Treplar will invest $50 million into the state and is opening a facility in Martinsburg. Justice said the facility will be up in running in the next couple of months.
“Treplar is currently testing a new generation of food packing material that is 100% home compostable,” the Republican governor said.
The company mission is to “help food businesses seamlessly transition away from banned single-use plastic to a more sustainable product that benefits our industry — and the planet,” according to its website.
Treplar makes food retailer trays, plates and more using a technology known as “XPET,” a sustainable solution to hard-to-recycle polystyrene trays.
“Our new project is a catalyst for change,” said Murat Ogulcan, president of Treplar, who thanked the governor for his support. “We found a new home in West Virginia.”
The governor’s office said the company did not receive any incentives to launch in West Virginia.
The summit has so far been packed with economic announcements for the state, including a $800 million restart for the Pleasants Power Plant in St. Marys and a program that looks to keep Marshall and West Virginia University graduates in the state.
The event, which has been attended by state leaders and business owners, wraps up Friday.
Many of the announcements have centered on reversing the state’s population decline — the fastest in the country — by providing jobs and incentives to remain in state.
“What’s going on in this state, it’s absolutely a movement toward jobs and opportunity for our kids,” said Justice, who is running for a U.S. Senate seat in the 2024 election.
Following the announcement, Justice said he was leaving the resort to survey flood damage in the state. The governor declared a state of emergency in five West Virginia counties — Kanawha, Braxton, Calhoun, Clay and Roane counties — because of heavy rain and flooding.
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Black Diamond Realty Will Quarterback your Deal Across the Goal Line
Every successful football team is led by a quarterback. Quarterbacks think on their feet, capitalize on the strengths of their team, call audibles when necessary and read and anticipate the defensive strategies of the opposing side, all with one goal in mind: getting into the end zone. Commercial Real Estate (CRE) transactions, both simple and complicated, need a strong quarterback to get deals across the goal line.
Much like a defense on a football team, some ‘defenders’ are both working directly against you while others are working to protect their own interests.
Defensive Team in CRE
Safeties – Time and Regulations
Line Backers – Zoning, Inspections and Utilities
Cornerbacks – Financing and Legal Issues
Defensive Ends – NIMBYs (Not In My Back Yard) and Surveys
Defensive Line – Sellers and Buyers
A good quarterback will assist you with the challenges that arise during a touchdown drive. Reading the safeties before the play, calling an audible when the line backers are lined up staring you down, checking down to your 2nd and 3rd wide out when the corners are in position to shut you down, nimble enough to escape the defensive ends when they blow past your lineman, and most important keeping the defensive line from blowing up your play or drive with a sack or tackle for loss.
With over eight years of experience and wisdom, I have quarterbacked dozens and dozens of deals across the goal line. I have seen that you not only need a winning quarterback to consistently lead a championship team, but the team he plays for needs to have a winning culture like Black Diamond Realty. Very few deals have lined up like ‘the perfect play’ where everyone maintains their assignment, the perfect pass is thrown and caught for a 65 yard TD. Reading the challenges that lay ahead, thinking on my feet, directing receivers where to go is what separates a championship quarterback from one who is just good enough to be there.
Black Diamond Realty has the experience and expertise to help navigate your commercial real estate deal, play-by-play, first down after first down, to get across the goal line. We offer a championship caliber lineup of top-notch quarterbacks that design winning game plans and ensure successful transactions while leading with a winning attitude. As another exciting season of college football is upon us, Team BDR is suited up and ready to lead you and your team to a win on the field of commercial real estate.
Comments Off on What’s the Difference Between Commercial Real Estate and Residential Real Estate?
What’s the Difference Between Commercial Real Estate and Residential Real Estate?
Contrary to popular belief, there are quite a few differences that ultimately affect the outcome of your real estate journey. David Lorenze, Principal at Black Diamond Realty, and Melissa Hornbeck, Broker of White Diamond Realty, sit down to answer some important questions that help differentiate the two.
While anyone in the state of West Virginia who takes the real estate exam can practice both commercial and residential real estate, we believe there are a number of large differences between the two and that it takes specialized expertise to navigate the two fields
Having Black Diamond Realty to specialize in commercial real estate, and White Diamond Realty to specialize in residential real estate, means that each of our teams can focus on honing their skills to give our clients the best possible service no matter what side of the table they’re on.
Comments Off on Why Choose Black Diamond Realty? Our Negotiation Skills
Love all, serve all.
I started playing tennis with my parents at a very young age. It was a way my family and I spent time together as well as with other friends and neighbors in our community. In the game of tennis, both players begin with a score of ‘love.’ To start a game, one player serves the ball to the other player, then the volley back and forth begins. Negotiating a commercial real estate transaction has similarities to a tennis match. One party must ‘serve’ an offer to the other, then the volley back and forth begins. Also like in the game of tennis, a good commercial real estate professional seeks information to learn about their opponent and their strengths and weaknesses. This informs the delivery of the initial serve (or offer) and the anticipated reaction. This helps when ‘serving’ an offer on a property.
I recently played the negotiation game for a new business in Morgantown. This retailer has over 29 locations nationwide where they provide the ultimate shopping experience and a unique selection of clothing and merchandise for the entire family. They have now grown to become the hometown college store for some of the greatest fan bases in the country. I knew they would be perfect for one of our most popular shopping centers here in Morgantown. My client and I worked together to come up with the perfect initial ‘serve’ to start the negotiation game. We went back and forth with the landlord several times before we landed on terms that worked for all parties involved. My client is set to open their doors the first weekend in September so they can ‘serve’ WVU football fans for the first home game.
‘Love all, serve all’ is actually the Hard Rock Café slogan, but it has always reminded me of tennis and how all players begin their match on equal ground. To the Hard Rock Café, the slogan represents their commitment to embracing diverse communities and to promote health, wellness, and environmental sustainability throughout their regions of operation. Similarly, Black Diamond Realty works to embrace and understand our community to serve all of our clients with love.
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Life is a marathon, not a sprint.
In the daily race of my life, I often think about the famous idiom; Life is a marathon, not a sprint. As an active runner, I appreciate the connection to the various cadences it describes. As a commercial real estate professional, I appreciate the reassuring motivation it brings to ‘staying the course.’ Regardless of whether you associate the adage with mental or physical navigation and speed, being reminded of the importance and payoff of patience and persistence is always reassuring.
Navigating a successful commercial real estate closing or sale often brings twists and turns, complicated scenarios, and unexpected lane changes. These hurdles and the obstacle course of the deal are an exciting challenge for me, as I maintain patience in pursuit of the goal on the horizon. As with any race that I begin training for, I study the course, understand the terrain, and build a roadmap of my training schedule, all with the end in mind. I do the same with my work in commercial real estate closings. As a committed commercial real estate professional, part of my job is to assess the course, to learn, understand, and anticipate the hurdles, and to persevere under pressure. This commitment to time, talent, and patience is what sets me and our BDR team apart from others running the race.
Recently, we successfully negotiated the sale of a property that was near and dear to my heart. This client was my first client upon joining Black Diamond Realty over three years ago. The client and I became very close, so much that my week didn’t feel complete if I hadn’t spoken to her. The property she wanted to sell was a very specialized asset and was going to take a buyer that was ‘just right.’ We actively marketed this property for nearly three years. We utilized letter campaigns, targeted marketing, postcard campaigns, cold calling, carrier pigeons (just kidding)— you name it, we did it! When we finally found the perfect buyer, the fun really began. Getting the purchase agreement signed was the first hurdle of the deal and getting to the finish line was a true test of patience and endurance.
After ten months of perseverance, the property changed hands. Time has shown me that when things pop up on appraisals or inspections, it is important to be patient, to stay the course, and to continue to push forward to find a successful resolution. When the dust finally settled and we closed on this sale, we achieved our clients’ goals AND the buyers’ goals as well. This is what we strive for with all of our transactions.
Every property is different. Every transaction is different. Every race is different. However, there is always a path that ends at the finish line and Black Diamond is the commercial real estate team that knows the way. Have our team join you on your next commercial real estate journey, your next race. No matter the distance, we know how to stay the course and get you to the finish line.
Comments Off on Why Choose Black Diamond Realty? Honesty Integrity Teamwork
Building a Winning Strategy: Black Diamond Realty’s “HIT” Approach to Commercial Real Estate Success
As one of the newest Black Diamond Realty (BDR) members, I am proud to step up to the plate and be part of a team that embodies the core values of Honesty, Integrity, and Teamwork. In the game of commercial real estate, these values are the foundation of our success. And in the game of baseball, where every “HIT” counts, Black Diamond Realty delivers exceptional results for our clients. Our commitment to “HIT” positions us as the finest choice for commercial real estate services in West Virginia and Southwestern Pennsylvania. Allow me to share a few personal experiences that illustrate how the power of “HIT” has boosted us to consistently achieve success for our clients.
Stepping Up to the Plate with Honesty
In my journey as an agent at Black Diamond Realty, I quickly learned that honesty, with my team, our clients, and myself, is the first base of trust. It is stepping up to the plate and facing the pitcher with unwavering confidence. Early in my career with BDR, I recall a situation where I was representing a buyer who had recently sold his businesses and wanted to 1031 exchange into a relatively passive multitenant retail investment property occupied by a strong national tenant that seemed promising on the surface. However, after conducting thorough research and analysis, I discovered potential pitfalls that the client was unaware of, including a broad restrictive covenant in the national tenant’s lease that could have severely impacted the ability to lease other vacancies in the future. Just like a batter recognizing a curveball, I quickly adjusted my approach. I was upfront with the client and explained my findings, even though it meant advising against the investment and the potential for a substantial commission. This transparent approach solidified the trust between us and set the groundwork for our next ‘at bat’ together.
Covering the Bases with Integrity
I represented a client in the sale of his mobile home park recently. He relied on me to deliver on multiple tasks that were outside of my position as an agent but vital for the deal to progress. Just like a pitcher covers first base on an outside ground ball, I committed to upholding the integrity of my role and our team with my reach of strategic planning, transparent communication, and dedication. I maintained professional integrity and the integrity of the deal by building trust, fostering positive outcomes, and nurturing long-lasting relationships. At Black Diamond Realty, we embrace integrity as our winning strategy, ensuring that we pitch a perfect game by upholding our commitments and going the extra mile for our clients.
Hitting a Grand Slam with Teamwork
By collaborating with a diverse group of professionals, we unite unique talents and perspectives to establish a culture of success, a culture of hitting grand slams for our clients. In a recent project, our team resembled a well-coordinated infield, smoothly offloading a complex investment portfolio. We covered every angle and anticipated every opportunity. By knowing each team member’s strengths, we were able to quickly divide roles and strategically adjust our playbook for this opportunity. Through consistent communication and scheduled scoreboard reviews, our team was able to track the progression of the deal, troubleshoot challenges, and hold each other accountable. Everyone proactively took charge of their role and played their position flawlessly, from prospecting to due diligence and closing. Together, we hit a grand slam for our client, surpassing their expectations and showing the power of teamwork in achieving real estate victories.
In baseball, every hit has the potential to change the game; and although HIT carries a different meaning with Black Diamond Realty, it also reflects our team’s winning strategy. As an associate at Black Diamond Realty, I have witnessed the power of “HIT” in action. It is evident that through our commitment to these core values, we consistently deliver exceptional results for our clients. Step up to the plate with Black Diamond Realty and together as a team, we will swing for the fence.
Comments Off on Why Choose Black Diamond Realty? Our Experience
Black Diamond Realty is like a seasoned golfer who consistently hits the fairway and sinks putts. And, like in the game of golf, our team’s unique approach and execution ensures successful commercial real estate transactions. This experience ‘swinging’ has delivered nearly 600 ‘holes in one’ as we approach a decade of service to the industry.
Do you think a course record could be secured using only a nine-iron and an old ball while wearing a tuxedo? Of course it couldn’t! Even if the tuxedo got a few good laughs, the golf pro probably would not invite you back to play anytime soon. Seasoned golfers typically use 14 different clubs, shoes with spikes, tees, a golf glove, high quality balls and proper attire that facilitates effective movement in given weather conditions. This level of detail and preparedness is like BDR’s approach to real estate deals. Our equipment includes seven dedicated associates, three fulltime graphic designers and a partnership with Glenmark Holding that combines decades of experience, leadership and service.
A first-time a golfer meets unexpected challenges navigating unknown courses, like a pesky oak tree with a low hanging branch on hole 11 or a water hazard at the edge of a sloping green on hole 17. An experienced golfer calls on previous games having navigated these hazards and can predict and adjust their game accordingly. The BDR professionals draw on their past experiences just as an experienced golfer does, while recognizing that every course, every project and every client is unique. Tiger Woods is one of golf’s most elite players because he practiced golf consistently from a very young age. He didn’t dedicate his mornings to tennis and afternoons to golf. He was committed and all in to his one sport. The same holds true for Black Diamond Realty. We are 100% focused on commercial real estate transactions.
The best golfers in the world are reflective and always finding ways to improve their game, saying things like, “I’m working on my grip, my posture, my tempo.” Similarly, you will find the best commercial real estate associates saying, “I’m networking and building relationships, writing my notes, making calls and setting goals”. In both cases, working on the fundamentals is a key to successful outcomes. BDR is your dedicated team for commercial real estate that brings the proper tools, experience, and drive to achieve your next ‘hole in one.’
Over a decade ago I started working in the commercial real estate profession. Starting something new was exciting and intimidating all at the same time. The same sentiment held true when I adopted golf as a new hobby two years ago. While I wanted to be an expert on my first day playing a round, it became painfully evident that success on the course would take practice to perfect my skills.
Knowledge and experience are very important for both business and golf. In business, it’s important to have a deep understanding of your industry and customers, as well as experience in managing expectations and making strategic decisions. In golf, knowledge of the game and experience with training and practice can help develop skills and improve performance. Another area of focus is relationships.
Several years ago I worked with a church that was new to town and looking to establish a presence. We identified a relatively small office space for their administrative needs and they proceeded to lease temporary space on Sunday mornings for their services. Fast forward three years later and we collaborated again to secure a 15,325-sf facility with an associated 10-year lease. Fostering positive relationships support success for everyone involved.
During my 12 years of experience as a commercial real estate professional, I have developed a deep understanding of the industry, market trends, and customer needs. This has allowed me to build strong relationships with clients and provide them with personalized and effective solutions for their commercial real estate needs. Additionally, my experience has helped me develop exceptional negotiation and communication skills, which are vital in closing deals and ensuring client satisfaction. And while my golf game is still developing, I am confident that my developed skills and strategies in commercial real estate can help you score a ‘hole in one.’
Comments Off on Why Choose Black Diamond Realty? We are The Experts
Could you imagine going to the top of a 10,000-foot mountain in shorts and a t-shirt to attempt your very first ski run? That experience would be chilling and potentially dangerous to your health without the proper equipment and experience. Navigating a challenging commercial real estate deal can have similar consequences to your long-term financial health. Just like a mogul on the slopes, real estate deal challenges require swift problem solving and action to successfully navigate the course.
Full-time commercial real estate agents have market knowledge, deal mechanic experience and essential specialty contacts to avoid and navigate the moguls of the commercial real estate world. Attempting to “save a few bucks” on real estate fees may be tempting for some, but often results in a more costly and frustrating end. Traversing the path without experience and proper equipment is risky, so make sure one of your success strategies is teaming up with the right commercial real estate firm to help you navigate a successful deal.
Two recent examples of deals, filled with moguls and challenges, are highlighted below. Spoiler alert: the deal that secured a west coast, 1031 buyer for a second-generation industrial building navigated their moguls with a commercial real estate team of experts.
Black Diamond Realty received a call from an owner who bought a multifamily property roughly 18 months prior to the conversation. Black Diamond had no involvement in that decision/deal. The investor leveraged most of their personal home’s equity to purchase the multifamily property. The assets were located in a strong submarket but the history and ongoing operations were challenging. Since purchasing, the property owner explained they had battled rent delinquency, criminal activity and property damage. Performance was weak. Deferred maintenance was abundant. The tenant situation was challenging.
BDR was asked if they could sell the asset for around the same value that the current owner paid. As part of its due diligence practices, BDR prefers to review three years of profit and loss statements and a current rent roll. Utilizing the income approach to valuing assets, the BDR team can relatively quickly determine a value range they feel is achievable based on current market and property-specific dynamics. After receiving financials, BDR respectfully explained they overpaid and that the current market could not bear their valuation. Black Diamond Realty declined marketing this property.
A long-time client charged Black Diamond Realty with finding a tenant for their recently vacated industrial building. BDR designed a comprehensive professional marketing flyer then maximized exposure via all commercial real estate digital platforms, including its company newsletter (current audience ~6,200). The BDR team proactively reached out to companies who previously expressed interest in similar-size assets and brainstormed end users then pursued them. After entertaining about a dozen tours, the team found the right fit – a company with over 100 locations willing to sign a 5-year lease.
BDR team members led conversations and negotiations on tenant build-out, including amortizing cost over the initial term of the lease. The seller had a long-standing CRE attorney relationship in this case, but BDR typically supports that step as well. BDR reviewed the draft lease and corresponding tenant comments with their client and after several months, secured a 5-year lease with a well-respected company.
Due to other projects and the desire to redeploy capital, the client mobilized BDR immediately to sell the 5-year lease to an investor. Following the same marketing process, the asset was presented as an investment opportunity. BDR secured a 1031, west coast buyer and worked with their broker to navigate questions and concerns throughout the due diligence process. In the end, all parties achieved their goals.
Don’t navigate the slopes alone. Trust the experts. Reach out to Black Diamond today to equip yourself with professional experience, tools, and service for your next deal. The BDR team will provide the advice, contacts, and market knowledge to successfully navigate your next black diamond (ad)venture. Cheers to continued economic growth in a changing investment landscape!
Comments Off on Clorox opens cat litter plant in Martinsburg
The first bag of cat litter to come off the production line at the new Clorox production plant in Martinsburg was cut open during a Friday morning ceremony.
The 97,000 square foot plant, which will produce the company’s Fresh Step and Scoop Away products, starts out with more than 100 workers, more than 80 of them from West Virginia.
“We’ve found there’s really a great number of skills and readily available to come work at the plant,” Clorox Vice President of Product Supply Services Michael Holly said during a Friday appearance on MetroNews “Talkline.”
The company has a partnership with nearby Blue Ridge Community and Technical College to help train the workers. Clorox presented Blue Ridge with a $10,000 check Friday to express the company’s thanks for the ongoing partnership.
Holly said the Martinsburg site at Tabler Station meets the company’s needs to get its products closer to the east coast.
“We already have a great operation in Kansas but we have found we need to expand and with a lot of consumers over here on the east coast and towards the northeast it has been a great project for us to expand to be able to meet business needs,” Holly said.
He also noted that having the plant along the north-south I-81 corridor and being close to railroad operations in Winchester, Va., as keys in the site selection.
Holly said West Virginia has been a good business partner.
“It’s really been an amazing reception here where we’ve really been met with an attitude of finding solutions for those challenges and working together on those and that’s been an amazing part of bringing this project to light,” Holly said.
Clorox plans to be in full production by early next year. The company has also built a 450,000-square-foot warehouse down the road from the plant.
U.S. Senators Joe Manchin and Shelley Moore Capito along with Gov. Jim Justice all put out statements welcoming Clorox to West Virginia.
Clorox also has charcoal operations in West Virginia through its Kingsford brand located in Beryl (Mineral County) and Parsons (Tucker County).
Clorox also announced Friday that it’s giving a year supply of cat litter to the Berkeley County Humane Society along with a $5,000 donation.
Original Article by Jeff Jenkins on WVMetroNews.com
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Our Second Location is Finally Official!
Black Diamond Realty is proud to announce that we have officially closed on an office building along N Queen St in Martinsburg WV. Our talented Graphic Designer/Office Manager, Andrea Icenhower is permanently servicing this office along with David Lorenze and Kim Licciardi who travel from our headquarters in Morgantown WV. We are excited about the expansion of our business and will continue to uphold our commitment of ensuring the success of our clients and community. Stay tuned for more updates on the renovations of our office space and official address.
In the meantime, our Black Diamond Realty team is available and ready to help serve you. Please call Black Diamond Realty’s Martinsburg (304.901.7788) office to speak to Andrea and set up a consultation to discuss your commercial real estate needs.
Why the Eastern Panhandle?
Our team sees a growing need in the Eastern Panhandle for a specialized commercial brokerage firm. The Eastern Panhandle community is rich in history. Serviced by I-81, WV’s Berkeley and Jefferson Counties represent an abundance of growth, serving as the main connection between the Washington, DC / northern Virginia area and the beautiful mountains of West Virginia. We are excited to expand our team and our approach to the area.
Andrea’s Big Move to Jefferson County
In the beginning of August, our Graphic Designed/Office Manager Andrea and her husband Michael Icenhower packed up a Uhaul and moved to the eastern panhandle where Andrea will head the new office. Andrea recently joined the Leadership Jefferson program which is sponsored by theJeffersonCounty Chamber ofCommerce –Jefferson Co Chamber Facebook – The Primary goal of Leadership Jefferson program is to educate current and future community leaders about JeffersonCounty’s assets, opportunities, and hurdles, to strengthen the sense of community and ensure a prosperous future.
Andrea and her other classmates will continue to meet through June 2023 to learn more about the community and to meet businesses in the area! The class of 16 will continue to work together on a class service project! We can’t wait to see what they come up with!
Comments Off on BDR’s Second Location Grand Opening Announcement!
As our post-pandemic world continues to innovate and evolve, so too does Black Diamond Realty. Over the last year, we have seen an increase in demand for our expertise and services across all sectors and locations in West Virginia and Southwestern PA. We work hard to understand the markets we serve. Our team sees a growing need in the Eastern Panhandle for a specialized commercial brokerage firm. We are thrilled to announce our official presence and intent to open an office in 2022 to serve the Eastern Panhandle.
The Eastern Panhandle community is rich in history. Serviced by I-81, WV’s Berkeley and Jefferson Counties represent an abundance of growth, serving as the main connection between the Washington, DC / northern Virginia area and the beautiful mountains of West Virginia. Despite the pandemic-created economic challenges, the Eastern Panhandle persevered as an economic engine for the state and is in the midst of an economic boom across all commercial real estate sectors. For these reasons, we believe the time is now to make an impact and to begin serving these communities.
At Black Diamond Realty we pride ourselves in providing clients with the highest quality service. Our motto is, “Real Service. Real Value. Real Results.” Black Diamond Realty opened its doors on October 1, 2013. As of 2022, the team has a total of 106 years combined experience, which includes three graphic designers who ensure our team’s presentation and process exceeds expectations. In 2021, Black Diamond’s team closed 88 transactions equal to $66,766,420. For each project, the Black Diamond team accepts the challenge, diligently and aggressively executes its process, and navigates the nuances associated with completing a successful commercial real estate transaction.
We are excited to be bringing our team and our approach to the Eastern Panhandle. Black Diamond Realty embraces community engagement and collaborating with industry leaders.
The Eastern Panhandle office will be spearheaded by David Lorenze (Principal), Kim Licciardi (Senior Associate), and Andrea Cooper (Jr. Graphic Designer/Office Manager). These individuals are all integral parts of the Morgantown team and bring years of experience and expertise to this new location. Black Diamond Realty will be actively recruiting new commercial sales associates in the area over the coming months. Have questions about our new Eastern Panhandle office? Give us a call at 304.901.7788.
Comments Off on The Power of Basic Job Announcements
Location remains the golden rule when making real estate investment and development decisions. Buying and developing in a growing, diversified market heightens the likelihood an investor/developer will make a profitable decision that meets discount rate thresholds. Your 401K and SEP IRA advisors have drilled diversification into your brain. While location, including the importance of a diversified market, is a critical driver of real estate success, there is more to making a profitable real estate investment. Determining whether an investment decision will meet an investor’s discount rate (preferred rate of return) can be a tedious, dynamic, and complicated process. Understanding market dynamics is critical to any successful real estate investment or development. This article will provide a crystal ball on how to decipher market stability while having a tool to help project market growth.
What is the single biggest impact on a local economic area? Jobs. But – and that is a big BUT – not all jobs are created equal. “Basic employment” is the queen to driving an economy. Basic employment is made up of industries that rely on external factors (beyond the local economic area) to fuel demand. Basic employment produces and/or supplies more goods and services than can be consumed by the local economic area (Ex: Morgantown MSA) which results in consumption outside of the local community. Examples of basic employers close to BDR’s home base include NIOSH, WVU Medicine and Mitsbuishi. On the other hand, non-basic employment depends almost entirely on local demand. Non-basic employment is defined as goods and services that are solely (or almost solely) consumed by the local economic area. Examples of non-basic employers include dental practices, pediatricians, hair stylists, and restaurants.
The two types work together. Non-basic employment supports the demand created by basic employment. This inflow of dollar (increased purchasing power) comes from outside the local economic area. The Economic Base Multiplier (EBM) is a measure that provides an estimate of how changes in basic employment will affect total employment, number of households and purchasing power within a local economic area.
Site To Do Business is an excellent tool for this type of analysis. The bullet points below provide Economic Base Multiplier data for several Multiple Statistical Areas (MSA) within three hours of Morgantown, WV.
Morgantown MSA: 4.06
Martinsburg, WV/Hagerstown, MD MSA: 6.56
Wheeling, WV MSA: 3.26
Pittsburgh, PA MSA: 9.69
Parkersburg/Vienna, WV MSA: 2.65
Charleston, WV MSA: 1.73
Huntington, WV/Ashland, KY MSA: 1.80
Over the past 12 months, West Virginia has enjoyed significant economic momentum.
Mitsibishi is in the process of bringing an additional 240 jobs to Harrison County. Another deal is in the works for Morgantown Industrial Park which could bring ~150 jobs with scalability for much greater employment. Beyond north central WV, Green Energy recently announced their intent to build electric buses in a new South Charleston manufacturing facility. Green Energy plans to hire 200 jobs initially with potential to scale to 900 WV workers within 24 months. Nucor is constructing a $2.7B, state-of-the-art steel making mill in Mason County, WV. Once fully operational, anticipated employment is 800.
Economic base multiplier theory tells us total job creation is well beyond the job announcements highlighted above. Utilizing the closest MSA’s EBM results in the following jobs created:
Mitsubishi: Utilizing Morgantown MSA’s EBM, 240 basic jobs results in 974 total new employees.
Confidential User: Utilizing Morgantown MSA’s EMB, 150 basic jobs results in 609 total new employees.
Green Energy: Utilizing Charleston MSA’s EBM, 200 initial basic jobs results in 346 total new employees. Assuming the operation scales to projected capacity, 900 basic jobs results in 1,557 total new employees.
Nucor: Utilizing Parkersburg MSA’s EBM, 800 basic jobs results in 2,120 total new employees.
Jobs drive an economy. Basic jobs lead to other support jobs, called non-basic, which is calculated via the economic base multiplier.
There are two final steps to fully understand the total impact of these announcements. Our goal is to understand the total dollars flowing into a community as a result of new basic jobs. The next step in the calculation process is to multiply the total jobs by the average household size to get an estimate on total population. The final step is to multiply total households by the average median household income. West Virginia’s state average household contains 2.4 individuals. As of 2019, West Virginia has the following statistics: Average household income is $63,680. Median household income is $46,711. Per capita income is $26,480.
The four announcements highlighted in this article result in guaranteed basic employment (could be more as the business scales) of 1,290. The economic base multiplier calculation provided a total new employment calculation of 4,049 new basic and non-basic jobs. The average household size is 2.4 individuals resulting in 9,718 individuals moving to and or being retained in West Virginia. The purchasing power of these individuals is determined by multiplying per capita income by the number of individuals. These four announcements result in a total increase in purchasing power of $257,332,640. For perspective, West Virginia’s 2020 annual budget was $4.495 billion. The four announcements represent purchasing power equal to 5.7% of West Virginia’s annual budget. These are big announcements for Almost Heaven!
Black Diamond Realty is hopeful this information provides a greater understanding of the dynamic analysis and projections that should be considered when making real estate investment decisions. Economists use many tools, including economic base multiplier, to determine the overall effect on a local economic area. Our team of experts looks forward to working with you on your next project.