CDC Commercial Inc

May 2012 Monthly Letter

“An economy hampered by restrictive tax rates will never produce enough revenue to balance our budget, just as it will never produce enough jobs or enough profits.” – JFK

By now you have paid your taxes and are turning back into our fragile recovery, with a fickle banking system and looming debt maturities and European debt crisis.  However, there are notable opportunities; historically low-interest rates, limited new construction and improving absorption levels.  I am regularly asked how things are going and “what do I see.”  The answer is that the hard numbers (deals, dollars, etc…) are only slightly better than last year and still behind 2010 and 2011.  However, people’s perceptions have also changed slightly.  They are now more likely to see that glass as half full instead of half empty (numerically the same but a more positive perception.)

Optimism can only be rewarded, however, if it takes action.  Without action, it’s like driving a car that runs out of gas; you’ll never arrive at your goal.  In a mid-month note to some of my clients, I discussed the need to look for ways to say, “yes”.  The problem in the market is creating momentum.  And momentum is created by saying yes and not getting idled by saying no out of fear.

“What if” are two simple words that have the power to stop you cold or open up the world of possibilities.  It is what follows the “what if” that makes all the difference.  Most people it seems used “what if” to identify everything that can go wrong. For example:

“What if the deal doesn’t close next week?”

“What if I don’t make enough money for my kids’ college education?”

“What if I am in an accident and die or worse – crippled for life?”

It should be pretty clear that everything in the very short list above has one thing in common – fear of some undesirable outcome in the future.  The worst part is that people who think this way (usually often) are spending their precious “now” moments slamming the door on the possibility.

Now how about asking “what if” this way:

“What if I saw everything that happens (good & bad) as a blessing?”

“What if I closed 10 deals this month?”

“What if I spent more time with my family than working?”

Since three is considered a lucky number I thought I would mention three positive trends/events from the last month.

  • The Navy is expected to announce that it will homeport a dozen more ships in San Diego including two aircraft carriers.
  • San Diego added 2900 jobs between February and March dropping unemployment to 9.5% down from 10.1% last March.
  • NAIOP San Diego recently announced four dynamic clusters in San Diego targeted for growth; unmanned military aerial vehicles, sustainable technology, wireless mobile, medical devices, and craft-beer breweries.

The Law of Now demands that we have faith.  We must believe that we are creative, that we can rise up from adversity and vow to learn from our mistakes, that we trust that our actions can lead to positive outcomes.  Therefore, we’ll only get what we want if we push ourselves forward.

We should learn from our past, hope for a better future but always act in the NOW!  So as your team at CDC navigates through the maze of “No’s” on your behalf – just call us Team Noah…

Could Noah build his ark today?

If Noah had lived in the United States today the story may have gone something like this:

And the Lord spoke to Noah and said, “In one year, I am going to make it rain and cover the whole earth with water until all flesh is destroyed. But I want you to save the righteous people and two of every kind of living thing on earth. Therefore, I am commanding you to build an Ark.”

In a flash of lightning, God delivered the specifications for an Ark. In fear and trembling, Noah took the plans and agreed to build the ark. “Remember,” said the Lord, “you must complete the Ark and bring everything aboard in one year.”

Exactly one year later, fierce storm clouds covered the earth and all the seas of the earth went into a tumult. The Lord saw that Noah was sitting in his front yard weeping. “Noah!” He shouted. “Where is the Ark?”

“Lord, please forgive me,” cried Noah. “I did my best, but there were big problems.

“First, I had to get a permit for construction, and your plans did not meet the building codes. I had to hire an engineering firm and redraw the plans. Then I got into a fight with OSHA over whether or not the Ark needed a sprinkler system and approved floatation devices. Then, my neighbor objected, claiming I was violating zoning ordinances by building the Ark in my front yard, so I had to get a variance from the city planning commission.

“Then, I had problems getting enough wood for the Ark, because there was a ban on cutting trees to protect the Spotted Owl. I finally convinced the U.S. Forest Service that I really needed the wood to save the owls. However, the Fish and Wildlife Service won’t let me take the 2 owls.

“The carpenters formed a union and went on strike. I had to negotiate a settlement with the National Labor Relations Board before anyone would pick up a saw or hammer. Now, I have 16 carpenters on the Ark, but still no owls.

“When I started rounding up the other animals, an animal rights group sued me. They objected to me taking only two of each kind aboard. This suit is pending.

“Meanwhile, the EPA notified me that I could not complete the Ark without filing an environmental impact statement on your proposed flood. They didn’t take very kindly to the idea that they had no jurisdiction over the conduct of the Creator of the Universe.

“Then, the Army Corps of Engineers demanded a map of the proposed flood plain. I sent them a globe.

“Right now, I am trying to resolve a complaint filed with the Equal Employment Opportunity Commission that I am practicing discrimination by not taking atheists aboard.

“The IRS has seized my assets, claiming that I’m building the Ark in preparation to flee the country to avoid paying taxes. I just got a notice from the state that I owe them some kind of user tax and failed to register the Ark as a ‘recreational watercraft’.

“And finally, the ACLU got the courts to issue an injunction against further construction of the Ark, saying that since God is flooding the earth, it’s a religious event, and, therefore unconstitutional.

“I really don’t think I can finish the Ark for another five or six years.”

Noah waited. The sky began to clear, the sun began to shine, and the seas began to calm. A rainbow arched across the sky.

Noah looked up hopefully. “You mean you’re not going to destroy the earth, Lord?”

“No,” He said sadly. “I don’t have to. The government already has.”

Monthly Letter Signup

Enter your information above to be added to our Monthly Letter email list.