fund's commitment to optimizing financial strategies. His innovative ideas, such as starting a flight school for depreciating assets, showcase a unique perspective on tax management. The Criterion Fund encourages investors to explore unconventional yet legal and ethical avenues for optimizing their tax positions, fostering financial efficiency within their real estate ventures.

Maintaining a Winning Mindset:

The episode explored Robnett's personal challenges, including physical setbacks. His resilience and positive mindset during challenging times serve as a testament to the importance of maintaining focus and determination in the entrepreneurial journey. The Criterion Fund acknowledges the profound impact of mindset on success and encourages individuals in the commercial real estate industry to cultivate a resilient and positive outlook, overcoming obstacles with determination and grace.

Learning from Failures:

Robnett emphasized the educational value of failures, comparing them to prerequisites in a college curriculum. Criterion recognizes the significance of learning from setbacks and turning them into opportunities for growth. Robnett's journey underscores the transformative power of failure, shaping individuals and organizations into resilient and adaptive entities. The Criterion Fund encourages a mindset that views failures as stepping stones toward success, driving continuous improvement and innovation within the commercial real estate sector.

Conclusion:

Shannon Robnett's journey in commercial real estate offers a plethora of insights for industry enthusiasts. We appreciate his candid sharing of experiences and believes that his journey serves as a valuable guide for navigating the complexities of the commercial real estate landscape. As we continue to explore diverse topics in our podcast, Robnett's story stands out as an inspirational tale for those aiming to thrive in this dynamic industry.

For more in-depth discussions and expert insights, be sure to listen to the full episode on "How to Invest in Commercial Real Estate" featuring Shannon Robnett.